FranSynergy Acquires Cuppy’s Coffee, Smoothies & More

Business is a fast paced and sometime difficult road to manuever. It is also a series of evolutions from startup to completion. And it is in that process that Cuppy’s Coffee is proud to announce that FranSynergy has acquired our fast growing coffee company to navigate it thru the next stage in that evolution. Below is a copy of the letter sent to all franchisees acknowledging the transition and welcoming the new management team to Cuppy’s Coffee.

Dear Franchisees,

Cuppy’s has grown leaps and bounds since our humble beginnings in May of 2006. We currently have more than 231 franchisees nationwide and 73 open stores, with many more stores in the works!

It’s our ultimate goal to see the Cuppy’s brand grow strong and be successful. In order for this to happen, change is inevitable. Our objective is to always keep you, our franchisee, up to date as these changes occur.

With that in mind, we have some really exciting news! We are pleased to announce that FranSynergy Inc., lead by Dale Nabors, CEO, has acquired Cuppy’s Coffee & More, Inc.

Dale Nabors has over 25 years of franchising experience and worked for the Dwyer Group from March, 1995 to August, 2000….

To read the entire letter follow this link.

McDonald’s Foray into Specialty Coffee

     The McCafe. The McDonalds® hamburger empire has for some time been interested in serving espresso based drinks in its stores. This year there has been considerable press concerning the financial impact this venture will have on the specialty coffee industry. Although mainly targeted at Starbucks® the nation’s leading coffee company, the questions still begs to be asked: How will McDonald’s venture into the specialty coffee industry affect your store sales?

      McDonalds has always had a very lucrative morning breakfast rush with coffee accounting for 5% of the ticket. Their coffee has somewhat been palatable to the consumer in a rush to get to the office. But with more and more consumers willing to spend the extra money for a premium coffee, McDonald’s tactics makes for a very good reason to capitalize in this segment of the coffee industry. In a recent interview in the The Atlanta Journal-Constitution columist Leon Stafford asked Don Thompson, president of McDonald’s about their venture into the specialty coffee arena:

Q: McDonald’s is upgrading its coffee products, rolling out more

premium blends. Some have even speculated that McDonald’s could be taking on Starbucks. What are your thoughts?

A: Espresso-based drinks [are] a huge market opportunity. Our efforts in this arena are not focused on any competitor. What they are focused on are our customers and what their drinking habits are. And when you look at the espresso-based drinks, it is a category that is growing tremendously.

   The remaining interview focused mainly on McDonald’s business strategy and relationships with its vendors. It may be to early to gauge the impact that this move will have on smaller coffee shops around the country. But the announcement may have impacted stock market shares for both McDonalds and Starbucks.

      Other analysts and consultants have a different take on McDonald’s move. In an online interview with columnist Kristen Cole for WCBSTV.com Judy Ganes had this to say:

     “For the consumer it’s a win-win,” said coffee consultant Judy Ganes. “There’s better coffee at more locations.”

     Ganes tracks production and pricing of coffee and says Starbucks first poached from McDonalds’ playbook by offering drive-thrus and breakfast and lunch. Now the roles have reversed.

    “McDonalds is hoping this brewing competition will add a billion dollars to its bottom line and is also promising consumers their coffee will cost 60 to 80 cents less,” she said.

     But one thing is for sure, consumer’s will have more choices for its specialty coffee needs. To compete for those choice demands, smaller coffee shops will need to start building a loyal customer base today. When McDonalds roles out en-mass its McCafes, coffee houses will have already established their customer base. As the novelty of the McCafe wears off, this will be one of the best opportunities to fill a void left during and after the Starbucks/McDonalds battle for coffee dominance.

     Creating an atmosphere where your customers want to be is very easy to obtain. Customers want to feel special, make that happen. Get to know your customers by their first name and their choice of coffee. Customers want a quality cup of coffee for the prices they’re paying. Other ways you can build and keep your loyal customer is to educate them to the subtleties of espresso based drink. Today’s connoisseurs are more than eager to take in information about what’s going into the preparation and production of their coffee. Offer your customers loyalty cards for their patronage. It doesn’t have to be a lot, it’s the gesture that makes all the difference. Select a few loyal customers and teach them how to make an espresso based drink. Occasionally offer a class on the nuances of coffee in your store.

     The ideas to build and sustain a customer base are numerous. Acting now will ensure that whenever McDonalds does roll out their national cafes, you will have already secured your niche in this competitive market.

Marketing: An Expectation Economy

To successfully market to your target audience, it is necessary to understand the trends in which they, your audience, pays attention to. Watching and tracking cross-industry trends can help you better focus your advertising and marketing dollar more effectively. The following excerpts from an online article is a start to address capitalizing in on your share of this dynamic market.

Sure, we know that what you really, really want is to be told which trends will dictate your industry. If you’re in automotive, you want to know about the future of transport; if you’re in food and beverage, you’re no doubt interested in everything healthy and green and organic. And of course you have a near-obsession with what your main competitors are up to. But in an EXPECTATION ECONOMY, business professionals should obsessively think and look cross-industry, as opposed to suffering from industry tunnel vision.

Here are three reasons why looking cross-industry isn’t just great for inspiration, but a prerequisite for understanding how to fuel innovation in an EXPECTATION ECONOMY:

First of all, focusing solely on your own industry will obscure the fact that in economies of abundance, consumers are increasingly spending their ‘play money’ on goods and services that net them the experience, the indulgence, the excitement, the satisfaction they’re looking for at a specific moment.

Secondly, limiting yourself to your own industry will make you miss important changes in consumer expectations, and will thus put you at risk of disappointing or even annoying consumers. Every industry has its own ‘innovation competence’, and the innovations they’re bringing to market not only excite their own customers, they also shape their expectations for other industries.

Last but not least, if you’re obsessed with what your direct competition is doing, you will always end up copying new concepts in your industry. Which means that, unless you’re comfortable with being a ‘smart follower’, this is not going to unleash your innovative brilliance.

Now, all of this is of course not to say that you shouldn’t actively track what’s happening in your own industry. But in the next 12 months, do also constantly ask yourself: who are our other competitors? What experiences could our product or service be traded in for? And what can we learn from other industries setting consumer expectations across the board?

Tracking and understanding THE EXPECTATION ECONOMY is not a science; in fact it’s a nice mix of experience, intuition, and knowing your sources. Grab your notebook and camera and start taking EXPECTATION ECONOMY notes and pictures.

Find competitors and non-competitors, big and small, who are setting consumer expectations much higher than you’ve ever been able to. Then compile what you think are now the global standards for whatever it is you do, and from there start thinking about new goods, services and experiences that at least incorporate those standards, and preferably outdo them.

With a little practice and perseverance, you will begin to see trends that you as an owner can utilize to capture your target market. Sometimes, being the biggest is not necessarily being the best.

(Courtesy: TrendWatching.com

Read the entire story at

http://www.trendwatching.com/briefing/)

Cuppy’s Coffee Franchise System Managers – Your Coach, Your Mentor, Your Best Friend!

Calling into a company to get answers can sometimes be a daunting task itself, from being put on hold or being shuffled around the office to get the correct answer. Maybe you reach a person only to find out the information given you is not the right answer you were seeking. Medina’s Franchise Systems Managers (FSM) are here to make sure that doesn’t happen to you.

The advantages may not be easily recognizable at first, but your FSM will work to your benefit. The FSM’s are trained in every aspect of the franchising process and will guide you through from beginning to end. One advantage of having a personal FSM is that you only have to make one call; speak to one person to get the answers you need. This is a key factor in saving you time and trying to remember which department or person you need to reach. FSM’s realize that you have enough contacts to keep track of and as a business owner your time is valuable. Everyday your FSM works towards being your “one stop shop” for all the questions and answers that arise while opening your store. Another advantage is the relationship you and your FSM establish will lead to a long lasting friendship. A friendship developed by working closely together to see your dreams come true.

Your personal FSM is the angel on your shoulder from coordinating with your Real Estate Specialist and Elite Project Managers to your building delivery. Need answers about purchasing, marketing or field training your FSM is trained to get you the correct information you’re looking for. Your FSM will be there every step of the way to answer your questions and concerns.   During the process of opening your business questions, problems or unforeseen events may arise, your FSM is your “go to person”.

Communications plays a key factor in your relationship with an FSM. Being in constant communications with your FSM will ensure that you’re always in the loop regarding new marketing ideas, new products and exciting events happening in the franchising community. Importantly, being open and honest will help assist you in areas that you feel are important as well as keeping the amount of information flowing in both directions to getting your store open successfully.

New CFO Joins Medina Enterprise Executive Branch

Medina Enterprises, a Fort Walton Beach based holding company, announced today the newest addition to its executive management team with the hiring of Don Ochsenreiter as Executive Vice President and Chief Financial Officer. Ochsenreiter brings significant financial and operational leadership to Medina Enterprises. With Medina anticipating tremendous future growth, Ochsenreiter’s primary objectives are to establish optimal capital structure for the company to facilitate its imminent growth, and to help Medina achieve this growth building a solid financial foundation.

Before joining Medina, Ochsenreiter was President and CEO for Burton Golf, Inc. for the past 13 years. At Burton Golf, Ochsenreiter repositioned and grew the leading golf bag brand to the number one market share position in golf course shops worldwide. Before recently selling the company to a strategic buyer, he managed every aspect of the company through operational and industry change. Ochsenreiter holds a B.A. in economics from University of North Carolina at Chapel Hill and an M.B.A. from the McCombs School of Business at the University of Texas.

A New Cup For Cuppy’s Coffee Owners

Rising costs and economic forecasts has led Cuppy’s Coffee to find a more reliable and cost effective cup for its franchisees. Currently, Cuppy’s orders 3 different cup sizes and 3 different lid configurations causing confusion within the company and its franchisees. (this is just the hot cups)

Now Cuppy’s Coffee is set to release a cup that works for both hot and cold drinks. The cup is also recyclable, giving cause to the environmental waste concerns of both the company and the public it serves.

The new cups features the IMx technology meaning that beverages served in the new cups maintain the ideal serving temperature of 155F to 175F longer than a single paper hot cup with sleeve. The new cup will also adorn the new revised company logo.

Now instead of using two cups, one for hot and one for cold, the new cup can be used for both. An all in one cup! The insulation properties keep cold drinks cold without the need for a sleeve and while eliminating condensation from the outside of the cup keeping it comfortable to the touch. One size is all that is needed for new cup. No need for different sized lids for the various sizes. This reduces cost to the franchisee by having a cup that can accommodate flat lids, dome lids and hot lids on all 3 sized cups. In other words each lid type is universal and fits all 3 size cups, allowing the franchisee to stock just one size, while simplifying the ordering process.

The new cup is fully recyclable which eliminates the need to double-cup requiring twice the energy, twice the waste, and emits twice the amount of greenhouse gases. This news will be great for customers and communities that are mindful of the waste management issue. At Cuppy’s Coffee the hope is that everyone will recycle the new cups.

Problems in Franchising: Avoid these Costly Mistakes

It takes a lot of money to build a business, and you certainly don’t want to waste any. Check this list of 7 costly mistakes to avoid.                                

1. Letting emotions rule. Falling in love with a franchise concept is a common mistake. Don’t let your emotions guide your decisions. Use your head, do your due diligence and take the time to thoroughly investigate the franchisor’s offering.

2. No professional team. Don’t try to do your own financials, contract reviews, or negotiating. The cost of professional franchise attorneys, accountants, and advisors is money well spent.

3. Too little cash. Lack of capital is the number one reason franchisees fail. Item 7 in the UFOC will tell you how much money you’ll need with a low and high range. Be smart-go with the high range. Then ask current franchisees if the numbers are high enough.

4. Penny wise and pound foolish. Choosing one franchise over another because the initial franchisee fees are lower is shortsighted. It assumes that all franchises are alike and nothing could be further from the truth. Choose the franchise with the proven concept and strongest track record.

5. Too much help. Payroll is the biggest part of overhead for most franchise businesses. New franchisees often hire too many people or pay too much in wages. A good franchisor will provide a good staffing plan. Stick to the plan.

6. No comparison.  Never buy expensive equipment, supplies or inventory without shopping around first. Even if your franchisor offers group purchasing, do your own research, shop as many vendors as you can, consider aftermarket suppliers, and weigh different financing options (loans or leases).

7. Marketing blunders.  As a new business owner, you’re going to be targeted by every ad salesperson around. Ignore them. Follow your franchisor’s marketing plan to the letter to avoid wasting thousands.

Editor: The Problems of A Cuppy’s Coffee Newsletter

Company newsletters throughout the business world have a key element or theme about them. That theme or purpose of the newsletter is to motivate its employees to be more productive. At the Bean Street Journal, a Cuppy’s Coffee’s newsletter, as Editor I want to move beyond motivation. The purpose and main editorial thrust of this company wide publication is to educate and inform franchisees as well as the staff of Cuppy’s.

As a parent of a teenage daughter, I learned early in my homeschooling days that in order to sometimes inform or educate the best route is to entertain to get the point of the lesson across. This worked well with my daughter, but will it work with adult business people?

Therein lies the problem with a monthly newsletter. Will the information and content of the newsletter educate the readers? Will it also entertain and keep the reader flipping thru every page? As editor I hope this is the case, but as a writer and contributor the crux of any writing is will the readers enjoy it? Will my passion for fiction interfere with the nonfiction topics of business? This is always a concern.

Before the release of any newsletter, I enjoy receiving feedback from the staff of Cuppy’s. This pre-screening by a 100 pair of eyes, always catches the errors I may have made in producing the newsletter. For this I am thankful.

As for the reader I do hope that you enjoy the newsletter and are educated by the contents. Your feedback and suggestions are always welcome at the Bean Street Journal.

~Editor

Cuppy’s Coffee: Pitfalls to Avoid in Business-Part 2

Continuing with our series on pitfalls that may hurt your business, the following topics deal with procedural issues that you may or may not be doing. The success of your business has many different faces and paths. You will need to navigate the terrain carefully in order to survive in today’s competitive market.

Marketing? What’s That?    

You’re open! You’ve told everyone in town about your new business and to come by to sample your wares. They came  in but you forget or didn’t take advantage of the moment to market your business. Marketing is the planning, implementation and tracking of procedures and ideas to help increase store sales and awareness of your business to your target market. Forgetting to market at every opportunity, you may begin to see  a eventual decline in customers coming to your location.  You may have decided that there are other factors to consider before taking the time to market your store such as; worrying about the espresso machine, the employees, the store, and lists goes on and on. These may be just a few excuses you’ve come up with. You find yourself spending more time in the store to cut costs or save money. As the owner it is your responsibility to market your store and get the customer in the door. You will have to spend the time and resources to make the cash register drawer ring. There are countless cost effective ways to get the message out to the public that your business is there.  Consult with your Franchise Systems Manager to find ways you can continue to market and increase sales. 

Change All, Quick Fall    

As teenagers we may have resented the fact that our parents knew what was best for us. They’d tell us one thing and we do the complete opposite, because we knew what was best. Unfortunately, we learned to live life the hard way. ‘If I’d only listened to my parents’ became our mantra. The same holds true for most successful franchise businesses today. Your sales are down and you’re looking for the quick fix to get things going. Corporate has advised you to do this, but you just know that won’t work for whatever reason. Sound familiar? You may have changed the drink recipes, you may have switched to a local roaster hoping to catch more of their audience, or maybe you’ve even changed the way you operate completely. Nothing seems to work and you’re looking for someone to blame.     

Sometimes it’s hard to look in the mirror to find the answer. When the wheel was invented it was a monumental invention that help transform the world. The wheel has been improved, revised and revamped but yet it’s still round. And it’s that roundness that makes the wheel work so wonderfully. The point is that a proven system that works today will work tomorrow. Changing the ways things work or the system will only cause you to go round and round with yourself looking for an answer that will never come. Getting back to the basics may be the answer you seek. Regroup, refocus and move forward. 

Negative Thinking     

Numerous books, tapes and video have been published on the effects of negative thinking and how to counter it. Believe it or not but the way you talk to yourself has a monumental effect on the success and/or failure of your business.             

Your enthusiasm suffers with a negative outlook, your body language suggests you don’t care, the tone of your voice drops and lists goes on. Try this; in the mirror tell yourself you’re the greatest of all times. Mohammed Ali did and he convinced the world. Sing a silly song to get your spirits up. Dance to the music on the radio. Look up! It’s hard to be down when looking at the sky. You’ll notice an immediate change in the way you talk, walk and interact with other people around you. Your customers will be happy, your employees will be happy and that bottom line will also start to look up!    

Pitfalls are all around us. How we decide to react to them, will determine the success and/or failure of our businesses and personal interactions. Remember that success is a journey

Cuppy’s Coffee: Pitfalls To Avoid In Business

  Running a successful business can be daunting. Several factors play a key role in the success of your business such as patience, passion, knowledge of your industry and determination. There are others, but there are more ways to fail than there are to succeed. Take a look at the following pitfalls and the subsequent topics to follow, and see if they may apply to you . Any one or combination of these pitfalls will be reflected daily in your attitude and the way you approach the next day’s business.  If you find yourself party to any of these pitfalls, don’t worry, we have a way for you to turn it around.

Conversation Curses    

Having the wrong conversation can do more harm than good in making you feel better. As humans it is our nature to want to vent our frustrations from the highest mountains we can find. And while on that mount the wrong words can be like a rolling stone on an unending hill to disaster. Today’s society tends to relish all that is wrong or negative. The effect is contagious and detrimental to most businesses just as in this example. In the 80’s a certain franchise, which we won’t mention here, gained national notoriety in the press from the conversations and correspondence that occurred between disgruntled franchisees. It took that company years and cost millions of dollars to regain the respect of the public for its brand. These franchisees had a bad case of ‘Loose Lips’ which eventually led to many of them closing their doors, not to mention, losing their hard earned investments. This downward spiral even damaged the franchisees that were making a financial windfall and had no party to negativity that was unleashed by others. That was not the intention but once the cat was out of the bag it was hard for many of them to recover. Another example how negative press and today’s events can hurt your business, how many of you will check your toys for the label “Made in China”?    

Your company image and brand is, and should be, very important to you. How do you want your target market, customers and your community to perceive your franchise? Protect it. Talking or corresponding negatively about your experiences or hardships will result in a decline of customers walking through your doors. With the invention of the internet, email and text messages a shot can now be heard around the world faster than you can say “Loose Lips Sinks Ships”. Speaking negatively with your employees will not only lower their moral they too will become discouraged and not give the customer service you expect hurting your business further.     

The effects are numerous. So to counter that, it is wise to always build up your business by giving positive comments, correspondence and attitude even when things seem their worst.  You only hurt yourself when you speak negatively of your company, vendors and customers. Name recognition will have a lot of weight on the success of your location. You can be a part of the success or that shot heard around the world. 

Bad or No Customer Service    

     The enthusiasm has worn off. You look at your customers more like a life line than a person. Without realizing it you’ve stopped noticing the very people who are making your business successful. It’s become a JOB. You’re wondering why you can’t make ends meet or why it that you don’t have more customers. 

      The answer may be in you and your employee’s customer service skills. Taking a few minutes each day with each employee and explaining the importance of customer service can turn this pitfall around. A simple smile, a warm thank you or maybe an acknowledgement of their presence are simple techniques that will make anyone feel comfortable in your store. And more importantly make them want to return with their friends. Your customers will reward you by telling their friends and neighbors about the wonderful experience they received at your store. Are you providing your customers with the service they need? If you know who the customer is, call them by name. Are you building a loyalty relationship between you and your customer? Offer your customer a discount or reward for sending a friend in to sample your wares. Create a service award program or contest among your employees. Want your baristas to give great service? Reward great service. Create the legends, spread the word. When your employees see praise and rewards for great service, pretty soon they are trying to one-up the others and become the next service legend. What will your customer say? “Wow! See you tomorrow!”