independent joe magazine august 2012 #15

and the Picking is Easy!by Stefanie Cloutier

Summertime also in this issue

Sean Tuohy to be Keynote Speaker at the upcoming National Conference at Mohegan Sun

When It Comes to Success,

Sean Tuohy Saw It Coming

by Matt Ellis

August 2012 • Issue 15 We Communicate, We Educate, We Advocate!

DDIFO IndJoe #15 covers print.indd 1 8/28/2012 5:30:06 PM

index Independent Joe

® Advertisers

43210 2

2628202219

HyperActive Technologies

Joyal Capital Management, LLC

Kensington Company& Affiliates

Lisa & Sousa Attorneys at Law

Performance BusinessSolutions

RF Technologies

Siemens

Sprint

Starkweather & Shepley Insurance

1915241412236

2318

3WIRE Group, Inc.

Access to Money ATM, Inc.

Adrian A. Gaspar & Company, LLP

Bright House Network

Comcast BusinessServices

DDFO MassPAC

Direct Capital Franchise Group

Exchange Authority

Fidelity Bank

Amenities continued from page 30

AUGUST 2012 • INDEPENDENT JOE 31

According to The Back Burner Tundra Restaurant Supply blog, “The concept of the ‘third place’ was first developed by Starbucks, and anyone who has been in a Starbucks immediately understands the prin-ciple: make your business feel like a home-away-from-home [or an office-away-from-the-office]. Now other fast casual chains are cashing in on the third place concept, most notably Panera.”

A prominent fear among establishments hesitant to embrace the third place concept

Do Your HomeworkBefore adding a conference room

or other third place features to your shop, here’s what the

experts advise:

Survey customers: formally or informally observe and gather opinions/ideas

Be careful and thoughtful: don’t do anything that will interfere with or alienate regular customers

Identify goals and objectives: make sure they’re in line with the location, customer base and brand

Avoid wasted space: consider a meeting/gathering room with a sliding door so it can be open for “regulars” or closed for reserva-tions

Be flexible: adjust practices ac-cording to customer feedback; re-main open to possibilities outside your initial vision

Use common sense: for exam-ple, price amenities competitively for your market

Be creative: develop innovative marketing/promotional strate-gies that meet different customer needs

Sources: Andrew Swedenborg, King Retail Solutions; Jeff Riggs, Clarks Fork/Wheat Montana; Bob Krim, Clark University Graduate School of Management; Tony Eonas, Suffolk University

is that it seems counter to the idea that less comfortable surroundings encour-age faster table turns.

The Back Burner acknowledges, “Getting customers in and out of your establishment as quickly as possible has long been the way most restaurants make their money. When you convert part or all of your restaurant into a third place concept, you have to take the long view on the table turnover. Under-stand that customers who stay longer tend to invite their friends, and when those friends discover your comfortable atmosphere they’ll come back with their friends, and so on. No other approach has been as successful in the past decade in terms of creating customer loyalty and word-of-mouth marketing.”

Upsell potential and increased repeat business are noted additional benefits.

And it doesn’t have to be an all or noth-ing situation.

“Don’t drop everything to become a third place. For most restaurants the most effective way to leverage the concept is a hybrid approach. For example, convert one section of your restaurant into a comfortable lounge and keep the rest an efficient table-turning machine.”

Swedenborg of King Retail Solutions says, “Every case is different, but we always talk about design with a purpose. It’s vital to ask all the right questions before moving forward. For example if we take away 25 percent of your seat-ing space to build a conference room when you only have 10 tables to begin with, what does that do to your regular coffee customer? It’s more than physical design and amenities; it’s the effect on your guests. In the end, it all boils down to increasing sales through a better customer experience.”


Stars Will Shine at DDIFO Hall of Fame Gala

by Matt Ellis Stars Will Shineat DDIFO Hall ofFame GalaMatt Ellis

Franchise OwnersTarget Capitol HillMatt Ellis

New Remedies for HighCosts at Peak SeasonPerry Ludy

DDIFO Directoryof Sponsors

Franchisees AddAmenitiesSusan Minichiello

Success...Sean TuohySaw It ComingMatt Ellis

Mandell Golf Tournament...15th YearBetsy Lawson

Summertime and thePicking is EasyStefanie Cloutier

Pride in Community Drives FranchiseesElaine Gottlieb

Index ofAdvertisers

03

050708111315162131

This year’s inductees into the Dunkin’ Donuts Franchise Owners Hall of Fame will be:

Manual Andrade Brooks Barrett Jason Dubinsky John Rader Robert Rosenberg Michael Vale – better known as Fred The BakerThe group will be honored at a gala held in conjunction with the DDIFO National Meeting on September 27 at Mohegan Sun.

“We need to recognize the pioneers and those who got us to where we are today,” said John Motta, chairman of the Hall of Fame Nominating Commit-tee.

Since the call for nominations went out to DDIFO members over the summer, the committee – comprised of Motta, Bill Daly Sr., Mark Dubinsky, Steve Gabellieri, Dennis Gramm and Anthony Pellizzi –established a set of criteria for induction.

“When we first started talking about criteria I thought, we need to judge whether the Dunkin’ Donuts system would be materially less than what it is today had that nominee not been involved,” said Dubinsky.

“One of the important attributes is being able to determine whether the nominee has made a lasting impression on the Brand and system. There are a lot of good nominees that have done well in their network but the Hall is about im-pact on brand or on system as a whole. That’s a factor that I’m looking for – the bigger impact,” said Gabellieri, whose father, Ralph, was part of the inaugural class of inductees.

“When my dad was selected it was an honor and a surprise because DDIFO has always been an organization cen-tered on franchisees and my dad was a lifer with the Brand. So it was touching

that he was honored that way,” Gabellieri said.

The Franchise owners Hall of

Fame was estab-lished to recognize the

pioneers and visionaries that helped build the Brand; those who have had a lasting impact on Dunkin’ Donuts.

Seven people were inducted into the inaugural class, all posthumously: John Boujoukos, Antonio Couto, Jose Couto, Ralph Gabellieri, John Henderson, George Mandell and Dunkin’ Donuts Founder William Rosenberg.

This year’s class represents some of the Brand’s earliest franchise owners who got involved when Dunkin’ was a family business, as well as a member of the Rosenberg family. The inclusion of actor Michael Vale speaks to the influence Fred the Baker had as the face of Dunkin’ Donuts for 15 years – a time marked by Dunkin’s ascension as a significant brand.

“When you’re elected to a hall of fame, it’s extremely rewarding. To me the highest honor is being recognized by franchisees because you have contrib-uted to their success,” said Carl Lisa, who has been working with Dunkin’ Do-nuts franchise owners since the 1960’s and accepted the Hall of Fame honors for John Henderson at last year’s gala.

“We agreed the criteria had to be based on whether the nominee had made an impactful difference and how their contribution to the Dunkin’ Donuts system mattered,” said Dubinsky. “The character of the person is important be-cause, ultimately, this about leadership and leaders have to have outstanding character. They have to be respected by their peers.”

When the names are called and in-ductees – or their families – step up to receive their Hall of Fame honors, their

contributions will be clearly defined and their impact will be immediately recog-nized.

“I think this is a wonderful way to rec-ognize people in the system who have made a difference. I think it’s important to be recognized by your peers, particularly in this system where there are so many dedicated franchisees that have worked so hard over the years to make Dunkin’ Donuts the successful brand it is today,” Dubinsky said.

AUGUST 2012 • IndependenT Joe 3

Franchise Owne

r

4 IndependenT Joe • AUGUST 2012

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August 2012 • Issue #15Independent Joe ® is published by DD Independent Franchise Owners, Inc.

Editors: Jim Coen, Matt ellisContributors: Stefanie Cloutier, elaine Gottlieb, Betsy Lawson, perry Ludy, Susan Minichiello

Advertising: Joan Gould • Graphic Design/Production: Susan Petersen

Direct all inquiries to:DDIFO, Inc. • 150 Depot Street • Bellingham, MA 02019

508-422-1160 • 800-732-2706 • [email protected] • www.ddifo.orgDD Independent Franchise Owners, Inc. is an

Association of Member Dunkin’ Donuts Franchise Owners.

IndependenT Joe®, IndY Joe®, and DDIFO® are registered trademarks of DD Independent Franchise Owners, Inc.

Any reproduction, in whole or in part, of the contents of this publication is prohibited without prior written consent of DD Independent Franchise Owners, Inc.

All Rights Reserved. Copyright © 2012 • printed in the U.S.A.

CFA Day continued on page 26

This year, small business owners have kept a keen eye on Washington, DC. Perhaps never before has there been such concern over how Presidential policy and Congressional activity would impact the bottom line. For franchise owners, how a new regulation is written could mean the difference between profit and loss.So it was notable when 58 franchisees from 14 different systems visited mem-bers of Congress and their staffs in July as part of the 2012 Coalition of Fran-chisee Associations (CFA) Day Forum. They were looking beyond health care, tax reform and other issues framing the 2012 elections. They were interested in promoting legislation for next year.It was just a year ago – at the CFA Day Forum – that representatives from different franchisee associations saw the official unveiling of the Universal Franchisee Bill of Rights (UFBOR), a one page fairness doctrine designed to identify the imbalances that exist in most agreements franchisees sign with their franchisor. Since then, over 1,150 franchisees and organizations have endorsed and ratified the Bill of Rights. You can endorse it online; the Web ad-dress is www.franchiseebillofrights.org. “The Franchisee Bill of Rights was the written embodiment of the goals of a fu-ture statute,” said DDIFO Board Mem-ber Pat Kaufmann, who was attending his first CFA day Forum. “people hope this will come in the next Congress, but for now it was a good leave behind for the Congressmen.”“We got good feedback from the Mem-bers of Congress and their staffs and attendees and they felt good about the messaging in the document,” said Keith Miller, a Subway franchisee and chair-man of the CFA. “The messaging has to communicate that we are pro franchis-ing because if our brand expands, our investments are worth more. These are the assets we live and die on.”“We stressed we weren’t there to tear down franchising. It’s important that the brands stay healthy but, in our

opinion, it had become imbal-anced,” said ed Wolak. “on the one hand, franchisors need control to keep franchisees fol-lowing the rules but there are a lot of companies there that are taking advantage of their franchise owners.” Wolak, who was attending his first CFA Day Forum, was quick to point out Dunkin’ Donuts fran-chise owners now have a collaborative relationship with Dunkin’ Brands and a lot of the issues franchisees owners in other systems are facing aren’t of concern to them.A common theme during meetings and presentations – as well as on Capitol

Hill – is that franchising represents Wall Street brands with Main Street investors. And, because the franchise owners are the people hiring a work-force, paying taxes and supporting local charities and initiatives, they have an

Franchise OwnersTarget Capitol Hill by Matt Ellis

NH and VA Franchise owner John Motta and U.S. Senator Kelly Ayotte at the 2012 CFA Day Forum in Washington, D.C.


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minimum �nance amount of $100,000. Finance options are available for remodel projects and new store projects under a separate �nance program. Please contact Direct Capital for eligibility and program terms. Dunkin’ Donuts® trademarks and logos are registered trademarks of DD IP Holder LLC and used with permission.

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The summer of 2012 will be remem-bered for its punishing weather. Depend-ing on where you live, it’s either the extreme heat, the widespread drought or the powerful storms. For Dunkin’ Donuts franchise owners and other quick service restaurant (QSR) operators the weather is always a concern because it impacts our energy costs.

The summer’s high temperatures may bring more customers in for an iced cof-fee and a drink of air conditioning, but the heat and humidity can also make our shops havens for odors. even if the food tastes great and the service is excellent, insufficient air conditioning highlights odors and makes the environment uncomfortable. This could leave a bad taste in customer’s mouths and keep them from returning.

The bottom line is that energy demand rises when we are faced with summer’s heat and humidity. And this year many parts of the nation are reporting peak demand. Record high temperatures in Michigan, for example, have caused near record load levels for utilities. Consumers energy, one of the nation’s largest combination utilities, provid-ing electric and natural gas service to millions of residents and businesses in Michigan, says July’s hot weather pushed customer demand for electricity to its highest level this year. It was the third highest daily load in the company’s 125-year history. It’s a common story across the country.

Restaurants are among the most energy intensive businesses for their size and sales and heating, ventilation and air conditioning (HVAC) systems typically consume the most energy —account-ing for as much as one-third of the total energy used in the average QSR. Refrig-eration accounts for about 30 percent of the utility bill for the average Dunkin’ shop.

With higher temperatures come higher demands on our utility and repair costs.

To address this, many franchi-sees simply budget for higher costs during peak season and handle repairs to air conditioning and refrigeration units as they are needed. But, energy experts recommend taking specific, proactive, measures to reduce energy consump-tion.Recently, while working with a client in the Chicago area on a refrigeration project, I participated in the testing of a new energy-efficient system that doesn’t cost a lot of money and works extremely well. The system is designed to upgrade existing coolers, freezers, and rooftop air conditioning units to run more efficiently by reducing compressor cycles and other sources of energy consumption. The company conducting the test, Pow-erful energy Savings, sells and installs the upgrade to a cross-section of busi-nesses that are reporting savings of 30 percent or more on kilowatt hours (kWh) and utility costs. They provide regular reports based on third-party monitor-ing and verification by GreenTraks, a leading monitoring and energy tracking company.

The chart below is an example of how energy use and savings are reported. Demand is measured in kilowatts and is reflective of compressors going on and off and air conditioning use. The chart shows a significant reduction in kilowatt demand after the upgrade was installed, and going into peak season compared to the previous year. The charts shows de-mand savings for this particular location at $404.19 in the June utility bill.

I was impressed that the parts of Power-ful energy Savings system fit inconspicu-ously on the refrigeration and rooftop air conditioning units. This eliminates any issues regarding bulky equipment or use of space. The system is affordable for any size operation and has a remark-ably short payback period because the monthly savings are so substantial. The demand chart example shows how the upgrade is an attractive solution for

Perry continued on page 27

New Remedies for High Costs at Peak Season

By the author of Profit Building:

Cutting Costs without Cutting People


ViewPoint Sign and Awning35 Lyman Street, Northboro, MA 01532Bill Gavigan • [email protected] • www.viewpointsign.com

WatchFIre Signs1015 Maple Street, Danville, ILdevon Mourer • [email protected] • wwwwatchfiresigns.com

Business Broker Hirshon Associates LLC425 Broadhollow Road, Suite 428, Melville, NY 11747 Andrew Hirshon • [email protected] • www.hirshon.com

Kensington Company & Affiliates185 Roslyn Road, Roslyn Heights, NY 11577david Stein • [email protected]: 516-626-2211 • M: 718-490-2218 • www.kensingtoncompany.com

CML OperationsMid-State Isuzu35 Southwest Cutoff, Worcester, MA 01604Craig Judge • [email protected] • www.midstateisuzu.com

CommunicationsComcast Business Services500 South Gravers Road, Plymouth Meeting, PA 19462Comcast national Sales • [email protected] • www.business.comcast.com/internet/index.aspx

Sprint3 Van De Graaff Drive, Burlington, MA 01803Caroline Fedele • [email protected] • www.sprint.com/ddifomembers

EnergyEnergy Gateway, Inc.451 Worcester Road, Charlton, MA 01507Christopher Tremblay • [email protected] • www.energygateway.com

Glacial Energy 24 Route 6A, Sandwich, MA 02563Kristy Solt • [email protected] 340-201-4323 • www.glacialsales.com/dunkindonuts

Metromedia Energy200 West Park Avenue, Suite 125, Westborough, MA 01581Scott Werman • [email protected] • www.mmenergy.com

Secure Energy Solutions, LLC12-14 Somers Road, east Longmeadow, MA 01028Mike Schmidt • [email protected] ext. 223 • www.sesenergysolutions.org

Finance Business Financial Services3111 N. University Drive, Suite 800, Coral Springs, FL 33065Scott Kantor • [email protected] • www.businessfinancialservices.com

Capital One Bank710 Route 46 east, Suite 306, Fairfield, new Jersey 07004Stuart Vorcheimer • [email protected] • www.capitalone.com

AccountingAdrian A. Gaspar & Company, LLP, CPAs1035 Cambridge Street, Suite 14, Cambridge, MA 02141Robert Costello • [email protected] • www.gasparco.com

Bederson & Company LLP - CPAs and Consultants405 northfield Avenue, West orange, nJ 07052Steven Bortnick, CpA • [email protected] 973-736-3333 • www.bederson.com

Bedford Cost Segregation, CPAs 60 State Street, Suite 700, Boston, MA 02109Bill Cusato • [email protected] • www.bedfordcostseg.com/who_we_serve/ddifo.asp

Cynthia A. Capobianco, CPA60 Quaker Lane, Suite 61, Warwick, RI 02886-0114Cynthia Capobianco • [email protected]

James P. Ventriglia, CPA, Inc.145 Phenix Avenue, 2nd Floor, Cranston, RI 02920 Jim Ventriglia • [email protected] • www.jpvcpa.com

Gray, Gray & Gray, CPA34 Southwest Park, Westwood, MA 02090paul Gerry, CpA • [email protected] • www.gggcpas.com

Performance Business Solutions, LLC87 Lafayette Road, Suite 11, Hampton Falls, NH 03844Jeff Hiatt • [email protected] • www.revenuebanking.com

Rubiano & Company, CPA’s5 Austin Avenue, Suite 1, Greenville, RI 02828daniel J. Rubiano, CpA • [email protected] • www.rubianocpa.com

Sansiveri, Kimball & Co., LLP55 Dorrance Street, Providence, RI 02903Joseph Mansour • [email protected] • www.sansiveri.com

Thomas Colitsas and Associates, CPA103 Carnegie Center, Suite 309, Princeton, NJ 08540Tom Colitsas • [email protected] • 609-452-0889“A Member of Franchise Pros”

Back Office IKMS Group, Inc. PO Box 6221, Manchester, NH 03108Cliff pratt • [email protected] • www.ikmsgroup.com

Jera Concepts - Order and Production Management Software17 Fruit Street, Hopkinton, MA 01748Wynne Barrett • [email protected] • www.jeraconcepts.com

SIB Development & Consulting288 Meeting Street, 3rd Floor Charleston, SC 29401Al Rush • [email protected] • www.sibdevelopment.com

Building Trane HVAC225 Woldwood Avenue, Woburn, MA 01801Jonathan Ralys • [email protected] • www.Trane.com/commercial

Directory of Sponsors

Thank You to Our Sponsors!

Please Visit The DDIFO Sponsor Directory online at: www.DDIFO.org


Centrix Bank & Trust 1 Atwood Lane, Bedford, NH 03110 deborah Blondin • [email protected] 603-589-4071 • www.centrixbank.com

Direct Capital Franchise Group155 Commerce Way, Portsmouth, NH 03823Robyn Gault • [email protected] • www.franchise.lendedge.com

Fidelity Bank465 Shrewsbury Street, Worcester, MA 01604Sally Buffum • [email protected] • www.fidelitybankonline.com

GE Capital, Franchise Finance 201 Merritt 7, 2nd Floor, Norwalk, CT 06851Ab Igram • [email protected] • www.gefranchisefinance.com

Joyal Capital Management Franchise Development50 Resnik Road, Plymouth, MA 02360daniel Connelly • [email protected] • www.jcmfranchise.com

Merchant Cash & Capital450 Park Avenue South, 11th Floor, New York, NY 10016Seth Broman • [email protected] • www.merchantcashandcapital.com

Priority Capital174 Green Street, Melrose, MA 02176Brian Gallucci • [email protected] ext 14 • www.prioritycapital.com

Susquehanna Commercial Finance2 Country View Road, Suite 300, Malvern, PA 19355Brian Colburn • [email protected] • www.susquehanna.com

TCF Franchise Finance300A Lake Street, Suite B, Ramsey, NJ 07446Mike Vallorosi • [email protected] • www.tcfef.com

United Capital Business Lending215 Schilling Circle Suite 100, Hunt Valley, MD 21031Trey Grimm • [email protected] • www.unitedcapitalbusinesslending.com

Food Products CSM Bakery Products1901 Montreal Road, Suite 121, Tucker, GA 30084Marla Cushing • [email protected] • www.csmbakeryproducts.com Quaker Oats A Division of PepsiCo402 Kilarney Way, Royersford, PA 19468ed Bowes • [email protected] • www.pepsico.com

Human Resources CareerBuilder.Com 400 Crown Colony Drive, Suite 301, Quincy, MA 02169Maureen o’neill • [email protected] • www.careerbuilder.com

Employers Reference Source1587 Hamilton Avenue, Waterbury, CT 06706Sandra Fabrizio • [email protected] • www.employersreference.com

Directory of SponsorsGecko Hospitality 1415 West 22nd Street, Tower Floor Oakbrook, IL 60523 Robert Krzak • [email protected] 630-390-1000 • www.geckohospitality.com

Granite Payroll Associates176 Granite Street, Qunicy, MA 02169Marco Schiappa • [email protected] • www.granitepayroll.com

JobOn 141 Log Canoe Road, Stevensville, MD 21409pete Steiner • [email protected] 774-217-0340 • www.jobon.com

Ovation Payroll2 Stamford Landing 68 Southfield Rd. #100, Stamford, CT 06902Jim Ferreira • [email protected] • www.ovationpayroll.com

Snagajob4851 Lake Brook Drive, Glen Allen, VA 23060erin Brumfield • [email protected] • www.snagajob.com/employer-solutions

The PCI Group303 Molner drive, elmwood park, nJ 07407Robert Boffa, Sr. • [email protected] ext. 223 • www.pcihr.com

Insurance The Hill Agency5 Washington Avenue, endicott, nY 13760Rita Frailey • [email protected] • www.thehillagencyinc.org

KK Insurance Agency541 Broadway, Long Branch, NJ 07740Ashish Vadya • [email protected] • www.kkquote.com

Paris-Kirwan Insurance1040 University Avenue, Rochester, NY 14607John Mulcahy • [email protected] • www.paris-kirwan.com

RMS Insurance Brokerage, LLC575 Jericho Tpke, Suite 102, Jericho, NY 11753donna Mis • [email protected] • www.rmsrestaurants.com

Sinclair Insurance Group - Risk Management4 Tower Drive, Wallingford, CT 06492Matt ottaviano • [email protected] • www.srfm.com

Starkweather & Shepley Insurance Brokerage, Inc.60 Catamore Boulevard, east providence, RI 02914Sabrina San Martino • [email protected] ext. 1121 • www.starkweathershepley.com

Wells Fargo Insurance Services2502 north Rocky point drive, #400, Tampa, FL 33607Mark Stokes • [email protected] • wfis.wellsfargo.com

LegalLisa & Sousa Attorneys at Law5 Benefit Street, providence, RI 02904Carl Lisa, Sr. • [email protected] • www.lisasousa.com Sponsors cont. page 18



In 2012, 21 stores have been sold/under contract/letter of intent.We currently represent 12 DD owners in 7 states looking to sell their network of stores.

AUGUST 2012 • IndependenT Joe 11Amenities continued on page 30

Franchisees Add Amenities andMore Comfortable Space“Road Warriors” Wanted to Drive New Business

by Susan Minichiello

If it’s true that America Runs on dunkin’, is it contradictory to create a dunkin’ donuts environment where customers are encouraged to do the exact oppo-site—sit down and stay a while? Maybe not.

Recent years have seen an increase in the number of locations offering features that urge, or at least enable, guests to spend more time in the shop, remain con-nected to work and even hold business meetings. Michael Friedman, president and Ceo of paramount Restaurant Supply Corp., says this emerg-ing trend reflects a shift in the general workforce.

“I believe the driving force behind the roll-out of business amenities in QSRs and fast-casual restau-rants is the mo-bilization of the workforce,” says Friedman. “no longer are em-ployees working just from their office. And many are independent contractors, small business start-ups or ‘road warriors’ traveling near and far from home to com-plete their work. Making QSRs inviting places to park one’s self for an hour or two is essential to drive this road office segment.”

paramount offers restaurant design consultation, foodservice equipment, millwork and installation services and has been involved with dunkin’ donuts from day one. In his work with all types of food service establishments, Fried-man is seeing a rise in restaurants offer-

ing business-friendly services.

“This trend is popping up across many brands. Besides Wi-Fi, other ameni-ties we have seen include soft seating, community tables—longer multi-person tables where meetings can take place—private rooms, and electronics cabling

and charging stations,” Friedman says. “We believe this trend is go-ing to continue to grow in all segments of food service including QSRs as Internet-based busi-nesses and remote employees become a

greater percentage of the workforce. Having a strategy to serve this segment of the clientele is essential. They not only spend a tremendous amount on food and beverages, they also utilize the store in between peak day parts and are extremely socially networked, which cre-ates additional marketing opportunities.”

Andrew Swedenborg, executive Vice president of King Retail Solutions, a re-tail and food service design firm, echoes

Friedman’s assessment.

“QSRs are quickly changing their busi-ness model and incorporating amenities like Wi-Fi, board rooms, catering menus, etc. This is indicative of a greater shift, particularly in major business centers where QSRs are absolutely positioning

themselves to serve busi-ness people as a remote worksite, casual meeting place and even corpo-rate meeting space.” says Swedenborg. “In the past, the goal was to drive people in, serve them quickly, and then shepherd them out the door equally quickly. Today, with more people working

independently and via mobile devices, the goal is to offer more than just quick food and drinks, the new draw is real estate—a comfortable space

people can inhabit, basically a virtual office.”

no one is suggesting a rejection of dunkin’s fundamental business of keep-ing busy Americans “fueled and on the go,” but it’s important to recognize and adjust to an evolving customer base.

TrailblazersAndy patel, a franchise owner with nearly 30 dunkin’ locations in central and west new Jersey just opened a new store in Morris plains that offers free Wi-Fi and other business-friendly amenities. According to patel, the 2,300 square-foot shop is surrounded by two corporate complexes that attract a great deal of business people.

Aside from the 200 square foot conference room, soft seating is another feature designed to attract business people to Andy Patel’s Morris Plains, NJ shop.

Andy Patel hopes to attract business people from two nearby office complexes to his conference space in Morris Plains, NJ


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AUGUST 2012• IndependenT Joe 13Tuohy continued on page 25

Sean Tuohy always wanted to be his own boss. Today, as the owner of 89 Taco Bell and Long John Silver’s res-taurants, he has achieved his dream. But his story, and the lessons he has learned, are an inspiration to all. on September 28, Tuohy will make the key-note address at the ddIFo national Members Meeting at Mohegan Sun.

Because Sean’s dad was the bas-ketball coach at a prestigious private school in new orleans, Sean was granted a private school education even though it was not something his family could afford. He says he knew what it meant to the poor kid in private school. What he didn’t know is how that experience would change him forever.

After a stellar basketball career of his own at the University of Mississippi, Tuohy played professionally overseas. When his father became ill, Tuohy returned home to be with him during his final days. Then he started building a career off the basketball court.

Today, Tuohy is well known as a suc-cessful businessman and as a broad-caster for the Memphis Grizzlies nBA franchise. But he is world renowned as the man who adopted Michael oher, an nFL star who might have never reached his own dreams if not for Tuohy, his wife, Leigh Anne, and their children, Collins and Sean Jr. The story of the Tuohys and oher was made famous in the best-selling book and major motion

picture The Blind Side. The Tuohys took Michael off the street, gave him a loving home and the support he needed to suc-ceed in the classroom and excel on the football field.

“I wouldn’t be the same had I not gone through this. When you eyes are open

wider than the sockets you tend to see more than you did before,” he told Indepen-dent Joe in a recent interview.

By opening their home to a wayward teenager – the Tuohys took a risk. They were a comfortable family enjoying the success of their hard work. When they took Michael in from the cold during Thanksgiving, they had no idea that Mi-chael was so close to falling through the cracks; nor did they know the tremen-dous potential he had. They knew it was a risky step, yet they weren’t afraid.

“You know, you take a risk every day of your life. When you get in your car and drive across a bridge, you take a risk. You don’t know if your tires are good, or if the pilings are going to hold, or if the bridge will fall in. But you don’t really stop and think about it, do you?” the Tuohys said in a 2010 Charisma maga-zine interview.

Sean Tuohy took a different kind of risk in 1988. He was 25 years old, the father of a three year-old girl and the president of a local security company. He remem-bers walking into the owner’s office and asking permission to leave work early so he could watch his little girl perform in an easter play.

“When I walked out of his office, I said, ‘I don’t ever want to have to do that again.’ I knew he wouldn’t say no but I couldn’t stand the thought of having to ask. I didn’t want to work for someone else. I wanted to be my own boss,” he said.

So, he left his job and amassed all the capital he had – $19,000 – and got a bank loan to cover the balance of the cost of buying what he called a “run-

down, one-off Taco Bell” in Meridian, Mississippi. Tuohy likes to joke that they would have probably given him the restaurant if he had asked because they really didn’t see any value in it. But, he did.

The store finally earned a profit and Tuohy bought his second franchise; he is now working on adding the 90th

shop to his network.

“I always aspired to own my own company and what inspired me was my daughter’s easter play. now, I just have to answer to myself,” Tuohy told Inde-pendent Joe. “I really believe there is no better avenue to building wealth than the franchise business.”

Along that avenue, Tuohy admits, there is hard work and much to learn. He re-calls a time early in his franchise career when a district manager was coming to inspect the restaurant and he was out in the back washing the dumpster. He wanted to make sure it was clean enough to pass inspection and the thought never occurred to him that the

When It Comes to Success, Sean Tuohy Saw it ComingFranchisee made famous in the movie The Blind Sidewill share his inspirational story with DDIFO

by Matt Ellis

Sean and Leigh Anne Tuohy

The Tuohy family: Sean, Leigh Anne, Michael, Collins and Sean Jr.

Sean started his franchise business with one Taco Bell in Meridian, Miss.


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Mandell Golf Tournament Celebrates 15 Years of Raising Money to Fight Cancerby Betsy LawsonThe 15th Annual George Mandell Memorial Golf Tournament and Auction, held at The International in Bolton, Mass. on Monday, August 13, was a rousing success again this year, raising more than $580,000 for the Jimmy Fund and dana-Farber Cancer Institute.

About 300 people in all attended the all-day event that included the golf tournament, dinner and live and silent auctions. of that, some 250 were golfing – including some 50 franchisees – according to event co-chair Melanie King. King is director of Marketing & Communications at dunkin’ donuts national dCp (ndCp).

“It’s like a big family reunion every year,” King said of the event that takes months of preparation and a very early start time on the actual day. “The volunteers show up at 6:30 am to help with logistics and goody bags,” she said, and all the details that go into making the event a fun and successful fundraiser year after year.

The tournament began in 1998 to honor George Mandell, a franchise owner who lost his battle with cancer. In their welcome letter to participants, King and co-chair Maria Ambach, Administrative Assistant / event planner at national dCp, wrote:

“We are constantly reminded of the need for cures to rid cancer. Even though cancer death rates are falling steadily, it is estimated that 1.5 million new cancer cases will be diagnosed in 2012. The increased mortality is driven in large part by better prevention, increased use of early detection practices, and improved treatments for cancer. While funding for essential research is becoming re-strained due to budget cuts, the country is closer than ever to promising break-throughs in cancer treatments.

Thanks to your generosity and contin-ued support, the Dunkin’ Donuts “Right Treatments Rid Cancer” Research

Fund has helped make Dana-Farber Cancer Institute a proven leader in the field of cancer medicine. Your support has provided DFCI researchers with the freedom to pursue basic forms of laboratory discovery that often leads to groundbreaking clinical and scientific advancement. Although there have been exciting research advances in 2011, the work remains unfinished.

Thank you for your support and participa-tion in today’s event as we continue our passionate quest for a cure.”

According to King, this is the largest private golf tournament that raises money for the Jimmy Fund, which has been leading the fight against cancer since 1948. dunkin’ donuts became an official sponsor of the Jimmy Fund in 2000. There are only a few courses in the area that can offer two, 18-hole courses, King said, enough to accommodate the close

Mandell continued on page 24

Bobby Jose, and Franchisees Mike Lincoln, Marc Lincoln and Fred Lincoln show off the nautical theme at this year’s Mandell Tournament.


Blueberries – those purple-blue orbs of juicy sweetness. When we think of the perfect berry, we usually picture them big and round, the bigger the better. And what you see in the grocery store produce section is just that. But those aren’t the kind of blueberries dunkin’ donuts puts in their scrumptous blue-berry muffins. no, dunkin’ donuts muf-fins are studded with the much smaller wild blueberry, grown primarily in places with sandy, acidic soil and cold winters. places like Maine.

These are the sought-after berries that are perfect for baking, and that have more flavor and more health benefits than their cultivated cousins. Maine is the number one producer of wild ber-ries in the world, and dunkin’ donuts is one of the largest single buyers of blueberries overall. It’s a match made in heaven.

Historically, Maine blueberries have always been a part of dunkin’s muf-fins, even back when the muffins were mixed and baked in the individual shops. They provide the desired fin-ished profile and experience customers have come to expect from dunkin’ do-nuts. In fact, the reduced fat blueberry muffin has the same high-quality flavor as its fuller fat sibling; the executive chef for dunkin’ Brands (dBI) insists that there be no reduction in taste, regardless of fat content.

david Walack, a franchise owner with a store in midcoast Maine as well as one in Virginia, says he loves blueber-ries and really loves dunkin’ donuts’ blueberry muffins.

“There are very few things I would categorize as to die for,” says Walack. “(our muffins) would be one of them.” According to Walack, one of the things that make them so good is that the mix doesn’t overpower the blueberry taste. He says the blueberry muffins are a year-round bestseller.

Why Maine wild blueberries? The short answer is that they are sweeter and tastier than their larger cousins. Because they are smaller, they have a higher skin-to-fiber ratio, meaning less water and more berry flavor. And since the skin is where the antioxidants reside, smaller berries are actually healthier for you. Antioxidants are the things that protect your cells from the damaging effects of free radicals; the higher the antioxidants in something, the better it is for you. According to dr. david Yarborough, Wild Blueberry Spe-cialist at University of Maine Coopera-tive extension, wild blueberries have

twice the number of antioxidants as the larger cultivated berries.

The interesting thing about Maine wild blueberries is exactly that: they are wild. Growing close to the ground, they have an extensive underground root system; there is no easy way to take a cutting and transplant it elsewhere to cultivate. Instead, Maine blueberry farmers manage the crop by clearing the area around existing berries, giving the plants room to spread and grow. Because of that, the farmers haven’t bred different varieties of the berries, so these are the same berries that have been growing in Maine for as long as anyone remembers.

even so, hundreds of varieties have occurred naturally, resulting in different leaves, stems, and colors of the fruit. This has created a genetic diversity that makes these berries more resistant to pests, and therefore less likely to suc-cumb to disease.

Still, Mother nature is the one who determines the blueberry supply from

Blueberries continued on next page

Photo above: Maine blue-berries have a higher skin-to-fiber ratio which makes them sweeter and healthier.

Cover photo: To control pests, Maine blueberry farmers manage their crops on a two-year cycle to minimize the use of pesticides.

by Stephanie Cloutier

Summertimeand the Picking

is Easy!

Therefore they can’t ruin the crop, and farmers can minimize their agricultural inputs as compared to other fruits and vegetables. Fewer pesticides mean healthier berries.

There are 575 growers in Maine, rang-ing from the very smallest family-run farms to large commercially managed

farms, with the larger farms integrat-

ing growing and pro-cessing of the berries. Bell says that it was just seventeen years ago that the majority of the harvest was done by hand, with rakes; nowadays, 80% of the crops are mechanically harvested.

“The tradition in central and eastern Maine was for factory workers to take a week or two off to pick blueberries,” says Bell. Because whole families would get involved, “it was a great way to teach work habits to kids.” Those traditions are long gone, due to things


year to year. In the last decade or so, the blueberry crop, both wild and cultivated, has been increasing, but so has demand. To manage the ups and downs, farmers invest a lot in irrigation; their goal is to have an ample crop at a fair price. Growers understand that wild blueberries are a premium product, and they work to hit the sweet spot with customers, maintaining their symbiotic relationship.

According to Mark dipietro, the director of Quality Assurance for the national dCp, dBI selects and specifies the blueberries that are chosen for the muffins. And, he agrees, from a flavor perspective, the wild Maine blueberries just can’t be beat. “They are regarded as high quality in terms of flavor and size.”

“our growers and proces-sors are proud to supply Maine wild blueberries to dunkin’ donuts – when they put our blueberries in their products and people recognize it as a Maine product, the premium halo will be there,” said david Bell, executive director of the Maine Wild Blueberry Commission.

To supplement the Maine crop, dBI also buys blue-berries from Canada. According to the Research and development group, the division is usually 80/20, with the percentage from each varying year-to-year based on crop availability and quality.

The history of the Maine wild blueberry as a commercial endeavor goes back to the 1840’s, when settlers learned to manage the crops from local native Americans. For almost 5,000 years, the native Americans would come down to the coast, where the blueberries grow best, for the summer. They used the berries both fresh and dried, for eating as well as medicinal purposes. over time, they noticed that after a fire, the berries grew back within two years. So they began setting wildfires in the bar-rens to prune the wild blueberries. They

taught this method of managing the wild berries to Maine settlers.

nowadays, Maine blueberry farm-ers manage their crops on a two-year cycle: after the harvest, they prune the fields. The next year is for vegetative growth, with the berries coming back the following year. early on, this pruning and clearing was done as the native Ameri-

cans had, with setting fires. Later the farmers would use straw to enhance the burn, and then propane burners; since the 1970s, they have used me-chanical mowing.

david Bell says that the beauty of the two-year system is that it inter-rupts the natural cycle of pests. According to Bell, blueberry fruit flies propagate by laying their eggs in the ripening berries. In a year of regrowth, the new flies hatch in the spring, and instead of finding fruit, emerge into a field of green grass.

Blueberries continued from page 16

Blueberries continued on page 23

A sampling of this year’s Maine wild blueberry crop. Berries like these are one of the rea-sons why Dunkin’ Donuts blueberry muffins have a unique, sweet taste.

Summertime

A recent harvest of Maine blueberries


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DDIFO® does not endorse or recommend commercial products, processes, or services. A DDIFO® sponsor is paying to advertise, and it is not to be considered a product or service endorsement by DDIFO®. Furthermore DDIFO® does not control or guarantee the currency, accuracy, relevance or completeness of information provided by sponsors in their advertising.

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Pride in Community DrivesFranchisees to Contribute


by Elaine Gottlieb

Community Pride continued on page 28

Last Christmas, hundreds of children crowded into the Germantown neigh-borhood Center in Quincy, Massachusetts for the annual Breakfast with Santa event. every child got to sit on Santa’s lap, have their picture taken and receive a gift that they request-ed weeks earlier. parents and children enjoyed a breakfast of dunkin’ donuts coffee, hot chocolate, donuts and muffins.

“Most of these kids never had their picture taken with Santa,” said Victor Carvalho, who, with his brother, octavio, owns nine dunkin’ donuts stores in Quincy and neighboring Weymouth and Hingham. For the past nine years, the Carvalhos have sponsored Breakfast with Santa. “one year, a three-year-old girl came running over to thank me. That’s what Christmas is about – the look of excitement in her eyes.”

over the years, word of Break-fast with Santa has spread through the community, bringing the mayor and city councilors to the event. “We usually try to do things quietly. We’re not chas-ing glory but it’s a great feeling when people look you in the eye and thank you and know that you are trying to make a differ-ence,” said Carvalho.

The Carvalhos also support Weymouth Youth and Family Services, making it possible for teens to at-tend baseball games and visit places like Canobie Lake amusement park. Community involvement is a Carv-alho family tradition, starting with their father, Joe, who purchased the original dunkin’ donuts shop along with two others in Quincy, and immediately began sponsoring Little League, bas-ketball and soccer teams, which the brothers continue to support.

Local sports teams in northern new Jersey benefit from the support of Tom oliver and his wife, Rana, owners of a dunkin’ donuts in Allendale, new Jersey. They also support churches, synagogues, a Veterans of Foreign Wars (VFW) post, and a community food bank. “I very rarely turn down solicitations,” said oliver, who previ-ously owned 12 dunkin’ donuts shops in new Jersey and new York’s northern suburbs.

“My wife and I believe that it is really important to give back to the commu-nity. We don’t want to be viewed as business owners who are just trying to make a dollar and don’t care about the community. We love the brand and are blessed to have a dunkin’ donuts fran-chise and are happy to be here. There’s nothing nicer than when people walk in and say ‘thanks for helping out’.”

The Carvalhos help sponsor the annual Breakfast with Santa event in Quincy, Mass.

Octavio Carvalho, Victor Carvalho and Quincy Mayor Thomas Koch at last year’s Breakfast with Santa


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such as child labor laws and health rules. now some companies even have lights on their tractors so they can harvest twenty-four hours a day, waiting for the cool of the night to chill down the berries and minimize the damage to the crop.

Because of their thin skin, the major-ity of the crop is frozen; only a small percentage is sold fresh. They are shipped the world over, to europe, Japan, Korea, Israel and China. Japan, in particular, demands perfect berries, which has forced the Maine growers to improve conditions. Chances are good that the frozen berries you find in your neighborhood grocery store have come from Maine.

The importance of the wild blueberry crop to Maine culture is illustrated beautifully in the classic children’s story, “Blueberries for Sal,” by Robert McCloskey. In the story, little Sal and her mother go off to pick wild blueber-ries to can for the winter. At the same time, a mother bear and her cub scour the fields to fill up on wild berries in preparation for the winter hibernation.

So absorbed are they in their pursuit of the juicy little blue orbs that the mothers inadvertently swap children: little Sal starts following the mama bear while the cub begins eating berries out of the pail. In the end, of course, the bears go off to hibernate while the humans put up jars of berries for the cold months ahead.

The good news is, dunkin’ donuts takes on the onerous task of collect-ing the berries, meaning those sweet Maine blueberries are available year-round, ready to be baked into their sought-after muffins.Says Walack, the franchise owner in Maine, “The most important thing is to enjoy them (the muffins), but don’t over-indulge. They’re a special treat.”


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Blueberries continued from page 17

Dunkin’ Donuts takes on the task of collecting the sweet Maine blue-berries...thus making them available year-round


Mandell continued from page 15

to 250 players who range in skill from novice to seasoned pro.

“players love it at The International in Bolton,” King said. Its central Massa-chusetts location right off I-495 makes is accessible to those from all over new england.”

A few years ago, the tournament’s format was changed to a scramble so that they could quicken the pace and making it fun for golfers of all levels.

Bristol, RI, franchisee Chris prazeres has played in the tournament along with his brother, Cliff, and father, Joe, since the tournament’s inception in 1998. Joe prazeres, originally from portugal, opened his first dunkin’ do-nuts store in 1989 in Raynham, Mass., and his sons have followed him into the business, developing a network of shops in Rhode Island.

Chris joked that he’s “not much of a golfer” but he looks forward to partici-pating in the annual event. He doesn’t hit the driving range ahead of time or do any special preparation other than

In 2011, George Mandell was inducted into the Dunkin’ Donuts Franchise Owners Hall of Fame. The following excerpt is from

the Hall of Fame program created for the 2011 Hall of Fame Gala:

George Mandell 1935-1998

George Mandell was a pharmacist at a neighborhood drug store when his broth-er-in-law Bob Rosenberg became president of dunkin’ donuts. George shared Bob’s vision for expanding the chain through franchising and opened his first two stores in dorchester and Mattapan, Mass. then branched out into Boston’s south shore. Through hard work, perseverance and building a loyal following of happy customers, George emerged as a leader among franchisees, particularly those who were just joining the system.

When he lost his battle with cancer in 1998, a golf tournament was established in his name to raise money for cancer research and has raised millions of dollars for dana Farber and the Jimmy Fund over the years. His legacy lives on with the principles he taught to his four children and grandchildren. daughters Sharon and Lynne still run the Weymouth store.

“We are very proud to be associated with such a wonderful event,” Lynne Man-dell said. “My dad would be honored. Just knowing that the money is being used for finding ways to cure cancers means a lot to our family. We know how hard the battle is, and we just want to make it easier for others going through it.”

Mandell continued on next page


Tuohy continued from page 13

hauling service he had contracted would give him a brand new one if he asked.

“I loved it anyway because it was my dumpster, it belonged to me.”

Tuohy doesn’t have the time to clean the dumpsters much these days. Aside from operating his network and keep-ing up with his TV commentating gig, he accepts speaking engagements to share his story with others.

When he takes the stage at the ddIFo national Members Meeting, Tuohy says he will be with people who understand him. “These are my folks and I just want to inspire and entertain them a little.”

on stage, he likes to engage with his audience. often, he’s asked, how can you only rescue one person’s life when so many are in need? And, how can

you help others if you don’t have a lot of money?

The answer, he says, is found in this Biblical passage from 2 Corinthians 9:7, “each man should give what he has de-cided in his heart to give, not reluctantly or under compulsion, for God loves a cheerful giver.”

“Cheerful giving” is how Sean and Leigh Anne frame the life-altering experience of adopting Michael oher. In 2010, the couple wrote their own book on the sub-ject – In a Heartbeat: Sharing the Power of Cheerful Giving. It became a new York Times bestseller and popularized the phrase, “the popcorn theory”, which the couple uses to describe their philosophy.

“The popcorn Theory is about noticing others. It’s about seeing, not turning

away from the immediacy of someone in need,” they told Charisma. “Like popcorn, you don’t know which kernel’s gonna pop. They just show up. It’s not hard to spot them. The popcorn Theory goes like this: You can’t help everyone, but you can try to help the hot ones who pop right up in front of your face.”

It’s a simple concept that Tuohys are spreading through their work with the Grace evangelical Church in Memphis – a church they helped to create. Sean also shares his message of hope and opportunity with his audiences.

“The smallest of things can make the biggest of differences. It’s key to my story, the tiny step that leads to the long journey.”

encourage others in the dunkin’ com-munity to come out and support a good cause.

“It’s a great day and wonderful way to raise money to fight cancer,” prazeres said. And raise money they do. This year, the family was recognized for all their contributions and were named recipients of the John Henderson Award (see sidebar at right). “We were all surprised when our names were announced,” prazeres said, “It was a great moment to be associ-ated with the award.” Those in attendance felt the same way–they gave Chris, Cliff and Joe prazeres a standing ovation.

In-store Initiative Helps Customers Contribute to Fight against Cancerdunkin’ donuts franchise owners in new england have developed a strong and heartfelt relationship with the Jimmy Fund and dana-Farber Cancer Institute (dFCI) over the years. This summer, the northeast Chapter of The dunkin’ donuts & Baskin-Robbins Community Founda-tion (ddBRCF) once again partnered with the Jimmy Fund and dana-Farber

to promote a relatively new in-store program that invites guests to donate $1 to support the Jimmy Fund and The ddBRCF.

From Saturday, August 4 through Sun-day, August 12, each guest who made a

donation was invited to write his or her name on a paper cup icon. It was then added to the display in the restaurant.

The campaign, launched just last year, supports dunkin’ donuts’ desire to bring their franchisees’ passion for the Jimmy Fund to life in-store and provide a means for consumers to participate in the fundraising efforts. Last year, this program collected $127,000 in dona-tions. This year’s totals are still being calculated, but from initial estimates it looks like this fundraiser was again a tremendous success.

John Henderson AwardAnnounced during the Mandell Golf Tournament, this award is given to people in the dunkin’ donuts com-

munity who have a sincere passion for cancer research. Like John Henderson

himself, the recipients have made a difference in the lives of cancer patients, researchers and doctors

through their selfless acts of generos-ity over the years. This year’s recipi-ents were Joe, Chris, and Cliff praz-

eres, franchisees from Bristol, RI.

Past Recipients2008

Michael Higgins from Mother parkers Tea & Coffee

2009Tom denesowicz, franchisee from

northbridge, MA

2010 Mark, david and Greg Cafua,

franchisees with stores located in the northeast and Mid-Atlantic areas

2011In Memory of

Helen d’Alelio - Mitzi Lawlor, Ralph d’Alelio Jr and Gary d’Alelio,

franchisees from Medford, MA

Mandell continued from page 24

Maria Ambach, Joe Prazeres, Cliff Prazeres, Chris Prazeres and Melanie King at the 2012 George Mandell Golf Tournament


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important voice in the way their business is conducted.“The aggregate of all the franchisees out there, single unit and multi unit – in all the different brands – gives us the kind of clout a large company like Verizon has. our employees and customers represent an overwhelming number of registered voters, and our taxes and combined campaign contributions are major amounts. Together we can command the kind of attention a single franchisee could never get alone” said Rob Branca, CFA vice-chairman.He and others who visited Capitol Hill this summer believe public officials are beginning to understand more about the role franchisees play in the nation’s economy. “I got the sense that people we were talking to understood what franchi-sees do; they got it. I think efforts like this are having some effect,” said Kaufmann.The next step, according to Kaufmann and others, is to help Members of Con-gress recognize the need for government intervention to level the playing field.“I went to a few different Congressional offices and there was definitely interest

with both democrats and Republicans,” said John Motta, another first-time at-tendee. “We told them how franchise agreements have changed over the years. They used to be 10 pages, now they’re 50. It’s much more in favor of the franchisor. We told them we needed sponsors to introduce the legislation on our behalf and there was genuine inter-est.But, Motta admits, a lot depends on the outcome of this november’s elections. The Affordable Care Act, for example is still expected to draw legislative and judi-cial challenges. Some franchise owners took the opportunity to explain to their Congressmen and staffs how regula-tions calling for owners to provide health insurance to their full-time employees will significantly impact operating costs for franchisees. Some franchisees say it could ultimately put more people out of work.Many franchise owners are also con-cerned that automatic cuts triggered by the Budget Control Act of 2011, will hurt their business.

Motta, who owns dunkin’ donuts shops in new Hampshire and Virginia, got a sense of the fallout of those cuts when he attended a town hall meeting in norfolk, VA after his visit to Washington, d.C.“Senator (John) McCain, Senator (Kelly) Ayotte (R-nH) and Senator (Lindsey) Graham told the town meeting that a huge chunk of these cuts will be in de-fense spending. Well, norfolk is a military town. They could lose 11,000 jobs. That will definitely affect my business.”now in its 4th year, the CFA day Forum is more than a leadership conference for franchisee associations. It is becoming one of the best ways franchisees can learn about how new federal laws and regulations will impact them, communi-cate concerns to directly to Congress-men and their staffers, and frame the issues around how the fallout will affect their constituents. “When we add up our locations, number of employees and taxes paid in that per-son’s district, we have much more clout,” said Branca.

CFA Day continued on next page


Perry continued from page 7

Perry Ludy is a senior executive, business consultant, and author of business books. He is president of LudyCo International. Contact Perry at [email protected].

soaring energy consumption – especially during peak season.

In planning for 2013, consider the factors that affect increases in demand such as air-conditioning and ventilation. This is a good time to investigate your options for profit improvement with the goal of continuing to offer value, service and a healthy atmosphere for your customers.

There are other affordable energy-effi-cient measures to consider. A measured rollout of all of the appropriate products is a good way to ensure maximum ef-ficiency in your shop.

• Humiditycontrols• Doorheatercontrollers• Energy-efficientwaterheaters• Solarhotwaterpre-heaterfordish-washing

• Ceilingfanstobettercirculateair• Air-to-airheatexchangers• Upgradeinsulationonrefrigera-

tion systems, equipment, freezer rooms, or suction lines

• Highefficiencymotorstoreplaceoldmotorsthatwearout

Most states offer incentives and rebates to businesses with energy reduction programs. According to the U.S. environ-mental protection Agency’s energy Star Website, one Subway franchise owner saved $20,000 by installing energy-effi-

cient air-conditioning, heating, ventilat-ing, lighting, ceiling fans, and ice makers throughout seven Subway locations in oklahoma. With these improvements, he reduced his energy costs by 40 percent and “made his restaurants more attrac-tive and comfortable for customers.”

There are also federal tax credits avail-able to small businesses for making energy efficiency upgrades. Unlike a deduction, which reduces the amount of income subject to tax, a tax credit directly reduces the tax itself. More information is available online at http://www.energytax-incentives.org/business/.

The federal government also offers the Tax Incentives Assistance program (TIAp) where businesses can get deduc-tions for new or renovated buildings that

save 50 percent or more of projected annual energy costs for heating, cool-ing, and lighting. partial deductions for efficiency improvements to individual HVAC, lighting, and water heating are also available.

In addition, you can contact your local utility company and request an en-ergy audit. For no cost, they will give you recommendations for reducing

energy demand within specific areas in your shops.

If you install new, energy-efficient prod-ucts and need to train your employees on how to use them, you can qualify for state and federal funds to cover the cost of training.

“Going green” has become a buzz phrase encompassing so many different things. But, for dunkin’ donuts franchise owners, going green could be a path to better profitability. When you improve energy efficiency you will also improve your customer’s experience, and your bottom line.

Federal tax credits are available for energy efficiency upgrades.

“one of the most interesting things I saw was this convergence of issues across the different systems. It was reassuring to see this meeting of the minds,” said Kaufmann. “Though we are in different indus-tries, and some of us are even competitors, we have many of the same issues. That resonates that a particular tax or other policy cannot be pigeon-holed as just a dunkin’ donuts problem,” said Branca. The 2012 CFA day Forum was the largest ever and Miller says the CFA wants to double its franchisee participation in 2013 to help “broaden the base and make an even stronger showing on the Hill.” He says the coalition is look-ing at shortening the event so attendees

CFA Day continued from page 26

only need stay over one night thus lowering the cost.“If we make it more convenient and more affordable, we can probably attract more franchisees,” he said.

Robert Branca and Pat Kaufmann on the U.S.

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Community Pride continued from page 21

Community Pride continued on next page

Pride and Community InvolvementCommunity involvement comes natu-rally to franchise owners. It comes with the pride they have representing the dunkin’ Brand. Having a shop in a com-munity means being part of that com-munity, not just as a business owner but as a partner in local initiatives.

This summer, franchise owners in philadelphia awarded $25,000 to recipi-ents of the third annual dunkin’ donuts philadelphia Regional Scholarship program.

A similar program in Rhode Island and Bristol County, Massachusetts is in its 14th year of awarding scholarships to 100 high school seniors and college students who excel academically, dem-onstrate leadership qualities, and are involved with the community. over the years franchisees have provided $1.4 million in funding for the scholarship program so area students can further their education.

“now more than ever, hard-working families are watching every penny, and we are pleased to have the opportunity to offer the dunkin’ donuts Scholarship

to the students in our communities once again,” franchise owner Joe prazeres told QSR magazine.

The Premier Cricket League in Paterson, NJ supports the community’s growing Bengali community. Adam Goldman’s “Team Dunkin’” finished second in league play in 2011


Community Pride continued from page 28

prazeres owns eight shops in Rhode Island and serves as chairman of the local Advertising Committee. This year, he received the presidents’ Award for contributions to the Special olympics; in 2010, dunkin’ Brands named him philanthropist of the Year.

In Illinois, franchisees support the Spe-cial olympics with a unique fundraising event, “Cops on the Roof.” This past June, Illinois Attorney General Lisa Ma-digan and police officers in Glenview, Illinois, and surrounding towns, stood on the rooftops of 130 dunkin’ donuts stores, shouting out to customers to support the olympics, raising $243,000. Attorney General Madigan told the Chi-cago Sun-Times: “It’s one of the most meaningful things I do. We can help these kids have terrific opportunities, [and] it’s better than sitting in the office.”

SupportingPublicSafetyEmployeespolice officers are typically found in – not on top of – dunkin’ donuts stores. A hot cup of coffee and a tasty snack are always a welcome diversion for public safety workers. At Adam Goldman’s dunkin’ donuts shops in paterson, new Jersey, public safety workers always get a warm welcome. Before becoming a franchisee, Goldman worked as an executive consultant and a paramedic. during his nine years on the ambulance crew in north Jersey, Goldman would always head to dunkin’ for a cup of cof-fee to get through his shift.

His way of thanking paramedics, police officers and firefighters is to give them a discount. In fact, because one of his restaurants is located across from a funeral home, there are often police officers on funeral duty stopping in. “I know how hard they all work so I make sure we take care of them and they get products from us,” he said.

Goldman is also a major supporter of the 200 Club, an organization that helps those who keep the community safe: police officers, firefighters, state troopers and first responders. It offers college scholarships to their children and pays funeral expenses for those killed in the line of duty. “dunkin’ is a high-profile name. When I walk through

paterson, people know me as a dunkin’ owner. I’m the only fran-chisee in the city with two stores. I want people to realize that we are part of the community; we’re not here just to make money. I chose to buy stores in paterson to serve a forgotten community,” said Goldman.

The third largest city in new Jersey, paterson has been bat-tered by the economic downturn, with cutbacks in city services and employees. When a lot filled with construction debris next to one of Goldman’s shops became a drug hangout, he worked with the city and the shopping mall next door to get it cleaned out. “The city is working harder with fewer resources. I’ve gotten to know the mayor and town council and Chamber of Commerce to try to make a difference,” he said.

paterson is home to the country’s second largest Bengali commu-nity; so many Bengalis live there that the city now features the pa-terson premier Cricket League. A number of Goldman’s employees are Bengalis so he sponsors a team and helps fund the league. Last year, one employee was named the league’s player of the Year.

“Here I’m in a position to employ new citizens and give them the opportunity to have what I’ve had,” he said. “The first time a Bengali ran for city council, he used our store as an informal meeting place. I don’t mind when people take up seats. When I was a consultant, I spent hours working at my local dunkin’ donuts.”

Carvalho’s shops are also gathering places. A city councilor meets regularly with constituents at one of the Quincy dunkin’s. At other stores, exercise groups meet for coffee after their walks and the local bowling league congregates on game nights. “We have a lot of regulars,” said Carvalho. “people feel comfort-able at our stores.”

Carvalho and his fellow franchisees know that comfort comes not just from excellent service and quality products; but because they regu-larly give back to their communities and earn their place as loved and trusted neighbors.

Adam Goldman’s shop was the only restaurant to take part in this year’s Paterson 4th of July downtown merchants event



“When we started plan-ning the layout of the new location, we thought about how we can add more value and more reason for people already in the area to walk in the door,” patel says. “Another goal is to attract more new visitors to choose to come to this dunkin’ donuts.”

With so many business people stationed at and traveling through the Route 10 east strip where the shop is located, developing amenities to serve these individuals seemed a smart way to go. patel and his partners decided to des-ignate part of the store seating for more comfortable, soft chairs to invite custom-ers to sit for a bit while they enjoy their coffee and catch up on email or surf the Web. They also built a 200 square-foot conference room that seats up to eight people and has a projection screen for presentations. patel noted that other meeting room spaces in the area charge upwards of $150 to $200 per hour, which seemed cost-prohibitive especially for smaller groups, so he is initially renting his conference room for $25 per hour.

“We just opened on June 27th, so we’re still figuring out how best to market the conference room. We’re working on creating packages that would include the

room rental plus coffee, or the room rental plus coffee and cookies, for an addition-al fee. We’re also consider-ing what other amenities we may develop,” says patel.

patel says they are open to non-business uses of the conference room, such as small family gatherings or birthday parties.

“It’s all still very new, but when people walk in, they’re excited. They feel good, like we’re doing something posi-

tive for our customers.”

Jay pandya is a franchisee who owns 25 dunkin’ donuts stores in pennsylvania and new Jersey as part of the Rohan Group. His newest shop in Whitehall Township, pA is a “Just Baked on demand” store—with all pastries, bagels and croissants baked on-site—and has several unique features. Special light fixtures and flowers at the entrance inject a more attractive and welcoming ambiance. Converted from a former bank branch, the 3,000 square-foot loca-tion has a conference room, a 32-inch flat screen TV, ample seating, free Wi-Fi and additional power/outlets.

“There are a lot of small businesses and offices located in the area. We wanted to take advantage of the diverse opportuni-ties the market presented, fully utilize the space and effectively support and serve our different customers,” pandya says. “our decisions were based on the assessment of the trade area and aimed at fulfilling the needs of customers while maximizing our return.”

The location’s 288 square-foot confer-ence room features a projection screen and seats 12 to 16 people. It can be booked in advance with the store man-ager or used on a first come, first served basis. pandya charges $50 for the first hour and $35 for each additional hour. A Box o’ Joe and a dozen donuts are in-cluded with all reservations over an hour. A dedicated server can be requested to take individual orders at no extra charge. Aside from business meetings, the room is used for family gatherings, birthday parties and other approved social gather-ings.

“Customers like the idea of having a conference room to rent as they know the coffee and donuts are preferred by their participants. plus, the atmosphere is welcoming and the rate is comparably affordable,” says pandya. “It’s working so well that we will consider similar design and amenities when building or remod-eling restaurants in central business districts.”

But that doesn’t mean pandya didn’t have some doubts leading up to the grand opening nine months ago.

“This was a brand new concept and we weren’t sure how customers would inter-pret and respond to the changes. We had some trepidation about interfering with the more traditional ‘in-and-out’ type of customer,” pandya admits. “But after we opened, we realized that it was a great move. It is a big enough restaurant with the ability to cater to all our customers. We also joined the Whitehall Area Cham-ber of Commerce to align ourselves with other local businesses and build a greater relationship with the community, which demonstrates our dedication to the area and all types of guests.”

“ThirdPlace”EvolutionRay oldenburg, an urban sociologist from Florida, is credited with coining the term “third place” in 1990. He defined third places as public spaces that “host the regular, voluntary, informal and hap-pily anticipated gatherings of individuals beyond the realms of home (the first place) and work (the second place).” But today’s third place often serves as an ex-tension of the workplace, whether one’s workplace is a traditional office, a home office or largely on the road.

Jay Pandya’s shop in White-hall Twp., PA is 3,000 square feet. The conference room is 298 square feet, features a projection screen and will seat up to 16.

Amenities continued on next page

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AUGUST 2012 • INDEPENDENT JOE 31

According to The Back Burner Tundra Restaurant Supply blog, “The concept of the ‘third place’ was first developed by Starbucks, and anyone who has been in a Starbucks immediately understands the prin-ciple: make your business feel like a home-away-from-home [or an office-away-from-the-office]. Now other fast casual chains are cashing in on the third place concept, most notably Panera.”

A prominent fear among establishments hesitant to embrace the third place concept

Do Your HomeworkBefore adding a conference room

or other third place features to your shop, here’s what the

experts advise:

Survey customers: formally or informally observe and gather opinions/ideas

Be careful and thoughtful: don’t do anything that will interfere with or alienate regular customers

Identify goals and objectives: make sure they’re in line with the location, customer base and brand

Avoid wasted space: consider a meeting/gathering room with a sliding door so it can be open for “regulars” or closed for reserva-tions

Be flexible: adjust practices ac-cording to customer feedback; re-main open to possibilities outside your initial vision

Use common sense: for exam-ple, price amenities competitively for your market

Be creative: develop innovative marketing/promotional strate-gies that meet different customer needs

Sources: Andrew Swedenborg, King Retail Solutions; Jeff Riggs, Clarks Fork/Wheat Montana; Bob Krim, Clark University Graduate School of Management; Tony Eonas, Suffolk University

is that it seems counter to the idea that less comfortable surroundings encour-age faster table turns.

The Back Burner acknowledges, “Getting customers in and out of your establishment as quickly as possible has long been the way most restaurants make their money. When you convert part or all of your restaurant into a third place concept, you have to take the long view on the table turnover. Under-stand that customers who stay longer tend to invite their friends, and when those friends discover your comfortable atmosphere they’ll come back with their friends, and so on. No other approach has been as successful in the past decade in terms of creating customer loyalty and word-of-mouth marketing.”

Upsell potential and increased repeat business are noted additional benefits.

And it doesn’t have to be an all or noth-ing situation.

“Don’t drop everything to become a third place. For most restaurants the most effective way to leverage the concept is a hybrid approach. For example, convert one section of your restaurant into a comfortable lounge and keep the rest an efficient table-turning machine.”

Swedenborg of King Retail Solutions says, “Every case is different, but we always talk about design with a purpose. It’s vital to ask all the right questions before moving forward. For example if we take away 25 percent of your seat-ing space to build a conference room when you only have 10 tables to begin with, what does that do to your regular coffee customer? It’s more than physical design and amenities; it’s the effect on your guests. In the end, it all boils down to increasing sales through a better customer experience.”


and the Picking is Easy!by Stefanie Cloutier

Summertime also in this issue

Sean Tuohy to be Keynote Speaker at the upcoming National Conference at Mohegan Sun

When It Comes to Success,

Sean Tuohy Saw It Coming

by Matt Ellis

August 2012 • Issue 15 We Communicate, We Educate, We Advocate!


independent joe magazine august 2012 #15

Documents

place concept

place features

customer loyalty

customer base

survey customers

regular customers

conference room

customer feedback remain