Fosters Freeze Making a Comeback; Eyeing Inland Empire for Future Growth
By IEBJ staff
December 3rd, 2020 — Brothers Neal and Nimesh Dahya have worked with more than 180 restaurant franchises with iconic brands like Burger King, IHOP and Pizza Hut. Now, the 36- and 34-year-old expert franchisees are taking on the franchisor role to help the beloved ice cream franchise grow again.
Brothers Neal and Nimesh Dahya built a franchisee empire with some of the biggest names in foodservice. The Dahya’s have owned, consulted for or invested in more than 180 restaurant franchise locations for brands including Applebee’s, IHOP, Burger King, Pizza Hut and TGI Fridays. It’s safe to say the career franchisees, now 36 and 34, respectively, have learned a thing or two about what makes for a successful restaurant franchise. Now, the Dahyas are applying their expertise and passion for franchising to the franchisor side, focusing on reigniting growth for the beloved but previously neglected Fosters Freeze franchise.
“You say the name ‘Fosters Freeze,’ and you see people’s faces light up — it’s like magic,” said Neal, President and CEO of Fosters Freeze. “It’s not often that you find a brand that people feel such a personal attachment to, and there’s no doubt that the demand for Fosters Freeze far exceeds its current footprint.”
To many people, the name Fosters Freeze conjures up sepia-toned memories of after-school soft-serve or post-little league celebrations. The ice cream and burger franchise, which was established in California in 1946 and grew to more than 300 locations across the west coast at its height, has been a fan favorite institution for generations, but up until recently, the brand’s corporate team had done little to encourage growth, and the franchise system languished. But Neal says the franchise’s positive brand awareness puts it in a strong position for a return to greatness.
Neal and Nimesh purchased the franchise just five years ago, and already the brand is showing impressive growth. With 66 restaurants currently open for business, sales across the system have increased every year since the brothers arrived — including a whopping 20% year-over-year jump from ‘19 to ‘20, on top of five previous years of growth — and this year, one of Foster Freeze’s most tenured franchisees, a five-unit owner whose family has been with the brand for more than 50 years, decided to take advantage of the heightened support by opening a new store in Salinas, California.
Even 2020’s unique challenges for the restaurant industry haven’t slowed Fosters Freeze’s growth under the Dahyas’ watch. Thanks to a flexible, small-footprint store model with walk-up windows perfect for low-contact take-out, Fosters Freeze stores were able to continue serving customers while other restaurants were closed for social distancing.
Since taking over, Nimesh says he and his brother have been listening to feedback from the brand’s current franchisees, tightening up the franchise’s operational model and rolling out new design touches, including updated signage.
“This is a franchise that for many years just wasn’t treated as a franchise,” Neal said. “Every franchisee owned and managed their store pretty much independently, without any support from the corporate team, and the corporate team put virtually no investment into growing the brand.”
By reinvesting in Fosters Freeze as a franchise, and not just a chain of independent businesses, the Dahyas have already brought new life into a system that franchisees say just needed a little TLC.
“Since Sanjay Patel and Neal bought Fosters Freeze and took over corporate management, sales have been up 10–15% each year for each of my stores. That’s almost an 80% increase in sales across my stores.” said Hafed Alwajih, a Fosters Freeze franchise owner since 2012.
It’s little wonder why Neal and Nimesh’s strategy to revive Fosters Freeze prioritizes franchisee support. Nimesh says the brothers’ long and fruitful career as franchisees taught them that the success of any franchise system depends on the success of its owners.
“We’ve worked with a lot of different brands, so we’ve seen what works and what doesn’t,” Nimesh said. “We know that the more you invest in the franchisee, the better their business is going to perform and the better the entire system is going to do as a result.”
To support franchisees and promote growth, the Dahyas have implemented a number of dramatic improvements, “everything from reducing food costs to introducing a beautiful new store design,” Neal said.
“We’re seeing a lot of excitement from franchisees,” Neal said. “The general feeling is that we finally have an opportunity to make the most of a brand that has so much potential.”
Now, Fosters Freeze is preparing to leverage its revived franchise model for expansive growth. Currently, the brand has its sights set on expanding across the United States, particularly in Arizona and Nevada, in order to build on the loyal following and awareness that it’s established across California.
“The question we’re constantly hearing is ‘when are you coming to my state?’” Neal said. “So we know the demand is everywhere, but we’re being very careful to grow out strategically. Right now, we’re looking for qualified candidates across the United States. There’s no limit to how far we can take this.”
The initial investment to begin operation of a single, stand-alone Fosters Freeze restaurant ranges from $611,500 and $1,009,000. The total investment necessary to begin operation of a single confections restaurant is $178,000 to $331,500. The initial investment needed to open a single co-located restaurant is $329,500 to $658,500. For more information on franchising with Fosters Freeze, please visit https://www.fostersfreeze.com/franchise/.
San Bernardino’s Chem-Pak Ushers in New Era: A Legacy Continues with Fresh Leadership
Under new ownership by Eric L. Goodman, San Bernardino’s long-standing Chem-Pak embarks on an expansive journey, building upon its 36-year legacy of community and industry service.
Terry Goodman, owner of Chem-Pak, recently announced his retirement, marking the end of a remarkable journey in the industrial supply industry. Starting as a one-man operation 36 years ago, Goodman transformed Chem-Pak into a business with multiple offices and approximately 15 employees.
In the late 1980s, Goodman was a sales representative for Easterday Janitorial Supply Company near Norton Air Force Base. When the company shut down its San Bernardino office, Goodman, a Highland resident, opted to start his venture rather than commute to Los Angeles. He sought support from his customers, laying the foundation for what Chem-Pak is today.
“I never aspired to have numerous employees. My goal was to build a team that enjoyed a good living without feeling drained at day’s end,” Goodman explained. “Having experienced ‘Corporate America,’ where successful territories are often split to limit earnings or, conversely, underperformers are let go, I wanted to follow a different path.”
Many of Chem-Pak’s team members have been with the company for 20 to 30 years, a testament to the familial and collaborative environment Goodman cultivated. “I’ve always viewed my team not just as employees but as equal partners in this journey. There’s nothing in this company that I haven’t done myself. When a few team members were out with COVID recently, I didn’t hesitate to help with deliveries. Our customers’ needs come first,” he said.
Pablo Carbajal, manager of the San Bernardino store for 22 years, shares his commitment to Chem-Pak. “Despite numerous job offers over the years, this is where I belong. Goodman’s mentorship taught me everything from equipment knowledge to customer service, shaping my understanding of the business world,” Carbajal expressed.
Richard Bowman, a contract employee for about 30 years, also praised the company’s ethos. “Working for Chem-Pak has been empowering. It’s akin to finding a golden opportunity.”
Goodman recalls landing major accounts, including Carl’s Jr. and Stater Bros, as career highlights. However, the COVID-19 pandemic posed unprecedented challenges. “During the pandemic, our business boomed, particularly for hand sanitizer and toilet paper. We had to adapt quickly to the surging demand and the evolving ‘new normal’ of a post-pandemic economy,” he recounted.
Goodman’s work ethic dates back to his teenage years, starting with a part-time job at a gas station and later at McMahan’s furniture warehouse. He emphasizes the importance of networking and real-world experience for young people. “I often speak at career days in San Bernardino schools to offer students firsthand insights into the workforce, beyond what they hear from peers or parents,” he said.
Looking forward, Goodman plans to travel and engage in volunteer work, confident in leaving Chem-Pak in capable hands with family members and experienced employees at the helm.
Inland Empire Regional Chamber of Commerce Welcomes Hawaii Chamber as Honorary Global Member
Empowering Future Generations: IERCC and Chamber of Commerce Hawaii Forge Partnership for Youth Development
In a landmark meeting that signifies the growing collaboration between regional chambers of commerce, the Inland Empire Regional Chamber of Commerce (IERCC) proudly welcomed the Chamber of Commerce Hawaii as an Honorary Global Member. This momentous occasion was marked by a ceremonial presentation led by Eddy Sumar, MBA, CCE, CICE, a distinguished member and Chair of the Education and Youth Skills Development Liaison at IERCC.
Eddy Sumar, renowned for his passionate advocacy for youth education and skill development, met with Sherry Menor-McNamara, CCE, President & CEO, and Tyler Hunt, Associate Vice President of Membership Services, of the Chamber of Commerce Hawaii. The meeting was not just a formal presentation but also an opportunity to share the innovative approaches IERCC is employing to champion youth development.
In a unique and inspiring gesture, the Chamber of Commerce Hawaii representatives were introduced to IERCC’s youth initiatives through a trilogy of educational books authored by Eddy Sumar himself. These books – “A Treasure Hunt With OTIS,” “The Hidden Dreams,” and “The Cutting Edge” – are a testament to Sumar’s dedication to empowering the youth. Each book addresses critical areas of youth development:
- “A Treasure Hunt With OTIS” provides wisdom to guide young lives.
- “The Hidden Dreams” unlocks the potential of identifying and pursuing youthful aspirations.
- “The Cutting Edge” offers vital insights into understanding credit and financial literacy.
Edward Ornelas, Jr., President & CEO of the Inland Empire Regional Chamber of Commerce, expressed his enthusiasm for this new partnership, stating, “This collaboration with the Chamber of Commerce Hawaii represents a significant step in our ongoing commitment to foster the leaders of tomorrow. By combining our resources and expertise, we can more effectively prepare our youth for the dynamic world they will inherit. Our shared vision for youth development and education is the cornerstone of this partnership.”
The Chamber of Commerce Hawaii expressed its enthusiasm for the collaboration, recognizing the value of the resources provided by IERCC. This partnership is a significant step towards a shared goal of fostering a brighter future for youth through education, skill development, and empowerment.
The Inland Empire Regional Chamber of Commerce is enthusiastically developing plans to launch a summer internship program exclusively for students from the Inland Empire, offering them the opportunity to travel to Hawaii for this enriching experience. This initiative, which stems from the IERCC’s recent collaboration with the Chamber of Commerce Hawaii, is focused on providing Inland Empire students with a unique opportunity to immerse themselves in the diverse business and cultural environment of Hawaii. The program aims to equip these students with invaluable hands-on experience in various industries, enhancing their skills and broadening their perspectives. This visionary approach underscores the IERCC’s dedication to fostering the professional and personal growth of its youth, preparing them for successful careers in an increasingly interconnected world.
The IERCC is committed to continuing these collaborative efforts and looks forward to a fruitful and impactful partnership with the Chamber of Commerce Hawaii, collectively striving to nurture the leaders of tomorrow.
Corona Factory Files Landmark Trade Secret Lawsuit in New Hampshire Federal Court
Leading Private Label Company Alleges Massive Data Breach by SGS North America, Inc., Threatening Millions in Investment and Profits
Amid a surge of corporate theft nationwide, U.S. Continental Marketing, Inc. has initiated trade secret litigation against SGS North America, Inc. alleging misappropriation of proprietary and confidential chemical formulations that may cost U.S. Continental millions of dollars.
The largest private label leather and fabric care company in the world, U.S. Continental operates out of a 100,000 square foot factory in Corona, California, and partners with popular footwear, fashion, and furniture brands such as Birkenstock, Timberland, and Michael Kors to develop a range of products. The company provides commercial packaging solutions as well.
In its complaint filed last week in the U.S. District Court for the District of New Hampshire, U.S. Continental alleges that earlier this year, it spent millions to develop five unique and secret chemical formulations for an unnamed customer for use on branded textiles. Those formulas were sent to SGS North America for independent testing. David Williams, U.S. Continental’s President, explains, “Leading up to its testing, we made very clear to SGS that the confidentiality of any and all information about our formulations was critical. Third parties, and even our customers, could not be privy to our proprietary data and SGS knew that.”
Williams added, “To put a finer point on the sensitivity of the formulations in question, we negotiated an ironclad NDA with SGS, which it signed, promising not to disclose confidential information related to our formulations to anyone without written approval.”
U.S. Continental’s complaint alleges that despite its assurances, SGS twice sent detailed, unredacted testing reports directly to the customer in August, revealing specifics about the chemical formulations SGS promised to keep under wraps.
According to Williams, “By virtue of SGS’s indiscretion, which one of its Vice Presidents cavalierly claimed was a ‘mistake,’ our customer was sent all the information it needed to manufacture essential chemical formulations on its own. That puts at risk the $2 million we invested in R&D, along with another $20 million or so in profits from our manufacturing agreement with the customer. It only gets worse from there if SGS discloses our proprietary information—which it refuses to return—to any others.”
Jeffrey Farrow, a partner at Michelman & Robinson, LLP, which represents U.S. Continental along with local counsel in New Hampshire, says, “It’s beyond crucial that trade secrets, like my client’s chemical formulations, be carefully safeguarded. By failing to do so, SGS breached its NDA—a breach that continues given that the data at issue has yet to be returned despite multiple requests from U.S. Continental. This is simply unacceptable and through this lawsuit, we want SGS to know that its unlawful disclosure of trade secrets, and unlawful retention of them, won’t go unchecked.”
The lawsuit is currently pending and U.S. Continental is awaiting a response from SGS.
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