Fresh-Slicing Franchisor

EMERGING SYSTEM
As far as an ideal franchisee, Krallis says he’s looking
for those who are willing to be hands-on and involved. “I
need people who aren’t afraid to work long hours, enjoy
what they do, and interact with customers and staff. We
need lively, energetic franchisees. They don’t necessarily
have to be young people; we have 50- and 60-yearold
franchisees, as well as those in their 20s and 30s.”
He adds that restaurant or business experience is not
necessary, as long as franchisees are entrepreneurial
minded. “We rely on our franchisees and what they’re
learning and experiencing in their locations to come up
with ideas.”
Dagwoods’ six-week training program takes place
right in store, so any questions about how to run a restaurant
are quickly answered. The first three to four
weeks of training take place in an existing store, and
then franchisees work in their own stores with assistance
for two to three weeks. After that, Krallis says he
and the other management staff are available personally
for follow-up support, a grassroots approach that
he hopes to keep up even as the franchise expands.
“When we take somebody’s franchisee money and set
them up in a business, it, to me, becomes personal.
That’s one of the things that drives me and my team
to make sure we’re doing a good job, because it’s their
livelihood.”
Tackling new markets
In terms of his expansion plan, Krallis says he still aims
to open stores in Montreal, but is looking to Ottawa
Gatineau as his first substantial outside market, where
he sees the potential for 10 stores. He says he chose the
area both for its proximity to Montreal and for the similarity
of its neighbourhoods in size and character to the
Montreal suburbs where Dagwoods is most successful.
“Anywhere in Ottawa is very much like our West Island
neighbourhoods, with the same mix of industrial and
commercial and residential,” says Krallis.
He adds that he has also identified around 25 neighbourhoods
in Toronto with those similar characteristics,
and expects to begin expanding there in 2017. “In Canada,
now, I see us becoming the alternative to Subway.
They’ve reached a saturation point and I see us being
able to come into the market, in other markets across
Canada, and present ourselves like we’ve done in Montreal
for so many years.”
While Dagwoods has seen success in Montreal, Krallis
says it isn’t always easy, with challenges arising on
several fronts, from the economy, to excessive government
regulations, to the fact that Montreal has too many
tasty food options. “There are more restaurants opening,
which means more competition. I don’t want to knock
Montreal; if anything, the demand for quality of food is
FranchiseCanada September | October 2016