Multi-Unit Franchisee Magazine Issue IV, 2015 | Page 56

Branching Out ternative Points of Distribution (APOD) Task Force, which assists franchisees with non-traditional locations and the host relationships that ensue. Dunkin’ has been at the forefront of alternative development, with offerings in airports and other mass transportation terminals, casinos and resorts, hospitals, stadiums, grocery stores, C-stores, military bases, and colleges and universities. “Some of these opportunities are obvious, some are less obvious. It is important for franchisees to pursue them,” says Branca, whose extended family owns more than 800 Dunkin’ Donuts stores, dominating the brand in the Northeast. Robert Branca, Jr. hotels, convention centers, military bases, hospitals, travel stops, big box stores, and anywhere customers gather, pass through, work, or live. Food brands, a natural choice for alternative settings, have received the most fanfare, but retail, health-related brands, and service franchisees such as mailing and tax preparation businesses are finding plenty of non-traditional places to build their brands. Non-traditional sites are also booming because customers are demanding that brands think—and deliver—differently. Evolving technology and lifestyle changes continually influence customer expectations, says Robert Branca, Jr., chairman of Branded Management Group, which operates more than 80 Dunkin’ Donuts in Massachusetts, New York, and Ohio. “If the consumer interacts with your brand, you have to be where they are and where they want you,” he says. “Non-traditional development is a way to do that. It allows you to keep relevant, to not miss transactions, and to further enhance brand loyalty. The other side of that coin is that if you want to continue to grow in highly penetrated markets for your brand, those are sometimes the only opportunities left.” Branca is well-versed on the pros and cons of non-traditional locations. As an attorney, he negotiated some of his company’s first non-traditional sites. Today he is the franchisee chair of the brand’s Al- 54 Reaching mobile customers Gregg Hansen, a Huddle House franchisee in Chattanooga, Tenn., found nontraditional expansion opportunities on the road. Hansen, the brand’s 2015 Franchise Partner of the Year, recently partnered with Pilot Flying J, the country’s largest operator of travel centers and plazas, to transition 11 Huddle House shared-space sites to his portfolio, which now stretches from Georgia to North Dakota. The move makes Hansen the brand’s largest franchisee. “The strongest advantage is that the demographics of the Pilot Flying J guest are very similar to the demographics of Huddle House,” says Hansen, who also owns seven freestanding Huddle Houses. “It’s the kind of food that folks want to eat while they are on the road—get filled up and stop and relax a bit. I have always loved the match, and it is what drew me to want to participate. The challenge is that we are in multiple states, and any time you are trying to do anything in multiple states there are obstacles in executing the plan and systems to get the maximum benefit.” Midway through the expansion, for instance, Hansen realized that he would have to revamp his usual local marketing tactics to reach professional drivers, who often are far away from home. “We’ve had our arms wrapped around trying to develop a marketing program that specifically addresses our professional drivers, which is much different than most people’s idea of traditional marketing,” he says. “We are pursuing out-of-the-box things to try to figure out how to reach our professional drivers.” Most of them so far, he says, are electronic, such as texts and mobile apps. Gregg Hansen MULTI-UNIT FRANCHISEE IS S UE IV, 2015 muf4_mobile(52,54-55).indd 54 10/7/15 12:47 PM