Capitalizing on CrepesBy Sherri Daye
Why it bears watching There’s a whole lot more going on at the Europe Connection Cafes than just coffee and crepes. The Holbrooks have a solid business plan in place—grow the chain slowly, raise brand awareness through promotions like holiday gift baskets and outside catering, and expand the menu as the customer base grows. An area development deal in Las Vegas is already in the works. Phoenix is next.Convincing Americans to look at crepes as more than a sweet, coffee complement turned out to be a much easier task than Troy and Ashley Holbrook expected. The hard part about starting a quick-serve crepe business in the U.S., they found, was getting the necessary equipment from Europe to Utah—and then getting it to work. But they did it, and today there are 11 Europe Connection Cafés throughout Utah.
The idea to offer European-style crepes as an alternative to traditional American wraps and sandwiches came to the Holbrooks during a semester spent studying on the Continent. Once home, the pair began experimenting with creating their own version of the meat-, fruit-, and creme-filled crepes they found everywhere in Europe. “We took our crepes to fairs and festivals and found that the consumer was trying to Americanize the crepe. ‘It’s too sweet,’ they said. So, we fixed the batter. ‘You should add vegetables.’ So we added lettuce and sprouts,” says Troy Holbrook.
European Connection has found success, says Holbrook, because of the “relatively healthy, relatively inexpensive” nature of its main dish. In terms of calories and fat, a plain crepe is the equivalent of one slice of white bread. Similar to the set-up at a deli, customers choose their own mix of fillings and watch as the crepe is then grilled before them. Options include everything from Jamaican jerk chicken to Nutella chocolate and bananas. And then, of course, there’s the European-style coffee—the perfect complement to sweet, fruit- or ice-cream filled crepes. “We’ve been termed a ‘dash of Subway and a dash of Starbucks,’” says Holbrook.
Thanks, in part, to the Salt Lake Winter Olympics, the year 2002 finds Europe Connection considering franchise requests from as far England and Guatemala. But, Holbrook says, ”There is no way we’d make a leap without being certain that there was an infrastructure in place to support the stores.”
Sales for the 11 (five company-owned and six franchise) are expected to total $6 million in 2002.
Bye Bye BeefBy Sherri Daye
Why it bears watching Why not? Sure there’s the fad factor to consider, but if located in the right area and marketed with the non-vegetarian in mind, Mr. Goodburger should spend quite a few years making money for its owners/operators. By acknowledging that a burger should taste, feel, and smell like burger—not an odd-tasting,rubbery thing, Mr. Goodburger positions itself as a legitimate option for the meat lover seeking healthier fare.
With only one store, Hawaiian-based newcomer Mr. Goodburger hardly seems worth writing back to the mainland about. Unless, of course, one considers the current state of the quick-service industry. If one looks at the market demand that drove Burger King to develop the Veggie Whopper and the recent lawsuit filed against the industry’s big players and consumer concerns relating to mad cow and a host of other meat-related issues, Mr. Goodburger’s vegetarian-only menu suddenly begins looking pretty darn timely.
“The timing is just perfect,” agrees Wes Zane, one of the chain’s two founders and its vice-president of operations. “Twenty years ago, when we were in the age of excess and decadence, this concept wouldn’t have worked. Now…”
Now, Mr. Goodburger is poised to take advantage of the nation’s second look at the way it eats. Centered around the chain’s proprietary tofu patties, the organic menu of Mr. Goodburger includes eats like oven-baked French fries and tater tots, veggie chili, and power shakes—stuff that would most definitely fall into the “Just what the doctor ordered” category. But the stars of the menu are the tofu patties, seasoned to mimic popular tastes such as Memphis BBQ, Polynesian treats, and spicy Cajun dishes. For the meat-loving skeptic in every crowd, there’s even “The Classic,” a patty flavored to taste just like the all-American burger, sitting on bed of lettuce, tomatoes, and pickles.
Before the first store ever opened, the plan was to franchise the concept. “My motto is: “Who ever heard of fishing for minnows?,” says Zane, who envisions a minimum of 200 Mr. Goodburgers on the mainland by 2005. But first there are various franchising licenses to obtain, capital to raise, et cetera, et cetera. This is why Zane and his partner Anthony Spadaro (who is ironically known as the Hawaiian Sausage King) hired FranCorp, the franchise development firm to lead the way. The company has estimated unit start-up costs at $125,000 and anticipated annual sales at $480,000. A second store is scheduled to open in San Francisco by early 2003 and other sites in the Bay Area are being considered.
Coffee ContenderBy Sherri Daye
Why it bears watching Starbucks will remain the coffee king for years to come. Keep in mind, though, McDonald’s was once an unassailable giant too. Today, Subway has more units. Wendy’s has more prestige. And, Burger King is looming in the wings. Anything can happen in quick-serve. With its wholesale, branding, and business service divisions already in place and the company’s new focus on franchising, in the years to come Port City Java may turn out to be a giant killer, at least on the East Coast.
Watch out Starbucks. In Wilmington, North Carolina, three thousand miles across the country, another coffee empire is brewing. Like you, Port City Java (pcj) has made its name serving organic, gourmet coffee in intimate, trendy settings. Like you, Port City has kiosks and cafes inside high-end grocery retailers. Like you, Port City has international locations—two of them, in fact. But you’re a coffee shop chain. And, with its menu of breakfast sandwiches, salads, paninis, and 100 percent fruit smoothies, Port City is more.
Seven years ago, Port City Java was a local Carolina coast secret. Other than the vacationers who flocked to the area each summer, not many outside the region had ever sipped a cup of Port City’s Italian Roast or tried one of the chain’s fresh juice blends. But—thanks to Wilmington’s once thriving film industry and the influx of tourists it brought—word eventually got out and potential franchisees came calling. Now 20 to 30 stores are expected to open along the Eastern seaboard within the next three years; 50 more by 2010. Already, Port City has units operating as far away as Reykjavik, Iceland and Greenwich, Rhode Island.
By the end of the 2002, 90 Harris Teeter grocery stores throughout the Southeast will offer Port City’s blends. The shop’s beans are available wholesale. A branded coffee program is also in place. And, a business services division puts Port City’s coffee in breakrooms and boardroom. Pretty ambitious stuff.
But, lucky for you, Starbucks, the management team behind Port City is committed to its small-town roots—for now. “We don’t ever want to be so big that we lose sight of what got us here,” Port City’s COO, Steve Schnitzler, was quoted as saying in the company newsletter, The PC Java Journal. But I’d keep an eye on Port City anyway.
