Schlotzsky’s-Cinnabon-Carvel opens at Camp Pendleton

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Schlotzsky’s Camp Pendleton will kick off its grand opening April 1st at 9:00 a.m. with a day of fun-filled events, including a prize wheel, Schlotzsky’s eClub giveaways and more. The first 100 active duty members to purchase a CinnaPack of six Cinnabon Classic rolls from 9:00 a.m. to 10:00 a.m. will receive one free The Original (small) sandwich a week for a year. 

The opening ceremony will begin at 10:00 a.m. followed by a free lunch of small sandwich combos available to all guests with a valid military I.D. from 11 a.m. to 1 p.m. as well as a free small Carvel Ice Cream cone from 4 p.m. to 6 p.m.

Building 51096, Area 51, Basilone Road at San Onofre Center

See you there!

Cobranding Part 1: Will it work for fast casuals?

Cobranding in the restaurant industry may have started in the ’90s with “KenTacoHut” — Pizza Hut, Taco Bell and KFC — but fast casuals are starting to embrace the idea. Bruegger’s Bagels and Caribou Coffee, for example,  expanded their cobranded concept last year to North Carolina, marking the third cobranded unit for the two brands, and Bruegger’s recently announced a deal to pair up with Jamba Juice in South Florida. Another smoothie concept, Smoothie Factory, is now testing cobranded units with Red Mango, and Fatburger has combined with Buffalo’s Café to offer chicken with its burgers in California.

While developing the right partnership and operations formula can be tricky, cobranding is a great way to add an additional revenue stream for franchisees, said Kelly Roddy, CEO of Schlotzsky’s, which has been cobranding since 2007 with Carvel Ice Cream and Cinnabon. He said the key to a solid cobranding partnership is ensuring that both brands benefit. The Schlotzsky’s/Cinnabon cobrand, for example, gave Cinnabon the opportunity to expand beyond malls and travel centers but also allowed Schlotzsky’s to offer menu variety to guests.

“It’s a great partnership for us and contributes to dayparts beyond lunchtime, including breakfast for those restaurants that open early as well as snack/evening options,” Roddy said. “Cinnabon also offers an additional catering option for our guests.”

The benefits

Those are just a couple benefits that cobranding can provide, said Steve Beagelman, president and CEO of SMB Franchise Advisors. Cost savings and risk aversion are two others.

“When you want to keep costs down, cobranding makes a lot of sense. When you’re going through the real estate process, you can save a lot of money up front since you’re utilizing two business to pay the rent for one location,” he said. “So, a lot of brands look at cobranding because it saves the front-end costs. The best benefit is utilizing and cross-training the labor. So you’re saving on your rent, your build out, your employees. There are a lot of economic reasons why cross-branding makes sense.”

Risk aversion is another benefit of cobranding, said Catherine Kearns, general manager of CHD Expert North America.

“Cobranding affords restaurants an opportunity to introduce their products to new markets, while mitigating cost and risk,” she said. “A significant capital investment is required to open a restaurant, especially costs associated with making a brick and mortar location service ready, and cobranding allows for brands to test new territories, while requiring less money for initial overhead costs.”

The challenges

While the benefits of cobranding are numerous, there are also challenges, including the possibility of complicating operating procedures and brand dilution, especially when one brand’s word-of-mouth, marketing and history are stronger than the other, said No Limit Agency’s Chief Brand Strategist Nick Powills.

“You are dealing with two brands and, in many scenarios, two different customers. Even if you sell cookies and ice cream, the cookie customer may not have the same taste as the ice cream customer at that exact moment,” he said.

Beagelman agreed but also said some franchisors will risk brand dilution to score faster distribution, so it’s often a trade off they are willing to make.

The possibility of complicating operating procedures stems from the fact that franchises abide by corporate-mandated guidelines, so combining operations from two entities can create challenges, Kearns said. For example, if two brands come together and they both have exclusive contracts with their own paper goods supplier, someone may have to break a contract.

“In addition to contracts and sourcing of products, melding two different restaurant cultures can also be a challenge,” she said. “Many chain restaurants have a pre-established operations manual and different standard to which they hold their team accountable. This includes processes for food preparation, customer service, and employee culture. Introducing two company cultures with different standards is not a seamless process. Camaraderie and synergy will take time to develop.”

These reasons, Kearns said, are why it is more common for cobranding to occur among companies who share a parent company — Yum! Brands, for example. Even then, however, it’s not a sure thing.

“You are mixing two brands with two different missions — even when run by the same franchisor,” Powills said. “Cobranding certainly can make sense when you are not experiencing a strong ROI from every square foot of your restaurant, however, it is a tricky balancing act, no matter how you look at it — so, being an effective operator will be critical.”

Should you cobrand?

Before hopping on the cobranding wagon, operators should ask themselves a few questions. They include:

  • Am I comfortable with employees being cross-trained?
  • Am I comfortable with potentially sharing revenue streams?
  • Do I really need two concepts under the same roof?
  • How will my brand benefit?
  • What negative effects will it have on my brand?
  • How is my brand perceived in comparison with the brand I am cobranding with?
  • How will my core consumer base react to this cobranding?
  • What is the cost benefit analysis on customer acquisition?
  • How will marketing efforts be affected?
  • How are joint decisions going to be made between the two separate corporate entities?
  • How will vendor relationships be affected?
  • And how will my internal employee culture be affected?

“The best time to co-brand is when it will help both perspective franchises and customers,” Powills said. “Many brands have mastered the art of this concept, hoping that franchise operators will be happier with a mixed portfolio and that customers will frequent the business more with more options.”

A mutual benefit is what inspired the partnership between Bruegger’s and Jamba Juice, said Arturo Zindel, the developer of the five cobranded Bruegger’s and Jamba Juice units in South Florida.

“We believe there are synergies with the brands plus additional operational efficiencies and economies of scale when you build stores that offer the two brands together,” he said. “Additionally, in the case of Bruegger’s Bagels and Jamba Juice, the dayparts are different plus both brands stand for high quality products and a top end customer experience in the stores, so we believe they will be a great fit offered under one roof.”

The same can be said for Schlotzsky’s, which has been so happy with its partnerships with Carvel and Cinnabon, that it’s launching a five-restaurant test with TCBY this April in the Austin area. Through the express format, the chains will offer six yogurt flavors and more than 15 types of toppings, Roddy said.

“We are excited about this opportunity and the potential daypart expansion,” he said.

Editor’s note: This is part 1 in a two-part series about cobranding. The next installment will feature Q and A interviews with three restaurant operators who have found success in cobranding.

Source: Fast Casual

Schlotzsky’s brings Lotz Better model to area

By BRENDA SHOFFNER / Daily News 

MARY ESTHER — It’s not often that a brand-name restaurant gives an area a second chance. When Schlotzsky’s opened its Lotz Better location in the middle of last year, that’s what it did. It had tried a Mary Esther site years earlier. This time a different formula might be the key to success.

The food
Schlotzsky’s is known for The Original: lean smoked ham, Genoa and cotto salamis, melted cheddar, mozzarella and Parmesan cheeses layered with black olives, red onion, lettuce, tomato, mustard and signature dressing on a toasted sourdough bun.
Other sandwiches include smoked turkey breast, turkey bacon club, Angus roast beef and cheese, and fiesta chicken.
There are also fresh veggie (cheddar cheese, cucumber slices, red onion, tomato, lettuce and black olives), ham and cheese, pastrami reuben and chipotle chicken.

Sandwiches are available in small, medium and large sizes. Any can be turned into a meal by adding chips and a drink. Abandoning the trademark round bun for a wrap is an option, too. Schlotzsky’s also offers pizza, salads and soups. Pizzas come in 8-inch and 14-inch sizes. They include pepperoni and double cheese, fresh veggie, grilled chicken and pesto, smoked turkey and jalapeno and a combination. Salad choices are cranberry, apple, pecan and chicken; hearts of Romaine chicken caesar; turkey avocado cobb; turkey chef; and garden.

My guest chose a large turkey bacon club and a bowl of Timberline chili for his meal. The sandwich was as big as the plate it was served on, and was deemed delicious. The chili, served steaming hot in a nice-sized bowl, was also good. It came with crackers.
I chose to go with Schlotzsky’s “Pick Two” option. You get to select any two of half a medium sandwich, bowl of soup, half an 8-inch pizza or half a salad. It was difficult, but I finally decided on half of a smoked turkey-guacamole sandwich and half of a pepperoni/double cheese pizza.

The sandwich was part of a “Winterific” menu. It tasted fine but was a little disappointing compared to my guest’s sandwich. The pizza was delicious with light crust and flavorful sauce and toppings. Schlotzsky’s offers Coca-Cola products at a serve-yourself dispenser. A separate iced tea machine dispenses Southern, unsweet and raspberry versions of Fuze tea.

A press release explained that part of the Lotz Better restaurant model is co-branding deals. In this case, that’s with Cinnabon and Carvel Ice Cream. My guest and I each chose a different Cinnabon for dessert. I had the carmel pecan version, and my guest had the classic. Both were good although they could have stood being heated a little more. Other choices include the Minibon, Center of the Roll and a variety of packs. There are also desserts on the Schlotzsky’s menu including cookies, cheesecake, brownie and two kinds of cake. On a chilly winter day, no one was eating ice cream. Schlotzsky’s also does catering with items ranging from trays to box lunches.

The atmosphere
The clean, bright dining area is larger than I expected. It included free-standing tables and chairs as well as banquette seating along one wall. There were also a few tables outside. A large-screen television hangs on one wall. I think it was set on a news channel, but what distracted my attention was that the screen also contained standing ads for Schlotzsky’s. A short hallway connects Schlotzsky’s to the convenience store next door. The hallway is also where the restrooms are located.

The service
Orders are placed at the counter, where you receive a number. A server delivers food to your table when it’s ready. The young man taking orders on the afternoon of our visit was pleasant and patient explaining the Pick Two menu, delivering our food and clearing away used dishes. He also seemed to know several of the other diners who came in while we were there. Some stayed to eat in while a few ordered their food to go.

A final taste
In its second Mary Esther incarnation, Schlotzsky’s seems to be attracting new business as well as repeat customers.

Source: NWF Daily News

Business Matters: Schlotzsky’s in Brooklyn Center

Schlotzsky’s open second Minnesota location in Brooklyn Center, complete with Cinnabon & Carvel Ice Cream

Schlotzsky’s-Cinnabon-Carvel opens in Las Cruces!

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We have a brand new Schlotzsky’s-Cinnabon-Carvel coming to Las Cruces, NM. We’ll kick things off with a ribbon cutting ceremony at 9:30 a.m. and doors will open to the public at 10 a.m. on Thursday, September 26. Get there early, because the first 100 people to purchase a Cinnabon 6-Pack will get FREE Schlotzsky’s for a year. That’s one FREE small The Original sandwich each week for 52 weeks! We’ll have lots of fun games and other prizes to giveaway all day. Don’t miss it!

1763 University Blvd., Suite A, Las Cruces, NM

575-522-3355

*One small The Original sandwich per week at this location for 52 consecutive weeks commencing on September 26, 2013 and expiring on September 26, 2014. Only valid for persons 18 years or older. Offer valid only at the Las Cruces Schlotzsky’s.

Schlotzsky’s-Cinnabon-Carvel is coming to Philly

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We are so excited to make our way to Philadelphia! We are celebrating the grand opening of our Schlotzsky’s-Cinnabon-Carvel in Philly on Thursday, August 29. Doors open at 10am and the first 100 to purchase a Cinnabon 6-Pack will get FREE Schlotzsky’s for a year. That’s one FREE small The Original sandwich each week for 52 weeks! We’ll have lots of fun games and other prizes to giveaway all day. Don’t miss it!

4600 City Line Avenue, Philadelphia, PA

*One small The Original sandwich per week at this location for 52 consecutive weeks commencing on August 29, 2013 and expiring on August 29, 2014. Only valid for persons 18 years or older. Offer valid only at the Philadelphia Schlotzsky’s.

Schlotzsky’s-Cinnabon-Carvel opens in McAlester, OK

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Join us for the grand opening celebration of our Schlotzsky’s-Cinnabon-Carvel in McAlester, OK on Thursday, July 18. Doors open at 10am and the first 100 people to purchase a Cinnabon 6-Pack will get FREE Schlotzsky’s for a year. We’ll have lots of fun games and other prizes during the day!

503 S. George Nigh Expressway, McAlester, OK 74501

*One small The Original sandwich per week at this location for 52 consecutive weeks commencing on July 18, 2013 and expiring on July 18, 2014. Only valid for persons 18 years or older. Offer valid only at the McAlester Schlotzsky’s.

Schlotzsky’s-Cinnabon-Carvel opens in Placerville, CA

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We are so excited to announce the grand opening of our first location in Northern California. Don’t miss the grand opening of the new Schlotzsky’s-Cinnabon-Carvel in Placerville, CA on Thursday, July 18. Doors open at 10am and the first 100 people to purchase a Cinnabon 6-Pack will get FREE Schlotzsky’s for a year. We’ll have lots of fun games and prizes, including a photo booth, so get there early!

3023 Forni Road, Placerville, CA 95667

530-621-3025

*One small The Original sandwich per week at this location for 52 consecutive weeks commencing on July 18, 2013 and expiring on July 18, 2014. Only valid for persons 18 years or older. Offer valid only at the Placerville Schlotzsky’s.

Tending to Business: Schlotzsky’s

Ask most young children what they’d like for their birthday, and their responses will typically include the hottest toy, video game or fashion trend. Lea Dalleggio’s wish, however, was a little more complicated. She wanted a Schlotzsky’s.

The franchise, popular in the South, became a favorite destination of hers as a child, when she would dine there regularly while visiting her grandmother in Houston, Tex.

“I wanted to be able to eat my sandwich whenever I wanted,” she recalls. “I was obsessed with the brand.”

The business venture didn’t make sense for the Dalleggios after Lea graduated college, but her father sold his business while she was pursuing her MBA, and suddenly owning a Schlotzsky’s became a more realistic possibility for the family. Upon completion of her studies, her father bought the New Jersey franchise rights to Schlotzsky’s, and the first eatery recently opened its doors at 39 Nathaniel Pl. in Englewood. The family plans to open 16 additional New Jersey locations over the next five years.

“I wanted the best of everything,” said Dalleggio. “I did all the homework. Schlotzsky’s is famous down South, but I have to spread the word and educate people.”

The restaurant, which she describes as “brand new and sparkling,” seats 65 people and features a menu that includes pizzas, salads and sandwiches. All bread, Dalleggio said, is baked from scratch on a daily basis. Among the most popular sandwiches are The Original, which contains lean smoked ham, Genoa and cotto salamis, and melted cheddar, mozzarella and parmesan cheese layered with black olives, red onion, lettuce, tomato, mustard and dressing, and the Angus Roast Beef & Cheese, which earned celebrity status in Pain and Gain, a 2013 American crime film starring Mark Wahlberg.

Schlotzsky’s also has Cinnabon cinnamon rolls, Carvel ice cream and Jersey Roasters Coffee, and will soon offer yogurt and fruit salad breakfast selections. The soda machine, which contains 129 different flavors, has been an exciting addition to the restaurant, according to Dalleggio. “It’s always fun to see what flavors mix together,” she said.

Patrons can take advantage of the Monday “Bunday” deal, which includes any small sandwiches or pizza for $3.99 (after 3 p.m.), or try their luck at Bingo on Wednesday nights. Those who can finish a large sandwich in fewer than 10 minutes — the restaurant’s “Lotza Meat Challenge” — are rewarded with a free Cinnabon and their picture on the wall.

“Every day is a little bit better,” she said. “I already have people coming in four times per week. Those who come in and try it really love it.”

Located in the Englewood ShopRite Plaza, Schlotzsky’s is open Monday through Friday, 8 a.m. to 8:30 p.m., Saturday, 9 a.m. to 8 p.m., and Sunday, 10 a.m. to 6 p.m.

For more information, call 201-608-5422 or visit schlotzskys.com.

Source: NorthJersey.com

Schlotzsky’s-Cinnabon-Carvel opens in Lake Worth, TX

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Join us on Thursday, June 27 for the grand opening celebration of the new Schlotzsky’s-Cinnabon-Carvel in Lake Worth, TX. Doors open at 10am and the first 100 people to purchase a Cinnabon 6-Pack will get free Schlotzsky’s for a year! We’ll have a prize wheel, goodies and lots of fun for the day!

3530 NW Center Drive, Fort Worth, TX

(817) 882-6885

*One small The Original sandwich per week at this location for 52 consecutive weeks commencing on June 27, 2013 and expiring on June 27, 2014. Only valid for persons 18 years or older. Offer valid only at the Lake Worth Schlotzsky’s. 

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