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Ones to Watch | By Sabrina Davis

Amazon Café

Amazon’s strength, Petrucci says, is its simplistic variety—a short list of diverse items. Beyond the smoothies, which make up 50 percent of sales, the hottest sellers are the soups; 10 are offered each day. “Many of our soups are healthy, lowfat, low sodium, or dairy free. Even in the heat of the summer we sell a lot of soup. Number 1 by far is our tomato cheddar,” he says.

Amazon also sells sandwiches and wraps. The most popular is the Amazon Club, a turkey, turkey bacon, and cheddar combination. The chain recently added breakfast, including wraps, oatmeal, muffins, and juices. Petrucci plans to incorporate higher quality ingredients under the guidance of his director of operations, a chef by trade. “We might introduce shrimp and goat cheese and a spring mix with our salad line. We’re working on some higher-end wraps and sandwiches now.”

Each Amazon Café serves 200 to 300 customers a day, with an average check of $7.50 to $8. Most are open from 7 a.m. to 9 p.m., 7 days a week. Sixty-five percent of sales take place at lunch. Breakfast makes up just 10 percent of sales, but Petrucci is confident that his plans to develop stand-alone restaurants with drive-thrus will strengthen the breakfast daypart.

Petrucci has plans for other modes of sale as well, including a kiosk program for stadiums, malls, airports, and other such venues. He also would like to introduce mobile units to allow franchisees to take limited menus to local fairs, parades, and similar events.

Amazon Café
CEO: Mick Petrucci
HQ: Newtown, Pennsylvania
Year Started: 1998
Annual Sales: Not Disclosed.
Total Units: 50
Franchise Units: 46

The system currently includes a mix of 1,600- to 2,000-square-foot cafés and 150- to 400-square-foot express units. Four of the 50 units are company-owned. A recent redesign toned down Amazon’s bright, hard-edged décor to subdued earth tones, hardwood flooring, comfortable furniture, and free WI-FI service. “The atmosphere is very calm and relaxing now,” Petrucci says. “We want people to come in, enjoy their food, and stay as long as they want.”

WHY IT BEARS WATCHING: All of Petrucci’s changes are solidly aimed at enabling aggressive growth. His plan is 500 stores by 2010. “My biggest goal is to do something international as well,” Petrucci says. “I would love to hit China, but our first location outside the U.S. will probably be in Puerto Rico.” Amazon’s director of operations is Puerto Rican and comfortable expanding to that market.
Most Amazon franchisees operate single stores, but over the next year Petrucci expects the company to be comprised mainly of multi-unit franchises. Current operators are ready for additional restaurants, he says, and he’s moving to a master-developer sales model. Four such agreements are currently in place in New York, Pennsylvania, North Carolina, and Florida. “We’re looking for hands-on operators,” Petrucci says, “someone to be behind the scenes to oversee food, labor costs, and accountability. We’ve learned from past mistakes and probably turn down more deals now than we accept.”
Amazon Cafés extend from New Hampshire to North Carolina and as far west as Pittsburgh now. New stores are being planned in Las Vegas, Phoenix, and cities throughout Florida.
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