Black MBA - Spring 2008 - (Page 96)

ENTREPRENEURSHIP Franchising in marketing, management and operations. Ordinarily, franchisors are much more limited in how involved they can be in franchise operations. Hubbard says Papa John’s International, Inc. is watching its joint venture closely and may try to clone it in other cities if it’s successful. “They basically had catered to white franchisees and white neighborhoods,” Hubbard says. “With the new age of diversity in America and throughout the world, if they are going to maintain the No. 3 position [amongst carryout and delivery pizza restaurants], they are going to have to diversify like all the other corporations.” mba restaurants generated annual sales exceeding $2.4 billion. Despite vast changes within the competitive landscape, Bobbitt says success in franchising requires the same things it always did – hard work and perseverance. Bobbitt spent 20 years in the soft drink industry before buying his first McDonald’s in 1985. He worked at a PepsiCo bottling operation for 18 years and left the company as a regional vice president to join Coca-Cola. While at Coca-Cola, he explored franchise opportunities. “I thought if I went into it, I wanted to go in with the best,” he says. “At that time, I considered McDonald’s the No. 1 brand.” He went through a year and a half of basic training to learn about restaurant operations from the ground up before McDonald’s offered him a franchise. He was a regional manager at Coca-Cola at the time and already worked 11-hour days on the sales end of the business. To fit in another 25 hours a week of McDonald’s training, he worked four hours in a restaurant Tuesday and Thursday nights and all day on Saturdays and Sundays. He used vacation time at Coke to go through additional training and take McDonald’s exams. Bobbitt is matter-of-fact about the hectic schedule, and he says perseverance and willingness to work hard are basic requirements for business success. “I never did question it,” he says. “I felt that it was the right opportunity and the right time. Papa John’s commitment to Detroit, which is more than 80 percent African American, and to a Black-owned restaurant group is a significant step after years of admittedly poor outreach to Black entrepreneurs and communities. “Frankly, Papa John’s has not done the best job in our diversity initiatives,” Flaherty says. “We’ve learned a lot from our CEO Nigel [Travis], from his involvement with much larger companies and through the International Franchise Association, about how to do a better job in diversity.” The franchisor’s 10 percent ownership stake in Hubbard’s Papa John’s restaurant gives them a proportionate role Bob and Hortense Bobbitt – McDonald’s Though, the efforts of organizations like the National Black McDonald’s Operators Association (BMOA) have eliminated many issues, he says. Bobbitt is a past president of the Ohio Region BMOA chapter and currently serves as treasurer. The association, founded in 1972, promotes a dual mission – to build “Brand McDonald’s” and enhance the African-American community. Statistics suggest the professional group has done both undertakings well. Today, there are more than 300 Black owner/operators across the U.S., leading nearly 1,200 McDonald’s. According to a 2006 company report, the Black-owned W H E N BO B BO B B IT T Sr. first investigated franchising in the 1980s, Black operators were scattered across the nation, primarily in urban areas plagued by drugs, crime and theft. Their security expenses were higher than suburban stores, and they had a harder time filling managerial positions. They often contended with a higher tax base and redlining by insurance companies. “If the insurance companies would insure you, we were paying higher rates,” Bobbitt recalls. Twenty-two years and five McDonald’s restaurants later, Bobbitt says many of the challenges Black fast food franchisees once faced are not gone completely. 96 BlackMBA • Spring 2008 • www.nbmbaa.org http://www.nbmbaa.org

Table of Contents Feed for the Digital Edition of Black MBA - Spring 2008

Black MBA - Spring 2008 Passion, Purpose and Power Contents Web Browsing From the President & CEO Up Front Advertising for Change CEO to CEO: Straight Talk with Barbara L. Thomas and Renetta McCann The New Executive Search Wealth Building: A Head Start on Investing and Saving Young Continuing Education: Lifelong Learning is Easier than You Think Making Good: Catching up with some of NBMBAA’s 2007 Scholarship Winners On Campus: Universities Win Grants to Fight Poverty Public Service: Does Your MBA Fit in the Government Sector? Bridge Building: Make a Career of Giving Back Steady Speed: Kim Harris Jones Shares what Drives a Successful Auto Industry Career Financial Planning: A New Way to Work Your MBA Global Focus: Keeping up with the Competition Clock On the Move: Member News, Promotions and More Industry Focus: Biotechnology, Energy, Food & Beverage, Global Media and Entertainment Employer Profiles: Campbell Soup, FINRA Financial Finesse: Denise Hales Harrod and CompuCredit Advocate for the Financially Underserved Creating Lasting Change: GE Impacts Quality of Life in Africa William W. Wells Jr.: Finding Strength in Diversity Leaders of Tomorrow® Community Service Program: NBMBAA® and Wal-Mart Partner to Reward Students Who Give Back Reaching Out: NBMBAA® Chapters Give Back to Their Local Communities How To… Buy a Franchise: Understanding the Basics of Acquiring a Franchise After the Gridiron: Keith Sims – Dunkin’ Donuts Franchise Confidential: Paul Hubbard – Papa John’s pizza Strength Through Adversity: Bob and Hortense Bobbitt – McDonald’s On the Ground Floor: Valerie Daniels-Carter – Pizza Hut, Burger King, Auntie Anne’s Use Your Superstar Status: Black Entrepreneurs Break into Japanese Economy Marketing Maven: Odyssey Media Entrepreneur Linda Spradley Dunn Staying the Course: Black Marathoners Share Lessons from the Race Relationship Forum: Soul-Mate Strategies for the Career-Minded Vacations that Matter: Travel to Make a Difference Advertisers Index

Black MBA - Spring 2008

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