McAlister's Deli plans to add 30 new locations in 2015, and Carin Stutz, its new president, would like to step up the pace even more.
February 16, 2015 by Brenda Rick Smith — Editor, Networld Media Group
Carin Stutz is ready to do more. The new president of McAlister's Deli has her sights set on accelerating the brand's growth, improving throughput and seeing through system-wide remodeling efforts.
She took the helm of McAlister's in November after a turn as president and CEO of Cosi, where her efforts to turn around the troubled brand yielded the chain's strongest financial report in its history.
McAlister's, in contrast, seems to be in a healthy position. With more than 330 units in 24 states, the deli concept closed out 2014 with 19 new units, and 12 signed development agreements, an 18 percent increase over the previous year.
They may nearly double that growth in 2015, with 30 new locations expected to open across the country.
Part of Stutz's vision is to accelerate McAlister's growth, particularly in the Northeast and Midwest.
"It's an enviable position to be in when you can join a brand that is doing well," says Stutz. "The real mission for me is how do you grow this chain more quickly."
That growth could be a challenge, especially in crowded markets that aren't contiguous with other markets where McAlister's has a presence.
But interest is strong in the brand, says Stutz, particularly in the northeast and even in Florida, and calls are coming in from prospective franchisees. Stutz believes that interest is driving by strong AUVs – the top quarter of McAlister's locations post AUVs in the $2.3 million range – and strong advocacy by franchisees spreading the word about their success.
Now that McAlister's is folded under Focus Brands, along with sister brands like Auntie Anne's, Carvel, Cinnabon, Moe's and Schlotzsky's, Stutz believes McAlister's will have the resources to ramp up expansion.
Improving throughput is also on Stutz' radar. With one of McAlister's key audiences – families with children – more pressed for time than ever, Stutz is keen to "respect the customers' time" with speedier service.
McAlister's is also in the midst of a three year effort to update its locations. The effort aims to keep the brand fresh and relevant, says Stutz.
Stutz has spent her first days with McAlister's getting to know the brand from the inside out.
"I'm an operator, so I went through the training program to make sure that I understand the essence of the brand," explains Stutz. "Whenever you have an opportunity to come in and have the privilege of leading a new brand, I always think you want to understand the essence of the brand. What do consumers understand to be the most important thing about McAlister's that you hold sacred."
Stutz identifies the essence of the brand with two words: genuine and generous, citing the quality and quantity of the ingredients on McAlister's sandwiches.
"It's just a terrific looking sandwich, and I think it differentiates us," says Stutz.
Stutz is also impressed with the warmth of McAlister's crew members and operators, and she thinks customers are, too.
"People are looking for a place to go, a respite, where people are just genuinely nice, and I think it just stands out with McAllister's," says Stutz.
Stutz is one of the few women to rise to the level of CEO in the fast casual segment, and she's an active member of the Women's Foodservice Forum.
She's encouraged by the changes she's seen in the restaurant industry during her career, though she'd like to see changes pick up in pace.
While as many as 50 percent of restaurant managers are women, a proportionate number of women have yet to rise up the ranks to the C suite.
The problem is not necessarily that doors are closed to women, but that women hesitate to knock. Stutz has seen positions posted, and anticipated women would toss their hats into the ring, only to find they had not.
"Women think that they have to have every single box checked off that they can execute at 100 percent at the next level, and men are like 'Oh, I'm ready for the next position.' It's a different mindset," says Stutz. "My role is to get them to put their hands up, volunteer, apply for those next positions and make sure they are recognized for the great work that they do."
As a leader in the industry, Stutz sees herself and others in similar positions having a responsibility to encourage others.
"We women leaders have to reach down into the organization and help women see their potential and help them recognize how great they are," says Stutz.
The keys to moving up: learn to advocate for yourself, set clear goals and figure out what you need to learn to get there. Most importantly, develop a thorough understanding of how your business makes money.
"I see nothing but opportunity for women in our industry," says Stutz.