“Since opening the first Togo’s location in Medford in 2011, the brand has been well received by the community,” said Will Brake, Togo’s franchisee. “I have fond memories of Togo’s while growing up in San Jose, so I’m thrilled to be able to expand the brand’s footprint throughout the area. With a large number of California transplants residing in Southern Oregon, I know that the new restaurant will be a welcome addition.”

At Togo’s, there is a relentless commitment to using only the freshest, superior-quality ingredients and meats. Fresh baked Artisan bread, abundant quantities of lean pastrami, roast beef, turkey and other premium meats as well as California avocados are part of Togo’s exceptional menu, and set the brand apart from other sandwich shops. Additionally, Togo’s chicken salad and tuna salad are made in house daily, from scratch, using only the freshest ingredients.

Along with Togo’s seriously stacked sandwiches, guests can choose from a variety of beer and wine selections at Brake’s newest restaurant.

The new location is now serving guests daily from Monday through Saturday from 10 a.m. to 9 p.m. and Sunday 11 a.m. to 8 p.m. For more information on the new Medford Togo’s, call (541) 772-3263 or visit http://www.togos.com. Follow Togo’s on Twitter and on Facebook, and for all latest Togo’s news, coupons and special offers delivered straight to your inbox, join the Togo’s Sandwich Club.

Recently, Togo’s marked its 40^th anniversary with more than 250 locations open on the west coast of the United States. Even with this latest opening, Togo’s is still seeking to reach 400 new locations in California and other key markets such as Arizona, Colorado, Idaho, Nevada, Oregon, Utah and Washington over the next several years.

To fuel future growth, Togo’s is actively recruiting passionate franchisees to bring its high-quality, fresh sandwiches to new western markets.  Interested entrepreneurs can visit http://www.togosfranchise.com to learn more about single unit and multi-unit development opportunities with one of the best franchise opportunities in the sandwich category.

About Togo’s Eateries Inc.
Togo’s was founded in 1971 by a young college student with a large appetite and little money looking to make sandwiches the way he liked them — big, fresh and meaty. Keeping in the spirit of the original, Togo’s products are still made with only the highest quality ingredients; including fresh-baked Artisan breads, hand sliced premium pastrami, turkey and roast beef, as well as California avocados and cheeses. Togo’s proprietary brand of old-fashioned Pastrami, 98 percent fat-free slow-roasted turkey, and Togo’s homemade chicken and tuna salad set the brand apart from other sandwich shops. Togo’s is a franchise-based business with nearly 250 locations along the West Coast. For more information call 1.877.718.6467 or visit http://www.togosfranchise.com. For general information on Togo’s Eateries Inc., please visit http://www.togos.com.

Tony Gioia would love to see at least five and possibly as many as seven of his Togo’s sandwich shops open in Tucson in the next few years as the California company makes a major push into Arizona.

The first Tucson shop could open by the middle of next year, he said, although no franchisee has been identified. Togo’s is soliciting franchise operators throughout the state in an effort to open 25 new restaurants in Arizona, Gioia said.

Togo’s already has one store up and running in the Phoenix area and another is set to open soon. “We are excited about entering Arizona,” said Gioia, the former Baskin-Robbins president and

Southwest Supermarkets CEO who once lived in the Phoenix area and still has a home there. “I love Arizona. It’s a great business climate and a great place to do business.”

 SAN JOSE, Calif. (May 2, 2013) — Togo’s, a “West Coast Original” since 1971 serving up big, made-to-order sandwiches stuffed with the freshest ingredients, announced today it is accelerating its growth plans for Arizona. The San Jose, Calif.-based sandwich chain aims to develop an additional 25 new restaurants in Phoenix, Scottsdale, Flagstaff, Tempe, Tucson, among other metropolitan areas across the state.

“Togo’s has experienced great success in Arizona, so we’re boosting our expansion plans to include additional Arizona towns,” said Tony Gioia, chairman and CEO of Togo’s Holdings, LLC. “Togo’s is seeking new franchisees to help fuel our expansion efforts in this great state. We bring a fantastic business opportunity as well as plenty of local jobs in real estate, construction and service industries. Our growth is great for Togo’s and for Arizona.”

Local residents and Togo’s Franchisees, Monty and Diana Coury are set to open their second Togo’s location in Maricopa County this fall with a third location early next year. “The local reaction to Togo’s has been fantastic. People want Togo’s in Arizona and see our brand as a step above the other sandwich chains. At Togo’s, we never skimp on quality meats and cheeses.  Our sandwiches are always big, fresh and meaty.  We welcome additional Franchisees to help grow out the Arizona market with us.”

Togo’s, which has experienced 11 consecutive quarters of same-store sales increases, is currently seeking qualified multi-unit franchisees that have a passion for the brand and deep connection to their community. Both new and existing Togo’s franchisees will benefit from $10 million for remodels and transfers, as well as $5 million to build new restaurants in the state.

At Togo’s, 51 percent of its traditional restaurants experienced average unit sales in excess of $600,000, with 25 percent over $800,000. To become a part of the Togo’s team and be your own boss, candidates should possess liquidity of $150,000 for a single restaurant and a net worth of $300,000. Area developers looking to develop three or more restaurants should have liquidity of $450,000 and net worth of $900,000. Special incentives are available for qualified franchisees interested in opening three or more restaurants.

About Togo’s Eateries Inc.
Togo’s was founded in 1971 by a young college student with a large appetite and little money looking to make sandwiches the way he liked them — big, fresh and meaty. Keeping in the spirit of the original, Togo’s products are still made with only the highest quality ingredients; including fresh-baked Artisan breads, hand sliced premium pastrami, turkey and roast beef, as well as California avocados and cheeses. Togo’s proprietary brand of old-fashioned Pastrami, 98 percent fat-free slow-roasted turkey, and Togo’s homemade chicken and tuna salad set the brand apart from other sandwich shops. Togo’s is a franchise-based business with nearly 250 locations along the West Coast. For more information call 1.877.718.6467 or visit http://www.togosfranchise.com. For general information on Togo’s Eateries Inc., please visit http://www.togos.com.

Franchising provides opportunity

- Buying into a chain comes with business support, proven model -

Coffee drinkers can drive to many places in Bend for a cup of joe, but Cafe2U’s mobile espresso van brings the beverages to their customers’ workplaces.

It’s a business model the Bend company has started franchising around the nation.

“We know it’s a new concept here, so we have to win people over with the quality, and being consistent with our route times,” said Mike Ditullio, franchisee development manager of Bend-based Cafe2U.

The company’s office and training center on Southeast Paiute Way serves as the U.S. headquarters for Cafe2U International, the Australian company that started in 2000 and began franchising in 2005. Cafe2U is also one of thousands of companies that sell franchise businesses.

Last year, more than 747,000 franchise establishments were operating in the U.S., ranging from quick- service restaurants to automotive service companies, according to the International Franchise Association. The number of franchise businesses operating in Oregon has not been updated for nearly six years.

Franchises play an important role, creating employment and stimulating the economy, said Bend’s business advocate.

Nationwide, franchises employed more than 8 million people last year, according to the International

Franchise Association.

For a prospective business owner, a franchise generally comes with a proven model.

“(There’s) romance in being a business owner, but some people are afraid to jump out on their own,” Ditullio said. “That’s why franchising has been such a success around the globe.” Cafe2U U.S. President and CEO Scott Bundy agreed.

“You’re in business for yourself,” he said, “but not by yourself.”

Since U.S. operations started out in 2011, Bundy said, Cafe2U has grown to six franchises throughout the country and has plans to add another 12 this year — including one in Bend

She said the city strives to make sure all business types have the ability to thrive. Many franchises employ people locally, she said. She also said tourists and new residents find comfort in the familiar names of franchise businesses.

But, she said, part of what makes Bend unique is its locally owned businesses, and more of the money spent at a local business stays in the community.

“Economies that have too much of one or the other — all franchises or all home grown — have vulnerabilities,” she said.

Renae Scott 

Vice president of Branding and Marketing/Togo’s Eateries Inc.

Scott is leading the charge to add 150 restaurants to the fast casual sandwhich chain by 2015. She has spearheaded the brand’s rejuvenation efforts working to redesign the company’s logo, menu boards, uniforms and packaging. She’s been  responsible for promos like the Pastrami Pounder Challenge, where customers eat “an insane amount” of pastrami in 20 minutes to become a champion.

Residence: San Jose

Education: B.A. journalism and communications, Sacramento State University

Boards/volunteer work/other accolades: SF Giants Community Fund Board, Star Board Breast Cancer Awareness

First job?

Farrell’s Ice Cream …

For each expense, consider “whether it is going to drive sales,” says a Mainstream exec.

When opening a store, costs can range from a few thousand to hundreds and hundreds. That’s why many brands are rolling out different packages based on location size and franchisee cash condition.

One of the biggest start-up costs for franchisees is store build-outs. Those construction projects can be perilous, with opportunities to carve out savings—or quickly blow past a budget.

“The build-out is extremely important, because it sets the tone for your business,” says Corey DeNicola, director of franchising for Mainstream Boutique in Apple Valley, Minnesota. “Franchise owners only get one chance to make a first impression with customers.”

Effectively managing build-out costs also plays a pivotal role in getting that business off on the right foot financially, he adds.

“It is important to prioritize where to spend the money. The franchisee can always add additional frills to a space later when they have more money to spend on those extras,” says DeNicola. Mainstream Boutique has stepped up its expansion in the past 18 months, nearly doubling in size to 24 locations.

Walking the line

One challenge for both franchisors and franchisees is walking a fine line between cutting costs while not cutting corners that will negatively impact the brand. For example, Tampa-based Front Burner Brands is in the early stages of launching a new fast-casual franchise called Burger 21. Burger 21 has four corporate stores and one franchise store open with another 10 franchise units under development.

“We used those corporate stores to develop the concept, as well as value-engineer the costs as low as possible without sacrificing the brand image,” says Scott Evans, director of construction and design for Front Burner Brands. The company is the franchisor for both Melting Pot and Burger 21.

Whether a franchisee opts to lease space or buy a building, the choice of real estate can have a big impact on build-out costs. Starting with a plain vanilla box often means less time and money spent on fixing or changing the existing space. Likewise, an operator who walks into a vacant restaurant space can often take advantage of existing infrastructure.

Currently, the total start-up cost for Burger 21, which typically occupies a 2,500- to 3,000-square-foot space, is between $597,995 and $831,995. That cost includes all expenses, as well as three months of cash. Certainly, a $130,000 gap between the minimum and maximum start-up cost may seem big. Burger 21 has discovered that carefully vetting the real estate can help to avoid cost run-ups after a lease is signed.

Burger 21 takes a team to assess a potential site that includes an engineer, a contractor and an architect. They conduct an initial investigation to look for any issues that might add to costs. The existing real estate can have a big impact on helping to save money or significantly adding to the cost of the build-out if costly repairs or changes need to be done, adds Evans.

“Our goal is to use those investigations to give the franchisee an opportunity to back out of the deal,” says Evans. For example, some “as-is” lease deals might require the tenant foot the bill to add steel to a space to support the weight of their air conditioning unit and the hood. “That can impact your cost significantly,” says Evans.

Creating prototypes

Franchise groups often work to create prototypes that don’t put an undue financial burden on franchisees. Keeping costs down was at the forefront for Togo’s when the company started re-imaging the brand three years ago. Founded in 1971, the West Coast sandwich shop chain introduced changes that include a new logo, signage and a brand new restaurant prototype.

“Although we felt strongly that the brand needed re-imaging, including remodeling restaurants, we also were cognizant that, at the time, we were still in the recession and cash flow would be very difficult for our franchisees,” says Renae Scott, vice president of branding and marketing at Togo’s in San Jose, California. Togo’s has more than 250 locations on the West Coast and hopes to reach 400 locations by 2015.

The current start-up cost for franchisees to open a new 1,200-square-foot Togo’s restaurant ranges between $250,000 and $300,000. Togo’s also created three different levels of remodel package for franchisees that include a $20,000, $50,000 and a $100,000 package depending on the size and condition of the existing location, as well as a franchisee’s current cash flow situation.

“We took a really hard look at the new store and looked at ways to cost-optimize them to create an affordable, $20,000 option,” says Scott. For example, the new design features a “brand wall” covered with a high quality vinyl that displays the company’s logo and a film strip of photos that tell the brand story. Depending on the size, the cost to decorate that one wall alone ranges between $5,000 and $10,000.

Togo’s worked with its vendors to create a more affordable option that would fit into the $20,000 remodel package. Instead of applying a full wall of the imprinted vinyl, the franchisee can paint the wall and apply specific appliques, which reduces the cost to about $1,000. To date, about 50 restaurants have been remodeled with another 80 to be remodeled in 2013 and 100 scheduled to be remodeled in 2014.

Orchestrating a store build-out can be a daunting task, especially for new franchisees. Certainly, franchisors offer resources and support. For example, Mainstream Boutique has created a website for new franchise owners that goes through every part of the build-out process from signage and color palette to flooring. The website guides franchisees through the process and includes recommendations, design ideas and examples of current stores, as well as recommended vendors.

“The biggest thing that I always tell new franchisees is that this is your business. It’s not a museum,” says DeNicola. Creating a décor for a boutique, it can be easy to get caught up in extra design items ranging from luxury wall coverings to artsy displays. “So for each expense, franchisees need to look at whether it is going to drive sales and benefit your ROI, or is this something that you want because it is visually appealing to you.”

As little as $2,000

For example, a franchisee could easily spend $5,000 to $10,000 on the cash wrap or front counter. However, especially for start-ups, that money could be better spent in other areas of the business. Instead, Mainstream Boutique recommends that franchisees buy a cash wrap from their recommended vendor at a price tag of about $350. Especially in the current economic climate, franchisees don’t want to put themselves behind from the beginning, because that will limit the funds they have available to spend money on more essential costs that are going to drive sales, such as inventory, staffing and advertising, adds DeNicola.

The build-out costs for Mainstream Boutique’s 1,500-square-foot stores vary widely depending on the current condition of the space. If a landlord is delivering a plain vanilla shell, the typical cost is about $10,000 to $15,000—but some franchisees have spent as little as $2,000.

Some franchisees are do-it-yourselfers and are willing to paint their own walls or put in flooring. “There are a ton of different ways to save without sacrificing the look and feel of the store,” adds DeNicola.

“I am very excited to open my second Togo’s location in Healdsburg. As a native resident, I am confident that everyone here who hasn’t already tried our amazing selection of sandwiches, wraps, salads, and more, will soon be hooked on Togo’s,” said Hardeep Gill, franchisee. “I am looking forward to serving my community and bringing more Togo’s locations to the area in the future.”

Hardeep opened his first Togo’s location in Truckee, Calif. at his gas station last year and has plans to continue to expand the brand throughout the North Bay area.

At Togo’s, there is a relentless commitment to using only the freshest, superior-quality ingredients and meats. Fresh baked Artisan bread, abundant quantities of lean pastrami, roast beef, turkey and other premium meats as well as California avocados are part of Togo’s exceptional menu, and set the brand apart from other sandwich shops.

The new location is now serving guests daily from 7 a.m. to 9 p.m. For more information on the new Healdsburg Togo’s, call (707) 431-8044 or visit http://www.togos.com. Follow Togo’s on Twitter and on Facebook, and for all latest Togo’s news, coupons and special offers delivered straight to your inbox, join the Togo’s Sandwich Club.

Recently, Togo’s marked its 40^th anniversary with more than 250 locations open on the west coast of the United States. Even with this latest opening, Togo’s is still seeking to reach 400 new locations in California and other key markets such as Arizona, Colorado, Idaho, Nevada, Oregon, Utah and Washington over the next several years.

To fuel future growth, Togo’s is actively recruiting passionate franchisees to bring its high-quality, fresh sandwiches to new western markets.  Interested entrepreneurs can visit http://www.togosfranchise.com to learn more about single unit and multi-unit development opportunities with one of the best franchise opportunities in the sandwich category.

About Togo’s Eateries Inc.
Togo’s was founded in 1971 by a young college student with a large appetite and little money looking to make sandwiches the way he liked them – big, made to order and stuffed with the freshest ingredients.  Keeping in the spirit of the original, Togo’s products are still made with only the highest quality ingredients; including fresh-baked breads, premium meats, cheeses and produce.  Togo’s is a franchise-based business, for more information call 1.877.718.6467 or visit http://www.togosfranchise.com. For more information on Togo’s Eateries Inc., in general please visit http://www.togos.com.

Togo’s, a San Jose, Calif.-based sandwich chain, announced that it is targeting Colorado for future development in 2013. Togo’s is looking for franchisee candidates with local market knowledge to grow the brand in Denver, Boulder, Fort Collins and Colorado Springs.

Togo’s CEO Tony Gioia expects 2013 to be a big year for the California-based sandwich chain. On a role from posting 10 consecutive quarters of positive same-store-sales increases, the brand is actively recruiting franchisees to help expand its 250 units into new western markets. His ultimate goal is to reach 400 units by 2015.

Gioia discussed with FastCasual.com his growth strategy, the fast casual brand he admires most and what trends he thinks the industry will embrace this year.

Q: What’s your growth plan for the next few years?
Gioia: Togo’s had an unprecedented year of growth in 2012, signing 38 agreements for new restaurants and opening 11 new restaurants in California and Oregon. As part of our strategic plan for expansion, we have given our existing franchisees the option to refresh existing units with Togo’s newest prototype, while continuing to grow the brand in our key growth states. This year, we plan to open 30 new restaurants and remodel approximately 80 existing units.

Q: What are the top two things that have led to your success?
Gioia:Togo’s has developed tremendous brand loyalty from our guests for over the past 30 years. Unlike the national mega-chains, at Togo’s each guest enjoys a deli-inspired, one-on-one style of service in a fun, friendly environment. This ultimate sandwich making experience, combined with great, fresh food, keeps customers coming back for more. In addition to these selling points, franchisees benefit from our simple restaurant operations, low start-up costs and high average unit volumes.

What are some tips you give to franchisees about hiring/training?
Gioia: Hiring for the “right” personality trumps everything else, especially for the consumer-facing job positions in a fast casual environment. When interviewing a candidate, have the person walk in the dining room to introduce themselves to the guests. It will provide valuable insights on their comfort zone and ability towards relating to guests in a positive and engaging way. Training is all about “simplify and magnify.” Train crew members on the most important elements of your brand and operating format and then repeat… repeat… repeat.

What other fast casual brand do you most admire?
Gioia: I find the Pei Wei concept offers one of the best values from a guest experience perspective. Their restaurant design is on trend, efficient and inviting. Their table service format is quick and efficient. Their open kitchen exhibits a high-energy “woking theater” which is best in class. Finally, their menu variety, Asian flavors, portion size and price points offer an overall compelling value.

Q: What will be the biggest trend to shape the fast casual industry in 2013?
Gioia: The fast casual segment has obviously taken strategic hold within the restaurant industry and will continue to grow in market share. It has morphed into a “compelling bridge” between casual dining and QSR. I say compelling from both the guest experience (value) and financial perspectives (unit economics). The two biggest trends I see in 2013 are:

• That more casual and family dining concepts will begin testing their offering in a fast casual format (trade-down, price-point opportunity). IHOP is an example of this. We will also begin to see some QSR concepts testing their offering in a fast casual format (trade-up, price-point opportunity).
• The fast casual segment will continue to optimize the box from a consumer and unit economics perspective. Real estate site criteria (end-cap; separate pad; etc.), box size (seating capacity), ordering system (register first; food first; batch; assembly line), table service (deliver to table; pick-up at counter); menu (variety; portion size; price points) will all be further scrutinized.

Q: You launched a new prototype last year? How is it different from the old units and how has it been received by customers?
Gioia: In November 2011, Togo’s launched a new store prototype in honor of our 40-year anniversary celebration that highlights the deli-inspired one-on-one style service the brand prides itself on. The new prototype showcases fresh food with reach-in glass refrigerators, see-through counters, and vibrant new décor. The new design has been well received by both our franchisees and our customers.