The National Volunteer Fire Council Announces Winners of National Junior Firefighter Program Grants

Firehouse.com reports that the National Volunteer Fire Council (NVFC), in partnership with the Dunkin’ Donuts and Baskin-Robbins Community Foundation, has selected 10 outstanding junior firefighter programs and Explorer Posts from departments nationwide to receive a $5,000 grant through the NVFC National Junior Firefighter Program. This is the second year that the program has honored ten exceptional junior firefighter programs with grants.

“We are very pleased to partner with the Dunkin’ Donuts and Baskin-Robbins Community Foundation to provide grants to help fire departments further develop their junior firefighter programs,” said NVFC Executive Director, Heather Schafer. “The 10 applicants selected by the Grant Review Committee stood out as exemplary junior firefighter programs that are making a positive impact in their communities. These departments are truly dedicated to preparing the future of the fire and emergency services – our youth.”

The competitive grant process drew applications from junior firefighter programs and Explorer Posts across the country. Recipients were selected based on program innovation, community impact, and financial need, among other criteria.

“We are thrilled to partner with the National Volunteer Fire Council to provide 10 fire departments throughout the country with the additional resources they need to prepare the next generation of fire service leaders,” said Stephan Shelton, a Dunkin’ Donuts franchisee and co-chair of the Dunkin’ Donuts and Baskin-Robbins Community Foundation.

The NVFC and the Dunkin’ Donuts and Baskin-Robbins Community Foundation wish to thank every junior firefighter program and Explorer Post who applied for the grants. The 10 recipients of the grants in alphabetical order are as follows:

Atlantic Highlands (NJ) Volunteer Fire Department
Bellevue (TX) Volunteer Fire Department
Boys Town (NE) Fire Department
Carlin (NV) Volunteer Fire Department
City of Northville (MI) Fire Department
City of Tonawanda (NY) Fire Department
Galax (VA) Volunteer Fire Department
Hedgesville (WV) Volunteer Fire Company
Neffsville (PA) Community Fire Company
Wissahickon (PA) Fire Company

Read More at: Firehouse.com

Coffee Battle Brews as McD’s airs N.E.-themed Ads

Christine McConville reports in the Boston Herald that as Dunkin’ Donuts hosts a special Fenway Park fest  for its loyal fans, a McDonald’s franchise in Attleboro invites customers to meet Nell Newman, president of Newman’s Own Organics: The Second Generation and daughter of actors Paul Newman and Joanne Woodward.

After a month of buildup, National Coffee Day pits the region’s longtime coffee king Dunkin’ Donuts against the fast-food behemoth McDonald’s.

For a month now, McDonald’s franchises in New England have been giving away free cups of their new regional brew.

“A lot of people are coming in, and asking for it,” said Lou Provenzano, owner of some 14 McDonald’s in southeastern Massachusetts.

The fast-food chain has even crafted its own New England television commercial to lure customers to McDonald’s for coffee made by Newman’s Own Organics in partnership with Green Mountain Coffee of Vermont.

The commercial, which has been airing locally for a little over a week, was created by Boston advertising firm Arnold Worldwide.

With its fishing dock, heavy accents and local trivia, it has already established a following.

“We’ve even had a couple of people come in, and try to imitate it,” Provenzano said. “They ask for chowdah.”

But Canton-based Dunkin’ Donuts, which has its own memorable television ads, won’t be conceding its market share anytime soon.

“While I am unable to comment on McDonald’s business,” McCall Bodi Gosselin, communications manager for Dunkin’ Brands Inc., wrote in an e-mail, “I can tell you that the passion for Dunkin’ Donuts coffee is unmatched. Dunkin’ Donuts has served great coffee at a great value for nearly 60 years and we set the standard for premium coffee.”

Boston Herald

Tim Hortons says Canadian Reorganization Complete

Cleveland Airport Hopes Retail Improvements Lure More Travelers

Tom Feran reports in the Cleveland Plain Dealer that Commercial development is taking off inside Cleveland Hopkins International Airport.

New businesses arrive almost weekly. The terminal is getting its biggest renovation in more than a decade.

Fresh paint and the removal of window obstructions have given a cleaner, brighter look even to areas under reconstruction.

When the makeover is finished, sometime next year, the airport’s retail and restaurant space will have almost doubled. Revenues are expected to be twice what they were.

Visitors will be able to pick from a mix of regional and national fare, from Great Lakes Brewing Co. and Panini’s to Dunkin’ Donuts and Obrycki’s Crab House and Seafood Restaurant. And they won’t have to pay more for a wider range of shopping choices.

The improvements should lure more passengers, said airport director Ricky Smith. The added revenue will reduce landing fees that Hopkins charges airlines, and the lower fees could attract carriers to schedule more flights.

“If it’s not the largest economic development project in the city now, it’s one of the largest,” Smith said.

“We think it’s going to be the first stage of transforming the airport, and there is not a larger or more significant economic driver.”

Visible changes began last year after the airport switched its contracts for shopping and dining concessions to BAA USA from HMS Host Inc., which held them for 20 years.

HMS owned and operated most of the restaurants and shops in the airport, including such franchise operations as Burger King, for which it has exclusive agreements.

Cleveland Plain Dealer

The Importance of Training in a Franchise System

Brian Duckett is Managing Director of Howarth Franchising, and has many years of experience as a franchisee, franchisor, and franchise consultant. He writes at Franchise Chat:

Initial and ongoing training in all aspects of the business operation is clearly a benefit of becoming a franchisee – as opposed to starting an independent business. Most franchisors are very good at training the technical and operational aspects of the business because it is what they know – running a restaurant, cleaning cars, whatever. But many of their franchisees may not have run businesses before, so they need training in more than just how to operate the restaurant or clean cars.

Initial technical training, either in the classroom or on-location at a company-owned outlet, or with another franchisee, generally follows the structure of the Operations Manual and gives a good grounding in the knowledge and skills required. How long this takes varies from days to months depending on the complexity of the business involved, but it is only a start. Refresher sessions should be available, as should programmes to introduce new products or methods. Where these sessions are held, and who pays for what, will again vary from franchise to franchise.

Trainers will usually come from within the franchisor’s, or maybe a supplier’s, staff but it should be remembered that just because someone is very good technically they are not necessarily a good trainer. Transferring skills and knowledge has its own skills and there maybe a need for some “train the trainer” sessions to get the best results.

So what about non-technical training, such as business planning, budgeting, accounting, understanding cashflow, recruiting and managing staff, health and safety issues, and so on? It’s fair to say that the majority of franchisors are poor at providing this sort of training themselves (probably because they are poor at doing it for themselves!). But because the principles of these issues are common across all businesses, these sessions can often be outsourced. One way or another though, it is the franchisor’s responsibility to make this training available to his franchisees.

All training should of course have clear objectives and some evaluation afterwards to make sure that the desired outcome was achieved, or to arrange further sessions if it was not.

If we accept that the franchisor’s role is to provide the tools, and the franchisee’s is to use them, a key function for the franchisor is to keep his franchisees, and his staff, up to speed with the latest developments and techniques in their respective roles and responsibilities. To grow a world-beating franchised network there must be continual training and development of everyone concerned so the importance of this activity should never be questioned – indeed it could be said to be the whole raison d’etre of the franchisor.

What else is he there for?
 

DDIFO Paints a Bright Future at DCU Center Meeting

Dunkin’ Donut franchise owners who attended the members’ meeting at the DCU Center in Worcester, MA on September 22 learned about plans to double the size of the group’s membership, were exhorted to get involved with the government legislative process for their own benefit and heard a battle cry to fight against apparantly aggressive legal tactics by the brand against the franchise owners.

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Among the influential speakers at the meeting of about 100 franchise owners were the Speaker of the Massachusetts House of Representatives, a leading conservative lobbyist in Washington, D.C. and a nationally recognized attorney who specializes in franchise business law.

“It was worth the trip,” Mike Imperato, a franchise owner from Long Island, said of his six-hour drive.
Several other attendees echoed Imperato’s sentiments. “It was a good meeting, well attended. The agenda was intriguing and insightful. I think everyone was glad they went,” said Ken Blum, who owns shops in suburban Cleveland.

Arun Mandi, a New Jersey franchise owner, said, “It is exciting to see the organization gaining momentum.  There were good insights at the meeting.  DDIFO is going in the right direction, but there is a lot of work to do.”

The franchise owners were impressed with the speakers, particularly Robert Zarco, the franchise business lawyer, and Massachusetts House Speaker Robert DeLeo. The franchise owners said they also enjoyed having the vendors at the meeting to showcase new equipment, like the new espresso machine by Macdonald Restaurant Repair.

Jim Coen, DDIFO president, outlined new developments in the organizations, primarily the merger with the Chicago franchisee organization. The new DDIFO now represents 1,900 shops.  Coen said the goal is to double the membership, which would give DDIFO far more clout with government agencies and the brand. “Taking DDIFO from its current membership of 1,800 shops to 4,000 shops we can influence the relationship with the brand more than you can ever imagine,” Coen said.

Imperato said Coen’s message about growth and inclusion of other areas of the country in the DDIFO leadership was the most important thing he learned at the meeting. He was impressed with the new policy that if an area signs up 200 shops, they get a seat at the DDIFO roundtable, and if they sign up 400 shops, they get a seat on the board.

Coen said the brand is in an “interesting position.” It is facing a tough economy and within the next few years the Dunkin’ corporate owners will have to secure financing of $1.6 billion. Its market securitization notes will be due in 2013, he said.

Coen challenged the brand to respond to the grading report by the American Association of Franchisees and Dealers (AAFD). He noted it has been more than 135 days since DDIFO asked Dunkin’ Brands to comment on the report.

Massachusetts House Speaker DeLeo praised the franchise owners for their continued contribution to the commonwealth’s economy. He noted that the Massachusetts franchises pay $67 million in sales tax revenues annually.

Introduced by Joe Giannino, DDIFO’s government relations liaison, DeLeo promised the members that he would look carefully that any piece of legislation that DDIFO supports.  That included a bill regulating tip pooling.
“I have an open-door policy to Joe,” whom he called a long-time friend, DeLeo said.

DeLeo outlined the challenges state government is facing with the worst two-year decline in state revenues since World War II. He explained that the recent increase in sales tax was the “fairest option” available. He predicted that it will take more than a year for revenues to bounce back. For that reason, he said he is supporting expanded gaming in Massachusetts. Gaming, he said, will generate more revenue and create more jobs for the commonwealth.

Rick Berman with Berman and Company, a Washington D.C.-based public affairs firm, strongly urged the DDIFO members to get involved in the government relations process.  “You have an obligation to yourself to be involved,” Berman said. “You can make a difference.” Berman predicted that labor unions may win more unionization rights with the Democrats in Congress and in the White House. A modified version of the “Employee Free Choice Act”–better known as the Card Check bill — could pass, he said. That legislation, favored by labor unions, would make it easier for unions to organize Dunkin’ workers, he said.

Zarco with the law firm, Zarco, Einhorn, Salkowski & Brito in Miami, FL, told the DDIFO members that Dunkin’ Donuts “under the pretext of protecting the brand is getting more aggressive with the franchise owners.”  His firm has represented several franchise owners against the brand. He said Dunkin’ Donuts is now the most litigious of any franchise in the U.S., having filed more than 350 law suits in recent years. He warned that the Canton-based coffee chain has turned its loss prevention department into a “profit center’’ and gone after franchisees for infractions that include improper tax filings, unauthorized transfers of the business, the employment of undocumented workers and cracked floor tiles to increase revenues during the economic slowdown.

He advised the franchise owners, who get an audit letter from the loss prevention department, “not to go it alone.” The CPAs, the MBAs and financial analysts come in all smiles, but they are gathering documents to make a case against the franchise owner, he said.

Several franchise owners said Zarco was “captivating” in describing the brand’s aggressive tactics. “I don’t think one person left his seat while he was speaking,” Ken Blum said.  “It was an insightful speech, something people needed to hear. He spoke from his personal experience.”

Blum noted that no one has contested Zarco’s statement that the brand has filed more than 350 law suits against its franchisees. “I would have expected a strong response from the brand if that statement was not true,” he said.

One New York franchise owner, who asked to remain anonymous, said Zarco “was talking about a matter that everyone in the room needs to know. They need to know how to protect themselves. I think there was a lot of value in hearing him for those who did not know him before.” Zarco complimented DDIFO on its growth and said “the stupidest thing a franchisor can do is ignore a franchisee association.”

Also on the program were several corporate sponsors, whose support paid for the meeting. Coen said he was pleased at the number of sponsors at the meeting and predicted that revenue from sponsorships would increase significantly in coming years.

Jeff Hiatt with Performance Business Solutions told the members that there were several ways his company could help the franchise owners save money.  Primarily he advocated their adopting an aggressive depreciation schedule, writing off all of the equipment in five years rather than 29.

Other sponsors included Aflac, Air Ad Promotions, Century Products, Construction Art, Duro-Last, IKMS Group, iTech, Jera Concepts, Macdonald Restaurant Repair, NITCO, Paris-Kirwan, Paros Technologies, Projex Unlimited, RF Technologies, Royston, LLC, Secure Energy Solutions, Source4, Starkweather & Shepley, TD Banknorth, Tuck’s Trucks and USA Today.

McDonald’s McCafé Takes Aim at Starbucks in Europe

Low-cost expansion is helping McDonald’s vie with Starbucks as the Continent’s No. 1 coffee chain

The McDonald’s McCafé espresso-based coffee line has been rolled out in the United States. In Europe, the McCafé concept is an actual coffeehouse. And if McDonald’s has its way, its goal is to become the No. 1 coffee chain on the continent, according to a story in BusinessWeek. The chain plans to open 200 cafes in Europe this year, bringing its total to 1,100. Starbucks has almost 1,200 stores in the region.

Leona Liu reports at BusinessWeek that:

McDonald's Trafani in a Paris McCafé, where lower prices are helping to nab Starbucks loyalists Ed Alcock

The Left Bank café is furnished with sleek wood paneling and leather armchairs. Patrons sip espresso from china cups and nibble on croissants and pastries. So what are those golden arches doing on the sign outside the door?

The coffee shop on rue Linois is one of 200 “McCafés” McDonald’s is opening in Europe this year. By yearend, McDonald’s (MCD) hopes to have some 1,100 of the cafés across Europe. The cafés are located inside existing restaurants but with a separate counter, comfy furnishings, and nary a Big Mac in sight. Next year, the company plans 200 more, with an eye toward becoming “the No. 1 coffee seller in Europe,” says Jerome Tafani, the company’s chief financial officer for the region.

That’s a grande order. Starbucks (SBUX) is currently Europe’s top coffee chain with nearly 1,200 stores. But McDonald’s strategy of opening McCafés in existing franchises gives it a leg up over the Seattle-based java king. A stand-alone Starbucks in Europe requires an investment of $350,000-plus, at least triple what a McCafé costs, says Jeffrey Young, managing director of London management consultancy Allegra Strategies. “McDonald’s finally woke up and smelled the coffee,” says Young. “With the number of outlets it already has in place, it can take Starbucks head-on.”

McDonald’s is rushing to grab market share where Starbucks has hesitated. While Starbucks continues to avoid Italy, for instance, McDonald’s opened its first Italian McCafé in Milan in 2005. Today it has 65 of them across the country. And McDonald’s is undercutting Starbucks on price. At McCafés in Paris, an espresso costs $2.50, vs. $2.80 at Starbucks.

That’s not to say you’ll find McCafés everywhere. In Britain, where Starbucks has 700-plus stores, McDonald’s has no plans for McCafés. And while all 13,900 U.S. McDonald’s outlets now sell McCafé coffees, the company isn’t building separate café sections there, either. Since 70% of orders come from the drive-through window, franchisees don’t want to install a second counter. But in Europe, where fast food is a bit slower than across the Atlantic, fewer than half of McDonald’s orders are to-go.

Read More at: BusinessWeek

 

 

Starbucks Launches Instant-Coffee Onslaught on SNL

Four 15-Second Spots Challenge Consumers to Taste the Difference

Emily Bryson York reports at AdAge that:

Starbucks aired the first creative for its Via Ready Brew during the season premiere of “Saturday Night Live” last night. Four 15-second spots from agency BBDO, New York, challenged consumers to a taste test at its cafes this week, to discern the difference between its much-lauded instant product and the Starbucks house brew.

The company wouldn’t confirm details about the upcoming national advertising campaign for Via, other than the official launch date, this Sept. 29. An executive familiar with the matter cautioned that “SNL” creative may not reflect the look and feel of the upcoming campaign. The first spots depict groups of people — such as those who look like their dogs, and a jockey, rabbi and a priest walking into a bar — who can’t tell the difference between the coffees.

During the company’s third-quarter earnings call in July, Mr. Schultz described the Via campaign as one that would be a significant investment for the chain, which dramatically under-spends its peers. “We are going to create a very creative campaign that will be different than what we’ve done to date,” he said, adding that the brand “will take advantage of the social media that we have become very good at as well as traditional levels of media.”

“SNL” is now an established broadcast vehicle of choice for Starbucks, which runs TV ads rarely. The chain ran its first TV ad in nearly a year just before the November election, offering a free coffee to anyone who voted. The offer was later amended to include all Americans. (Freebies for voters, it turns out, are illegal.) It has since used TV only sparingly, to promote its partnership with RED, and to encourage volunteerism.

Read more at: AdAge

Inflation Next Concern, Analysts Say

Allissa Kline of Business First of Buffalo reports that:

Twelve months ago, a series of financial-sector failures catapulted an already troubled economy into a period of prolonged marketplace volatility.

Distressed banking giants that did not go bankrupt were swooped up by their peers. Insurance provider AIG received an $85 million bailout from the federal government, which later offered rescue funds to banks across the country. Real estate values plummeted and workplace layoffs left millions without jobs.

A year later, some local public companies and analysts say the mess is behind us – at least temporarily. They point to rising stock prices, businesses operating at full capacity and a general sense of security in the marketplace.

But the good feelings may not last long if severe inflation strikes the economy.

“I’m willing to bet that by the end of the fourth quarter, we will see economic data that says we’re out of the recession,” said Jeremy Beck, vice president and portfolio manager at Nottingham Advisors in Williamsville. “We’re closer to the end than not. But given the unprecedented amount of money we’ve created out of thin air, I think we’ll have significant inflationary pressures. A little inflation is a good thing, but a lot (of inflation) … could look like 1980-81, and nobody remembers that as a good time.”

Read more at: Business First of Buffalo

Last Bank Left Standing for Small Businesses

As other major players fell away, Wells Fargo has remained a stalwart, increasing its lending this year through SBA programs. 

Catherine Clifford of CNNMoney.com reports:

The landscape of lenders willing to work with small business owners has changed dramatically in the last year, but one bank — Wells Fargo — has emerged stronger than ever.

While other financiers that were historically major players took a knee, Wells Fargo (WFC, Fortune 500) increased its lending, emerging as the new number-one lender through the Small Business Administration’s loan programs.

CIT Group (CIT, Fortune 500), JPMorgan Chase (JPM, Fortune 500), Banco Popular of North America and others that once held top spots have cut their SBA lending by more than 70% this year. Meanwhile, Wells Fargo upped its loan volume 4%, from $583.4 million in 2008 to $605 million this year.

Some of that gain may be fueled by Wells Fargo’s late-2008 acquisition of Wachovia, another bank that traditionally made many SBA-backed small business loans. The acquisition closed three months into the 2009 fiscal year (which the SBA began Oct. 1), leading Wachovia and Wells Fargo to report their loans separately through part of the year.

Taken together, the two banks lent $742.3 million this year — down 24% from what they collectively lent as independent banks last year, but still far more than any other bank put into the small business market. The next runner-up, U.S. Bank (USB, Fortune 500), made $249.5 million in loans through the SBA’s flagship lending program.

Given the retraction of a number of key lenders, Wells Fargo’s leap to the top is not a major surprise. “I don’t see anything shocking with Wells Fargo being number one,” says Bob Coleman, editor of the Coleman Report, which monitors small business lending trends.

What Wells Fargo did right: Wells Fargo’s ascendance isn’t solely due to its competition’s collapse. The bank made two key strategic decisions that turned into major advantages.

First, Wells Fargo doesn’t resell its loans on the secondary market, where many banks unload bundles of the SBA-backed loans that they’ve made. That market froze last fall after Lehman Brothers’ collapse, leaving many banks unable to find buyers for their loans — and without those sales, the banks lacked the capital to make new small business loans.

Second, Wells Fargo focuses on making traditional 7(a) loans, which can total as much as $2 million each. The Small Business Administration guarantees a portion of its 7(a) loans — if the business owner defaults, the government pays the bank back for the insured portion.

But the SBA also offers a variety of “Express” loan programs, which involve lower loan amounts, lower government guarantees, and less paperwork. Because banks scrutinize those loans less, they’re more prone to go bad when the economy gets rough.

Bank of America (BAC, Fortune 500), in particular, has been hit hard on that front. The bank made 3,296 SBA loans last year, making it the fourth most-active SBA lender based on the number of loans made. But most of those loans were Express loans, with an average loan size of just over $31,000 each.

And many have begun defaulting. A year ago, CEO Ken Lewis called his bank’s small business loan portfolio a “damn disaster.” Bank of America reacted by sharply pulling back on its SBA lending. So far this year, the bank has made just 303 loans, 269 of which were Express loans.

“Wells Fargo is more of a traditional 7(a) lender. Their loans are larger and there is collateral behind them,” says industry observer Coleman. “They do a more extensive underwriting analysis than the SBA Express lenders, which makes them feel more comfortable in assuming risk. For some lenders, the model is broken for those smaller Express markets, and so they have backed out of the market.”

Read more at: CNN Money.com

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