MEAL PREP: Another One Bites the Dish
June 29, 2008
http://http://www.lohud.com/apps/pbcs.dll/article?AID=2008806290331
Here are some excerpts from an intersting article online about the Meal Assembly Industry and the toll it’s taking on owners . Some have adapted and started a new business out of the ruins of their failed Meal Assembly Store, others have just closed.
The Meal Assembly Industry seems to be going down the drain across the board, Franchised Stores as well as Independents are feeling the burn,
Although the idea spread quickly, the failures followed with 264 meal-prep stores closing last year (207) and another 200 expected to fail this year.
It’s been very hard if not impossible to get accurate numbers on store closures due to spotty and unreliable closure information on the part of most Meal Assembly Franchisors. Their failure to post closed stores and in the instance of Dream Dinners, just lists closed stores as temporarily closed, it would seem to indicate that Dream Dinners doesn’t want potential franchisees to know the real failure rate they have experienced. Other websites that “track” both independent & Franchised operations are just as inaccurate if not down right deceiiving as to the health of the Meal Assembly Industry as a whole.
Let’s Dish, which opened in 2006 in Scarsdale during the height of a nationwide boom in what are known as “meal-assembly” or “meal-prep” stores, is closing its doors for good this weekend. Nine employees will lose their jobs.
It is the last of four meal-assembly stores in Westchester to fail. Super Suppers of New Rochelle closed last month. One … Two… Three … DINNER in Briarcliff Manor and Sip & Supper in Tuckahoe closed more than a year ago.
Although Let’s Dish is a smaller franchisor and has not been one of the Big Girls (Super Suppers and Dream Dinners), it seemed to be golden on the east coast-but that, it would seem, is not really the case.
This story seems to be the the same in every market across the country.
Terese Hunerson of Scarsdale, who was so optimistic when she opened Let’s Dish in 2006 that she was planning to expand in northern Westchester and the Sound Shore, said she was done in by a combination of rising food and gas prices, as well as the challenge of selling consumers on the unfamiliar idea of assembling meals at her store and taking them home to cook.
“This concept is meant to help a busy person, but people found themselves so busy that they didn’t know how to incorporate this into their lives,” Hunerson said.
The self-proclaimed expert in the Meal Assembly Industry says:
Industry consultantBert Vermeulen, who founded a Meal Prep association in 2005, said the idea was too new to support the number of stores that opened.
Mr. B opined in this same article that:
“This is a concept where the stores got ahead of the market. The majority of the target market is not aware of this concept and why it works,” he said.
And yet; here’s an example of Vermulen’s Meal Assembly BAD fortune-telling, it reminds one of the late Johnny Carson’s -”the Great Carnak” Schtick
In 2006, Vermeulen predicted the number of meal-prep outlets would reach 3,000 by 2010 with $1 billion in revenues. Today, the association forecasts just 1,935 stores with $650 million in sales in 2010.
In reality, if you read his website carefully you will find that a few more than 1250 Meal Assembly Stores exist in the US, the remainder are on Canada. Even that number is in dispute as per the observation at the beginning of this article.
And those outlets will be very different from the original stores that struggled to find customers. In 2004, 90 percent of meals were assembled by the customer. Vermeulen said more store owners are adopting a “grab-and-go” model where they assemble meals for time-pressed consumers reluctant to spend up to two hours crafting a pack of meals themselves.
He predicts that by 2010, 80 percent of the meal-prep industry’s revenue will come from grab-and-go meals.
I predict they’ll find out that he is full of hot air, and if I’m not mistaken his descriptions are already in operation, and doing a brisk business- they’re called Grocery stores and Take Out Restaurants.
He likened it to the failure of pioneering online grocery store Webvan, which went bankrupt in the dot-com bust. Today, Fresh Direct is making a success at online grocery delivery because the concept has had enough time to percolate into consumers’ consciousness, Vermeulen said.
It has “percolated” into the “consumers consciousness” as he so eloquently puts, because of the very same economic down-turn, the skyrocketing food and fuel costs that have caught most Meal Assembly Store owners in between a rock and a hard place. Those same factors have made services like Fresh Direct more economical for some people.
It needs to be pointed out that the one of the reasons that Meal Assembly Stores are getting “out-dished”, is because Grocery Stores and by extension services like Fresh Direct, have stepped up to the plate and are pretty good at getting a large piece of the tummy pie. One stop for Mom or Dad after work equals time and money saved in today’s hard economic times.
Rolling out a new concept requires a deep commitment in marketingfrom the franchiser, Vermeulen said, something that Let’s Dish and others didn’t provide.
“Many of the franchisers thought it was easier than it was. They sold franchises without thinking through the marketing program they were going to run,” he said.
Mr. Vermulen is also in the business of selling Independent Meal Assembly store owners everything from soup recipes to the nuts & bolts needed to open a Meal Assembly operation. ALthough he has never owned or operated a Meal Assembly store he only provides services and products to run one. He also operates several self-promotional websites to funnel Meal Assembly owner-wannabes into his plethora of services and products. He also runs an for profit organization for Independent Meal Assembly Store owners.
He likens the Meal Assembly business to the Papa Murphy’s Take & Bake Pizza organization, he feels that they did it correctly.
” Pappa (sic) Murphy’s wouldn’t go into a particular metro area unless they went in big so they could establish awareness of their concept. Their concept is pizzas you pick up uncooked that you cook at home. It’s not that different from meal prep, but the roll-out was very different,” he said.
EXCEPT: It’s like comparing the perverbial apples to oranges- it’s proven that kids LOVE pizza of almost any kind (re-Little Caesars Pizza), not so with Meal Assembly Meals. Those little rug rats are harder to please than the average bear; which means the meal that Mom bought at the local Meal Assembly store for dinner will have to be supplemented with PBJ or Chicken Nuggets from Mickey D’s for the little ones.
Here’s another difference-Papa Murphy’s vetted their prospects and if they didn’t meet the criteria, they didn’t get the location. Not so in Meal Assembly Land where anyone with a valid check can own a franchise.
Every Meal Assembly Franchisor disregards even THEIR OWN specifications for ownership, and in fact a couple are on the second round of “finding” just the “right” franchisee, since the first round of franchisees were forced into bankruptcy when their dreams turned sour.
Some ex-owners have been able to land on their feet after their Meal Assembly business went bust.
Melanie Heim of Super Suppers in New Rochelle said she and business partner Beth Dexter of Bronxville put in a lot of hard work on a failing concept.
“It was a huge disappointment. In retrospect, I don’t know if we did enough research. I don’t know what other research I should have done, but I should have done something. The franchiser won’t tell you much except that it’s fantastic,” she said.
Making their own meals just didn’t resonate with people in Westchester, Heim said.
“I would hear, ‘This is great. I love this. It’s so easy,’ but I’d never see them again,” she said. “It never moved from novelty to habit.”
Heim and Dexter, along with Larchmont chef Liv Grey, have converted their Super Suppers location into a new catering business called The Pantry. “We’ve adapted and moved on,” Heim said.
This is hardly the position ANY one who has spent hundreds of thousands of dollars and man hours invested in a Franchise to find themselves in. Luckily they were fortunate enough to be able to move on to another venture and survive the loss. Others are not so lucky. Some folks who still beleive that the “idea” is a good one are willing to finance a “re-sale” store, some of the bigger franchises like Dream Dinners and Super Suppers are willing to re-sell a failed location to a new owner. But Buyer Beware!
Ryan Knoll, an attorney who runs the FranchisePundit.com Web site, said it is hard to distinguish between a gimmick franchise and one that will be around for decades.
“Franchisers less than 5 years old are much higher risk because they have not fully tested their systems nor have they created brand recognition and loyalty,” he said.
This describes every single Meal Assembly Franchise selling franchises today-NONE are more than 5 years old and NONE have corporate stores still in operation.
As the meal-prep business falters, franchisees are venting on sites like Meal Assembly Watch (www.mealassemblywatch), on which a recent poll asked visitors to vote on whether the concept would survive beyond this year. Sixty-one percent said yes while 39 percent said no.
The ode to Franchisepicks own Sean Kelly:
There’s even gallows humor on some sites, including a mock story that suggests meal-prep stores should diversify to offer Botox or plastic surgery as a side business with a motto like, “Nip, Tuck & Peking Duck.”
My advice to Carolyn is to please wake-up and smell the coffee.
Carolyn Calabria, owner of Entrée Vous in Pomona, said the failure of four meal-prep stores across the river has her concerned, but not defeated.
“It’s a little alarming, but I have to take it as a positive that although it didn’t work there, everyone has to judge their failures and successes as an individual. I hope that when people come and enjoy their culinary experience, they’ll come back,” Calabria said.
Practical experience has not proven this to be the case. Retention is very hard to come by in this industry. It’s more than “a little alarming”, it’s like the understatement of the century!
The story of the ever changing/evolving model is another problem that most newbies can’t understand. They thought they were buying a proven model and in reality they were the guinea pigs as Franchisors were making it up as they went along They soon realize that it is not the concept they bought and sunk hundreds of thousands of dollars into.
As a franchisee, Let’s Dish’s Hunerson blames her parent company for being too rigid and failing to adapt as it became clear the concept wasn’t working as originally designed.
With the economy turing against their best efforts, owners are being forced to make the hard decisons to close their doors for good. Most have drawn an line in the sand and refuse to sink more good money after bad into a business that has proven to be unproductive economically for them.
MEAL PREP: What Happens Next?
June 29, 2008
“Kelly- I have $350,000 invested in my business, I’m losing money every month…What should I do?”
” I have never reached break even, what should I do?”
“I have a hard decision to make-do I dip into my retirement/kids college fund to keep my head above water?”
These questions and others have been asked of me and my friend by unhappy Meal Assembly franchisees (also an ex-MAKer) multiples times.
The right answer? There is no right answer, but here’s some questions to help you formulate an answer…
In which direction is your business trending? (We all know that summer is the slooooowwwwer season for Meal Assembly so assess your situation with that in mind).
Do you have enough operating capitol to pay yourself and all of your overhead? Do NOT use personal or business credit cards to meet loan obligations, rent, or payroll or suppliers.
Are you making a profit? My definition of making a profit is being able to pay yourself a salary commensurate with the hours you are putting in your job, profit is the bonus you pay yourself and employees after your operating expenses are met-if you don’t have your salary built into your budget, you’re already behind the 8-ball.
Is your concept stable? What we are finding in the Meal Assembly business is that the concept that is still being sold to franchisees is faulty at best, broken and completely unproven.
Here is a clue to the question: If the concept is going through an “evolution or adaptation”- it is not a stable concept.
Guidelines for making a decision about the viability of your businesses future:
Be honest with yourself about your businesses future- What does she mean?-you might be asking yourself.
Look around you and talk to people in the industry-what are they saying?
Don’t be afraid to walk away.
Don’t let your ego get the best of clear thinking and critical assessment of your current situation.
Make the hard decision sooner rather than later.
CORK & OLIVE: How to Make Pruno (Prison Wine)
June 29, 2008
In Pruno Veritas. What is Pruno? In prisons, it is cellblock wine made from fruit, sugar and, often, moldy bread. It is potent, easy to brew and best drunk with nose pinched. One writer describes it is “a full-bodied wine with a bouquet redolent of moldy peaches and a finish that can evoke everything from all-purpose bathroom cleaner to uric acid.”
The most famous recipe for jailhouse pruno comes from Jarvis Masters, a death row inmate at San Quentin who won a PEN Award for his 1992 poem “Recipe for Prison Pruno.”
Recipe for Prison Pruno
Take orange peels, fruit cocktail and water and heat it for 15 minutes in your sink with hot water. Keep mixture warm with towels for fermentation. Leave hidden and undisturbed for two days. Add sugar cubes and 6 teaspoons of ketchup. Heat for 30 minutes. Wrap and leave undisturbed for three more days. Reheat daily for 15 minutes for three more days. Skim and Serve.
The poem ends: “May God have mercy on your soul.”
In his 1994 Book “You are Going to Prison” by Jim Hogshire, Jim offers tips on making prison wine:
“Prison hooch can be made in your cell toilet (as long as you don’t mind using other people’s toilets or finding some other solution), or more often, in plastic trash bags. The recipe is simple: make a strong bag by double or triple-bagging some plastic trash bags and knotting the bottoms. Into this, pour warm water, some fruit or fruit juice, raisins or tomatoes, yeast, and as much sugar as you can get ahold of (or powdered drink mix). Now tie off the top of the bag, letting a tube of some kind protrude so the thing won’t explode while it gives off carbon dioxide. Now hide the bag somewhere and wait at least three days. A week is enough.
If you choose to brew your wine in your cell, you’ll need to hide it behind your bunk and do what you can to hide the smell. Burning cinnamon as incense is one way. Spraying deodorant around is another. Normal wine takes at least a month if not six weeks to make at all properly — but in hell, this is all you get.“
One of the problems you have right away with making wine in prison is the difficulty getting yeast. It’s a strictly forbidden item and you might not be able to get any. In this case you can improvise the by using slices of bread, preferably moldy (but not dry) and preferably inside a sock for easier straining.
Perhaps the Cork & Olive franchisees might chip in and buy Michael and Stephanie each a copy of Hogshire’s “You are Going to Prison.” It might be a fitting parting gift.
RELATED STORY: FranWorst.Com Prison Wine Franchises Available
WHAT DO YOU THINK? LEAVE A MESSAGE.
CORK & OLIVE: Probst Prison Wine (Humor)
June 27, 2008
The folks over at FranWorst.com are dedicated to celebrating the worst franchise opportunities and the worst product ideas in franchising. They have asked Unhappy Franchisee and Franchise Pick readers to serve as a focus group for a potential new line of wines based on the Olde World tradition of handmade prison wine. For decades, prisoners have made their own wine by mixing common ingredients such as stale bread, fruit, ketchup, and sugar in their cell toilets and fermenting each batch in plastic garbage bags.
CLICK IMAGE TO ENLARGE.
If Cork & Olive’s wine connoisseur Michael Probst were to go to prison, the collaboration between this reknowned wine retailer and resident prison winemakers (many of whom have spend 30 years, 40 years to life perfecting their craft) could spark a renaissance in prison wine and create a whole new wine niche.
The market for this wine would be both ex-inmates and parolees who developed a taste for this vintage but haven’t been able to purchase it since their release, and fine wine drinkers who realize the quality produced by those who could get shanked for a single bad bottle.
Cork & Olive stores would be given priority purchasing tights and even have the option of private labeling some of the specialty lines, like San Quentin Reserve, Cell Block C, Lifer’s Liebfraumilch and the specially aged 20 to Life.
WHAT DO YOU THINK? WOULD YOU BUY/SELL PROBST PREMIERE PRISON WINE?
CORK & OLIVE: Trinity’s Life After Franchise
June 26, 2008
According to the June 25, 2008 story by Carl Orth in The Suncoast News, Cork & Olive Trinity is positioned to “uncork the secret to success” after the collapse of the franchisor company. The store is heavily discounting its wines up to 75%? May be changing its name?
Cork & Olive Trinity has remained open at 10700 S.R. 54, manager Jesse Boblooch reports, even while the nine-store chain based in Tampa collapsed.
“We weren’t affected by corporate closing because we are an independent franchise,” Boblooch said. “However, I feel business was affected because of the articles (which) ran, people assumed we were closed.”
The store is moving in new directions, with a name change possible in the future, Boblooch reports.
“We have brought in a bunch of new sweet wines to our store, people around here always ask” for them, Boblooch said. To give the store its own personality, the staff has hand selected wines such as Villa Rose Moscato, Jonesy Port and Hey Mambo.
In the meantime, the corporate inventory of wines has been heavily discounted by as much as 75 percent off.
“We are coming up with some new ideas, and plan on making some changes to the whole store concept,” Boblooch pointed out. “We will still feature the free daily wine tastings that is a great way for us to get to know our customers and find out what they are looking for.”
Is Trinity part of the franchisee co-op? Is this article accurate?
WHAT DO YOU THINK? SHARE A COMMENT BELOW.
CURVES FOR WOMEN: UFOC dated March, 2008
June 23, 2008
Here is the Curves for Women Uniform Franchise Offering Circular dated March, 2008:
Curves for Women UFOC 3/08 Part 1: curvesufoc20308
Curves for Women UFOC 3/08 Part 2: curvesufoc103081
Here is the list of Curves for Women franchise owners who have left the system, dated March, 2008:
Curves Franchisees who left the system part 1: curvesexzees0408
Curves Franchisees who left the system part 2: curvesexzeesfor07
Do you own a Curves for Women franchise? What do you think?
Cuppy’s Coffee to Open in Charlotte, NC
June 23, 2008
(FranchisePick.Com) According to the Charlotte Observer, Mohammed and Bouchra Iblidi are preparing to open Charlotte, NC’s first Cuppy’s Coffee:
A Cuppy’s Coffee Cafe will open this summer on North Tryon Street near Withrow Downs.
Work has started on the restaurant in the Withrow Downs Plaza, near Pavilion Boulevard, said franchise co-owner Mohammed Iblidi.
Iblidi hopes to open for business in early August.
“I think with the speedway and the Pavilion and all of the traffic there on North Tryon and the community there, there is demand for a cafe-style coffee shop,” Iblidi said.
Cuppy’s Coffee Cafes offer hot and cold coffee drinks and all-fruit smoothies, plus limited food items.
Iblidi said Cuppy’s lets franchise owners tailor their shops so they feel more like boutique coffee cafes than national chains.
“It definitely is going to be something that is a little bit more local, with more of a Charlotte feel than a standardized Starbucks or Caribou (Coffee),” he said.
Iblidi and his wife, Bouchra, co-own the Cuppy’s Coffee Cafe, Charlotte’s first.
He came to Charlotte about 15 years ago from Lansing, Mich. His wife came here eight years ago from Morocco. They live in University City.
The troubled Cuppy’s Coffee organization was acquired two months ago by Fransynergy amidst continuing complaints of franchises not opening in a timely fashion and franchisees not being able to get their refundable fees returned, many as high as $40,000.
Cuppy’s Coffee on FranchisePick.com:
Cuppy’s Coffee, Elite Manufacturing Franchise Complaint on Rip-off Report
Cuppy’s Coffee Franchise, Elite Manufacturing: More Angry Allegations
Real Franchise Horror Stories From the Owners Living Them
Does Cuppy’s Coffee or Elite Manufacturing Owe You Money?
Cuppy’s Coffee on Unhappy Franchisee:
Robyn & Corey Rivera - Java Jo’z / Cuppy’s Coffee
Cuppy’s Coffee, Medina Enterprises, Elite Manufacturing Sold
To Cuppy’s Coffee and Elite Manufacturing…
Cuppy’s Coffee / Elite Manufacturing Infuriates Franchisees With Form Email
WHAT DO YOU THINK? SHARE A COMMENT BELOW.
__________________________
Visit FRANBEST’s: Unbiased franchise information, franchise interviews and detailed, searchable information on 400 franchise and business opportunities.
.
Franchisees, customers & experts vote for their favorite new franchises at Top New Franchise: Who’s hot. Who’s not.
CORK & OLIVE: Who is Deborah Augenti?
June 22, 2008
(Unhappy Franchisee) Here’s a post by TAKEN. Who is Deborah Augenti? Have you had dealings with her? What’s her reputation? What’s her role been thus far? What do you think her role will be - if any - moving forward?
Taken wrote:
“for your viewing pleasure seems vinocean and deborah are one of the same. ahhh one big happy family. as you can see from the website it is listed as the same compnay.
https://www.myfloridalicense.com/LicenseDetail.asp?SID=&id=F609107AF6B194781E6E6B05C23DB969
| Name: MILAM, JAMES CRAYTON (Primary Name) (DBA Name) Main Address: UNIVERSAL WINE CORPORATION 6309 S. MAC DILL AVENUE, #1429 TAMPA Florida 33611 County: HILLSBOROUGH License Mailing:LicenseLocation: License Information |
AUGENTI, DEBORAH KAREN (Primary Name) (DBA Name) Main Address: UNIVERSAL WINE CORPORATION 4025 TAMPA RD STE 1117 OLDSMAR Florida 34677 County: PINELLASLicense Mailing: LicenseLocation: License Information |
WHAT DO YOU THINK? SHARE A COMMENT BELOW.
__________________________
Visit FRANBEST’s: Unbiased franchise information, franchise interviews and detailed, searchable information on 400 franchise and business opportunities.
.
Franchisees, customers & experts vote for their favorite new franchises at Top New Franchise: Who’s hot. Who’s not.
Cork & Olive: Will Rainer Appold Seize Hold of the Reins?
June 22, 2008
(Best Franchise Opportunities) Rumors are swirling about what will and/or should happen next with the troubled Cork & Olive wine franchise chain. Some say Rainer Appold will soon take ahold of the reins.
Dummy wrote:
"So the word on the street is that Rainer is going to re-open the franchise corp. He will be running the show. Who knows?" and "Not all of the other franchisees are on board with this. Several would not touch Rainer with a ten foot pole. Burn me once, shame on you. Burn me twice, shame on me."
Adam asked:
"What are people’s opinions of Rainer Appold? I’m told that he and a few others are putting up money to revive Cork and Olive without any involvement of Michael Probst.
Does anyone know if it’s true that Appold and Probst are not getting along these days?
Can a Cork and Olive led by Rainer Appold succeed?
I’m told that most of the current franchisees are on board with this, except for the stores owned by Rick Munroe. Does anyone know if this is true/not true?"
WHAT DO YOU THINK? WHO IS RAINER APPOLD? DOES HE HAVE A GOOD REPUTATION? CAN AND WILL HE PULL TOGETHER CORK & OLIVE & GET IT BACK ON TRACK?
AND WHERE IS MICHAEL PROBST IN ALL THIS?
Franchisees, customers & experts vote for their favorite new franchises at Top New Franchise: Who’s hot. Who’s not.
Visit FRANBEST’s: Unbiased franchise information, franchise interviews and detailed, searchable information on 400 franchise and business opportunities.
Information provided by the franchise company. FranBest has not verified every statement or claim, and does not endorse any specific franchises, franchise companies or specific franchise opportunities. We recommend thorough investigation before investing.
Cuppy’s Coffee / Elite Manufacturing Infuriates Franchisees With Form Email
June 21, 2008
(FranchisePick.com The franchise blog) Nothing says We Care like a vague, generic message passed down to a subsidiary VP, then further passed down to an underling. When Fransynergy purchased Medina Enterprises and all its entities, including both Cuppy’s Coffee and Elite Manufacturing, CEO Dale Nabors vowed to quickly right the wrongs of the previous ownership, and to return the $30,000 - $40,000 deposits rightfully owed to many franchisees as quickly as possible.
Two months later, well, it’s two months later. More "depositers" have come forward seeking refunds. The same old runaround and bullying tactics have reportedly continued. And then several individuals who have sought return of $39,500 or more for over a year, get this email:
RE: Your request for a refund
As you may be aware, there was a recent change in the ownership of Elite Manufacturing, LLC (“Elite”) and its affiliated entities. The new management understands that you may have concerns regarding your recent request for a refund of your deposit. Please be assured that the company fully intends to repay the deposits of those that are entitled to a refund. We take this issue very seriously.
A great deal of time has been committed to streamlining internal processes and eliminating unnecessary expenses. We are confident that these ongoing changes will ensure that Elite can maintain current operations and commit to commercially reasonable refund repayment schedules for those individuals entitled to a refund of their deposit.
During this transition, we humbly request your patience as these positive changes occur and your refund request is processed. Please allow us until the end of July of 2008 to fully create and implement these changes. We apologize for any inconvenience this may cause you.
Thank you in advance for your understanding. We invite you to contact Elite Manufacturing, LLC with any questions or concerns regarding this transition. We look forward to working together to resolve these issues as quickly as possible.
Sincerely,
Theresa St. Clair
Vice President
Elite Manufacturing
According to at least one franchisee, this email wasn’t even sent by Ms. St. Clair, but by the same Elite underling that called "2 to 3 times a day to get a status check" on when the initial (ill-fated) deposit was to be made.
WHAT DO YOU THINK? SHARE A COMMENT BELOW.
__________________________
Unhappy Franchisee: Franchising rumors, rants, controversies, issues, complaints & insider information you’re not supposed to know.
Unbiased franchise information, franchise interviews and detailed, searchable information on 400 franchise and business opportunities.
.
Franchisees, customers & experts vote for their favorite new franchises at Top New Franchise: Who’s hot. Who’s not.
