News

Methodical growth key to successful franchise expansion

Penn Station subs prefers the slow and steady approach in the race for franchise success.

March 7, 2007

In today's world of fast-paced restaurant growth, a modest expansion plan can be a turn-off to some: those who look at quantity over quality when deciding their next investment.

 

But for Penn Station East Coast Subs, slow methodical growth has been a boon, enabling success for both the company and its franchisees.

 

"We want the roots to be deep," said Penn Station president Craig Dunaway. "If they are, the tree may grow slower but it will grow stronger."

 

That philosophy so far has worked for the company, now in its 26^th year of business. Based in Cincinnati, the chain boasts 172 restaurants, 170 of which are franchised-owned. 

 

"We really view the opening of more stores as a right that we grant," Dunaway said. "It's our brand and part of our responsibility. One thing we take seriously is enhancing the brand for franchisees. If they're not successful that hurts everybody in the system."

 

Franchisee success is a core corporate philosophy for Penn Station. One the company takes seriously to increase company and franchisee profits. "I think there are so many concepts that think bigger is better," Dunaway said. "I would put our franchisee's profitability up against any new concept. It's not about how many stores they have, but how many franchisees are succeeding."

 

One of the company's most successful franchisees is Don Robinson. Along with his partner, Robinson has 14 Penn Station locations — 12 in and around Louisville, Ky., and another two in Raleigh, N.C.

Inside one of Don Robinson's Penn Station locations in Louisville, Ky. The restaurant features updated decor and cooks face the customer when preparing an order.

 

Robinson, now 37, has been in the restaurant industry since he was 18 years old. He got his start in the pizza business, opening and operating a concept he developed, but joined Penn Station in 2000.

 

"We looked at several quick-casual concepts and what drew me, personally, to Penn Station was the product No. 1, which was incredible," Robinson said.

 

Robinson and his partner recently opened two new Penn Station locations that are a step away from many traditional models. For instance, the décor has been changed to reflect more sophisticated tastes, and cooks now face the customers when they prepare an order.

 

"Penn Station will grow eight, 10 or 15 stores a year to make sure they get the right location. They've been around for about 25 years and they had one location close. I think they owe that to being conservative," Robinson said.

 

That conservative approach is taken also in the area of whom they let franchise their brand. Penn Station executives look at only experienced restaurant operators — ones willing to learn and adopt the company's own principles and procedures.

 

"You can't throw a manual at somebody and say, 'Go do this,'" Dunaway said. "It takes time to understand the culture. There's just a natural flow of evolution, of you getting to know us and us getting to know you. All of that takes time. It's just like a marriage."