‘The International Plan’
The initial stores in each market would have high visibility, crucial to creating brand recognition, and would call for the most dramatic change—double the footprint to 2,000 square feet. The new space would accommodate seating for 50–60 patrons who would be offered table service, as well as beer and wine. Delivery would remain an essential component, with stores housing a fleet of on-site motor scooters, in keeping with the local custom.
“Every location may not be cookie-cutter the same,” says McEwen, noting that some subsequent units might be designed as take out and delivery only.
Wing Zone’s domestic marketing strategies, which rely heavily on tactics such as door hangers and direct mail, are expected to transfer easily to Panama, McEwen says. He was working with the Atlanta team to have some of the chain’s standard templates translated. “One of the ways we market is feet on the street,” he says.
Meanwhile, throughout much of the year, Scott kept his international focus on the contractual details necessary to hammer out the deals, spending time coordinating legal documents between attorneys in the states and those abroad. The process was often frustrating and frequently required more time than had been allotted.
“If you don’t have the correct legal documents, that entire process taken care of, you really can’t do anything,” he says. “You’ve got to have the teeth in your agreement to make sure everything stays on track.”
Scott stresses the importance of laying the ground work, noting that Wing Zone had secured trademarks in 10 countries long before it began expansion plans in earnest.
Preparation was a pervasive theme. Even as the reality of the Panama deal loomed closer, Parra continued to pursue potential area-developer candidates as they arose, including prospects in El Salvador, Guatemala, Trinidad and Tobago, and later in the year, Mexico and Brazil. If the concept really was going to work in these markets, it would require economies of scale. Relationships are everything, and they take time to develop, he says.
“You will have at least three meetings with these people before you even sign the contract,” says Parra of any new area developers. “Before they open we take a team 10 days before the store opens and then we stay 10 days after. And they will come here for training, which could be between three to six weeks.”
Bridging cultural gaps is one of his strengths. For final negotiations with the Panama group, which was selected from three final candidates, Parra planned to stay at the home of one of the principals, a scenario not unusual when doing business in this part of the world. Once deals reach the final stages, candidates often bring additional members of their family into the meetings. A lack of awareness of these customs could threaten to derail an otherwise solid agreement.
“One of the things that will get people really upset is if you don’t have respect for their family,” Parra says.
In October, he disclosed somewhat cautiously in an interview with QSR that several hopeful markets—Venezuela, Honduras, and Nicaragua—had been put on hold due to the tenuous political environments in those countries and concern that relations with the U.S. could erode. Politics and economic stability must be carefully weighed. “Right now a lot of companies are leaving because they don’t feel stable,” Parra says.
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