With all the discussion about submarine sandwich franchises, it
should be noted that there's another sub chain taking a
nonaggressive path toward the No. 2 spot. Started in 1964,
Blimpie International Inc.'s Blimpie Subs and Salads
franchises number nearly 1,600- plus stores in the United States
and 15 foreign countries. Traditional stores were found in shopping
centers, malls, free-standing buildings and downtown markets, but
newer ones are found inside convenience stores, gas station food
marts, colleges, office complexes, hospitals and sports arenas.
Blimpie's food offerings are also sold through their "Grab
'n GO" refrigeration cases, carts, kiosks and vending
machines.
However, even though Blimpie has been around for 17 years longer
than Quizno's, it has a smaller store count and nowhere near
the buzz of its toasty competitor. "It's one of the
interesting strategies that some franchisors take," says
Spinelli of Blimpie's quiet position. "If behavior
indicates their strategy, theirs indicates what I call regional
fortress-building. If they get a market presence in a specific
geography, get the best sites, target local advertising, understand
their franchisees, and succeed in building a competitive wall
around this geography, they can win. That might not be their
strategy, but that's been their behavior."
Doesn't sound too bad, so why isn't it a foolproof
approach? "Three things can happen," says Spinelli.
"You either intentionally break out, and it's difficult;
you get acquired; or you get attacked by someone who will lay siege
to the fort."
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Perhaps after recognizing the stiff competition, between 1998
and 1999, Blimpie expanded its brands with Maui Tacos, a
majority-owned subsidiary; Pasta Central; and Smoothie Island,
which is franchised through Maui Tacos. Blimpie's attempts to
expand through these new brands are furthered by co-branding
Smoothie Island with Blimpie and Maui Tacos locations, proving that
Blimpie isn't completely passive about its industry position.
It has even ventured outside the food realm with BI Concept Systems
Inc., an equipment and design services business catering to Blimpie
franchisees as well as other restaurant and hotel concepts.
The Race Is
On
Food isn't the only category with aggressive movers and
shakers.
Curves has demonstrated tremendous franchise growth. Ranked No.
2 in our Franchise 500® for 2003 and 2004, the
women's-only fitness centers franchise has grown from 23
franchise locations worldwide in 1996 to more than 5,000, coming in
at No. 1 in the "Fastest-Growing Franchises" category in
2003 and in the "Fitness Center" category for the last
four years.
While a Curves can be found in nearly every city and town in the
United States, Curves' marketing director Mike Raymond
stalwartly maintains, "Our goal is not to be the largest. Our
goal is to serve the needs of a market that has been ignored:
women. It's because we're doing a good job of serving our
market, and word-of-mouth has fueled tremendous growth."
Curves continues to add locations in the United States and also
plans to expand aggressively internationally.
Does Curves have aspirations of one day unseating the No. 1
franchise? "Not really," Raymond says. "This
business was started by two founders who are motivated primarily by
making a difference in women's lives."
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