Business
How a Former 60-Plus-Unit Burger King Franchisee Team is Leading Fosters Freeze to Renewed Growth
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/.
Empowering Economic Growth: CALED Conference Set to Unite Industry Leaders in Ontario
CALED’s ‘Growing Local Economies from the Ground Up’ Conference is being held in Ontario at the DoubleTree by Hilton Hotel Ontario Airport on May 7-9. This event is co-hosted by the City of Ontario and San Bernardino County, with Jennifer McLain Hiramoto, CALED’s Chair of the Board and Derek Armstrong respectively representing their city and county as Co-Chairs of the event.
With over 950 members and 45 years of empowering economic developers, CALED is the largest economic development association in the country and the annual conference is the number one place to meet and connect with the boots-on-the -ground, decision makers in our communities.
The conference will include a pre-conference teaching tour, ‘Building & Paying for Development Projects’ on May 6th and then begin in full on May 7th, with a welcome session and breakouts. Overall, there will be four general assembly sessions and 18 breakout sessions, which will delve into local economic development practices and innovative tools.
In addition to compelling content, the conference will have numerous opportunities to connect with community leaders and valued peers through networking receptions, the culinary crawl, and new this year, the Tournament of Champions, where conference attendees will navigate a gauntlet of games to win the grand prize on the evening of Thursday, May 8th.
To learn more about the conference and register, visit the CALED website at www.caled.org.
Business
Strengthening Community Connections: Our Exciting New Partnership with Toyota Arena, Ontario Convention Center, and GOCAL
Contributed Content | By Chris Venhoff, Senior Vice President and Inland Empire Market Leader for Consumer and Business Banking at U.S. Bank
As the Inland Empire market leader for U.S. Bank, I’m thrilled to share some exciting news: we are proud to be the Official Bank Partner of Toyota Arena and Ontario Convention Center. This partnership represents a reflection of our deep commitment to the Inland Empire and our dedication to fostering a vibrant, thriving community.
At U.S. Bank, we believe that strong partnerships drive meaningful progress. Toyota Arena and Ontario Convention Center are at the heart of the region’s culture and economy, bringing people together for world-class entertainment, business conventions, and community events. By joining forces, we’re not only expanding our presence but also creating opportunities to engage with residents, businesses, and organizations in ways that make a lasting impact.
Through our sponsorship, we’ll support concerts, sporting events, and conventions that showcase the diversity and energy of the Inland Empire. But this is only the beginning. As our partnership evolves, we’ll work closely with Toyota Arena, Ontario Convention Center, and GOCAL to introduce community-focused programs, including financial literacy workshops and charitable giving initiatives.
This partnership is designed to bring added value to the people we serve. For our customers, we’re introducing the U.S. Bank Fast Pass Lanes, providing priority access at Toyota Arena events. Special offers, exclusive event experiences, and tailored financial solutions for businesses operating in the region are just a few of the many perks we’re excited to roll out.
Our employees are at the core of our success, and this partnership allows us to recognize their dedication. Through exclusive access to events, corporate hospitality opportunities, and community volunteer programs, our team will have new ways to engage with and celebrate the community they serve.
The Inland Empire is a dynamic, fast-growing region, and we’re committed to supporting its continued success. By investing in Toyota Arena and Ontario Convention Center, we’re helping to create and sustain jobs while driving local business growth. These venues bring in visitors, revenue, and visibility, strengthening the region’s economy.
This collaboration is about more than just sponsorship—it’s about making a difference. By working together, we can elevate not just these venues but the entire Inland Empire. At U.S. Bank, we’re committed to being a partner in progress, supporting our customers, businesses, and communities every step of the way.
Honoring Visionary Leaders Driving Innovation and Community Impact
The Spirit of the Entrepreneur Awards Gala, held at the Riverside Convention Center, celebrated the brightest entrepreneurial talent across the Inland Empire. Among the evening’s finalists was Edward Ornelas, Jr., President & CEO of the Inland Empire Regional Chamber of Commerce, who was honored in the Social Entrepreneur category for his outstanding leadership and commitment to the region.
Although Ornelas did not win, the Social Entrepreneur award went to Cesar Navarrete, President & CEO of Children’s Fund, a proud Chamber member. “Being a finalist alongside such remarkable leaders is an incredible honor,” said Ornelas. “I am especially thrilled to see Cesar, a Chamber member, recognized for the transformative work he’s doing to improve the lives of children in our community. It’s a proud moment for us all.”
Another highlight of the evening was the recognition of Hilda Kennedy, President & Founder of AMPAC Business Capital, another Chamber member, who was awarded the Top Female Entrepreneur category. Hilda’s leadership at AMPAC, a mission-driven business lender, has been instrumental in empowering small businesses and fostering economic growth across the region.
“It’s amazing to see leaders like Hilda and Cesar being celebrated for their contributions,” added Ornelas. “Their achievements underscore the talent and dedication of entrepreneurs in our Chamber and across the Inland Empire. They are setting the standard for excellence and impact in their fields.”
The evening also featured the prestigious “Best of the Best” Award, sponsored by Best Best & Krieger LLP, which was awarded to Mauro Gomez, Chief Growth Officer of Anita’s Mexican Foods Corp.. Based in San Bernardino, Anita’s Mexican Foods has grown from modest beginnings into a leader in the food production industry under Gomez’s strategic direction.
The Spirit of the Entrepreneur Awards Gala continues to shine a spotlight on the transformative work of Inland Empire entrepreneurs, celebrating their innovation, resilience, and commitment to the community.
For more information about the Spirit of the Entrepreneur Awards, visit https://www.spiritawardsie.com.
For more details about the Inland Empire Regional Chamber of Commerce and its members, visit www.iechamber.org.
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