The dynamic duo of franchising

Black Enterprise, Sept, 1995 by Valencia Roner

The restaurant franchising industry has always held the promise of success for African Americans. Unfortunately, racism, unscrupulous practices by franchisors, poor management skills and other barriers have prevented many from actually capitalizing on this promise.

Ronald Taylor and his wife, Ardena, have risen above those obstacles. As the west coast area real estate development manager for Boston Chicken Inc., Ron is one of the highest ranking African Americans at the upstart rotisserie chicken franchise company. He's a skilled negotiator who has become a pivotal player in one of the fastest expansions in the restaurant industry in recent years.

Ardena became franchise business manager for a block of Burger King franchises that were faltering in the heated competition of the Southern California market. In less than two years, she turned things around, producing a 15% increase in overall sales among her franchise units. Now she has set off to duplicate that success as a Fast Track Ownership candidate, which will land her a Denny's franchise.

In essence, Ron is one of a growing number of African Americans moving into management roles within franchise companies, while Ardena exemplifies those who are capitalizing on franchise ownership opportunities. Together, they represent a potentially bright future for African Americans in the franchising industry. Whether on the corporate side or through ownership, African Americans and franchising can form a truly beneficial strategic alliance.

BOSTON CHICKEN'S GOOD EGG

FROM HIS CORNER OFFICE WINdow, high above central-Anaheim's business district, Ronald E. Taylor surveys the surrounding area with a confident smile. With his well-manicured fingers, he adjusts his imported silk tie, and with one last check of his date book, he grabs his briefcase and is out the door. He walks with purpose.

Maybe some don't consider rotisserie chicken serious business, but for Taylor, each scheduled appointment is a potential multimillion-dollar development deal to be closed. As Boston Chicken Inc.'s West Coast area real estate manager, he's been charged with completing the largest phase of one of the restaurant industry's fastest expansions in recent years. The 300-store, $600 million, four-year development plan for Sacramento and San Diego, Los Angeles and Orange counties is perhaps the most critical segment of Boston Chicken's whirlwind expansion, designed to blow the feathers off the competition.

After the little-known Chicago-based family restaurant chain successfully completed a $38 million initial public offering in November 1993, it set off on a breakneck pace, targeting a previously underdeveloped niche--the Home-style Meal Replacement Category (HMRC). By providing fresh, home-style meals-to-go--such as rotisserie chicken with mashed potatoes, fresh vegetables and macaroni and cheese--Boston Chicken gave fast-paced professionals and families an appealing way to stabilize their eating habits.

The results were amazing. In less than two years, Boston Chicken became a restaurant industry leader. The chain swept from the Northeast to the Midwest, opening more than 317 stores and producing $96.2 million in revenues during 1994 alone.

As Paul Westra, research analyst for Salomon Brothers in New York, explains, "Boston Chicken's accelerated expansion plans are necessary to discourage the competition in order to maintain a strong market share within the Home-style Meal Replacement Category."

At press time, Boston Chicken, now headquartered in Golden, Colo., had 645 units nationwide in 30 states (including the District of Columbia) developing at a rate of almost one unit per day. Now, the successful development of the West Coast could put the company in position to set the pace and define the newly established HMRC niche.

Taylor is critical to this strategy. The ambitious 31-year-old has the responsibility of maintaining the company's marketing momentum by keeping site identification and development time to a minimum. He must also maintain site consistency within his area (ensuring that each site will produce a similar level of revenues). When he's engaged in meeting these challenges, watch your back. Taylor brings an "all-or-nothing" attitude to the negotiating table: He wants it all, and if you're not careful, he'll leave you with nothing.

"In this business, there is little room for mistakes," says Taylor in his cool, commanding tone. "When I negotiate the acquisition of a site, I understand why that site makes sense for Boston Chicken and what the benefits are."

Since former Boston Chicken Area Developer Andre Rice lured him to the company, Taylor has exhibited a great talent for negotiating favorable deals for the franchise giant. Between September 1993 and October 1994, he was instrumental in the completion of 50 of the 80 stores in Boston Chicken's $160 million development of the Chicago market, making him one of the company's most productive real estate developers. Taylor's blend of creativity with a "win-at-all-cost" style complemented Boston Chicken's rapid growth strategy nicely.