LENNY'S SUB SHOP: PHILLY CHEESESTEAK IS THE SANDWICH STAR AT FRANCHISE SHOP
August 8, 2013Jerrod Cravotto had a franchiseagreement in hand to open a secondLenny's Sub Shop in Oklahoma when theexisting Tulsa store fell in his lap."I was in sales for 15 years and was aregular customer here and used Lenny'sto cater sales meetings, so I was familiarwith the product," Cravotto said."When I got the OK for a franchise, Icame here to talk to the owner, Chris(Brown), and he said he was involved indoing some other things and would sellme his, too."So I still have an extra franchise that Iplan to put somewhere in the Tulsa area."The Lenny's in Fontana Shopping Centerwas the first in Oklahoma when Brownand his mother, Ginny, opened it almost10 years ago, and it still is the onlyLenny's in the state.Lenny's Sub Shop was founded by LenMoore in Memphis, Tenn., in 1979. Itemphasized fresh ingredients and aPhilly cheesesteak sandwich Moorebrought from his native New Jersey.The Philly cheesesteak ($6.55) wasamong the three items we had on arecent visit to the cozy, sun-drencheddining room on the east side of theshopping center. We also had a coldItalian sub ($6.55) and a cold roast beefandprovolone-cheese sub ($6.45).The Philly is the star of the hotsandwiches - the restaurant's overallbest-seller, for that matter - and it wasloaded with sliced beef, grilled onionsand an American/Swiss cheese blend ona soft, warm sub roll. The sandwich hada saltiness that I found came from thecheese when I checked the nutritioninformation."The Philly is popular, but lately we can'tseem to make enough meatballs for thehot meatball subs, too," Cravotto said.Diners have the choice of about a dozenitems to add to their cold subs. Weadded lettuce, olive oil, tomatoes,pepper, mayo and pickles to the roastbeef that was stacked high with thin slices of beef, and it was awinning combination.The Italian included four meats - ham, prosciutto, capicola andGenoa salami - along with provolone cheese. This one cameloaded with onions, lettuce, olive oil, tomatoes, salt, pepper,oregano, pickles and hot pepper relish. The pickles and the hotpepper relish, which was more flavorful than hot, helped give thissandwich a pleasing, complex flavor.The regular sub-roll sandwiches are 7 1/2 inches and have a halfpoundof meat and cheeses. The 15-inch large sandwiches have apound. The cold sandwiches also are available on a Kaiser roll,with one-third pound of meats and cheeses, and cost a couple ofdollars less than the regular subs.Among other items available are chicken salad, tuna salad, chefsalad, hot dog and fresh-baked cookies.Specials include a regular sub (hot or cold) or salad, chips andregular fountain drink for $8.80, and a Kaiser sandwich with chipsand regular drink for $6.60.A menu for ages 10 and under has a turkey-and-cheese sub, ham-and-cheese sub, meatball sub or hot dog with chips and drink for $3.95.Cravotto said Lenny's still handles catering jobs of all sizes."We deliver all over, as far away as reasonable," he said. "Werecently delivered a job to Fort Gibson and another at an oil rignear Beggs."I was able to keep almost all of the employees when I took over,and that has been a life-saver."
FORMER FEDEX VP BECOMES A TOP FRANCHISE OWNER
July 19, 2013Edith Kelly-Green ranks as the largest multiple unit franchise owner for Lenny’s Sub ShopIn 2003, after some 25 years of service with FedEx,Edith Kelly-Green entered into retirement. At thetime, the 50-year-old cancer survivor relished thethought of having nothing to do.“Which is what I did for about a year,” says theformer and first African American female vicepresident and chief sourcing officer for MemphisbasedFedEx Express. It was while sitting in aStarbucks and reading the paper that she learned alocal Lenny’s Sub Shop was for sale.Kelly-Green’s daughter, Jayna, a college student atthe time and frequent patron of Lenny’s Sub Shop,raved about the food and the concept.Headquartered in Memphis, the franchise featuressliced to order submarine sandwiches and authentic Philadelphia-style cheesesteak sandwhiches. Kelly-Greenwas looking for a way to create a legacy and ongoing wealth for her family. She made a phone call to inquireabout investing in the brand but ended up becoming a franchisee. Since she was financially secure, Kelly-Greenwasn’t seeking supplemental income when she acquired her first store in 2005 in Oxford, Mississippi, herhometown.Today, she is the largest multi-unit franchise owner of Lenny’s Sub Shop. Over a period of six years, Kelly-Green purchased 10 Lenny’s Sub Shops in Memphis and in Oxford. Her shops average annual sales revenuesbetween $350,000 and $1.2 million. She currently runs her stores—two of which consistently rank in the top 5%of all Lenny’s Sub Shop locations across the country—with her two sons, James Kelly and Ryan Green. Inaddition, she served as one of five franchisees with a seat on Lenny’s advisory board until 2012. And Green wasthe first ever recipient of the Black Enterprise Small Business Award for Franchise Owner of the Year when thenew category was added to the mix for 2013 to reflect growing opportunities for minorities in franchising.Kelly-Green is in a unique position as a multiple unit franchise owner. African Americans are 30% less likely tobe multi-unit operators. Of all African America franchisees, 78% are single-unit owners and 22% are multi-unitowners versus 70% single-unit and 30% multi-unit owners for all franchisees. A single-unit franchisee is a personwho owns one store and is responsible for the day-to-day operations whereas a multi-unit franchisee is anowner of multiple stores that are typically sold at a reduced rate per unit.Right from the start, Kelly-Green knew she didn’t want to be a single location owner.“I wanted to own at least 10 stores. That was my objective,” she recalls. Her training as a CPA has beeninvaluable; she knows how to account for every penny of the business as well as handle payroll and sales taxes.Her background working with FedEx’s supply chain also proved useful in handling vendors, understandingpurchasing, and reducing costs.Kelly-Green’s recipe for success and ability to scale has been partnering. She partnered with Marlin Harris ineight Lenny’s locations until his death in 2009. When the two first met, Harris owned six stores, with differentpartners. Not only was he one of the original employees hired by Lenny’s founder Len Moore, but he also wasMoore’s partner in the first three stores during Lenny’s startup phase. In 2005, Kelly-Green and Harris firstbought a Lenny’s Sub Shop at Memphis International Airport. Then in 2006, Kelly-Green bought out Harris’other partners to acquire ownership in six additional stores.“He had experience running the store,” she explains. “It made sense to combine his operational skills with myskills in human resources and finance.”The following year the partners opened their first store from scratch.“It was a great location; probably one of the best-looking stores in the neighborhood, near the university[University of Memphis],” she says. “But when the economy went down [during the Great Recession] we felt it.People were eating at home and going to cheaper places.”She adds the store has its ups and downs but is profitable. The franchisee also runs concessions for Memphis’Liberty Bowl Memorial Stadium and Fairgrounds.“Each store has its own personality; profitability is a function of your location, market, and employees,” notesthat 60-year-old franchisee.Kelly-Green notes that much of her training at FedEx focused on customer service. Transferrable skills andphilosophy: hire the right employees, provide them with the right training, and ensure employees arecustomer-oriented. Happy customers are repeat customers.“That generates sales and incremental revenues. That is how you get a return as an owner.”She adds that the decision to open more Lenny’s Sub Shop stores is dependent upon three things: personality,profile, and profitability of a particular shop’s location. “As a family we are evaluating opportunities in ourcurrent franchise and other brands,” she adds. So, “we may diversify our portfolio.”
DINING ON A DIME: LENNY'S SUB SHOP KAISER ROLL SANDWICHES LESS EXPENSIVE
July 16, 2013JACKSON, MI – Every other week Rene Wheaton visits a Jackson-arearestaurant in search of good deals for those looking to dine out withoutbreaking their budget:Restaurant: Lenny’s Sub ShopAddress: 133 W. Michigan Ave., Suite B, located behind Swan CreekCandle CompanyPhone: 517-782-2444Hours: 10:30 a.m. to 8 p.m. Monday through Wednesday and Saturday;10:30 a.m. to 9 p.m. Thursday and Friday; and 11 a.m. to 4 p.m. Sunday.Online: Lennys.comWhat I had: While I love Lenny’s Chicken Philly sub, I often feel likeit’s more than I should be eating. That’s why I was glad to have one oftheir new offerings on a Kaiser bun. I got a roast beef sandwich and aniced tea. It was still a large sandwich and plenty filling.Cost: The sandwich was $4.75 and the drink $1.75.Other deals: Lenny’s offers 12 sandwiches served on a Kaiser bun,including the classic and the veggie sandwich for $3.95.Tasty Tidbits: Lenny’s often offers deals through social media. If youare a fan of their food, liking its Facebook page could save you somecash.Origins: The first Lenny’s Sub Shop opened in 1998 in Memphis, Tenn.The Jackson location is just one of three in Michigan, with the otherslocated in Lansing and Warren. The chain is much more common in thesouth and has yet to spread to the northeast or far west regions of theUnited States.