tag:blogger.com,1999:blog-19178774186446955582024-02-19T05:49:45.752-08:00Six Guys' BlogThe startup story of Massachusetts Burger Enterprises, LLC, one of the nation's largest franchisees of Five Guys Famous Burgers and Fries.Unknownnoreply@blogger.comBlogger22125tag:blogger.com,1999:blog-1917877418644695558.post-10720775764349838452009-08-09T04:46:00.000-07:002009-08-09T04:52:27.543-07:00Local hero eats 11 patty burgerIt has been a while since the last post -- more on that later. However, what better way to get it rolling again than watching a spectacle like the making, and then consumption of an 11-patty burger in Marlborough. Yes, this one goes to eleven. The guest's name is Jonathan Caparso, and we did indeed put his picture on the wall. Thanks to our GM Rich Lanza for forwarding this to me, and to Victor, Doug and Marcus for making it happen.<br /><br />Here's what it looks like on the grill.<br /><br /><object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/zpe1u6KEjgM&hl=en&fs=1&"><param name="allowFullScreen" value="true"><param name="allowscriptaccess" value="always"><embed src="http://www.youtube.com/v/zpe1u6KEjgM&hl=en&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object><br /><br />Here is the eating of the 11 patty burger.<br /><br /><object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/MnsDswACHqA&hl=en&fs=1&"><param name="allowFullScreen" value="true"><param name="allowscriptaccess" value="always"><embed src="http://www.youtube.com/v/MnsDswACHqA&hl=en&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object>Unknownnoreply@blogger.com2tag:blogger.com,1999:blog-1917877418644695558.post-9669592713961644542009-04-24T06:45:00.000-07:002009-04-24T06:47:09.862-07:00Five Guys on the Today ShowCheck out this quote from Michelle Obama, who loves to sneak out to Five Guys for a burger. "And," she says "it was gooooood..." The mention is at the 1:40 mark.<br /><br /><div><iframe src="http://www.msnbc.msn.com/id/22425001/vp/30384619#30384619" scrolling="no" width="425" frameborder="0" height="339"></iframe><p style="background: transparent none repeat scroll 0% 0%; font-size: 11px; font-family: Arial,Helvetica,sans-serif; color: rgb(153, 153, 153); margin-top: 5px; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial; text-align: center; width: 425px;">Visit msnbc.com for <a style="border-bottom: 1px dotted rgb(153, 153, 153) ! important; text-decoration: none ! important; font-weight: normal ! important; height: 13px; color: rgb(87, 153, 219) ! important;" href="http://www.msnbc.msn.com/">Breaking News</a>, <a href="http://www.msnbc.msn.com/id/3032507" style="border-bottom: 1px dotted rgb(153, 153, 153) ! important; text-decoration: none ! important; font-weight: normal ! important; height: 13px; color: rgb(87, 153, 219) ! important;">World News</a>, and <a href="http://www.msnbc.msn.com/id/3032072" style="border-bottom: 1px dotted rgb(153, 153, 153) ! important; text-decoration: none ! important; font-weight: normal ! important; height: 13px; color: rgb(87, 153, 219) ! important;">News about the Economy</a></p></div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-1917877418644695558.post-46480963862164900622009-03-24T15:13:00.001-07:002009-03-24T15:16:21.997-07:00And the opening date in Marlborough is........ Thursday, April 2nd. Open 11am - 10pm.<br /><br />We still have one last permit to take care of, but we are feeling really good. Staff is almost totally hired, training schedule is set, we have our Certificate of Occupancy from the town, and tomorrow morning our first (semi-real) food order goes in. The register system is almost totally installed and we've even entered pricing into the system.<br /><br />The store's phone number is (508) 281-4855 if you want more information. Ask for Rich, Doug or Matt.<br /><br />See you next week!Unknownnoreply@blogger.com9tag:blogger.com,1999:blog-1917877418644695558.post-74978024934713262342009-03-20T08:02:00.000-07:002009-03-20T08:04:55.314-07:00The Motley Fool on Five GuysFrom the Motley Food, March 9, 2009 -- a great primer on 5 Guys as a company. The highlights are theirs, not mine.<br /><br /><p class="MsoNormal" style="line-height: 130%;"><b><span style="font-size: 14.5pt; line-height: 130%; font-family: "Arial","sans-serif";">How to Improve on the Best Business Ever Seen<o:p></o:p></span></b></p> <p class="MsoNormal" style="line-height: 130%;"><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">http://www.fool.com/investing/high-growth/2009/02/24/five-guys-building-a-better-burger-business.aspx <o:p></o:p></span></p> <p class="MsoNormal" style="line-height: 130%;"><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">Anders Bylund (TMF Zahrim)<br /> February 24, 2009 <o:p></o:p></span></p> <p class="MsoNormal" style="line-height: 130%;"><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">Last summer, my fellow Fool Tim Beyers told you all about </span><a href="http://www.fool.com/investing/small-cap/2008/07/02/the-best-company-ive-ever-seen.aspx"><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif"; color: rgb(0, 51, 153);">the best company he'd ever seen</span></a><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">. Californian quick-serve king </span><b><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">In-N-Out Burger</span></b><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";"> impressed him mightily with four core qualities:<o:p></o:p></span></p> <ul type="disc"><li class="MsoNormal" style="line-height: 130%;"><b><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">In-N-Out is family-owned.</span></b><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";"> Since 1948, In-N-Out has grown under the watchful eye of the Snyder family. There are "no plans to take the company public," says the company website. Compare and contrast to fellow burger flipper </span><b><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">McDonald's</span></b><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";"> </span><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">(NYSE: </span><a href="http://caps.fool.com/Ticker/MCD.aspx"><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif"; color: rgb(0, 51, 153);">MCD</span></a><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">)</span><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">, where institutional investors own 77% of the company and insiders don't even register as a blip on the radar – less than 1% inside ownership. <o:p></o:p></span></li><li class="MsoNormal" style="line-height: 130%;"><b><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">Its customers are "insanely loyal."</span></b><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";"> Tim himself would go to the extreme of fisticuffs if his In-N-Out shirt was in any danger. Short of </span><b><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">Apple</span></b><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";"> </span><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">(Nasdaq: </span><a href="http://caps.fool.com/Ticker/AAPL.aspx"><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif"; color: rgb(0, 51, 153);">AAPL</span></a><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">)</span><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">, you won't find a more dedicated fan base anywhere in Southern California. Hold that thought. <o:p></o:p></span></li><li class="MsoNormal" style="line-height: 130%;"><b><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">It's different.</span></b><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";"> "Quality you can taste" sells burgers, and Tim can appreciate the fact that his son's allergies to proteins and preservatives never get triggered by In-N-Out's handmade fries. Fresh ingredients and generous employee training programs ensure the quality factor. <o:p></o:p></span></li><li class="MsoNormal" style="line-height: 130%;"><b><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">There's a disciplined growth strategy.</span></b><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";"> Just as In-N-Out isn't planning to go public, management also doesn't want to sell franchises. "Expansion beyond southwest Utah would require freezing and, from management's view, damage the brand," said Tim. </span><b style=""><span style="background: yellow none repeat scroll 0% 0%; font-size: 10pt; line-height: 130%; font-family: "Verdana","sans-serif"; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">And that, my friend, is where I start to think that I've seen a better company. </span></b><span style="background: yellow none repeat scroll 0% 0%; font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif"; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;"><o:p></o:p></span></li></ul> <p class="MsoNormal" style="line-height: 130%;"><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">In-N-Out Burger sounds like a fine business, and I'd love to sample those patties. But I have two big problems with this company. For one, management sounds pretty dead-set on staying private. More power to them, but it disappoints the investor in me. And for another, I might never get a chance to try the burgers. The closest location to my Tampa home base is in Tucson, Ariz. -- a mere 2,000-mile drive away. Because the company insists on sourcing its own beef and shipping unfrozen patties to the stores, it would have to build another meat processing plant in order to grow any further east.<o:p></o:p></span></p> <p class="MsoNormal" style="line-height: 130%;"><b><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">Filling some large shoes</span></b><b><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";"><br /> </span></b><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">East Coast dwellers like me may never have seen an In-N-Out location. But wherever you live, I bet you've heard of </span><b><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">Five Guys</span></b><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">. </span><b style=""><span style="background: yellow none repeat scroll 0% 0%; font-size: 10pt; line-height: 130%; font-family: "Verdana","sans-serif"; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">The Murrell family ripped entire chapters out of In-N-Out's playbook, and then spiced it up with a few plays of their own.</span></b><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";"> Five Guys started out as a single burger joint in 1986, serving up tasty sandwiches made from never-frozen beef on freshly baked buns. On my first visit in 2001, there were no more than five locations, all in the Fool's own backyard around Alexandria, Va.<o:p></o:p></span></p> <p class="MsoNormal" style="line-height: 130%;"><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">It was already a local legend. Some people showed up for the Zagat-rated burgers, and others filled up on generous helpings of handmade fries. It's not exactly fast food, because the cooks start from scratch and form the patties right there on the grill. But that's OK, because while you're waiting, you can nibble away on the free, unshelled peanuts.<o:p></o:p></span></p> <p class="MsoNormal" style="line-height: 130%;"><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">The similarities to In-N-Out should be obvious by now. But then, Five Guys took a turn for the better.<o:p></o:p></span></p> <p class="MsoNormal" style="line-height: 130%;"><b><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">Top-notch one-upsmanship</span></b><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";"><br /> Five Guys is still family-owned, but the Murrells started franchising the concept in 2003. By 2006, there were 87 stores, mostly along the eastern seaboard. Today, there are more than 300 from coast to coast, including three locations that are each less than a 30-minute drive from my house. I'm a burger fan of epic proportions, but the McDonald's five minutes away gets </span><i><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">zero</span></i><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";"> business from me these days. The </span><b><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">Wendy's</span></b><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";"> </span><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">(NYSE: </span><a href="http://caps.fool.com/Ticker/WEN.aspx"><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif"; color: rgb(0, 51, 153);">WEN</span></a><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">)</span><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";"> Baconator is pretty good, but it ain't the real thing. And </span><b><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">Burger King</span></b><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";"> </span><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">(NYSE: </span><a href="http://caps.fool.com/Ticker/BKC.aspx"><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif"; color: rgb(0, 51, 153);">BKC</span></a><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">)</span><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";"> can keep its Angry Whoppers chained up and muzzled for all I care. I'd open a Five Guys in my kitchen if I could. And I'm not alone.<o:p></o:p></span></p> <p class="MsoNormal" style="line-height: 130%;"><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">There's nothing wrong with a properly conceived franchising plan, if you ask me. </span><b><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">Buffalo Wild Wings</span></b><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";"> </span><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">(Nasdaq: </span><a href="http://caps.fool.com/Ticker/BWLD.aspx"><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif"; color: rgb(0, 51, 153);">BWLD</span></a><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">)</span><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";"> is living proof that franchisees can keep the spirit of a powerful brand alive -- as long as the franchisor stays involved with training and support. </span><b style=""><span style="background: yellow none repeat scroll 0% 0%; font-size: 10pt; line-height: 130%; font-family: "Verdana","sans-serif"; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">Five Guys doesn't have to hand-pick each head of cattle for its burgers, so it can grow wherever you'd find suppliers</span></b><b style=""><span style="font-size: 10pt; line-height: 130%; font-family: "Verdana","sans-serif";">,</span></b><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";"> like a </span><b><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">Sysco</span></b><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";"> </span><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">(NYSE: </span><a href="http://caps.fool.com/Ticker/SYY.aspx"><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif"; color: rgb(0, 51, 153);">SYY</span></a><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">)</span><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";"> distribution center. There are more than 1,500 Five Guys units in development.<o:p></o:p></span></p> <p class="MsoNormal" style="line-height: 130%;"><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">And here's the kicker: Five Guys may not stay private forever. "We do not currently have plans to go public," the company says, but they don't suggest that they've closed the door to Wall Street entirely. The franchising step alone is a sign of the Murrells' ambition to grow bigger and more profitable; </span><a href="http://www.fool.com/investing/dividends-income/2009/02/19/ipo-food-for-thought.aspx"><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif"; color: rgb(0, 51, 153);">an IPO would be a logical next step</span></a><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">.<o:p></o:p></span></p> <p class="MsoNormal" style="line-height: 130%;"><b><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">The Foolish conclusion</span></b><b><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";"><br /> </span></b><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";">So Tim, I think I've found a better company than your best. This one marries the same recipe of quality product and highly involved management to a thoroughly modern growth concept. Five Guys was said to be worth $1 billion three years ago, at one-third its current network size. </span><b style=""><span style="background: yellow none repeat scroll 0% 0%; font-size: 10pt; line-height: 130%; font-family: "Verdana","sans-serif"; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">If and when this baby goes public, I'll be standing in line.</span></b><span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";"><o:p></o:p></span></p> <span style="font-size: 9pt; line-height: 130%; font-family: "Verdana","sans-serif";"></span>Unknownnoreply@blogger.com2tag:blogger.com,1999:blog-1917877418644695558.post-40953409064697222612009-03-16T10:04:00.000-07:002009-03-16T10:16:44.835-07:00Almost... there...A lot of you have asked when our opening day will be; rather than reply one at a time, I thought I would post an entry instead to give you the inside story. <br /><br />The short answer: it's looking more and more like early April, and we are working really hard to get it as early as possible. <br /><br />The longer answer: we still have a few things left to do before we can open the doors. They fall into a couple of categories. <br /><br />First is finishing construction, especially completing the grease trap installation. Grease traps are usually tricky items because they are very expensive, subject to many town regulations (for good reason, obviously), bulky and difficult to handle, and can require ripping up the parking lot. Once this is done, and the final touches are put on the place, we can get our "certificate of occupancy", or CO, from the town, which basically is their seal of approval on our buildout. We have done everything we can to position ourselves well here, but there's no such thing as a sure thing. Even once we have the CO, we have to put on the finishing touches like hanging the signs and building the chairs and tables. Yes, we have to put those together ourselves.<br /><br />Second is hiring and training the staff. We are currently hiring for all spots, or rather, our management team of General Manager Rich Lanza, and two AM's, Doug Oelbaum and Matt Eidelman, are working on that. We have received at least 50 applications over the web and even more in the store. But we need to hire a lot of people and even in this economy, that takes time. Training is a multi-step process that involves the managers visiting Five Guys' training program at headquarters in Lorton, VA, and then completing at least 2 weeks working in a nearby store. This part is basically done. <br /><br />Then once the staff is hired, Five Guys send corporate trainers to train the newly-hired staff, and help run the store once it opens. This part is left to do. Five Guys takes this part very seriously as they not only want to help us be successful, but really want to protect their brand. Because they don't do any advertising, word-of-mouth on the brand is crucial so they take no chances here.<br /><br />Finally, there are a few systems left to install as well, most notably the "Point-of-Sale" system, or POS. The POS is the brains of the operation and can't be installed until the CO is done. Once it's installed, we have to enter all of the employees and further customize it, which also takes time. We also are putting in a camera security system which will enable us to watch the store via the Internet.<br /><br />So that's the deal. When we have an official date, we'll let people know, but for now, we're still on target to hit sometime in early April.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-1917877418644695558.post-36053090209142671682009-03-03T06:19:00.001-08:002009-03-03T06:21:51.691-08:00My 5 year-old is psyched<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjZ90oczVzSIHAXyhGG-PoO9e_UaOpGaKUT3t29zvRGKqhO0gFPC-2SHKCL8Kl8mW_mkFZfZ3-eGz20nXmhNbuDnVKY_6yme5kIlnu54Hv0XziiqIY6ekhpUdHBtcABs21tQGV_HtNHqhQ/s1600-h/Lily+is+psyched+for+Five+Guys.jpg"><img style="cursor: pointer; width: 320px; height: 240px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjZ90oczVzSIHAXyhGG-PoO9e_UaOpGaKUT3t29zvRGKqhO0gFPC-2SHKCL8Kl8mW_mkFZfZ3-eGz20nXmhNbuDnVKY_6yme5kIlnu54Hv0XziiqIY6ekhpUdHBtcABs21tQGV_HtNHqhQ/s320/Lily+is+psyched+for+Five+Guys.jpg" alt="" id="BLOGGER_PHOTO_ID_5308966484435209634" border="0" /></a><br /><br />My 5 year-old daughter wrote this for me -- translation for non-parents of 5 year-olds is "From Lily to Daddy, 5 Guys Awesome Burgers and Fries".Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-1917877418644695558.post-58770618036398519472009-02-28T12:41:00.001-08:002009-02-28T12:57:04.603-08:00Starting to look like a Five Guys - Marlborough pictures<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhIgYUOU2VALvXNVaDZm0EEyjRY2A8T6dP3BAsdcL8bx3pNpxecCqX-yJCctFFGFQ_1i1cpNKfjv4DOgC7F_gFlKLGglnfmLI-fgbVrWQAocjSApecpS4DUxJw_iMh58sqf_Io4UjcRlOM/s1600-h/IMG_0083.JPG"></a>We're getting there -- I took these pictures at our Marlborough store this morning. The DCM guys were laying tile (and they were perfectionists about it) when we got there around 10am. The progress in the last 2 weeks has been pretty incredible.<div><br /></div><div><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhERb7eDx9pLvV4MFsNbmAiOWlT3RXNmZMfpJRfIW65s7lIihmTSgjW3UeBNim_q4V_7B39DQH1QuvORmr0sfxC-xvS66DWTYJo924Ho61sJVNY6O6V-tpcQXmnDx-LwZ2neUNhnJdt0aE/s1600-h/IMG_0080.JPG"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhERb7eDx9pLvV4MFsNbmAiOWlT3RXNmZMfpJRfIW65s7lIihmTSgjW3UeBNim_q4V_7B39DQH1QuvORmr0sfxC-xvS66DWTYJo924Ho61sJVNY6O6V-tpcQXmnDx-LwZ2neUNhnJdt0aE/s320/IMG_0080.JPG" border="0" alt="" id="BLOGGER_PHOTO_ID_5307951496733379474" style="float: left; width: 320px; height: 240px; " /></a><br /></div><div><br /></div><div><br /></div><div>This is a shot from the front of the restaurant - you're looking at what will be the seating area as seen from the front, and on the left is the counter. If you've seen the Dedham store, it's basically the same layout.</div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEimpEkAabwvENRdtAtGtQoOUfezGGaMz_ve5tKsU5stimoV-YQUtlOSrJaSnzgs_Ntc9k_TmO4qE9jjnODHwKfJBcU6wRFXhw-jllvGi2WN9bINTFCORdDRqNOPvBLpL7LsBbkpOhx985w/s1600-h/IMG_0081.JPG"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEimpEkAabwvENRdtAtGtQoOUfezGGaMz_ve5tKsU5stimoV-YQUtlOSrJaSnzgs_Ntc9k_TmO4qE9jjnODHwKfJBcU6wRFXhw-jllvGi2WN9bINTFCORdDRqNOPvBLpL7LsBbkpOhx985w/s320/IMG_0081.JPG" border="0" alt="" id="BLOGGER_PHOTO_ID_5307951911400511810" style="float: left; width: 320px; height: 240px; " /></a><br /><br /></div><div><br /></div><div><br /></div><div><br /></div><div>This is the grill area -- no sizzling yet, but there will be. The guys were also working on some of the ventilation/duct work behind it while we were there this morning.<br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhIgYUOU2VALvXNVaDZm0EEyjRY2A8T6dP3BAsdcL8bx3pNpxecCqX-yJCctFFGFQ_1i1cpNKfjv4DOgC7F_gFlKLGglnfmLI-fgbVrWQAocjSApecpS4DUxJw_iMh58sqf_Io4UjcRlOM/s1600-h/IMG_0083.JPG"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhIgYUOU2VALvXNVaDZm0EEyjRY2A8T6dP3BAsdcL8bx3pNpxecCqX-yJCctFFGFQ_1i1cpNKfjv4DOgC7F_gFlKLGglnfmLI-fgbVrWQAocjSApecpS4DUxJw_iMh58sqf_Io4UjcRlOM/s320/IMG_0083.JPG" border="0" alt="" id="BLOGGER_PHOTO_ID_5307953133053937682" style="float: left; margin-top: 0px; margin-right: 10px; margin-bottom: 10px; margin-left: 0px; cursor: pointer; width: 320px; height: 240px; " /></a><br /><div><br /></div><div><br /></div><div>Fries, anyone? One thing's for certain: we have plenty of baskets. We paid up for the higher volume units (4, not 3) in anticipation of more hungry customers than the average store in the chain.<br /></div> <div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><div><br /></div><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgq6aDLEujNHRHKOeJbesBxkpG2-vy7DnK1XWGlyQBvGd17RbHWcVHls9WUtNbtit-S9owd0wpxHyTmrVeXTDNa3kepkpRnfdXmew-qz_kJL4GhEyby6bHEw1GUZ67rGR57ctHnd3S9zig/s1600-h/IMG_0082.JPG"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgq6aDLEujNHRHKOeJbesBxkpG2-vy7DnK1XWGlyQBvGd17RbHWcVHls9WUtNbtit-S9owd0wpxHyTmrVeXTDNa3kepkpRnfdXmew-qz_kJL4GhEyby6bHEw1GUZ67rGR57ctHnd3S9zig/s320/IMG_0082.JPG" border="0" alt="" id="BLOGGER_PHOTO_ID_5307952682138657954" style="float: left; margin-top: 0px; margin-right: 10px; margin-bottom: 10px; margin-left: 0px; cursor: pointer; width: 320px; height: 240px; " /></a><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEioIjeTvZCwtCxMup9ZqJsrKq6xqb-HVAdkBlBqgNtv7Ok3AChah5MBwPpJe5HLn0x2pbiZcP2yIWfWdSHLosabhjqoCuzaLva3oyC8JsFqVSgRe9CjSfbSYUrLaLv7SqYnP77_d1qZn2I/s1600-h/IMG_0083.JPG"></a><br /><div><br /></div><div><br /></div><div><br /></div><div>Our walk-in cooler. For some reason, this piece of hardware made it feel like a restaurant more than any other that we had installed.</div> <div><div><br /></div><div><br /></div></div></div>Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-1917877418644695558.post-87490399128874540222009-02-26T05:31:00.001-08:002009-02-26T05:57:57.659-08:00Getting there...Well, we are hard at work getting ready to open in Marlborough. It's starting to look more like April than May, and maybe even in the earlier part of April. Some of you have written me asking for firm date, but as yet, I don't have that. Believe me, when I know, you'll know.<br /><br />Here's why: hard as opening a store is, opening our first one (for us, anyway) is especially hard. The beauty of a franchise, of course, is that we don't also have to invent the operating model. That's done for us. But there is much, much more that's involved. <br /><br />To give you a bit of an idea of what goes on behind the scenes, here are some of the things it entails:<br /><ul><li>Dealing with vendors: we are simultaneously signing up for gas, electric, linens, pest control, cleaning chemicals, cable/telephone, point-of-sale, credit card processing, security systems, 3 or 4 kinds of insurance, payroll, music (Five Guys always plays specific Sirius channels in their stores), bread, syrup, and of course meat and other food, among other vendors I am leaving out. None of them have ever heard of us before and some want to run personal credit checks even though we have a corporation set up. In this world, they all want to get paid up front for everything. They all have 5 friends who run other businesses targeting small business and those 5 friends all call to pitch something.</li></ul><ul><li>Hiring: we have rounded out the management team for our first store, and are very proud of the group we have assembled. You're only as good as your people, so we spent a ton of time on this. Next, we/they will have to hire almost 50 people by opening day.</li></ul><ul><li>Construction/equipment: add to all the vendors above the massive project of design, construction, and equipment ordering. Our construction company has done fantastic work so far, although Marc has spent countless hours chasing down vendors for grills, walk-in coolers, shelving, work tables, etc. At the same time, Five Guys is constantly optimizing how stores should be built. For example: should there be shelving above the fryers? If so, how much and what kind? This affects the bill-of-materials (BOM), and in more than one instance for us, changes it even since we placed the original orders 5 weeks ago.</li></ul><ul><li>Marketing: this one is easy. Five Guys doesn't do any - they let the product speak for itself. This pays huge dividends in moments like the one I had yesterday with my daughters' babysitter. She's from Alabama, and when I mentioned that we were opening a Five Guys nearby, she went off on a 5-minute tirade about how much she loves Five Guys and that everyone from her high school goes there after basketball games. That said, we will be working closely with the Marlborough Chamber of Commerce, getting involved in local charities and with the schools, and plugging ourselves into the local business community.</li></ul><ul><li>Banking/lending: this one has also turned out to be easy, which I know is unusual in these times. Our bankers at BB&T (out of Virgina - 13 out of 13 lenders in Mass. turned us down) fund requests the same day, always get back to us quickly, and have been fantastic partners.<br /></li></ul>Did I mention that we are simultaneously developing pipeline for up to 19 more stores? We actually have a "letter-of-intent" for the second one, which is a description of high-level lease terms but is not legally binding until we sign the actual lease. Of course, before then, we have to form the organization, negotiate the lease, fund a new bank account...<br /><br />We love what we're doing and are very excited about the first store. But there are definitely days that are excited to run the business, not just build the foundation.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-1917877418644695558.post-62200190996972816252009-02-11T14:25:00.001-08:002009-02-11T14:37:18.782-08:00First New York, then the nationI am back from Five Guys' corporate training and wanted to pass along an amazing story about buns. More on the training experience in a later post.<br /><br />First of all, 5 Guys' buns are great, which I did not expect. I spent a decent time behind the grill over the past couple of days and can tell you that the smell as they're grilled is pretty intoxicating. They hold up well to the patties and toppings, and actually stay more solid than you would think after being wrapped with meat and toppings in foil for 10 minutes or more. They are also expensive; how expensive they are is apparently a trade secret, but I will say that it's more than you pay at the grocery store. 5 Guys is about a great burger and fries experience, not low price, so it makes sense for franchisees to pay a little extra for a better quality product.<br /><br />The buns are 100% trans-fat free. The interesting story for me is that this is true because Five Guys expanded into New York City, which restricts "trans fats" in restaurants. This regulation forced Five Guys to alter their recipe to gain entry to that very lucrative market. It's not really feasible to have one recipe for NYC and another for the nation, so as a result, the bun recipe changed everywhere. So, now every Five Guys in the nation has trans-fat free buns. <br /><br />As I mentioned in an earlier post, Five Guys is not health food and shouldn't be confused for that. That said, I found it amazing that New York passing a law changes how buns are served in Colorado, Utah, South Carolina, Virginia, and everywhere else.Unknownnoreply@blogger.com2tag:blogger.com,1999:blog-1917877418644695558.post-8586612475644046032009-02-08T09:15:00.000-08:002009-02-08T09:27:39.631-08:00First Lady at 5 Guys, Off to Burger UMichelle Obama went with her "staff" to Five Guys - no picture, but a nice mention in the <a href="http://www.nytimes.com/2009/02/08/us/politics/08michelle.html?_r=1&hp">New York Times</a>. Regardless of your politics, you have to admit it's a good sign when she could probably have taken them anywhere and ended up at Five Guys, especially since as a Chicago person she couldn't have known about them UNLESS SOMEONE REALLY RECOMMENDED IT TO HER. On top of that, she ordered a cheeseburger, fries and a soda, so she at least knows something about economic stimulus that works.<br /><br />Tonight I am heading off to Lorton, VA for a couple of days at Five Guys Burger University (my words, not theirs.) I am ready with my red t-shirts and baseball cap. The red shirts connote that I will be a crew member, not a manager, and the main thing the cap will show people is that I have a small head and look ridiculous in a one-size-fits-all hat. That's entrepreneurship. My partner Marc is taking the 2nd half of the week; since we aren't going to be working in the stores ourselves, we don't have to complete the whole week of 8am-11pm days and the certification test on Friday. That said, our feeling is that if we are going to be owners, we need to have some basic understanding of what it's like to actually work in the business. I have done similar things in my tech business life (sitting on the customer support desk, etc.) I didn't have to buy work shoes for those gigs though.<br /><br />I'm heading down with our manager (Rich Lanza) and our assistant manager (Doug Oelbaum). This past week was huge as we got them introduced and starting to talk about running the store, which we are very confident in their ability to do. Also, demolition started on our site, we had a big architectural breakthrough for our next site, we finalized our construction contract, and are generally working our way down the "punchlist"; the punchlist is the 5 Guys project plan, if you will, on how to open a store. It is OK and ever-changing, so we have had to figure out a lot on our own. Yet another reason to attend burger school to find out how these restaurants actually run.<br /><br />More from Virginia after the first long day.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-1917877418644695558.post-91868808261062914642009-01-26T11:20:00.000-08:002009-01-26T11:31:47.352-08:00Best of What's New - BostonFive Guys was named "Best of What's New" in Boston by the Globe -- here is the text of the article:<br /><h3> <a href="http://calendar.boston.com/foxborough-ma/venues/show/1061095-five-guys-burgers" target="blank">Five Guys Burgers and Fries</a></h3> <span style="font-style: italic;">There's no better place to satisfy a burger craving than Five Guys, and (finally!) two have opened locally, in Dedham and Foxborough. Started in a suburb of Washington, D.C., the rapidly expanding fast-food franchise will quickly have you falling for the juicy, greasy stacks. Single and double burgers are made to order (but they're always well done), and you pick from 15 classic toppings."<br /><br /></span><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgKqHr3SbW4b3HOVNlH4Qs7RJ9hCQEsm3qV6NvLNNLbACnERdZWnZwlB691rSbIZjnm052rkcH8NfHc3it5CSoAyxQHKD0aqeWZLFroGTgtG1_6tsk0MJslGx9VSs3qkV2fWtdFHA2lfDo/s1600-h/BURGER-CHAIN-FOR-MASS.__1232996037_5049.jpg"><img style="cursor: pointer; width: 215px; height: 131px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgKqHr3SbW4b3HOVNlH4Qs7RJ9hCQEsm3qV6NvLNNLbACnERdZWnZwlB691rSbIZjnm052rkcH8NfHc3it5CSoAyxQHKD0aqeWZLFroGTgtG1_6tsk0MJslGx9VSs3qkV2fWtdFHA2lfDo/s320/BURGER-CHAIN-FOR-MASS.__1232996037_5049.jpg" alt="" id="BLOGGER_PHOTO_ID_5295687319441462114" border="0" /></a><br /><span style="font-style: italic;"><br /><span style="font-style: italic;"></span> </span><br />There are many burger places around the Boston area, so this honor is a great accomplishment for Five Guys.<br /><br />Our franchise group is looking forward to getting our first store open shortly -- construction starts next week -- and to getting our second store signed up. Looks like there will be another award sign we can put on the wall...Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-1917877418644695558.post-54511784996528225252009-01-19T11:18:00.000-08:002009-01-19T11:37:15.611-08:00Ready to Start ConstructionTomorrow morning we are meeting with Brian Abbey from DCM, who will be our GC for our Marlborough store opening. Last week, Marc and I spent several hours with Five Guys' construction guru Brian Gill going through every inch of the architectural plans and kicking off ordering. Basically, we order the equipment and then Brian and his crew are responsible for receiving and of course installing it all. <br /><br />The franchise-restaurant equipment list creation is pretty systematic and pretty painful, and that's even if your architect has labeled things very clearly on the drawings. Most don't. Basically, Brian (or your favorite frachisor) goes through the architectural blueprints inch by inch to come up with what we need to order. For us, this includes:<br /><br />- grills<br />- fryers and fry baskets (one set for blanched fries -- blanching is key to great fries)<br />- walk in coolers<br />- refrigeration systems<br />- shelving<br />- tables and the "15 minute" chairs, thus named because you don't want to spend more than that sitting on them<br />- legs for the tables (yes, these are a separate order)<br />- soda dispensers and icemakers<br />- work stations<br />- kitchen utensils, including fry cutters and grill accessories<br />- ketchup dispensers<br />- POS (point of sale) system<br /><br />If this doesn't sound fun, it's not. Each has its own set of vendors, none of which supply credit of any kind, in this or any other type of financing environment. 5 Guys has approved (or owns) most of these vendors, but in some cases, is changing its mind week-by-week on what constitutes an "approved" order. For example: we had to get approval for our fry basket order and were informed by 'corporate' that the certain type of fry basket we were instructed to by is actually NOT approved by TRAINING or OPERATIONS (their capitalization, not mine). And you thought the TSA was hard to deal with.<br /><br />Luckily BB&T, our financing partner, is making paying for these items as simple as possible by pre-funding invoices as we send them. This is better than the usual standoff between waiting for things to arrive before they get funded, but not being able to order anything without 100% cash up front. How is someone supposed to run a business that way? It makes you wonder how anyone who doesn't already have credit can start a business in this environment.<br /><br />So after a lot of hard work, we are ready to roll on construction. For posterity's sake, here are a few pictures of what the site looks like before we begin construction. I have also included a few pictures of the signage both on the strip center's main sign, and in the window.<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjt1M7XMEvXDh_IP_zml4pf2T-EyPJYudLwXRAXW50Bbu53533BtqtjgzE68oF9jh4orf7lJiZlvjis6pONsGrC0WT_9PX27NREKtS6AH3NUy-o79Kf_Qm57goBzGhOwjFsQGTQPgwPzxw/s1600-h/IMG00203.jpg"><img style="cursor: pointer; width: 199px; height: 149px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjt1M7XMEvXDh_IP_zml4pf2T-EyPJYudLwXRAXW50Bbu53533BtqtjgzE68oF9jh4orf7lJiZlvjis6pONsGrC0WT_9PX27NREKtS6AH3NUy-o79Kf_Qm57goBzGhOwjFsQGTQPgwPzxw/s320/IMG00203.jpg" alt="" id="BLOGGER_PHOTO_ID_5293088006667346498" border="0" /></a><br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhrVSLORAF1U0QxfD4RKgentPhs4iYtBFX2hn7bNwIlo06nWA2If9N1lOsy4hjzz72uax-eWNp96YLzVy4wwzIqgaejSajytXi1_mHkMcs3LpX96YJrmSJucr3QUYnhAVSNyUGv2VOP7uk/s1600-h/IMG00204.jpg"><img style="cursor: pointer; width: 207px; height: 155px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhrVSLORAF1U0QxfD4RKgentPhs4iYtBFX2hn7bNwIlo06nWA2If9N1lOsy4hjzz72uax-eWNp96YLzVy4wwzIqgaejSajytXi1_mHkMcs3LpX96YJrmSJucr3QUYnhAVSNyUGv2VOP7uk/s320/IMG00204.jpg" alt="" id="BLOGGER_PHOTO_ID_5293088626649216882" border="0" /></a><br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjl-mTpQJG5gaMPq8CUt-JmBQzt7KBzMpI1y0QmInBnGtGd8VR3v0YHAhccy7hAoJHVqmzJM87rUubgVVUGlCsPi1GFRRKZBs-NHFSo5udh74kdzRFMX-uwPnTSDjiY11Qnin9BXbL3rXQ/s1600-h/IMG00207.jpg"><img style="cursor: pointer; width: 178px; height: 133px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjl-mTpQJG5gaMPq8CUt-JmBQzt7KBzMpI1y0QmInBnGtGd8VR3v0YHAhccy7hAoJHVqmzJM87rUubgVVUGlCsPi1GFRRKZBs-NHFSo5udh74kdzRFMX-uwPnTSDjiY11Qnin9BXbL3rXQ/s320/IMG00207.jpg" alt="" id="BLOGGER_PHOTO_ID_5293089132780916818" border="0" /></a><br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgt2YWVwGUafeFCMsgJjyc4NF65j4Hthy7aMhYIeK-KtqR18eSh0U4SYtbztb6lh5cK_p3zRzNvOKuyC-P0LP4TqK-XRrb5X_LnPWCgZiCo_ELwBYCW5P0Eb0eNpREbQl-ELa2nIf91NGY/s1600-h/IMG00205.jpg"><img style="cursor: pointer; width: 184px; height: 138px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgt2YWVwGUafeFCMsgJjyc4NF65j4Hthy7aMhYIeK-KtqR18eSh0U4SYtbztb6lh5cK_p3zRzNvOKuyC-P0LP4TqK-XRrb5X_LnPWCgZiCo_ELwBYCW5P0Eb0eNpREbQl-ELa2nIf91NGY/s320/IMG00205.jpg" alt="" id="BLOGGER_PHOTO_ID_5293089021631106210" border="0" /></a>Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-1917877418644695558.post-21674265698066507982009-01-09T10:43:00.000-08:002009-01-09T11:18:31.989-08:00Calorie countsIt's been reported recently that Massachusetts is considering having "major" chains post calorie information for their products. New York City does this already, which is why I know that the tasty Starbucks iced lemon loaf is really, really bad for you. I can wolf this thing down in about a minute, packing in 450 fat-rich calories and little or no nutrition.<br /><br />In case you haven't seen it, here is a link to that article (sorry that it's pasted in - Blogger is giving me problems right now):<br />http://www.boston.com/news/local/massachusetts/articles/2009/01/08/state_readies_campaign_to_curb_obesity_epidemic/<br /><br />In a related note, McDonald's apparently has been working behind the scenes to convince moms that its food actually isn't that bad for kids. Kids love McDonald's, obviously; my kids already know, even though they are only 5 and we never go to McDonald's, that their colors are red and yellow. Whenever we play Uno, they tell us so ("Dad! I only have McDonald's colors). But Moms are the so-called "gatekeeper" that prevent their kids from going to McDonald's, so the restaurant chain's challenge is to get them bought in. The Washington Post had this story on their front page earlier this week.<br /><br />I don't know if Five Guys can be considered a "major' chain since in Massachusetts there are literally 2 stores open. But here's one thing I do know: Five Guys is not health food. We all know this. The difference between Five Guys and other chains, however, is that we don't pretend it is. I've heard our Director of Franchise Development (McGuire - he's the white-suited guy in the Phantom Gourmet clip) announce this at ICSC events to wild cheers. We don't serve 1,000 calorie Asian Chicken salads. We don't sell "all white meat" Chicken McNuggets that have even more saturated fat than a Big Mac. We sell burgers and fries and they are not going to help you lose weight.<br /><br />However, they are high-quality, award-winning products with legions of loyal customers. Giving these customers visibility into calorie counts, if that's what we are asked to do, is a part of the privilege of winning their business. It doesn't worry me much. I know all about the Starbucks lemon loaf and ate one only this past Tuesday. And it was delicious.Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-1917877418644695558.post-60206150069344406852008-12-16T13:36:00.000-08:002008-12-16T13:39:05.328-08:00Phantom Gourmet on Five GuysOur neighbor franchisee, Sean Olson, recently had the Phantom Gourmet visit his store to shoot a video and review the burgers. Here's that video, courtesy of Christine Dykes of Conviser Group (his real estate broker):<br /><br /><object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/AXP_kT7XCVs&hl=en&fs=1"><param name="allowFullScreen" value="true"><param name="allowscriptaccess" value="always"><embed src="http://www.youtube.com/v/AXP_kT7XCVs&hl=en&fs=1" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object><br /><br />Take a look -- definitely worth the 4 minute time investment to get a sense of what the fuss is all about.Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-1917877418644695558.post-74930319987360107742008-12-16T08:43:00.000-08:002008-12-16T09:00:28.120-08:00ManagementWe are in the process of hiring our first General Manager, who we hope will become a partner in the business as it grows into what should be a $25M enterprise. This is not a post about that process (more on that when it's actually complete). It is a post on why we believe management matters and are willing to buy more than we need on day one.<br /><br />First, an anecdote about getting our Marlborough store built. The process begins with architectural plans submitted to 5 Guys, who wants to make sure that we stuffed enough tables into the space and actually have a kitchen and bathrooms. Fair enough. This part was pain-free for us as we hired an architect who has done 5 Guys stores before and appears to be at the top of their game. Then, the plans are submitted along with a form to the Health Department in Marlborough, along with a check to cover the application fee.<br /><br />That last piece is mundane, but think for a second about what has to happen there. They start the form. We have to finish the form, and someone has to write the check and mail it in. Mediocre management - which is inexpensive, easy-to-find, and retained by continuing to pay a salary - means they start the form, mail it to us, and then we mail it back to them along with a check, and then they mail it in to the town. This is how it's typically done, and it eats probably 7 business days.<br /><br />Or, we could collaborate on filling it out, either electronically via email or over the phone, and then they could mail it in that day by writing the check themselves and billing us later. Thinking creatively about this is what good management gets you. Why does this matter? In 5 Guys world, getting open 7 days earlier equals thousands in cash flow. And cash flow is a linchpin of building a big fast-casual dining business.<br /><br />Yes, great management is indeed more expensive, hard-to-find, and trickier to motivate and retain. But it is indispensable, which is why we are focused on hiring someone who can become a partner.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-1917877418644695558.post-71370711996285931402008-12-05T10:28:00.000-08:002008-12-05T10:33:25.883-08:00Don't look at this if you're already hungryTo balance out the business-focused post about George "My Hero" Naddaff of UFood, here is a link to a set of <a href="http://www.freep.com/apps/pbcs.dll/gallery?Avis=C4&Dato=20081113&Kategori=ENT&Lopenr=811110803&Ref=PH">mouthwatering pictures from Detroit's Free Press today</a> -- it's their photo gallery of Detroit's Best Burgers. It'll raise your cholesterol numbers just looking at it.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-1917877418644695558.post-39516941526845311242008-12-04T14:28:00.000-08:002008-12-04T14:45:34.367-08:00Great advice from George NaddaffI met with George Naddaff today -- he took Boston Chicken public and is currently the Chairman and CEO of UFoodGrill, which apparently combines taste with health. At 5 Guys, we don't exactly position ourselves that way. Five Guys' head of NE Franchise Development is named McGuire; legally he's Matt McGuire, but his business card has only one name it. I heard him tell an ICSC audience "We're not healthy", to which half the people in the darkened room stood up and cheered.<br /><br />Anyway, George was very generous with his time and gave us some advice on making sure that our business is successful and that our customers are happy. Here are some of the highlights:<br /><br /><ul><li>Burgers, chicken and pizza are forever</li><li>5 Guys is a great concept - Most businesses never get to first base, but you just bought your way onto 3rd base. That's great. But it's not 5 Guys' job to get you to home plate. Follow their formula to the letter. Your job is locations and people.<br /></li><li>Make sure the first store is a huge success - the cash from store #1 is what enables the buildout of store #2 and the ability to raise subsequent debt. It is easy to get excited about the challenge of opening so many stores in such a small amount of time, but don't. Get that store right before tackling too many others.<br /></li><li>Hire really good food people - don't skimp on talent who knows the quick serve business. Get someone who knows how to train in languages other than English. I love the food business, and you seem like smart guys and are asking the right questions, but food is the hardest business in the world.</li><li>Don't pick free-standing spots - in your territory, most of them are abandoned gas stations anyway.</li><li>Rent should be no more than 10% of your sales, and preferably closer to 7%.<br /></li></ul>He then passed on a great candidate, offered help with real estate sites and selection, and offered personally to drive out and check out our first site. A real mensch, and if he can get over the fact that we're not going to lower his cholesterol, the burger and fries are on us.Unknownnoreply@blogger.com2tag:blogger.com,1999:blog-1917877418644695558.post-71382309942426215152008-11-21T09:00:00.000-08:002008-11-21T09:07:11.656-08:00Thank You PaneraA brief shout-out to Panera, without whose bottomless decaf and wireless access we would not have been able to interview our small army of GM candidates. If I were their landlord, I would be taking a hard look at their parking requirements because there were many others like me (and Marc last week) who camped out there for quite some time. I think the small-business-person-too-cheap-to-have-an-office contingent made up 1/3 of their traffic while I was there.<br /><br />Thank you Panera.<br /><br />Anyway, we are getting close to the end of this round of interviewing. As an entrepreneur, it is interesting to see how the caliber of people you interview can influence your ideas about the position you are hiring for. In the end, I think you get a better outcome being little flexible based on the talent walking in the door. The Five Guys concept is pretty compelling, and so is working for a growth business with a lot of career path and opportunity, so we have been fortunate to talk to some very, very good people this week.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-1917877418644695558.post-88063695449624178432008-11-19T05:21:00.001-08:002008-11-19T05:47:08.706-08:00A Good Burger is About More than FoodFirst of all, welcome to readers of A Hamburger Today, one of the best burger blogs I've found so far. There's a link to the blog on the side for anyone wants to check it out.<br /><br />We are well into our search for our first store general manager. Through ads in the Boston Globe (semi-productive) and several online resources (much more productive - not a good omen for newspaper people), we found a number of good candidates and are starting to zero in on the right person.<br /><br />Who is the right person?<br /><br />Marc and I have a certain business philosophy, which is that no matter what product you buy, the service is a key point. We leave perfecting the burger concoctions to the experts: Five Guys and the customer. Among many other things, the manager's job is to make sure that the environment in which you experience the burger is the best it can be. Here are a few things about what that means:<br /><br /><span style="font-weight: bold;">The store is clean<br /></span>This is so obvious that it seems strange to write it. However, it is actually difficult to achieve. This is especially true in a store that is physically too small -- so, as partners we are nervous about stores with small footprint. But when a candidate notices the crumbs on the radiator at Panera (our "office" while we conduct interviews), that stands out because we want our management to be obsessed with this. Tables should be cleaned. Trash should not be full. And yes, this philosophy extends to clean bathrooms<span style="font-weight: bold;">.<br /><br />Orders come consistently<br /></span>Five Guys is *not* a fast-food restaurant. Even so, it has a standard for how many minutes (7) one is supposed to wait for an order, even at busy times. What's almost as important as how quickly it comes is consistency of order turnaround time. Most people would more happily wait 8 minutes every time than 5 minutes most times, but 13 minutes other times. The same applies for almost anything, by the way - human beings like consistency.<br /><br /><span style="font-weight: bold;">Staff is professional and polite<br /></span>Starbucks is a great business (their real estate overexpansion notwithstanding) in large part because they have figured out that customer experience depends on their "associates" who interact with customers. Five Guys is not a coffeehouse (thank goodness), but applies many of the same principles. Check out sign they post on the front of the soda dispenser next time you are in a store and you will see what I mean. How a manager plans to work with staff to reduce turnover, keep people properly trained, deal proactively with disciplinary issues, and run a smooth-flowing line - and how they have done so successfully in the past - is something that we are watching closely.<span style="font-weight: bold;"><br /><br /></span><span>There are many other attributes, but fundamentally, you want your experience to be about the food, not why the store was out of straws. That's management. If that's solid, you'll rave about the burgers -- of that, we are confident. </span><span style="font-weight: bold;"><br /></span>Unknownnoreply@blogger.com4tag:blogger.com,1999:blog-1917877418644695558.post-52075384992245775192008-11-14T12:50:00.001-08:002008-11-15T08:45:26.352-08:00Patriot Place Five Guys is open!!We visited our neighbor franchisee's new store in Patriot Place today; that's the shopping center complex recently opened near the Patriots' stadium in Foxborough, MA. A colleague of mine described the place as a "man mall" because of stores like Bass Pro.<br /><br />Sean Olson opened very recently and was doing a great lunchtime business. A couple of pics I took from my Blackberry (they're not the best, I know) are below:<br /><br /><div style="text-align: right;"><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhgx9OQ86mzacmfslg-xxhpnpoWcRVm6QipsLltb_NHsCj7bo1l9zGu0UyrHQycNUbUCZlu-Va3exS1Xqs0EJFLFYFnuaH6_m5_PkpVStL-UzyOkhzqDVo4W5RBzuGamKqdnaJfoyyI1h0/s1600-h/Patriot+Place+storefront.jpg"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 226px; height: 168px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhgx9OQ86mzacmfslg-xxhpnpoWcRVm6QipsLltb_NHsCj7bo1l9zGu0UyrHQycNUbUCZlu-Va3exS1Xqs0EJFLFYFnuaH6_m5_PkpVStL-UzyOkhzqDVo4W5RBzuGamKqdnaJfoyyI1h0/s320/Patriot+Place+storefront.jpg" alt="" id="BLOGGER_PHOTO_ID_5268619865427435698" border="0" /></a><br /></div> <div style="text-align: right;"><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEih2iWvl4clNUADed12_yuFpBw7leFnDmo_fIPYEefryjWeVkVVXDKUeCil1fhP0I9aCCxGkWyyY9jZTMG2ImFbciOCUrx0WVFb1GioewmWBwYjm3JItWB-hPyIm7Y61x08ShC-PrNOZIQ/s1600-h/Patriot+Place+counter+shot.jpg"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 232px; height: 174px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEih2iWvl4clNUADed12_yuFpBw7leFnDmo_fIPYEefryjWeVkVVXDKUeCil1fhP0I9aCCxGkWyyY9jZTMG2ImFbciOCUrx0WVFb1GioewmWBwYjm3JItWB-hPyIm7Y61x08ShC-PrNOZIQ/s320/Patriot+Place+counter+shot.jpg" alt="" id="BLOGGER_PHOTO_ID_5268619623390667042" border="0" /></a></div><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br />Marc and I brought our partner, Tom Donnelly for lunch -- burgers and fries were good and the service was very fast considering how new the store was. We got some good ideas for our Marlborough store in terms of layout (good) and looked at slightly-more-expensive-than-we-thought-they-would-be proposals from sign vendors (less good, but still OK).<br /><br />Congratulations Sean!!<br /><br /><div style="text-align: right;"><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEih2iWvl4clNUADed12_yuFpBw7leFnDmo_fIPYEefryjWeVkVVXDKUeCil1fhP0I9aCCxGkWyyY9jZTMG2ImFbciOCUrx0WVFb1GioewmWBwYjm3JItWB-hPyIm7Y61x08ShC-PrNOZIQ/s1600-h/Patriot+Place+counter+shot.jpg"><br /></a></div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-1917877418644695558.post-25476696231453785602008-11-12T09:57:00.000-08:002008-11-12T10:01:52.239-08:00First store plans approved!A huge day for us at Mass Burgers -- we got approval for our Marlborough store architectural plans from 5 Guys and are ready to bid them out and get rolling on permitting. We had been told by a number of other franchisees that we'd talked to that this can be a hassle and had planned a pretty long contingency.<br /><br />All in all, things have been fairly smooth for this store opening so far. Marc had a great phone call with the head of the Marlborough Chamber of Commerce yesterday, our progress in looking for a GM and assistants hasn't hit snags yet, and our lender is moving quickly on our financing requests. And, on top of that, our legal bills actually came in below budget (a sentence I don't think I've ever written before).<br /><br />So in a turbulent economy and in a business that we know will have challenges, it is always gratifying to have a day that is 100% good.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-1917877418644695558.post-18062628340465475042008-11-10T18:02:00.000-08:002008-11-11T12:05:03.137-08:00How We Got StartedWelcome to the Six Guys blog! The 6 of us (4 founders, 2 additional investors) are one of the nation's largest franchisees of Five Guys Famous Burgers and Fries. We plan to use this blog to keep followers informed on our progress as we the build the business. It turns out that there is a lot to do, which we plan to chronicle on this blog.<br /><br />One question we frequently get is: how did you get into this business anyway? Here goes...<br /><br />The 4 of us all connect through Peter Weber, one of our founders who is based in D.C. He and Bill Ranney have worked together, most recently in an IT startup business called SevenSpace, which Peter and crew sold to Sun Microsystems for a tidy profit. Peter Biro (based in Wellesley, MA) helped Peter and Bill in their venture by working with them on acquisitions for their business. Peter Weber and Marc Magerman (based in Franklin, MA) are old friends from college. Peter Weber introduced Marc to Peter Biro; Biro and Magerman then partnered up and almost bought a small business together. Peter and Marc had been looking for a business to buy together, and Peter Weber and Bill Ranney had been looking at franchise concepts and live in the Five Guys epicenter. Voila.<br /><br />Weber approached Five Guys in the spring of 2007 about an area franchise in Virginia, but none was available. They recommended that he look elsewhere, like maybe Massachusetts. Together with Bill, Peter called his old friend Marc Magerman, who then called his would-be business partner Peter Biro. Peter and Marc drove to visit a Five Guys in West Avon, CT and after one taste, we were hooked. Marc brought in 2 more investors, also successful business owners. Almost one year and a lot of legal bills later, we closed our area deal with Five Guys, our Series A equity round, our debt financing, our deal with Restaurant Sites (our real estate broker) and our group's partnership, which we very imaginatively called Massachusetts Burger Enterprises, LLC. And then the work began...<br /><br />We will continue to keep followers posted.Unknownnoreply@blogger.com0