News

Can a refranchising initiative help La Madeleine double its size?

March 15, 2017

La Madeleine, which has more than 80 locations across the U.S., hopes to double the brand's size through a refranchising initiative, according to a company press release.

President John Cahill said the chain will sell entire existing markets of successful la Madeleine restaurants and is seeking potential buyers such as successful multi-unit operators of other brands as well as existing La Madeleine franchisees who can use the acquisition of the restaurants as a solid base for growth.

"Our new growth strategy is unique because it offers multi-unit operators the opportunity to hit the ground running with whole markets and top-performing stores," he said in the release. "With the staff already in place and positive cash flow from the restaurants, franchisees can start growing the brand right away."

La Madeleine's parent company, Le Duff America Inc., is the Dallas-based subsidiary of Groupe Le Duff, which has nearly 1,700 bakery locations across five continents and 80 countries. CEO Olivier Poirot said his chief focus would be on growing through franchising, following the Groupe Le Duff business model for success.

"With a brand that is as strong as la Madeleine, we have a tremendous opportunity to double its size within the next five years through refranchising, Poirot said in the release. "We are looking for successful, committed partners with the desire, experience and financial ability to continue operating the restaurants to their current high standards and quickly grow our brand beyond its current footprint."

La Madeleine will continue to operate corporate restaurants in Dallas so it can demonstrate operational excellence to support franchisees. Corporate markets currently offered for refranchising are Houston, Atlanta, Austin, the D.C. area and Louisiana.

"This model allows us to continue delivering the outstanding food quality and experience that our guests expect," said Cahill. "Franchisees will learn the ‘la Madeleine way' from people who have served the brand for years or even decades."