2013 Franchise of the Year: Freshii

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The future is green. Just ask Matthew Corrin, CEO, founder and franchise director of the Toronto-based Freshii. He’ll be the first to tell you his company has a ‘mission green’, also known as his business philosophy. From the many day-to-day initiatives that ensure his franchise minimizes its carbon footprint as much as possible to the now-popular Green Wrap menu item (where an optional collard green leaf replaces the soft-shell tortilla), Corrin is changing the face of the growing fast-casual food market.

Founded in Toronto in 2005, new Freshii locations sprout almost weekly with the help of approximately 40 franchise owners who operate between one and five units. “Last week we opened one in Connecticut,” gushes Corrin, adding, “This week we opened another one in Toronto. And, next week, we open a Freshii in North Carolina.” Rapid franchise expansion is expected to continue into the new year with start-up costs beginning at approximately $250,000 per unit. Corrin expects to open 16 new units in 16 different cities by Jan. 1.

By the end of 2013, the burgeoning franchise is expected to have 120 units in eight countries and 35 cities, in addition to the 400 units in development. Needless to say, business is booming, with lunch lines regularly extending out the door.

The fast-casual franchise giant delivers healthy, convenient, natural and unprocessed cuisine — salads, burritos, noodles or rice bowls, wraps and soups — among other menu items. It’s a segment that Corrin affectionately refers to on Freshii’s website as ‘health-casual,’ referencing the burgeoning trend towards health and wellness.

Although Corrin won’t disclose annual average unit sales, he says that staff at each Freshii location can ring in approximately 400 to 800 orders per day with an average ticket of $8. Since most franchises are located in high-traffic pedestrian neighbourhoods (often in the heart of business districts), the size of the units range dramatically, from 250 sq. ft. to 3,000 sq. ft. The first Freshii, for example, was a small unit in the Toronto-Dominion Centre. Typically the average size is 1,000 sq. ft.

Freshii’s franchise model may be ever-expanding, but it’s something Corrin manages as a personal relationship. He likes to meet each franchisee in person — several times before opening a store — and he also wants to have an affinity for them. Maybe it’s his recent appearance on the TV series Undercover Boss that has Corrin so at ease with his franchisees. “This should be somebody I want to sit down and have a beer and an order of sushi with on a Friday night,” says Corrin. “That’s not to say our partners are a certain ‘type’ of person. There’s no particular gender, race, age or profile of a typical Freshii owner — just [someone with] a passion for healthy food and a healthy lifestyle.”

But, franchisees learn a lot on the job, too. Corrin packs franchisee training into a two-week session that involves everything from meal-making to account balancing. He also regularly calls, visits and emails his franchisees.

Among the multi-unit franchisees is Kameldeep Singh. He’s a Toronto-based Freshii franchisee who believes delivering healthy food is more than just a job. “It’s knowing that you are energizing your customers and serving them a product that is nutritious,” he explains. “But what I love about owning all three of my Freshiis is the ease of operation.” With cut up veggies, and up to 30 different toppings laid in front of servers, it’s easy to assemble dishes in record speed. Singh’s most popular item is the Warrior Chicken bowl ($7.99) with a base of brown rice, quinoa or noodles and, as always, customizable toppings. “Freshii’s flexibility of menu allows for anyone to eat here. Whether you’re a vegetarian, allergy-prone, lactose intolerant or a meat-eater,” says Singh.

It’s important for Corrin to attract partners who can extend his vision for the brand, especially since franchisees are allotted 1.5 per cent of their annual sales to put towards local advertising (Corrin has devised a playbook of best practices to help them choose effective techniques). Each franchisee also contributes 1.5 per cent of sales to the global creative fund to support initiatives such as the iPhone app, celebrity partnerships and more. And, “There’s really three things every Freshii franchisee needs to have,” explains Corrin. “First, we require that they live in the same city as their franchise. Second, we require the financial capital to build the brand. Third, and, most importantly, they need to share the philosophical alignment of the brand.” Singh’s Freshiis, for example, support two local soccer teams.

Just this year, the brand moved beyond community-based initiatives to launch an ongoing, long-term relationship with the global Free the Children charity. It will fund the construction of a $40,000 kitchen and an extensive vegetable garden that will be attached to every school Free the Children builds. More than 200 schools are slated for the next couple of years. Corrin is donating proceeds from the sales of a reusable bowl available at every Freshii outlet to fund the massive kitchen project.

What really resonates with customers, however, is the company’s tech-savvy initiatives. With a 58-per-cent female customer base (between the ages of 23 and 35), the Freshii team is aware that its core demographic is busy moms. Translation: people who want to save time. To this end, Freshii has streamlined the checkout process so guests can order and pay for their meals online. These orders are then forwarded to the point-of-sale in stores where customers need only complete the transaction by picking up the food. All managers are also outfitted with Blackberries or iPhones to review incoming orders.

In fact, smartphones have become so central at Freshii that customers can even scan their phone to pay. In November 2012, the company experimented with the creation of a mobile app as a pilot project. “We want to build and leverage new, great technologies,” says Corrin, “It’s just in our best interest — and our customers’.” Maybe it’s no small coincidence then that Freshii has also begun to develop a half dozen start-up tech companies — an incubator program that hopes to discover even more innovative technologies. (Check out these programs at freshstartups.is.)

Social-media campaigning is also a huge component of the business. With a proportionately slim advertising budget of only $1 million annually, social media pushes the Freshii message forward in new and interesting ways. Customer loyalty is rewarded with emailed specials and promotions and customers reciprocate the love by sharing photos of their positive Freshii experiences on Instagram or Facebook. The company has even had a couple of celebrity endorsements via Twitter. At the L.A. opening, Ashton Kutcher and Ryan Seacrest tweeted about it.

Ultimately, Freshii’s franchising model is a reflection of the digital world we live in today. Bottom line: Freshii franchisees and customers alike feel the company is in tune with who they are.

image by Margaret Mulligan

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