Page 124 - Entrepreneur - USA (January - February 2020)
P. 124

THE             FRANCHISE










                                                                                                          something went off in people’s brains
                                                                                                          where they said, ‘Hey, this isn’t a restau-
                                                                                                          rant; this is a delivery concept. It’s a
                                                                                                          catering company.’ ” Mora’s sales actu-
                                                                                                          ally increased, while his monthly costs
                                                                                                          dropped about 20 percent. “My custom-
                                                                                                          ers just stopped coming in and instead
                                                                                                          began ordering for their offices.”
                                                                                                            Fazoli’s, a 220-unit fast- casual Italian
                                                                                                          food chain based out of Lexington,
                                                                                                          Ky., counts itself among the restau-
                                                                                                          rants shrinking its footprint. “When I
                                                                                                          started 11 years ago, we were 60 percent
                                                                                                          dine-in and 40 percent drive-through,”
                                                                                                          says Fazoli’s president and CEO, Carl
                                                                                                          Howard. “Now it’s 57 percent off- premise
                                                                                                          and 43 percent dine-in.” The numbers
                                                                                                          have essentially flipped, and the trend
                                                                                                          suggests they’re going to continue mov-
                                                                                                          ing in that direction.
                                                                                                            The restaurant’s new test model, which
                                                                                                          has yet to officially roll out, shrinks the
                                                                                                          store from today’s high end of 4,400
                                                                                                          square feet to 2,500 or less. But fewer
                                                                                                          tables doesn’t necessarily mean fewer
                                                                                                          diners: Fazoli’s is also planning to add a
                                                                                                          second drive-through lane, so more cus-
                                                                                                          tomers can grab and go.
                                                                                                            Ghost kitchens take the shrinking trend
                                                                                                          to its extreme, and as such, some pundits
                                                                                                          worry that they’re bad for the restaurant
                                                                                                          industry. Their proliferation in metro-
                                                                                                          politan areas could steal customers who
                                                                                                          would otherwise dine in. They could even
                                                                                                          run nondelivery spots out of business.
                                                                                                            But an industry in upheaval also pre-
                                                                                                          sents opportunity for entrepreneurs who
                                                                                                          are nimble enough to adapt, and Sebes,
                                                                                                          the hospitality consultant, sees a future
                         THE NUMBER OF PEOPLE IN AMERICA AGED
                                                                                                          where dine-in restaurants could jus-
                                                                                                          tify the costs of signage, high ceilings,
                         65 AND OLDER WILL HIT 70 MILLION BY 2020
                         Now is the best time to start a business in this                                 and painted wall graphics by serving as
                         $300 billion dollar industry.                                                    advertising vehicles for the delivery oper-
                                                                                                          ation. “The food may be replicable, but
                                                                                                          the experience, atmosphere, and ambi-
                                                                                                          ance are not,” he says.
                       From personal care to private-duty nursing, ComForCare’s                             People who walk into a full-size Dog
                       mission is to help provide a safe environment for seniors                          Haus, for instance, are able to experience
                       who are aging in place, allowing them the grace, dignity,                          it the way Koontz did his first time. His
                       and pride they deserve. ComForCare is known throughout                             restaurant plays music videos on the wall-
                       the industry for developing specialized senior care                                mounted TVs and has a deep selection of
                       programs including Alzheimer’s care.                                               local craft beer on tap. It’s only natural
                                                                                                          that customers fall in love the same way
                                                                                                          he did—and they’ll remember that the
                              Visit us at ComForCare.com/Franchising                                      next time they pull up Grubhub.
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