Sidney J. Feltenstein is a bona fide expert on franchises and franchising. He’s the past chairman of the board of Yorkshire Global Restaurants and a member of the International Franchise Association’s Hall of Fame.
He’s held senior positions at Dunkin’ Donuts and Burger King Corporation. He then led an investment group that bought A&W Restaurants in 1995. Under his leadership, the chain grew from 450 to nearly 1,000 units in five years.
He started another investment group to purchase Long John Silver’s and form Yorkshire Global Restaurants. Company sales grew five times, and its operating profits grew 40 times. He sold this company to Yum! Brands, Inc., in 2002.
After leaving Yum! Brands, Feltenstein founded Sagittarius Brands and acquired Captain D’s Restaurants and Del Taco Restaurants. Both totaled approximately 1,100 locations and $1 billion-plus in revenue.
He’s obviously a shrewd businessman, but he’s also a great guy. Hence, his willingness to appear on the show recently and share his expertise.
Feltenstein got his start at Procter and Gamble, and he said the experience was invaluable because it taught him to bring a branding mindset to the franchise world. Until then, most folks in that industry merely focused on “advertising.”
While he enjoyed his stay in the corporate world, Feltenstein said he had an itch to do something more entrepreneurial.
“I felt you could build a very large successful business on the backs of brands that had been struggling and that – with the injection of the right management, the right strategy, and the right capital structure – they could be made to become bigger and better than they ever were,” he said.
When you’re a franchisor, Feltenstein said, you’re not in the business of burgers, and tacos, and donuts. You’re in the business of making sure the franchisee is successful. The franchisee is your customer, he said. If you’re not marketing the brand well, on their behalf, you can’t be successful either.
Like our good friend and branding expert Bruce Turkel says, “It’s all about them.” Feltenstein agrees.
Feltenstein said franchising may not be for everyone, but it can be a wonderful opportunity to be your own boss. Research shows franchise businesses are far more successful than most independent small businesses.
And the opportunities go far beyond food and beverage establishments, he said. The options are myriad, but most people start by looking at the amount of capital they have to invest. Then they look at the available opportunities and make a choice.
Feltenstein said some categories to watch for future growth include pizza, artisan donuts, and healthcare.
The place to start looking at the benefits of owning a franchise, Feltenstein said, is the International Franchise Association. There you’ll find a wealth of information about the industry.
Click here to listen to the full interview with franchise expert Sidney J. Feltenstein.
