Article
Einstein Bros. continues growth through licensing
Einstein Noah Restaurant Group is more than halfway past its goal of 180 licensed locations by the end of 2009
August 13, 2009 by Valerie Killifer — senior editor, NetWorld Alliance
Einstein Bros. Bagels is continuing its national expansion push through licensing during the remainder of this year and into 2010. Current plans call for more than 20 additional licensed store openings in the coming months to help the subsidiary of Einstein Noah Restaurant Group reach its mark of 180 licensed locations by the end of 2009. Currently, there are 163 licensed locations.
College campuses, hospitals and hotels are big growth markets for Einstein Bros. Bagels, said Paul Carolan, senior vice president of franchising and licensing for Einstein Noah Restaurant Group. Military bases, convention centers and business parks also will play roles in Einstein's license growth, he said.
The company uses a scaled-down menu in licensed locations comprised of the best-selling items, and continues to interact with licensees after their units have opened.
"We really want the brand to be operated well," Carolan said. "Wemeasure sales and do independent quality assurance programs. We do customer-service surveys and provide feedback on a monthly basis, and we talk to clients to make sure we're meeting their needs, and we focus on training."
Twelve new licensed stores highlight the chain's expansion through the first two quarters in 2009. The new locations in the second quarter include: The University of Texas – El Paso, Georgia Southern University, The University of North Carolina - Charlotte, Fort Erwin (Calif.), Fort Lee (Va.), Bellarmine University (Louisville, Ky.) and the National Security Agency offices at Fort George G. Meade (Md.).
"Even in this difficult economic environment, we have built tremendous momentum behind our licensing program," Carolan said.
For the company's second quarter, Einstein Noah posted a systemwide same-store sales gain of 2.2 percent while revenues fell 1.0 percent. The company also benefitted from a net increase of 28 additional license restaurants and two franchise restaurants since July 1, 2008.
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