Outside the Box
“We cover from A to Z,” says Elizabeth Rolfe, director of new business development for Subway. “We’re in airports, and we’re in zoos.”
Rolfe attributes the company’s success in the nontraditional arena to its chameleon-like ability to fit nearly any environment. No matter the size, as long as a location can accommodate a sandwich counter and a refrigerator, it can likely serve the entire Subway menu, she says. But Subway is the exception rather than the rule. Other quick serves looking to make it in nontraditional locations might have to make some sacrifices.
“A lot of times you have to adapt to the business environment,” says FranNet’s Nicol. “You might have to have a smaller menu compared with the typical location. You might not be able to have your typical equipment package. Your employee shifts might be different. Everything from design to operations is just a little bit different.”
Earlier this year, Checkers, which added six nontraditional restaurants in the second quarter, got a taste of just how trying such environments can be. When a concessionaire with whom the company had partnered outbid the previous tenant in a toll-road travel plaza, Checkers was asked to convert the existing restaurant to one of its own in just 24 hours.
“That’s the type of challenge you just don’t get in traditional development,” says Michael Arrowsmith, senior vice president of development for the company.
Marketing is different, too. In a regular, stand-alone location, customers are likely to order once they enter your store. In many nontraditional venues, however, the competition isn’t down the block or across the street; it’s just a few steps away. Customers can cruise their options, so it’s essential to grab them on the spot, says Rich Leivenberg, executive vice president of Jody Maroni’s Sausage Kingdom, a Venice, California–based sandwich concept that built its brand on boardwalks and in airports, stadiums, and outlet malls.
Everything from design to operations is just a little bit different.”
Instead of major media advertising campaigns, Jody Maroni’s focuses on on-site marketing, including couponing, guerrilla marketing, and displaying high-quality color photographs of its food. The company also does a lot of sampling.
“It’s our No. 1 form of marketing,” Leivenberg says. “We have a cutting board at every counter, and if anybody walks by, we yell at them to come over and try it.”
With the visibility nontraditional locations often bring, operations have to be on point. According to Nicol, these high-traffic locations serve as ambassadors for the entire brand, and traveling customers who have a bad experience could carry their grudge on to other markets. With other options within walking distance, speed is also paramount, as a long line could send hurried travelers or busy students to the competition, Leivenberg says.
To make nontraditional locations work, it’s essential to have a supportive franchisor, experts say. Nicol recommends companies establish a department dedicated to such venues if a company plans to go after them aggressively. In the end, though, nontraditional locations, just like traditional restaurants, depend mostly on one thing.
“I’ve seen some systems have tough times in nontraditional locations, and I’ve seen some do very, very well,” Nicol says. “A lot of it has to do with the franchisee that’s running the restaurant.”
Next month Jamie Hartford will cover the industry’s role in hunger relief.
