franchise marketing

Acquisition Strengthens Company’s Leadership in Growing Extended-Stay Segment

ROCKVILLE, Md., Dec. 18, 2017 /PRNewswire/ —

Choice Hotels International CHH, +0.52% one of the world’s largest hotel companies, today announced that it has reached a definitive agreement to acquire the brand and franchise business of WoodSpring Suites [SM] from WoodSpring Hotels Holdings LLC, a portfolio company of Lindsay Goldberg, for approximately $231 million, subject to customary adjustments. The acquisition will add nearly 240 extended-stay hotels in 35 states to the Choice Hotels portfolio, creating an extended-stay portfolio of more than 350 properties with existing brands, MainStay Suites® and Suburban Extended Stay®.

Highlights:

• The acquisition of the WoodSpring Suites brand represents an asset light franchise business that complements Choice’s existing extended-stay business with WoodSpring Suites’ market leading capabilities.
• Choice plans to hire the WoodSpring Suites franchise business employees and strengthen the existing multi-unit developer and franchisee relationships that have contributed to the success of the brand.
• The transaction provides attractive returns and resilience through market cycles.

“We are pleased to announce our plans to welcome WoodSpring Suites to our portfolio of brands. Like Choice Hotels, WoodSpring Suites has demonstrated exceptional customer service, attractive franchisee return on investment, and tremendous growth,” said Patrick Pacious, president and CEO of Choice Hotels. “Extended stay is a fast-growing segment, reporting some of the strongest gains in demand and has led the hospitality industry in annual RevPAR growth. The addition of the WoodSpring Suites brand will allow us to strengthen our scale within the attractive extended-stay segment, expand our runway for growth, and continue to create value for our customers, franchisees and shareholders.”

WoodSpring Hotels is the nation’s fastest growing value extended-stay hotel company, with nearly 240 properties in 35 states nationwide. Over the past few years, the company has successfully executed a brand relaunch and repositioning, resulting in WoodSpring Suites unit growth of more than 25 percent and franchise fee revenue growth of 45 percent in the last three years. More than 25 hotels are expected to open in 2018.

“Choice Hotels and WoodSpring Suites share the same values and dedication to customer service and franchisees,” said Gary A. DeLapp, WoodSpring president and CEO. “We are thrilled that our brand will join the powerful value proposition that Choice Hotels offers and know our commitment to providing the best guest experience will remain a priority.”

Transaction Details

Choice Hotels plans to acquire the WoodSpring hotel brands, including franchise operations, marketing and development, for approximately $231 million. The acquisition will be funded by cash and is expected to be accretive to financial performance in 2018, excluding one-time transaction and integration costs. For U.S. tax purposes, the transaction constitutes an asset sale, and Choice expects to amortize the acquired assets. WoodSpring Hotels Holdings LLC will be renamed and retain its hotel management operations. The transaction is expected to close in the first quarter of 2018, subject to regulatory approval, the concurrent closing of the sale of WoodSpring’s owned hotels to a third party, and satisfaction of customary closing conditions.

Moelis & Company LLC is serving as financial advisor to Choice Hotels on the transaction, and Willkie Farr & Gallagher is serving as legal advisor. Morgan Stanley and Co. LLC is serving as financial advisor to WoodSpring, and Weil, Gotshal & Manges LLP is serving as legal advisor.

• Subway’s US store count dropped by 909 locations in 2017.
• The closures could be just the beginning of a crisis at the chain as franchisees petition against a new $5 footlong deal and traffic declines.
• This is the second year in a row that Subway has closed hundreds of locations.

Subway is in a downward spiral.

The sandwich chain’s US store count dropped by 909 locations in 2017, according to figures that a Subway representative provided to Business Insider. That represents more than 3% of the chain’s 2016 US stores.

The chain has 25,835 shops open and operating in the US, according to the representative, compared with 26,744 at the end of 2016.

In 2016 sales at the chain reportedly fell 1.7% and its store count dropped by 359 locations in the US — marking the first time in the company’s history that the chain closed more stores than it opened.

Globally, Subway’s store count is down 471 locations. The chain has 44,014 shops worldwide, down from its 44,485 stores in 2016.

The 909 shuttered US locations this year could be just the tip of the iceberg for Subway closures.

Last week news broke that franchisees were protesting the chain’s plan to bring back the $5 footlong deal.

On Monday, Subway’s head of North American marketing, Karlin Linhardt, resigned from the company.

And traffic has fallen 25% over the past five years, according to an internal memo reviewed by The New York Post.

“The national promotional focus over the past five years … has decimated [us] and left many franchisees unprofitable and even insolvent,” petitioners led by Virginia franchisee Mitesh Raval complained in a letter sent to Subway and obtained by The Post.

More than 400 franchisees have reportedly signed the petition, which protests the chain’s plans to roll out its famous $5 footlong deal in January.

Subway has struggled to keep up with fast-casual competitors like Panera and Sweetgreen that many see as better suited to meet Americans’ swiftly evolving health trends.

“Today, people are ever more educated on nutrition, food sourcing, and ethical holistic business models,” Sara Bamossy, the chief strategy officer at ad agency Pitch, told Business Insider. “To create (or to rekindle) loyalty and sales, it is not enough to label something as ‘natural’ and it’s not enough to be affordably priced.”

The company also faced negative publicity from a scandal involving its former spokesman Jared Fogle. Fogle is serving a nearly 16-year prison sentence after being charged with having sex with minors and possessing child pornography. Subway cut ties with him in 2015.

“Subway is in the midst of a massive transformation, and change of this size takes time,” a representative for the company said in a statement to Business Insider last week. “Our goal is to strengthen the Subway brand in every market around the world to give Subway franchisees the greatest opportunity to successfully grow their businesses.”

The chain is rolling out a new store design, remodeling locations across the US. Subway is also trying to catch up with competitors like Starbucks with an upcoming digitally focused loyalty program.

If you work or have worked at Subway and have a story to share, email ktaylor@businessinsider.com.

ADDISON, Texas, Dec. 21, 2017 /PRNewswire

If you’re in the South Texas Valley and Austin, your chance to experience a Bar Louie just became much more likely. The neighborhood bar and eatery featuring handcrafted cocktails and made-from-scratch food is pleased to announce plans to expand into South Texas with our newest franchise partners, Perspective Hospitality Management Services, LLC. Customers can expect locations to open in South Padre Island, McAllen and Round Rock, Texas.

With more than 130 locations across 27 states, this will be Bar Louie’s first time venturing into South Texas, and the new locations will be opened under the leadership of Barry Patel, Raj Patel and Hershal Patel, in total, the new locations will create more than 250 new jobs.

“Just like every different city in South Texas from McAllen down to South Padre Island, each Bar Louie location will have its own set of diverse characteristics and provide a unique atmosphere to its guests,” said Jill Szymanski, Director of Franchise and Real Estate for Bar Louie. “We can’t wait to see what new experiences potential Bar Louis franchisees will bring to their communities. South Texans will soon come to love the five dollar burgers on Tuesdays and Brews and Blues nights and of course the National Martini Day.”

Bar Louie is seeking to expand both through corporate locations and qualified franchise partners. Perspective Hospitality brings a wealth of experience in food and beverage as well as intimate knowledge of the South Texas market. With current ownership interests in over 8 hotels they have developed and owned over the years more than 22 hotels.  “Their knowledge of the local markets and the uniqueness of their hotel properties offers the brand and them an opportunity to create a unique experience for their guests as well as others in the market” said Szymanski.

The bar and eatery is looking to attract local entrepreneurs and restauranteurs who are looking to expand their portfolio. To appeal to a broader consumer base, the concept offers four revenue streams with its four unique dayparts – lunch, happy hour, dinner and late night.

Founded in Chicago’s River North neighborhood in 1991, Bar Louie emerged from local restaurants and sandwich shops opened by its founders, local Chicago restaurateurs. When Bar Louie was first established, its two founders set out with a goal to continue the tradition of these shops while also giving local residents dining and beverage options for each part of the day. The “Louie” sandwich was a staple of the early restaurants and is still served at Bar Louie establishments across the country.

For more information on franchising opportunities in California, please contact Jill Szymanski at JSzymanski@blro.net or visit http://www.barlouie.com/franchise-information.

Winter will arrive at Dunkin’ with first national animated Snapchat filter and #DunkinDarker event and a new DDark Roasted beer in Massachusetts

CANTON, MA (December 20, 2017) — As the darkest day of the year descends upon the U.S., Dunkin’ Donuts will celebrate the solstice by helping people welcome winter and embrace the darkness. Tomorrow, December 21, Dunkin’ Donuts will make the most of the shortest day of the year to keep fans running through the darkest day in a bold way:

• The first nationwide animated Snapchat filter: Fans all throughout the country can show and share their dark side and add some extra fun to their photos and videos with a special Dunkin’ Donuts animated Snapchat filter in honor of the darkest day. This marks the very first time Snapchat has ever made an animated filter available nationwide.

• Discover #DunkinDarker: Follow along as the Dunkin’ Donuts’ Twitter page becomes @DunkinDarker, and tune into the brand’s #DunkinDarker Facebook event, which will offer a full day of tips and tricks, facts and fun games, prizes and surprises, as well as a special livestream event, to help people conquer the darkness. Fans can RSVP on Facebook now at https://www.facebook.com/events/2111777445717101/.

• DDark Roasted Brew: In Dunkin’ Donuts’ home state of Massachusetts, the brand has partnered with Wormtown Brewery to launch DDark Roasted Brew, the first beer to be brewed with Dunkin’ Donuts Dark Roast beans. This decadent stout-style beer features full-roasted coffee flavor reminiscent of freshly-ground beans with a creamy mouthfeel. DDark Roasted Brew will be available exclusively for purchase on draught at Wormtown Brewery’s Tap Room in Worcester, Massachusetts beginning at the winter solstice, 11:28 a.m. on December 21.

For a bold beverage perfect for the darkest day, Dunkin’ Donuts’ Dark Roast Coffee offers a bold flavor and the smooth finish associated with Dunkin’s signature Original Blend, but without the bitterness typically associated with most dark roast coffees. Dunkin’ Donuts’ Dark Roast is also Rainforest Alliance Certified. Rainforest Alliance certification helps to protect wildlife; safeguard soils and waterways; and improve quality of life for workers, their families and local communities in order to achieve true, long-term sustainability. For some extra delight with the dark, pair Dunkin’ Donuts’ Dark Roast with the brand’s signature Chocolate Glazed Donuts or MUNCHKINS® donut hole treats.

According to Tony Weisman, Chief Marketing Officer, Dunkin’ Donuts U.S., “We know how tough it can be to keep up the positive energy when the days are shorter and darker. As the brand that keeps people running every day, we’re welcoming winter and the darkest day of the year in several bold, innovative and surprising ways, including the first ever national animated Snapchat filter, a special #DunkinDarker event and new Dark Roast beer, to inspire our fans to enjoy our Dark Roast Coffee and face and embrace the darkness.”

To learn more about Dunkin’ Donuts, visit www.DunkinDonuts.com, or subscribe to the Dunkin’ Donuts blog to receive notifications at https://news.dunkindonuts.com/blog.