Roy Rogers Mounts Comeback, Returns To Franchising

In 1968, the Marriott Corp. launched its Roy Rogers hamburger, roast beef and fried chicken concept. Twenty-two years later, it was one of the nation's largest quick-service players with 650 stores.

But almost immediately after its $365 million sale to the Hardee's hamburger chain in 1990, the brand's fortunes took a turn for the worse.

Hardee's presence was strong in the Southeastern U.S., but it sought to expand into the Northeast by converting Roy Rogers units into Hardee's. The strategy failed so spectacularly that by 1993 some 200 stores had been rebadged as Roy Rogers.

Today the chain is experiencing a resurgence, offering franchising opportunities and touting expansion plans. But Roy Rogers had to endure major adversities first.

By 1996, unit counts had plummeted to 150, a decline of nearly 80 percent, and in an attempt to slow its massive losses, Hardee's sold hundreds of units for their real estate value to competitors such as McDonald's, Wendy's and Boston Market.

"It was a disaster," said then-franchisee Jim Plamondon, whose father, Pete Plamondon, Sr., not only helped develop the Roy Rogers concept for Marriott, he was one of its first franchisees. "Roy Rogers had always been a brand that was a cut above the typical fast-food restaurant, never a coupon-driven company. Customers in the Northeast market did not latch on to Hardee's at all. It was a real debacle." With franchisee support for marketing and training all but gone, long-time franchisees began leaving the system. Plamondon said his family "started doing what a franchisor would for its own company. We hired a marketing firm and established our own training programs for our stores." In 2002, Plamondon Hospitality Partners bought the brand and formed Roy Rogers Franchise Co. (RRFC). "We thought, since we were we're doing all this stuff, we might as well get paid for it," said Plamondon, who became co-president along with his brother, Pete, Jr.

At the time, the Fredrick, Md.-based company had 80 stores, but they knew franchisees of about 30 units would not renew.

"That was OK, though, since a lot of those stores had really deteriorated and needed pruning out," said Plamondon, whose company owned 45 stores after the purchase. "Others just weren't performing to brand standards, so we allowed them to exit the system." Rescue, Recovery, Regrowth Roy Rogers franchisee Jeff Todd was encouraged when he learned the Plamondons wanted to purchase Roy Rogers. Franchisees since 1986, Todd's family operated a few profitable units until the Hardee's conversion. In the first year under the new brand, business plunged 25 percent.

"The Plamondons had always run good stores and were good people," said Todd. "They'd hired a franchise company to show them how to run the franchise. Their ducks were in a row and they were confident. We couldn't see a downside." But it required some faith and finances, Todd said. The Plamondons urged franchisees to upgrade their restaurants, including replacing their dated Fixin's Bars (an array of toppings and condiments located in dining rooms) with modern $35,000 units.

"That was a big part of the new furniture package, and it really seemed like a lot to spend," Todd said. "But when it was finally installed, it was like, ‘Wow! That's spectacular!' It looked great in the stores and it was worth every penny." Todd said the company is focused on what worked for Roy Rogers before Hardee's and is also finding ways to modernize its brand position. The old school mantra of "service, sanitation and food quality" has returned to the brand's corporate-speak, and the owners are rolling out innovative promotions such the competitive eating competition it hosted to launch Roast Beef Sliders � first held in late 2009 � and the deployment of the Come and Get It Gang to reach younger customers.

"Once they did that, we got about 35 percent redemption, which is outstanding," Todd said.

Greg Seymoure, a veteran executive at McDonald's and Boston Market and now RRFC's operations director, said what's oldest about Roy Rogers is what will return it to growth mode.

"What we call our ‘Holy Trio' of products � roast beef, hamburgers and fried chicken � has always been a part of our concept and one important thing that sets us apart from competitors," he said. "We offer choice and customization with our Fixin's Bar. People want the ability to make it exactly how they want it while knowing it wasn't cooked before they got there." But will that add up to new units and more sales? Plamondon believes so. HMSHost, an international company that manages travel plaza and airport restaurants, has gradually boosted its franchise numbers to 22 through purchases of corporate units (four this year alone), and RRFC will add a pair of new corporate stores by May for a total of 52. And though the corporate-to-franchise store ratio is closer to 40-60 now, Plamondon said ideally it will shift to 20-80 over time.

The chain's reputation for good hamburgers remains strong in East Coast markets, and Plamondon believes renewed interest in basic burger concepts such as Five Guys and Smashburger will help Roy Rogers' cause.

"This concept still has legs, a lot of potential and very broad appeal," said Seymoure, who joined the company in 2009. For franchisees "it's very simple to execute because there are sound operating systems and procedures. That's helped it withstand a lot of challenges over the past 40 years. It's still a great brand." Are you excited to see this classic brand's comeback?

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