Multi-Unit Franchisee Magazine Issue I, 2014 | Page 20

MEGA
MANAGEMENT
Business philosophy: “We are what we repeatedly do. Excellence, then, is
not an act, but a habit.” (Aristotle)

What are the two most important things you rely on from your
franchisor? Exceptional products and marketing direction.

Management method or style: I grant both of my partners complete
autonomy to run day-to-day operations as they see fit and hold them accountable for their results.

What I need from vendors: Great service, competitive prices, and their
continued support of the Firehouse Subs Public Safety Foundation.

Greatest challenge: Finding quality managers committed to our culture of
excellence.
How do others describe you? Driven, disciplined, hard-working, and,
hopefully, fair.
One thing I’m looking to do better: A core focus is educating our customers that we offer more than hot subs for lunch and dinner. I’d like to make
people more aware of our diverse offsite catering capabilities. We offer party
platters, party salads, box lunches, concessions at sporting events, and even
onsite, made-to-order subs for employees through our “Firehouse Fridays.”
How I give my team room to innovate and experiment: Autonomy with accountability.
How close are you to operations? I have daily interaction with both of
my operating partners by email, phone, text, or face-to-face.

Have you changed your marketing strategy in response to the
economy? How? Yes. Unlike most brands, Firehouse Subs made the bold
decision to increase our investment in marketing during the recession. This allowed us to capture market share from our competitors and put us in a great
position as the economy rebounded.
How is social media affecting your business? Social media gives every single one of our guests the power to become an ambassador of our brand
to thousands of potential new guests.
How do you hire and fire, train and retain? My operations partners
Scott Anthony and Eric Erwin handle all personnel issues. Our crew members
are on the front line every day and we trust and value them to be ambassadors
of the brand.
How do you deal with problem employees? See above.
Fastest way into my doghouse: Making excuses.

BOTTOM LINE
Annual revenue: $12 million.
2014 goals: Increase same-store sales by 12 percent with the rollout of our
new Hearty & Flavorful (under 500 calories) menu.
Growth meter: How do you measure your growth? The bottom
line.
Vision meter: Where do you want to be in 5 years? 10 years?
I’d like to have 25 more stores in Central Florida and 42 stores in Wisconsin.
How is the current economy affecting you, your employees,
your customers? Although the overall economy is recovering, many of our
guests are still spending cautiously. We are working harder than ever to be
everyone’s favorite place for lunch and dinner.
Are you experiencing economic growth in your market? Yes.
What did you change or do differently during the economic
downturn that you are continuing to do? We invested heavily in radio, TV, and billboard advertising to capture additional market share.
How do you forecast for your business? Each location has unique
variables that affect business. For example, our food court location at the
Millenia Mall in Orlando thrives during inclement weather. Our Wisconsin
locations see lower traffic during the three hours that the Green Bay Packers are playing. After 11 years, we have gotten pretty good at anticipating
these situations.
Is capital getting easier to access? Why/why not? Yes. After an extended period of building their capital bases, many banks are now eager to do loans.

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Multi-Unit Franchisee Is s ue I, 2014

Where do you find capital for expansion? We use a combination of
shareholder contributions, shareholder loans, equipment leasing, and conventional bank financing.
Have you used private equity, local banks, national banks,
other institutions? Why/why not? We have a great relationship with
two different national financial institutions.
What are you doing to take care of your employees? We offer
competitive salaries and wages, generous bonus potential, comprehensive
healthcare plans, and a defined contribution plan with an employer match. We
have a history of promoting from within, so our employees have tremendous
opportunities for advancement. In an industry notorious for high turnover, some
of our original employees are still with us today.
How are you handling rising employee costs (payroll, healthcare, etc.)? We are proactively customizing our healthcare plan to meet the
specific needs of our employees and the Affordable Care Act.
How do you reward/recognize top-performing employees?
We have a rotating “Axe of Excellence Award” that goes to the crew with the
highest guest satisfaction score for the period. Our general managers compete
fiercely for this.
What kind of exit strategy do you have in place? Someone once
told me that entrepreneurship offers you the opportunity to create your own
utopia. I love our food, our founders, our culture, our brand, my partners, and
my employees. Why would I ever leave?