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    292 views3 pages

    WingZone Entrepreneur May

    Uploaded by

    No Limit

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF or read online from Scribd
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    of 3
    ovo years ago, Mat Fr an, cofounder and CEO fee 10D at Alan thsed cesurat chain Wing Zon, took shard looks the US, franchise market and id’ like what he saw. "We ele that, thoggh our stores were pring ell, fat domes expan wa OE tein bse onthe credit ruc he saye “We rtd asking wat orher ‘owth avenues we could lon Fricdnan decided that whe the USS franchise market wa stick in ite mali, the best thing for is ompany t do wa et the est of the ‘won pte tate buds against hie Nedeat Wings, and lat November, the company opened ies Rest estaurant in Panama Cig, Panama, Brit was noe decsion Wing Zone made ily. Entering sta iternations Aloperations adds levels of complex iy toa franchise nganination, and ittake a efy outlay of ash ealso takes deep esearch into new markets, ‘monte or year of tweaking an, of ourse there's the dk that 3 bad inter tional experience could dag dows domestic persons. KEY ELEMENTS THAT ALLOW AMERICAN BRANDS TO SUCCEED: AGDP GROWTH AT 4 PERCENT OR ABOVE, AND AN EMERGING MIDDLE CLASS WITH ‘SPENDING POWER. “To go itenational aks a lege nancial commitment, ad there ae not fing to be immediate urns,” Fed. Iman says "We knew se would pro bly bea two 0 thre ese proces 0 turn profi Despite the risks, Wing Zone snot alone is ooking wean ext and fouth and north foe growth oppor tunis "In he last few years US bands began saying, “Wait mina, we've acter looked anywhere el, but Imaybe we ought eo” says William Eads an international heensing eulane in vine, Cal ‘Now, many ofthe ineraaiona expansion plans born in the depths of the receaign are eaching fulton. “A017 hae saree out 3 ors time for international franchising— and not just for food. Service brands, ‘etal, children and management elution are all going international,” awards says No one is tracking exactly how many basinesses ace adding global cements, but companies lke Massage Heights, the fire and water cleanup companies PuroClean and Servpro, Molly Maid and the fondue restaurant Melting Pot have al gone abroad in the lst couple of years, and estab lished franchisors have ramped up their international efforts ‘Recently MeDonale’s, Dairy Queen and California Pizza Kitchen slong ‘with dozens of other franchisors have pushed haed nto China. Malaysia, Inia, Indonesia, South Korea, Brazil and Vietnam are all atracting Amperi= an companies, and they aren’ just Fandom spots onthe globe: According to Willams, these countries have key elements tht allow American brands to succeed, including a GDP growth at 4 percent or above, and an emerging, imide clase with spending power ‘Atmalls worth of franchises have even announced plans to open in aff nt pars ofthe Middle Eat, including Kuwait, Babrain, the UAE. and Saudi Arabia, Some brave souls are even ‘venturing int Iraq For smaller players—tke Wing Zone, with fewer than 200 unite—the idea of going global was not even on the rada a few years ago. But now they seit as a unique opportunity Not only does iczcumen the Baan ‘ial probleme inthe US. it gives them 4 level playing field on which to build their brand, So instead of competing head-torhetd ina crowded domestic market (nthe wings world, tha in cludes Buffalo Wild Wings, Wingstop, Wingsteet, Wings n Things, Hooters, Planet Wings and Wingman, among others), smaller franchisors are find ing that building ther reputation in counties hungry for Western brands tnd without the srtm of competition “Bufalo wings haven' gorten to ‘other pares ofthe world, but chicken has, and a taste for spicy food,” Fried ‘man says, “This is an opportity for us to be the fest inthe market. ‘would rade i for anything, We've Jina prime position for Wing Zone 10 grow aggresive Invenationaly.” The Lathe Gym, noncompeniive ‘tilde’ lesen and Physical development Program that began FEanchsing as The Li He Gym International in 1982, eared the firstro-macke leon carly on. Serendipity inthe form of m0 invested Tha ines: tors ed them to open theie frat nternatonal Franchise something thse was not i hee busines planoaly three years ater Inching: But that cesperience st the ‘decion for thee fatute growth: Now the company is an expersnced overseas operator with 5300 locations in 21 countries, ‘A other chil fossed brands are begining to make overtures toward ‘Asin and other areas to boost their ‘growth, The Lite Gym ares Postoned o mp up interns onal efforts and be theft vo enter hove heative markets. The company ‘eerily frthered expansion into the ‘Midale Has, signed master franchise agreements for India and Mexico and ‘opened location in China, with plans {0 open as many a5 100 there. "The challenges of accesso capital here nthe United States over the lst couple years have slowed ovr domestic trowth and made it appropriate for us fo foes on intersting” Bob Bingham, present and CEO of “The Linke Gy Iterations. “We fe fectanate that we ave a brand that ‘works wel in other counties, There's ‘huge appetite for American brands ‘eoughour the woe.” For Wing Zon, which is just, stating out inthe global franchising ‘wor nding the ight locaton wat the fire step n expanding the brand needed tobe a country that could appreciate the spiciness of hot wings, that had s delivery cute (the core of the Wing Zone concept) a fondoase {or poultey andthe cru mde daw demon Panama Bi the bl, bur the Wing BUILDING THEIR REPUTATION IN ‘COUNTRIES HUNGRY FOR WESTERN BRANDS AND WITHOUT THE ‘SCRUM OF COMPETITION IS A SMART MOVE. Zone concept sil needed tweaking to fiche culture, The footprint of the tex tuurants was increased f 1,500 square feet and seating for 40 to 60 people was added am eement missing the US. loesions ‘Ofcourse, there mere setbacks. They get the chicLen locally, but keeping the kitchens socked with ll fhetr other products and proprietary tuces was 2 problem, since those had tobe shipped from the US. ar the 18-moath lead-up to open Jing day gave them platy of oppert sty ro make changes, and it pad of ‘The ise week of operation in Panama ity was the busiest week for any ‘Wing Zone, foreign or domes TFedman now has dessin El Sa sador and the Bahamas, be has signed fgreements with England Ireland, Sc Tad and Sadi Arabia and e¥ signed con with one of Japan's mos exper ‘iced franchising companies to open ‘SO restaurants ia and tround Toko, Friedman's strategy ia Japan, secording to licensing constant Edwards is key to succesful ater national ranching. “You have to Took at your parters very catfull” Edwards warns “If your licensee ot developer dors'e do s good joy it ean ‘use alot of brand damage In emerg- ing markets, you have ro do alo more

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