Roly Poly Franchise Systems LLC

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Roly Poly Franchise Systems LLC

13245 Atlantic Boulevard, Suite 4-399
Jacksonville, Florida 32225
U.S.A.
Telephone: (904) 739-7659
Fax: (305) 295-9371
Web site: http://www.rolypoly.com

Private Company
Founded: 1996
Employees: 3,000
Sales: $175 million (2006 est.)
NAIC: 722211 Limited-Service Restaurants

Roly Poly Franchise Systems LLC is the brainchild of Linda Wolf and business partner Julie Reid, who loved concocting "sandwiches" from tortillas and various fresh ingredients. They began serving the rolled sandwiches at their restaurant in New Canaan, Connecticut, and soon had a loyal following. The first Roly Poly Rolled Sandwich shop was opened in 1996 in Atlanta, Georgia, and the partners decided to franchise their new sandwich concept. The first franchised shop opened the next year. By 2006 there were 250 Roly Poly shops across the country with more on the way.

HORIZONTAL SANDWICHES

Back in the early 1970s, Linda Wolf did not know she was creating a future sensation when she decided to make a "sandwich" within a tortilla at a Tex-Mex restaurant she owned in Westport, Connecticut. She loved Mexican food, especially tortillas stuffed with beans and rice, so why not ham and cheese? After the first "rolled" sandwich, she experimented with other combinations and ingredients, finding she liked the rolled creations considerably more than sandwiches made with two slices of bread. Rolled sandwiches were healthier and less caloric as well, an important factor to Wolf, who played tennis competitively.

Wolf served her rolled creations to family, friends, and customers. The sandwiches gained a following, so Wolf and best friend Julie Reid decided to open a new restaurant together in New Canaan, Connecticut, in 1986. A second restaurant, in sunny Key West, Florida, followed a decade later as the women perfected both their menu and business plans. After getting the Key West eatery underway, Wolf and Reid decided their rolled sandwiches were a concept whose time had come. They decided to take the idea public and offer franchising opportunities to like-minded entrepreneurs. The first Roly Poly Rolled Sandwiches restaurant, a 550-square-foot shop, was opened in the Buckhead section of Atlanta, Georgia, in 1996.

The new owners mastered the art of rolling sandwiches filled to the brim with dozens of ingredients including deli meats, fresh vegetables, and flavorful sauces. They ran the shop themselves for the first few years, selling hundreds of rolled sandwiches each day. Once income was steady they were able to hire additional staff and think about the future. Franchising certainly seemed the way to go, and the partners came up with a carefully delineated plan for marketing their product.

Roly Poly's menu consisted of 50 core sandwiches, all rolled in 12-inch tortillas, as well as numerous "specials" concocted by Wolf, served both hot and cold. Prices topped out at about $6.50 for the more exotic combinations. The entrepreneurs were careful to distinguish their rolled sandwiches from "wraps," which many considered another name for "burrito," especially in the Southwest. Key to Roly Poly's identity was the fact that its creations were called rolled sandwiches, not wraps or burritos.

The partners wanted to keep franchising costs to a minimum (from $50,000 to $85,000, including a $20,000 franchising fee), and the required square footage was minimal, from as little as 400 square feet up to about 1,200 square feet. The only major equipment needed was a sandwich press or double-sided grill. Shops also needed a good-sized counter for employees to prepare and roll the sandwiches, and a refrigerator large enough to store the ingredients, which were prepared daily. Because the sandwiches were not cooked, there was no need for venting and fire prevention measures like other restaurants. Based on the success of their original Roly Poly, Wolf and Reid calculated annual sales of about $200,000 to $500,000 per unit.

Roly Poly's first franchisee happened to work near Wolf and Reid's shop in Atlanta as a valet. John Giffin, a recent college graduate, saw the new establishment open and became a regular consumer of the inexpensive, fresh sandwiches. When Wolf and Reid talked about their franchising goals, Giffin was intrigued. He commented to Nation's Restaurant News (May 17, 1999) that he and family members "thought getting in on this idea from the ground floor was a great opportunity. What really sold us … was its simplicity." Giffin Enterprises went on to buy the franchise rights to Alabama, Mississippi, and the Memphis, Tennessee metropolitan area.

By 1999 there were 40 Roly Poly shops in 14 states (Alabama, Arizona, Connecticut, Florida, Georgia, Louisiana, Michigan, North Carolina, New Hampshire, Ohio, Pennsylvania, South Carolina, Tennessee, and Texas). Wolf and Reid hoped to have 75 units by the end of the next year with an annual growth rate of 25 to 30 outlets per year.

ROLLING OVER THE
COMPETITION: 2000–02

In the new millennium, Roly Poly was taking off. In the franchise market, it was one of the least expensive ventures available, with start-up costs still under $100,000. In 2000 there were 58 restaurants, and by the end of 2001 there almost 90 units across the country. Wolf had become Roly Poly's chief executive, primarily directing her skills toward product development, while Reid, as vice-president, oversaw operations and served as Wolf's sounding board. By this time the two executives had also instituted a master franchise program, for entrepreneurs who wanted to open and maintain a number of restaurants and control franchise rights for larger geographic areas.

While John and Jim Giffin were the first Roly Poly franchisers, Wolf and Reid began signing up an impressive roster of capitalists including Ron Elkus, cofounder of Big Sky Bread Company, who bought the rights to the Cincinnati and Dayton, Ohio, metropolitan areas; and Tom Coyle of Shamrock Investments LLC, who signed on for a portion of the Midwest with Indiana, Illinois, and Michigan. Coyle would figure prominently in Roly Poly's expansion plans and future.

Having master franchisers or developers, personally trained by Wolf and Reid, gave the two women the gift of time; master franchisers recruited and trained their own franchisees, eliminating the traditional two weeks Wolf and Reid spent with each new Roly Poly owner. The partners still tried to attend the grand opening of every Roly Poly, a trend requiring more and more effort. If their development plans stayed on course—to have 20 to 25 new Roly Polys open each year for a total of 300 franchises within the next five or six years—Wolf and Reid would remain very busy indeed.

COMPANY PERSPECTIVES

It takes more than an awesome sandwich to make our Roly Poly world go round. Dedicated franchisees throughout the country have been working together over the last 8 years to build the Roly Poly reputation and fine tune the franchise system. Our original first year franchisees are still opening new stores and celebrating record breaking sales! What's the reason for this amazing franchisee success? Another of our favorite words, SIMPLICITY! The system that we have developed is simple, and when our system is followed, it works.

By 2002 Roly Poly was flourishing. Its original market, Atlanta, was home to 12 locations while central Indiana was fast becoming its leading market segment. The company's master developer was primarily responsible for this explosive growth, as sports stars and celebrities embraced Roly Poly's healthy alternative to fast food. Actor Jason Priestley and former Chicago Bear Brad Maynard, among others, had signed with master franchiser Shamrock Investments to back units in the greater Indianapolis area.

The Indianapolis-based Shamrock, which had opened Roly Poly shops at the Indianapolis Zoo, Indiana University, and Purdue University, had 10 units in the area with plans for another three dozen in early 2002. A few months later, however, Shamrock upped the ante by adding Kansas, Minnesota, Missouri, Northern Ohio, Pennsylvania, and Wisconsin to its master franchiser territory. By the end of the year, Roly Poly restaurants had opened in 19 states with new units opening on an almost weekly basis.

A NATIONALLY RECOGNIZED
BRAND, 2003 AND BEYOND

In January 2003 when Entrepreneur magazine ranked the top 500 franchises, Roly Poly came in at number 157. Roly Poly was also considered one of the fastest-growing business concepts by the magazine, another milestone celebrated by Wolf, Reid, and their growing list of franchisers. In November, as the 200th Roly Poly restaurant opened in Northwest Indiana, new menu items were being tested in some of the Florida shops. The new "Sunrolys" were made with low-fat tortillas and served with fat-free cheese and low-fat dressings. Year-end figures for Roly Poly for 2003 were reportedly over $100 million, with average unit sales of over $500,000.

In 2004 and 2005 Roly Poly's franchise formula continued to succeed. Wolf tinkered with the menu, adding soups and salads, but the core rolled sandwiches that had put the company on the map remained the same. Franchisers also tried to raise awareness of Roly Poly's catering services, especially around colleges and busy corporate parks. In 2005 Roly Poly University, run by master developers John and Jim Giffin, opened its doors to train prospective franchisees. Classes, which lasted about a week, were taught above one of Giffin Enterprise's Roly Poly restaurants in downtown Birmingham, Alabama.

As Roly Poly entered the second half of the decade, the rolled sandwich phenomenon had ventured into 29 states with over 250 locations nationwide. New outlets were continually being opened as a healthy alternative to fast food, and though awareness of Roly Poly and its products was raised through some marketing and publicity campaigns, most new customers heard about the rolled sandwiches through word-of-mouth. Tom Coyle's Shamrock Investments LLC continued to be the brand's largest developer, working closely with Roly Poly's founders, Linda Wolf and Julie Reid, to keep the unique sandwich chain on the rise in the 21st century.

Nelson Rhodes

PRINCIPAL COMPETITORS

Mr. Pita; Panera Bread Company; The Quizno's Master LLC; Schlotzsky's, Inc.; Doctor's Associates Inc.;E&G Franchise Systems, Inc.

KEY DATES

1996:: The first Roly Poly shop is opened in Atlanta, Georgia.
1997:: The first franchised Roly Poly is opened by Giffin Enterprises.
1999:: Company relocates its headquarters to Jacksonville, Florida.
2002:: Shamrock Investments LLC becomes Roly Poly's largest master franchiser.
2003:: The 200th Roly Poly opens in northwest Indiana.
2005:: Roly Poly University opens in Birmingham, Alabama.
2006:: Roly Poly expects to hit 300 locations in 31 states.