RE:RE:RE:RE:RE:RE:Gamehost 2.0 - The Gamehost of Tomorrow!It's not so much the brand name that's important - for foodies it's all about the food and not the name - but the type of concept that is important. The name Allo Mon Coco would be a challenge in Alberta and anywhere outside of Quebec with the possible exception of New Brunswick.
In fact I have a story for you. Back in December 2017, the franchisor you mention, which indeed happens to be my largest holding (you probably guessed that at this point) acquired Imvescor Restaurant Group, another restaurant franchisor and owner of the brands: Baton Rouge, Mikes, Pizza Delight, Scores, Ben & Florentine, for $248M. The deal stipulated that shareholders of Imvescor (IRG), of which I also was a shareholder (I started buying in early 2015 and stopped buying in early 2016 - average price paid was about $1.90) would receive about $0.80 cents in cash and something like 0.1 shares of the takeover company for every IRG share held (I might be a little off because I'm going from memory here). It was a total cash + stock offer worth $4.10 per share.
So my largest individual holding prior to the deal became my even larger individual holding after the deal. The deal closed in early 2018. Anyway, the CEO of Imvescor at the time has said one of the reasons for IRG's previous acquisition of Ben & Florentine was the hyper growth in the food space and the portability of the name. They were planning to export the concept accross Canada prior to IRG being taken over and itsCEO, Frank Henessey, going to Recipe Unlimited.
Another nice thing is that Imvescor had its origins in your province of New Brunswick the name Pizza Delight Corporation. Bernard Imbeault bought a pizza counter from his university professor at the University of Moncton in 1968. Imbeault turned it into the Pizza Delight that New Brusncwickers (is this a word?) eventually came to enjoy.
It's interesting how I became a shareholer of IRG. This was a company that was doing well but got in over its head from having acquired Scores and Baton Rouge in rapid succession and the brands became stale. A new CEO by the name of Denis Richard was appointed and he basically imploded the company. His moves were dumb. Franchisees were outraged and launched a lawsuit against the company and Richard personally. Managemnt was so busy with the lawsuits that the brands were left to fend for themselves out in the cold unloved and not nurtured at all. The stock imploded. Became a penny stock.
It came to my attention. I studied the company in great detail. I really liked the assests and the stock was absurdly priced but management was a mess. I mean an absolute mess. So I didn't want to touch it. It had bankruptcy written all over it. These were strong brands with good local appeal but bad past moves and a lack of attention resulted in a massive loss of customers. I know this would be a strong turnaround play if the right CEO could be found.
Then in the fall of 2014 IRG appointed Frank Hennessey as CEO. I had been studying the industry since 2004 and am aware of all the players is the space. I was aware of Hennessey. He was a franchisee, then worked in procurement for Darden Restaurants in the U.S. then worked for Cara Operations in Canada in purchasing then president of Harveys and then he left to be CEO of Benton Sushi. Private Equity bought Benton Sushi and so Frank was out of a job. Then IRG came calling and he became CEO.
I wanted to buy in at that point but I wanted to see his turnaround plan. It had to also include listening to the franchisees and solving that giant, giant mess. He had a plan to do so. His plan was about raising the brands form the dead and he had four pillars: qulaity of food, price, ambiance, cutomer service. He would institue a learning academy for all franchisees and their staff on the art of customer service. If there is only one thing I an tell you about Frank it is that he is all and I mean all about customer service. I know his plan would be a success and so I became a shareholder in 2015.
Love the industry.
Back for food and GH.
You also need variety. Just or two concepts is not enough variety. Asian and Mexican are absolute no-brainers. A breakfast offering (foodie food not just ordinary fare) is a must in my view. A concept similar to Tosto Quickfire might attract. It does in Toronto. I've been there many times and the food is unreal.
Bottom line, you need many different concepts so that it becomes a destination in itself. The more concepts, the better. Quality of food and variety is the key.
If you love corporate history as much as I do:
Pizza Delight Corporation founded by Bernard Imbeault in 1968. It was the only brand. He then acquired Mikes Submarines in 2000, which only goes by the name of Mikes today. He then acquired Scores in 2005 and Baton Rouge in 2006.
In 2006 Pizza Delight Corporation changed its name to Imvescor. In 2017 Imvescor acquired Ben & Florentine and in 2018 MTY (cat is out of the bag) Imvescor.
I love corporate history. I have read hundreds of corporate biography books :)
One last interesting story that you, Malx1, Sage, Bridge, Nukester, theKing (kasking) and the gang will surely enjoy and keep in mind I am not exggagerating in any way (when you get me talking about the restaurant industry, I can go all day):
I went to Imvescor's annual meeting in 2017. I thought there would be about 15 people there. It was held in Montreal in a hotel/restaurant called Ruby Foo's (it was accross the street from their Montreal Head Office (the other was in NB - which Frank later consolidated into only the Montreal location - I never like spending for two locations).
As I enter the event room and looked around, I was the only person there. I had the correct room because of the sing outside and the scruteneers but nobody insided and it was going to start in 15 minutes.
Then it was like a scene from a Hollywood movie. A non-stop procession of American hedge fund managers started to enter, one by one, all dressed in very expensive black suits. Each with a carriage behind them with luggage. Each set up shop on table to my left, to my righ, all over. Each took out two laptops and set up looking at stock quotes. I do not gest in the least. When all was said and done, we now numbered about 20.
They hedgie next to me puts his hand out and introduces himself to me. I tell him no introduction is necessary as I know who he is. We talk about his holdings. He asks about me. I tell him I am a private investor who used to work on the Street but now I am doing it on my own. He is personable. He asks me what attracted me to the stock and why. I go into detail with my reasoning. He agrees. He talks and raves about the Ben & Florentine brand and food quality. He is in love with the food. He brought friends and family to Montreal to try the food. They are all crazy about it he says. He tells me how New York does not have anything like this (I was surprised by this comment) and says IRG should open them up all over the north-east U.S. He is convinced Americans will all love it.
So far I like the guy and his associates. The meeing starts. It is now question period and he asks Frank a question about our brands. He names each brand and gets one ot them wrong. I don't meand the pronunciation but the brand. According to him IRG owns Saint Hubert. Never did.