Elevation Burger

Discovery Day Agenda
•
•
•
•
•
Concept History & The EFV Team
Concept Overview
Industry Overview
Franchise Program Overview
Restaurant tour, sample menu, observe shift & unit
level management systems
History
• Founded in 2005
– Opened first location in Falls Church, VA
– Husband & Wife duo: Hans & April Hess
• Loyal Customer Following with minimal marketing
• Franchise Expansion began in early 2008
• Worldwide Growth Underway
• Over 30 Units Open (USA & Middle East) as of March 2013
• 175+ Units in Development.
Hans Hess – CEO, Founder
Hans Hess is the founder and Chief Executive
Officer of Elevation Franchise Ventures, LLC. He founded
Elevation Burger to spread the gospel of great-tasting,
100% organic burgers made from grass-fed beef that are
better for you and better for the environment. As its founder,
Mr. Hess provides strategic direction for the Elevation
Burger brand and mission. He actively manages the growth
and development of the brand by overseeing restaurant
development and cooking procedure, to guest experience
and marketing/public relations. Before opening Elevation
Burger in September 2005, Mr. Hess developed its patented
process for cooking fries in olive oil, its secret recipes, its
distinctive look and feel, and its unique vision. From 2000
to 2004, Hans worked for Brailsford & Dunlavey (B&D) as a
retail food service and real estate consultant.
Hans Hess – An industry innovator!
• First organic burger joint!
(Saveur Magazine – Burger Franchise Firsts Apr 2009)
• First to commercially cook fries in olive oil
– patent pending!
• First conveyor style griddle to revolutionize
better burger business – patent pending!
• First all-hybrid taxi fleet! (Envirocab –
another eco-friendly Hess family business)
Conveyor Style Griddle
Introduced June 2011
Germantown, MD
April Hess – CFO, Founder
April A. Hess
is the Chief Financial Officer of Elevation
Franchise Ventures, LLC (EFV) and Head Trainer. April has worked in the financial
services industry for more than a decade. For the past six years, April has
specialized in providing comprehensive financial planning (retirement, cash flow,
tax, risk management, investments, and estate planning) services to affluent
individuals as part of SunTrust’s Private Wealth Management Group and
Wachovia’s Wealth Management Group.
April also spent five years with J.P. Morgan Chase & Co. in Internal Consulting
Services and the Private Bank. She is a Certified Financial Planner™ practitioner
and holds the Certified Public Accountant (CPA) designation.
Michael Berger — Managing Partner, Real Estate & Supply Chain
Michael Berger is the Managing Partner for Elevation
Franchise Ventures, LLC, the parent company of the fast-casual burger
restaurant Elevation Burger. On a day-to-day basis, Mr. Berger is in
charge of EFV’s Franchise Development, Real Estate, and Supply
Chain departments. In 2008, Mr. Berger helped found Elevation
Franchise Ventures alongside co-founders Hans and April Hess, EFV’s
CEO and CFO, respectively, who created and founded the Elevation
Burger brand, and its first restaurant, in 2005. Prior to his work at
Elevation Franchise Ventures, Mr. Berger was a Project Manager at
Brailsford & Dunlavey; a Washington DC based firm specializing in real
estate planning and development for colleges, universities, government
municipalities and professional sports teams. Mr. Berger is a native of
Reston, VA and now resides in Washington, D.C. with his wife and fourmonth old son.
Management Team
• Cynthia Hess: HR director
•
•
Responsible for corporate positions and corporate store hiring.
California native; background in Genetics, Philosophy, Statistics and Psychology
• Jessica Ordona: Manager, Real Estate Development
•
•
•
Real Estate Manager
Education in Fashion Merchandising, Marketing, and Business
2+ years in Retail Real Estate consulting, representation, development
Management Team
• Mark Christopher Gustus: Corporate Trainer
• Originally from CA
• 8 years of experience training and developing members of the
workforce
• Jason Low: Corporate Trainer
• Eight years of experience as an instructor
• Bachelors of Science degree in Marketing and Masters Degree in
Educational Leadership from San Jose State University
Management Team
•
Brent Desmond: Head Trainer
•
•
Born in Salinas, CA. Attended Linfield College in OR. Graduated in May, 2009 with a
BS in Finance
Works on everything from training/store openings, to overhauling the operations
manual, to maintaining corporate store facilities
• Oliver Mead: Supply Chain Analyst
•
•
Graduated from Cal Poly, in 2009 with a BS in Statistics
Interned with EFV during the summer of 2008. Worked as an assistant manager of
the new Park Potomac store
The Concept
•
•
•
•
•
•
•
Innovative Quick-Service / Fast Casual restaurant
High-Quality, Nutritionally Superior Fare
Made to Order
Focus on Organic Ingredients
Sustainable and Environmentally Friendly Practices
Friendly and Engaging Staff
Reasonable Price
Elevation Burger is THE PIONEER in offering a
reasonably priced organic burger that tastes great
and is better for you.
Differentiators:
100% Organic, Grass-Fed, Free-Range Beef
• 100% USDA-Certified Organic, 100% Grass-Fed, 100% Free-Range
Beef
•
Fresh Fries, Made-to-Order in 100% Olive Oil
– patented process; only commercial application in USA
•
Vegetarian and Vegan Burgers
– fire-roasted taste or veggie taste
•
Hand-Scooped Milk Shakes
– made-to-order
•
Cookies Freshly Baked On-Site made with organic eggs and butter
Differentiators:
Fresh Fries Cooked in 100% Heart-Healthy Olive Oil
“If only french fries could be fried in olive oil...”
- President Clinton, Governor’s Conference on Obesity
President Bill Clinton &
EB Founder, Hans Hess
Differentiators:
Fresh Fries Cooked in 100% Heart-Healthy Olive Oil
•
Potatoes Hand-Cut Fresh in front of the
guest
Fresh Fries
•
Cooked in 100% Heart-Healthy Olive Oil
Healthier and More Nutritious
•
Zero Additives
Ijust Olive Oil, Potatoes, and a dash of Salt!
•
Safer for those with Food Allergies
(no gluten, no nuts, etc.)
•
Patent-Protected Cooking Process
Differentiators:
Two savory veggie burger options
•
•
Veggie Burger #1Ithree kinds of
mushrooms, onions, brown rice, rolled oats,
mozzarella and cheddar cheeses, bulgur,
parsley and spices.
Veggie Burger #2I includes organic
ingredients, such as brown rice, corn, carrots,
onions, green peppers, rolled oats, red bell
peppers, soy protein and flavoring and spices
NRN June 2011: Veggie Burgers Get Respect
“Since we opened, we wanted to be sure our concept
included options for vegetarians because they usually get
treated like second-class citizens,” said Hans Hess,
Elevation Burger’s chief executive and founder.
Differentiators:
June 2011 – Elevation Burger introduces
revolutionary conveyor style griddle!
Customer speed of service
Fresh / Customizable Food
Simplified employee training
Food consistency
Faster production = increase sales
Add more options to menu (i.e.. bacon)
NRN June 2011:
Elevation Burger debuts
efficient new griddle
June 2011
NRN – Having Words with Hans Hess
Paul Frumkin of Nation’s Restaurant News conducts a Q&A style interview with Hans
Hess, Founder, chief executive, Elevation Burger. Excerpt:
Q: Talk a little about your new griddle.
A: It’s like nothing you’ve ever seen. You put the bun and the freshly packed
The Super Griddle
•
Developed by Elevation Burger founder and CEO Hans Hess, the Super Griddle’s
purpose is two-fold: transparency and convenience for guests. “I wanted to create a
system that was able to consistently serve more guests while making the experience
of getting your burger made more transparent, open and observable,” says Hess.
•
“When I went into places like Chipotle, I noticed the line moved fairly quickly
because the production was a continuous, one-piece flow, as is seen in lean
production methods. We use batch cooking in our normal operations, so I
envisioned a way to translate the continuous flow production line to cooking burgers.
The idea for the conveyor belt was born from the absence of an established way of
making burgers to order efficiently, rather than in batches.”
•
The Super Griddle also has benefits for franchisees by making it far easier to train
staff. With batch operations, there are 37 steps to make a burger that are divided
amongst several staff. With a continuous flow along a conveyor, steps are
simplified, resulting in greater consistency when cooking and assembling the
finished burgers.
The Concept
“We believe our guests want to feel good
about the food they eat, the environment
they purchase it in, and the employees that
serve them.
Because of this belief, we teach our team that
we are trying to elevate the product, the guest
experience, and the employee.
By focusing on these three things, Elevation
Burger offers an outstanding value and enjoys
outstanding customer loyalty.”
Our Mission
• Our mission is to become THE LEADER in the
organic, natural foods, quick-service restaurant
sector by serving food that is:
– Superior in quality and more nutritional than our competitors’
products
– Enjoyed in a clean, healthful, and environmentally sustainable
atmosphere
– Served by people engaged in meaningful work who show that they
sincerely care
– All for a reasonable price
Sustainability
•
Consumers are Definitely Paying Attention.
– 60% “likely to choose a restaurant based
on how environmentally friendly it is.”
- National Restaurant Association
•
EB Encourages Franchisees to Pursue:
–
–
–
–
Carbon Offsetting
Waste Oil Recycling
Paper, Glass, and Aluminum Recycling
USGBC’s LEED Certification, which Includes
Environmentally SustainableI
•
•
•
•
Construction Practices
Building Materials
High-Efficiency Equipment
Operations Practices
Why Elevation? Why Now?
• Savvy Consumers Want Better Options:
–
–
–
–
Freshly Prepared
Better Taste
Authentic Ingredients
Healthier; More Nutrients
• Savvy Consumers Appreciate:
–
–
–
–
Inviting Dining Room and Kitchen
Attentive, Engaging Staff
Good Value: Quality for a Reasonable Price
Environmental Responsibility in:
• Food Sourcing and Production
• Restaurant Development and Operations
EB Answers each
of these Desires!
Our Fans
“We really like the quality of the beef and the secret sauce. The
prices are very reasonable and that is why we take our three
boys there regularly!” -Robin Andersen
"I think the menu at Elevation Burger is great. It offers
organic beef which makes for a healthy burger as well
as French fries cooked in olive oil. The flavor and
freshness of their food sets them apart from any other
burger place in the area.” -Megan Schlitt
“A friend mentioned that the burgers were much better
than Five Guys and that everything they served was very
fresh. We were not disappointed. We don't eat out very
often, but when we do, Elevation Burger is usually one of
the top choices.” -Vaughan Moore
Awards & Accolades
• Founder/CEO Hans Hess recognized
as “40 40 Under 40” by Washington
Business Journal - 2010
• Founder/CEO Hans Hess received
the “Green Business Visionary”
Award from Washington Business
Journal - 2008
• “Green Business Award” from
Washingtonian Magazine - 2009
• Semi-Finalist: Washingtonian
Magazine’s prestigious “Best Burger
Bracket” -2009
Press on Better Practices
Elevation Burger on the News
Elevation Burger on the News
ABC7 Washington Business Report
FastCompany
Entrepreneur
Washington Post
“The takeaway from the proliferation of cupcake and hamburger chains has
been that people are willing to pay for high-end treats. If we are going to eat
‘unhealthy,’ we want to do it right…Look at what has been successful among
brands like Georgetown Cupcake, Pinkberry and Elevation Burger, and think
about what they have done well…” – Elana Fine, managing director of the Dingman
Center for Entrepreneurship at the University of Maryland’s Robert H. Smith School of
Business
Middle East Press
“Inside Elevation Burger, customers line up 10 deep for the organic burgers.” Bloomberg
“We plan to open as many as 15 units in the Kingdom of Saudi Arabia.” – Hans Hess,
Bloomberg
“Naughty as burgers may be, this venture offers a healthy twist, serving patties made
with 100 percent organic and grass-fed beef, as well as fries cooked in olive oil.” – Time
Out Dubai
Middle East Press
Featured on CNBC
CNBC – People, Planet & Profit Special Report
Fox News Spotlight
“Fox News: The Nation’s First Organic
Hamburger Restaurant – a healthier
alternative to fast foodH”
Fast Food Mania
ABC World News
ABC World News:
November Unemployment Rate Falls
to 8.6 Percent
Daniel Magnus is an example of a restaurant
franchise employer who is ready to hire.
Magnus is the founder and CEO of Magnus
LLC, the exclusive area franchise developer for
Elevation Burger in Westchester County, New
York and Fairfield County, Connecticut.
Magnus plans to open another three franchise
restaurants in 2012, creating about 75 new
jobs. Said Magnus to ABC News, “People
have been really, really grateful in some
cases about being hired, and it feels really
good to be able to give people
opportunities.”
Associated Press Article
By MATTHEW BARAKAT
Associated Press
“Higher-grade beef, fresher or more
creative toppings, and better buns are
bringing customers in the door.”
Industry Press
QSR Magazine: Ones to Watch
“They created a restaurant with the lofty goal of
“elevating” the classic meal of American burger
and fries to a new level.” The concept “became
a hit with people who wanted fast food without
a side order of guilt.”
Nation’s Restaurant News: Elevation Burger adds toppings, plots expansion
“The brand doubled its number of units in 2011, and is expected to repeat that
performance again in 2012, rising to about 50 units by the end of the year. Six or seven
developers in the Middle East also are moving ahead with expansion plans. Hess said
a new unit is scheduled to open soon in Qatar, and by the end of 2012, he said he
expects new units to open in Saudi Arabia, Morocco, Jordan and Egypt.”
In the News
Imitation is the sincerest form of
flattery(
The Wall Street Journal - June 29,
2009: At Elevation Burger, a sevenoutlet chain owned by Elevation
Franchise Ventures LLC, a vendor in
March found an unauthorized Twitter
profile with tweets promoting rival Z
Burger. Hans Hess, Elevation's founder
and chief executive, complained to Z
Burger and Twitter, which later
suspended the profile after a letter from
Mr. Hess's lawyer.
Kenny Fried, a publicist representing Z
Burger, says owner Peter Tabibian
created the Elevation Burger profile on
Twitter, as well as profiles in two other
competitors' names, "to be creative and
fun in promoting Z Burger" and didn't
intend to be malicious.
Burger Business Interview
Why Elevation Will Survive the “Better Burger” Shakeout
BurgerBusiness.com: Elevation Burger is in growth mode, eyeing expansion
into more urban markets and preparing to launch a new prototype for the "better
burger" chain that will include cast-iron griddles. Founder and CEO Hans Hess
says the company's limited menu of 100% organic, grass-fed beef burgers is a
recipe for success, allowing Elevation to focus its innovative efforts on speeding
delivery of an increasingly better product rather than constantly creating new
menu items.
Fast Casual Magazine 2012
Top 100 Movers & Shakers
The Better Burger Segment
Fast Casual Magazine 2013
Top 100 Movers & Shakers
To be published in June 2013 –
Elevation Burger broke the top 25!
Fast Casual Magazine 2011 Top 100
66. Elevation Burger Arlington, Va. / No. of units: 17
During the past year, Elevation Burger has more
than doubled its number of locations in the U.S.
and rolled out its first international franchises.
Founders Hans and April Hess, whose Elevation
Franchise Ventures LLC began offering
franchises in 2008, report they have commitments
to open more than 60 locations in existing
markets as well as Dallas, New York and
Washington, D.C, along with at least five in
Kuwait. Their goal is to have almost 100 locations
within the next few years to serve their 100
percent grass-fed, organic and house-ground
beef, non-processed cheese, fresh-cut fries and
hand-scooped shakes and malts.
Fast Casual Magazine 2009 Top 100
56. Elevation Burger: Arlington, Va.
In 2009, the first five Elevation Burger
franchised locations opened and, as
of January 2010, 45 locations had
been sold. Restaurants are planned
for the markets of New York City;
Coral Springs, Fla.; and Potomac,
Md. The first international units also
were sold with five locations set to
open in Kuwait. The company is
working on several new franchise
deals around the United States and in
some limited international markets.
In the News
What's Cooking?
Elevation Burger
Franchisee Neeraj Vohra and
Michael Berger, director of organic
burger stop Elevation Burger, whip
up a banana split shake on today's
What's Cooking.
In the News
Wynnewood, PA
Washington, DC
Awards & Accolades
Best Reason to Go to Falls Church:
Chocolate Milkshake at Elevation Burger
Final Four: Washingtonian’s
Best Burger Bracket
In the News
Elevation Burger set up its kitchen to do what couldn’t be done
“The patented process manipulates such variables as cooking time, oil
temperature and the sugar content of potatoes. IThe result is crispy,
golden fries that are ‘a huge differentiator’ for the concept and a draw
for healthful eaters.”
“The 1,800-square-foot restaurant has been a successful proving ground
for a limited menu of healthful and flavorful fare and a relatively simple
equipment package.”
$5 Burger, $5 Million Dollar View!
Elevation Burger National Harbor
Restaurant Reviews
ABC7’s Julie Parker heads to
Elevation Burger in Potomac with
long-time food critic Michael
Birchenall, who knows his burgers.
“Grass-fed organic beef. It’s got good
flavor,” Birchenall said. “You have to take a
nice big bite. The cheese is delicious, and
the condiments aren't overwhelming,”
Birchenall critiqued. He appreciated the
cheddar – and noted the two hand-formed
patties. Birchenall says this burger has
everything he’d hope for: “It's got the nice
bun. It's toasted. You can taste it. It's a
good burger.”
Press: What the Critics are Saying…
Press: What the Critics are Saying…
“Rumors are flying that this no-frills
newcomer is the next generation of burger
joint, a welcome and wanted alternative to
mechanized fast food giants.”
- AOL City’s Best Guide, Washington DC
“Devout carnivores can ravage
burgers made from fresh beef.”
– Washington City Paper
“We’re all winners for having
two sensational burger joints
to choose from.”
- Northern VA Living Magazine
Press: What the Critics are Saying…
“I’m talking about the satisfaction of wiping the
juice from a flavorful and perfectly grilled
cheeseburger off your chin, wolfing down a bag
of fries, washing it back with a milkshake and
convincing yourself that you just ate a salad.
Where else can you do that?”
- Eric Easter, Uptown Magazine
Press: What the Critics are Saying…
“Is a hamburger a turn-on? It is when the sandwich is made well, and
is (relatively) good for you. [The hamburgers] are nicely seasoned, and
grilled to retain a juicy center.” - Tom Sietsema
Press: What the Critics are Saying…
Press: What the Critics are Saying…
Menu
Menu
Menu (Take-Out)
BEEF QUALITY COMPARISON
LOW
QUALITY
Factory
Farmed Beef
MEDIUM
Natural Beef
HIGH
Organic Beef
EB's 100%
USDA-Certified
Organic Beef
Environment?
Antibiotics?
Hormones?
Diet?
Pesticides?
Large feed lots
with cramped
conditions. Illness
is common.
Antibiotics to
stop illness
and increase
weight.
Potentially;
hormones typically
given to dairy cows
(may be slaughtered
for beef).
Mostly grain,
which is high in
calories, and
ensures quick
weight gain.
Grain almost
always
contains
pesticides.
No hormones.
Mixture of
grain and
grasses,
depending on
producer.
Grain/grass
diet often
contains
pesticides.
No hormones.
Can be a
mixture of
grass and
grain.
No pesticides.
No Hormones.
Diet of 100%
Diverse, Wild
Grasses for
Entire Life.
No
Pesticides.
Some time in feed
lot; some time in
pasture.
Usually grasspasture raised for
most of life.
Entirely FreeRange-, GrassPasture-Raised
for Entire Life.
No antibiotics.
No antibiotics.
No
Antibiotics.
The Burger Segment
Dominated by “Fast Feeders”
•
According to the National
Cattlemen’s Beef Association,
hamburgers dominate away-fromhome beef servings, accounting
for 70% of total consumption.
•
The top five burger chains account
for annual sales of $80 billion.
McDonalds
Burger King
Wendy’s
Sonic
Jack in the Box
Hardee’s
Carl’s Jr.
Whataburger
$53 billion
$12 billion
$9 billion
$3 billion
$2.8 billion
$1.8 billion
$1.3 billion
$885 million
Total Market
$85 billion
- Restaurants & Institutions Ranking
Healthier Alternatives Pioneers
Burritos
Chipotle
Subs
Subway
Pizza
Z-Pizza
Burgers
Elevation
Burger
Burger Segment Positioning
NEW SEGMENT
OPPORTUNITY
Fast Food $80B+
•
•
•
•
•
•
•
•
McDonalds
Burger King
Wendy’s
Sonic Drive-In
Jack in the Box
Hardee’s
Carl’s Jr.
Whataburger
Quick Casual
•
•
•
•
Five Guys
Topz
Smashburger
Mooyah
Gourmet
• Counter
Burger
• Red Robin
Gourmet
Burgers
Organic/Healthy
• Elevation
Burger
Burger Joint Quadrant or “How much
shame do you feel after eating atH?”
Healthier Alternatives
EB is THE Healthier Burger Pioneer
What makes EB THE PIONEER in healthier
burgers?
– 100% USDA-Certified Organic, Grass-Fed, Free-Range Beef
– More Sophisticated Flavor
– Fresh Fries Cooked in 100% Pure Olive Oil
– No Trans Fat on the Menu!
– Freshly Prepared Produce
Adds up to a New Approach
Organic It’s Mainstream…
Chipotle:
Naturally Raised meats, Organic sour cream, etc.
Wolfgang Puck Restaurants:
All-Natural and USDA-Certified Organic meat and produce.
Compass Group:
Announces they will serve eggs from Free-Range hens only.
Organic It’s the Future…
• Organic beef satisfies a fastgrowing consumer demand for
healthier alternatives.
• “Hot food and drink trends include
alternative-source ingredients like
locally grown produce, organics,
sustainable seafood, grass-fed
and free-range items, and
alternative red meats.”
– National Restaurant Association
Organic It’s Desirable…
• 71 percent of adults say they try to eat healthier now at restaurants
than they did two years ago. – National Restaurant Association 2011 Forecast
• 69 percent of adults say they are more likely to visit a restaurant that
offers food grown or raised in an organic or environmentally-friendly
way. – National Restaurant Association 2011 Forecast
• Nearly 3/4 of American teenagers (73%; ages 12-17) say they try to eat
nutritiously when dining out.
– National Restaurant Association
• 72% of consumers associate “healthy” with natural, organic, and
sustainable menu item positioning.
– Technomic
Organic It’s Here to Stay…
“Healthier eating is not a
fad, it’s a trend. It’s not
going to go away.”
- Ron Paul, President, Technomic, USA Today
Top 5 2012 food innovation product
predictions:
(1) Organic Foods – A Global Trend
2013 Industry Growth
Casual-dining, fast-casual concepts stealing
market share
Nation’s Restaurant News - Feb. 11, 2013: Technomic study finds
restaurants in these segments could be luring customers from quickservice and upscale-casual brands. In its “Future of Casual Dining
Consumer Trend Report,” the market research firm found that 85
percent of consumers surveyed said they eat at fast-casual restaurants
at least once a month, and 82 percent reported visiting a traditional
casual-dining brand once a month. The strength of traffic at traditional
casual-dining restaurants resulted in part from customers trading down
from upscale casual, the report found, as only 40 percent of
respondents who recently patronized a casual-dining restaurant also
visited an upscale eatery in the same time frame.
2013 Restaurant Industry Overview
• In 2013, Sales will reach a record high of $660B, up 3.8 %
over 2012 sales
• Of these restaurant industry sales, $188B will belong to the
QSR industry – a 4.9% increase for that segment
• The restaurant industry will employ 13.1 million employees
in 2013 – Making it the 2nd largest private-sector employer
Restaurant Industry job growth will continue to outpace
regular employment growth for the 14th consecutive year.
Restaurant job growth hit 17-year high in 2012.
2013 Industry Growth
“According to The Franchise Business Economic Outlook:
Ithe franchise sector is projected to create 162,000 new
jobs and open more than 10,000 new franchise
businesses in 2013.”
– Fast Casual Magazine
Fitch expects average annualized same-store sales
growth of 1-3 percent in the U.S., and 2.3 percent GDP
growth during 2013.
– Fast Casual Magazine
Industry Trends
Technomic: Fast-casual brands
ahead of industry growth
“Sales and unit growth at the country’s largest fast-casual chains continue
to outpace that for the overall restaurant industry, according to the latest
Fast-Casual Top 150 Chain Restaurant Report from Technomic.”
“The Chicago-based industry research firm found that the 150 largest fastcasual brands combined to grow their sales 8.4 percent to $21.5 billion in
2011, compared with a year earlier. That rate of growth increased from a
6.6-percent gain in 2010.”
QSR 2013 Predictions
According to QSR and the
National Restaurant
Association, the quickservice industry will grow
by almost 5% this year
2013 Industry Trends
• More than seven out of 10 consumers say they
are trying to eat healthier at restaurants now
than they did two years ago
• Similarly, about three-quarters of consumers say
healthy menu options are an important factor
when choosing a restaurant.
Burger Segment Growth
• Burgers are one of the hottest trends on today's
dining scene. In our national survey of over 1,200
consumers, 94% reported eating burgers at least
occasionally.
• The quality of burger ingredients, and of proteins
in particular, is critical to the burger purchasing
decision. More than half of consumers surveyed
(55%) said that the quality of the meat or other
protein used to make a burger is more important
than any other factor. An additional 20% of
consumers said that the quality of the meat is the
second most important attribute for burgers.
NRA Forecast Highlights:
• Restaurant operators continue to step up their efforts to go
green. Four of ten full-service and 31 percent of quickservice operators plan to devote more resources to green
initiatives this year, and four in ten consumers say they
choose restaurants based on their conservation practices.
• Locally sourced food, sustainability, and health and nutrition
will be the top trends on restaurant menus this year.
Seventy percent of consumers say they are more likely to
visit restaurants that offer locally produced food, and nearly
three out of four say they are trying to eat healthier in
restaurants now than they did two years ago.
Technomic Burger Report
Technomic Burger Report
Prototypical EB Unit:
•
Approximately 1,900 – 2,500 SF
•
50+ Interior Seats
•
50/50 Lunch/Dinner Traffic
•
Dine-In and Carry-Out Service
Prototypical EB Unit
Potomac, MD
Prototypical EB Unit
Potomac, MD
National Harbor, MD
Hans Hess and Ahmad Mahmoud Franchisee
National Harbor, MD
Kuwait
Seef Mall - Bahrain
Unit Level Staffing
• Staffing: 15-20 Employees Per Location
– OPENING: 3 Employees
– PEAK TIME: 7 to 10 Employees
– CLOSING TIME: 4 Employees
Franchisee Support
• Comprehensive Support Throughout All Phases of
Restaurant Development and Pre-Opening / Opening:
– Assistance in developing and managing relationships with project
manager, designer, and general contractor
– Design review and construction oversight to ensure adherence to
brand image and desired corporate outcomes
– Project monitoring to ensure on-time and on-budget delivery
– Assistance in hiring general and assistant managers
– Pre-opening management training at Falls Church, VA location
– Assistance in hiring and training kitchen and line staff
– In-store staff training and operational oversight
Franchisee Support
• Ongoing Oversight and Support:
–
–
–
–
–
Unannounced secret shopper drop-ins
Financial performance monitoring
Assistance in troubleshooting operational issues
Target market / preferred customer profiling
Assistance in developing and distributing targeted promotional
materials
Elevation
Franchise
Ventures:
Franchisee Support
Elevation
Franchise
Ventures
Real
Estate
Broker
Franchisee
Franchisee
Architect /
Engineer
General
Contractor
Construction /
Project
Manager
Training &
Ongoing
Operations
Franchisee Support / Partnerships
Real Estate
Marketing Programs
Construction
Point of Sale Systems
Design
Signage
Purchasing & Distribution
Equipment
Business Consulting
Food/Beverage
Training
Operations Systems
Marketing Programs
• Opening Support
• Local Store Marketing Programs
Traffic
Return Frequency
Party Size
Check Average
• Four Walls Marketing
• Social Media
Online Ordering
Uniform Facebook Pages
All new custom
Facebook page
designs – this
template is
available to
franchisees who
build micro pages
for their specific
locations
Social Media
Four-Walls Marketing
In your store, you, as the owner/operator, must
create an overall authentic experience by:
– Making the guest’s experience rewarding
– Making sure that the guest’s interaction with staff is ALWAYS
pleasant
– Preparing the food in a consistent way
– Presenting the food in an appealing manner
– Serving the hottest, freshest food possible
– Maintaining consistently clean facilities
Market Planning
• Market Analysis
– Market Penetration
– Competition
– Trade Area Strength
• Territory Description
– Typically along county lines or major traffic arteries
– Radius Protection: Suburban vs. Urban
What do we look for in a franchisee?
Individuals that want to build and run a professional
multi-unit restaurant company.
Compatible: Personalities, Goals, Standards
Commitment: This is a long term plan. (20+ years)
Solid: Operations, Business and Financial
Where do you want to be in 5 years?
•
•
•
•
•
•
Business to pay bills?
Passive/mailbox income? How much?
Full time active business?
Legacy?
Build a business to sell at some point?
What sort of income and why?
Financing
Financing may be available via third party lenders. Elevation
Burger is approved by the SBA Franchise Registry. The SBA
Franchise Registry has streamlined eligibility guidelines and
operating procedures that will reduce costs and processing time,
making the SBA loan application process as fast and easy as
possible.
FDD Review
FDD Includes:
• Company History
• Management Experience
• Litigation
• Trademarks & Patents
• Financial Statements
• List of Franchisees and Restaurants
• Fees and Initial Investment
• Franchisor and Franchisee Obligations
• Restaurant Earnings Claims
• Forms of Franchise and Development
Agreements
Development Schedule
For franchisees that want to develop
and manage a multi unit business:
• Exclusive development territory
• Number of restaurants to be developed in the territory
• Development schedule and opening dates for each
restaurant
FDD Item 19
Average Sales & Profit:
We do not furnish or authorize our salespersons to
disclose any oral or written information concerning the
actual or potential sales, costs, income or profits of a
restaurant except as stated in the FDD. Actual results
vary from restaurant to restaurant and upon restaurant
ownership we cannot estimate the results of any
particular franchisee.
Next Steps
1. Headquarter meeting and all parties decide to move forward
2. Letter of intent (LOI) is signed by franchisee and franchisor
outlining deal terms
3. Draft executable contracts sent to prospects
4. Franchisees fully execute agreements and send to Elevation
Burger with franchise fees
5. Franchisor executes and send copies back to franchisee
6. Access to Elevation resources, assistance with business plans
and funding
7. Real estate process begins – local brokers, market & site
analysis