Three Brothers Discover The Sweet Smell Of Success

For more than 40 years, David, Joel and Michael Rosenberg have been brothers, business partners, and close confidants. Since childhood, the threesome, each a year apart, have been inseparable. They played together, worked together, and even went to college together. Out of this strong familial bond evolved a company called Candy Express, a bulk candy franchise whose sales have increased 25 percent over the last year, despite the national recession.

The success of Candy Express is a reflection of the experience the Rosenbergs have acquired. Retail is in their blood. The brothers have been involved in the business since the ages of six, seven and eight, when they used to run up and down the aisles of their grandfather's chain of men and women's junior department stores in Maryland. While stocking shelves and ticketing merchandise, they not only learned the business but also about working together. "While playing and working together in the retail environment," says Joel Rosenberg, president of Candy Express, "we learned how to work side-by-side, which led to the harmonious working relationship we have today." Because both their grandfather and their father were retailers, the Rosenberg brothers knew their futures would involve retailing. To initiate their careers, all three went to the University of Maryland. David, now 44, and Joel, 43, decided to study business, while Michael, 42, majored in American Studies. Shortly after graduation, David and Joel teamed up with a friend and put their business degree and retail experience into action.

In 1968, they opened the first "Ceder Post" fashion sportswear boutique for men and women in Maryland. "Our stores were extremely successful and very innovative in the industry," says Rosenberg. "We were the first store to carry bell-bottomed jeans, when they were popular, and soon we became the place to shop in the D.C. area." This immediate success enabled the Rosenbergs to buy out their partner after six months, just in time for Michael to join the business. Soon, they were able to expand the business into a chain of five stores in Washington, D.C. "Our niche was that we had an ability to pick the trends in the clothing industry before our competitors. By the time they caught on and started to ride our wave of success, we were off again finding a new trend." The Rosenbergs managed their stores for 18 years, but soon found the clothing market changing in a new direction they did not want to follow. "In the mid-80s, we noticed the market was becoming homogenized. There were no trends coming down the pike and the competition was increasing," says Rosenberg. "We decided to look for another business with a new retail concept that was set to take off and would cure the ills of the clothing business." During their research, the Rosenbergs discovered the emerging concept of self-serve bulk candy.

Here, the Rosenbergs found their niche. Rosenberg explains, "We took a very stable product like candy, created an innovative concept and made it self-serve in a lively mall environment." With this in mind and a concept created by the world-renowned designer, Sam Lopata, they opened their first store in Silver Spring, MD., in 1988, and sold the leases on the chain of clothing stores. The store, which is being franchised, sells bulk candy as well as specialty items, boxed European chocolates and gift items.

Since opening, Candy Express has experienced "explosive growth," says Joel. The company is enjoying the success the candy industry as a whole is experiencing. "When the economy takes a dip, our sales go up," says Rosenberg. "In recessionary times when people can't afford to buy expensive things, they indulge in something that makes them feel better but doesn't cost a lot. Candy is one of the most stable industries out there." Sales volume has increased about 15% per year, according to Rosenberg. "After exhibiting at the International Franchise Expo (IFE) in Washington, D.C. this month, we expect to get plenty of franchising.

Rosenberg credits the success of Candy Express and the chain of clothing stores to the relationship he and his brothers have, both personally and professionally. "In early days, we butted heads a lot because we were all doing the same things. But after a while we learned to split the responsibilities and change the dynamics of our professional relationships," says Rosenberg. "After so many years of being together, we've worked through the sibling rivalry and we each have our own separate responsibilities that work with our strengths." Their duties in the corporation are assigned to the areas each knows best. David, Candy Express's CEO, focuses on merchandising, product development, store plan layouts and advertising. Joel, the company president, specializes in real estate, site selection and cosmetic store design, and screening prospective franchisees. Michael, vice president, concentrates on store operations, franchising support and training.

At the office, the brothers interact daily, and hold corporate meetings every Monday. Although they often overlap in their duties, Rosenberg says they are always working "together", and not "against" each other.

According to Rosenberg, the close-knit environment that his family instills at home and work is not unusual because generations before him have done the same. The chain of stores started by his grandfather, was passed on to his father and uncles. Also, the Rosenberg brothers are not the only family members involved with Candy Express. Brother-in-law Peter Schwartz is also involved in management.

"People always say it's unusual to have three brothers that are so close-knit. It's an asset that many corporations don't have," says Rosenberg. "There's a strength and power you just don't have with non-family partners. We want to succeed for each other's families.

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