Is Franchising a Restaurant Overseas as Hard as it Seems?

Posted by Robin Gagnon on Nov 8, 2013 4:32:00 PM

Restaurant BrokersRestaurant Brokers, Robin and Eric Gagnon are joined by a panel of industry experts as they discuss International franchise expansion on Atlanta’s AM Talk 920 and Atlanta's Biz 1190AM.

The panel of distinguished guests includes Andy Wiederhorn, CEO of Buffalos Café and Adam Ogden, CEO of JuiceBlendz and YoBlendz. The panel discusses international growth for franchisors, the challenges of international expansion vs. domestic expansion, when a franchisor knows when he or she is “ready” to expand their company internationally and the resources available for those looking outside the borders of the United States. 

Andy Wiederhorn lets listeners know that international franchising is more than just a “regular franchising” with different languages. Andy said “You have to first determine whether your brand has legs to travel” In other words, not every concept that works well in the U.S. translates well overseas. Find out why Andy Wiederhorn thinks flagship locations in key markets can be used as a sales tool. Listeners learn why a bunch of international locations doesn’t necessarily mean your company is international.

Well, about bringing international investors to America? Adam Ogden explains why his companies use the EB 5 process and how franchisors can use this process for franchising. We know some of you are wondering, what in the world is the EB5 process?! Long story short, it allows foreign national investors to invest in a U.S. based company as long as the company creates 10 or more jobs directly or indirectly.

Franchisors looking to franchise internationally have to take into account the culture, religion and social practices of each country. Andy Wiederhorn said it best, “food transcends politics but does not transcend religion.” Did you know that in Saudi Arabia a restaurant needs to have two separate dining rooms, one for single men and one for women and children? The restaurants in Saudi are also required to have separate cash registers for men and women/children.

So, franchisors need to think about tailoring their model and branding strategies to each country they choose to operator in, not to mention the cost associated with those changes. Adam Ogden tells listeners to pick a partner who is well capitalized! More money, less problems.

There are also a slew of franchising rules that differ from country to country so, you have to make sure your team has their “skin in the game.”

Andy Wiederhorn also gives listeners advice on how to market an American concept overseas. We’ll give you a hint; American concepts are strengths not weaknesses. Andy also lists the top three hottest markets for international franchising.

In the last segment, “Restaurant Reality”, restaurant brokers, Robin and Eric Gagnon discuss the realities of franchising internationally. Learn why the location of your franchise is just as important as the concept. Why are operators taking their concept overseas rather than to the seasoned, more matured markets? (i.e. NYC LA). Listeners also learn the importance of setting up shop in nontraditional areas like on college campus, hospitals and arenas. “If you’re thinking about growth in the traditional ways, you’re missing the boat” said, Robin Gagnon.

Guests:

Andy Wiederhorn, CEO of Buffalo’s Cafe

Andy Wiederhorn is the CEO of Buffalo’s Cafe. Wiederhorn acquired the brand in late 2011 and has begun to since expand it on both a domestic and international scale. The franchise, famous for their Buffalo-style chicken wings, boasts more than 18 locations in Georgia, Florida, California, Kuwait, Saudi Arabia and Qatar. Buffalo’s has recently started to co-brand with sister brand, Fatburger, and has experienced great success in doing so. Internationally, there are approximately 30-40 Buffalo’s Cafes in the pipeline for The Middle East and North Africa.

Adam Ogden, CEO of JuiceBlendz and YoBlendz

Adam Ogden has a strong track record in sales, nutrition and the smoothie industry.  He consolidated his ambition, vision, knowledge and expertise in the areas of fitness and nutrition to establish his first business.

Adam created his first smoothie and supplement retail concept, at the age of 20.

Within three years, he successfully launched three prototype stores. In 2004 at the age of 28, Adam sold the successful brand. With a passion for operating smoothie and juice bars, as well as ownership of a premier line of dietary supplements, Adam introduced the JuiceBlendz franchise in 2005.

In the summer of 2010, Adam Ogden created his second franchise brand, YoBlendz, a cutting edge retail environment that serves the freshest ingredients in a self-serve format.

In the fall of 2011, Adam Ogden received approval for his Regional Investment Center that provides EB-5 Visas, or Green Cards, to qualified foreign investors. This program will assist in catapulting the growth of both the JuiceBlendz and YoBlendz franchise brands. In 2012, Adam Ogden won Entrepreneur of the Year in the South Florida Business Journal.

Topics: Restaurant Brokers

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