FranDev Players: Lisa Oak, Chief Development Officer of BIGGBY® COFFEE

Lisa Oak, Chief Development Officer of BIGGBY COFFEE, explained the company's goal of helping people build a life they love, which comes through in every aspect of their work, from dealing with franchise owners to baristas in stores. This goal is about changing workplace culture in America, with coffee being a vehicle for that.

The company's history began in 1995 when Bob Fish and Mary Roszel created their first coffee shop in East Lansing in an old Arby's location, right by Michigan State University. Mike McFall was an employee there at the time, and Mary said, 'This guy has promise.' He was a young guy, headed for academia, actually. So one day Bob and Mike went for a walk and during that walk, shook hands and came back as partners and started franchising. So, fast forward, there are over 240 stores now.

Lisa Oak got started in franchising development by working with Fred DeLuca, the founder of Subway, where she was for 29 years. She started as a summer employee at Subway between her second and third years of law school. She was hired to negotiate leases for new restaurants. That summer job turned into a 29-year career, most of which was focused on franchise development.

The keys to a consistent franchise growth, according to Oak, are franchisee profitability. Franchisors can't grow if franchisees aren't profitable. So, focusing on the success of the franchisees will help the company grow. We often say 'revenue solves all problems.' When franchisees are doing well, they tell their friends and family and that attracts additional buyers.

In 2020, BIGGBY COFFEE sold 86 franchises in a pandemic, which is a significant number. The goal set in 2019 was 50, so they blew that goal away. Half of the sales went to existing owners, which speaks volumes about franchise owners' satisfaction with the system, support, and culture.

The biggest hurdles to franchise growth right now are location and the experience of drive-thru and non-drive-thru stores. Those that don't have a drive-thru are not doing as well as those that do, and some are suffering significantly.

The pandemic has affected franchise growth in various ways. The leadership at BIGGBY COFFEE, Bob and Mike, shined a light on their leadership skills during the crisis. A company's values are really put to the test at a time like this. A company that has strong values, like BIGGBY COFFEE does, knows exactly what to do in a crisis.

Mistakes that franchisors make when trying to grow include focusing on revenue rather than franchisee-owner profitability. The franchisor's number one job is franchisee-owner profitability. You can't grow if franchisees aren't successful.