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T
here’s a vision at Racz Group
and to the man in charge, it is a
straightforward one.
The company, which operates from a HQ
at Wynyard Business Park, aims to become
the largest company in the North East of
England in terms of turnover and number of
team members.
Simple?
Any businessman operating in any
climate in any economy around the world
will tell you that commerce has a handy
way of throwing up obstacles, especially
when you might least expect it.
But the way Mike Racz sees it is as
straightforward as the Racz Group’s vision.
Challenges are part and parcel of life and
there are no limits when it comes to the
drive, energy and determination to tackle
them.
His company is already one of the UK’s
largest owners of franchised businesses in
the UK. Racz Group runs 28 Domino’s pizza
shop franchises across the North East and
beyond – soon to be 29 with the opening of
a planned new Middlesbrough store.
It also runs 15 Costa coffee shop
businesses and 15 – soon to be 20 –
Anytime Fitness gym franchises as well
as holding investments in Middlesbrough
digital multi-media company Viral Effect and
Hartlepool’s Black Olive bar.
Employees number at around 1,000
with a core management team running the
operation from Wynyard.
Mike has come a long way since leaving
his native Hungary and starting out with
just one branch of Domino’s in Hartlepool at
the age of 24, 14 years ago. He had a work
ethic then and he still has a work ethic now
along with the ability to recognise potential
in people – and places.
“At my interview to become a Domino’s
franchisee, they said whereabouts would
you like to go? I didn’t care at that time, I
said wherever I could have the opportunity
to expand,” says Mike.
“They offered Rochdale or Hartlepool. I
initially wanted Rochdale, I thought it was
bigger. But then I chose Hartlepool.
“A lot of my motivation came from being
an underdog, not necessarily to prove
people wrong.
“I was always the one being told ‘you
won’t succeed’ but out of 6,000 people
who applied in the same year as me, only
eight were selected.
“I wanted to try the North East. There
is so much potential here. We are more
approachable, we are more easy going.
“People would say ‘what’s in the North
East, what do they have there?’ But the
“People would say ‘what’s in the North
East, what do they have there?’ But the
question is really what don’t we have?”
question is really what don’t we have?”
The company’s turnover is forecast to
reach £32m at the year end but Mike isn’t
one for too much emphasis on numbers.
He doesn’t believe they should define a
business – or limit it – and that’s partly the
key to his success.
The Domino’s arm of the business was
up and running when he decided to extend
it and include Costa. He knew the brand
and loved it so the decision was simple.
Ditto Anytime Fitness.
“Taking over the Costa franchises was
quite simply a business decision,” says
Mike.
“I don’t think I could be passionate about
computer equipment say, or pancakes. I’ve
got to love the brand. I love coffee, it was a
natural fit.
“It was still a business decision though,
not much emotion came in to it.”
But why the franchise model?
For Racz Group, it fits. They know how to
run businesses and they run them well.
“You have full control with a franchise
model,” he explains.
“When you start out you are more or less
given a manual and you follow it, why would
you fail? You follow a set of rules. Although,
of course, external factors do come in to
play.
“We are one of the strongest groups in
the country now.”
Success is never a given but Mike is
never one to give up. Surrounding himself
with a management team that share his
‘anything is possible’ attitude has also been
key to driving the business forward.
Out of the senior staff at team Racz,
many started out at as drivers or in-store
workers with healthy doses of drive and
determination.
He has such confidence in the team that,
he smiles, he owns at least 10 businesses
that he’s never set foot in – including a
franchise in Truro, Cornwall. He doesn’t
have to, the i’s are dotted and the t’s are
crossed by experts he has every faith in.
The past few months have been
incredibly busy. Four months ago Mike
completed a major finance restructure at
the same time as buying out a business
partner in a number of franchises as well as
opening new ones.
So what’s coming next?
New paths are always under
consideration but their direction is
something Mike has to be invested in.
“I’m always open to new ventures,” he
says.
“But it would be something where I am
already a customer. I want to expand but I
don’t just want to do it for the money side
of things.
“I want Racz Group to be the largest in
the North East.
“Our headquarters will always be here
but we’ve already expanded into other
parts of the country with many franchises
- the likes of Truro and Kensington to name
just a few. I’ve never been inside at least 10
of the businesses that I own.”
He is definitely a glass half full kind of a
person.
“It isn’t as simple as hard work or right
place, right time. It’s something else. I’m
always curious about limits.
“What if or how far can you go? Keep
going as long as you enjoy it.”
Cheers to that.