July 23, 2013
Editor, Coleman Report
Bob Coleman: We’re with Mike Reynolds, the Chief Development Officer of Robeks at The BoeFly Franchise Lending Spotlight Conference 2013 and there we go, fruits, smoothies, and healthy eats. Mike, what do you guys do?
Mike Reynolds: Well, we are the purveyor of high-quality premium smoothies. The differentiation our category where we actually provide juices that are actually juiced in the store and in our smoothies we actually put real fruit and real vegetables in our smoothies.
Bob Coleman: You go back in the chemistry lab and they make up the concentrate and –
Mike Reynolds: We don’t, we don’t put a different label on the slurpee machine.
Bob Coleman: How large is your brand?
Mike Reynolds: Right now we’re about – I think we have 107 stores nationally and then we also have built right now three international stores. We have two in Japan, a third under construction and we have a store under development.
Bob Coleman: Wow, very impressive. Now we’ve heard some presentations today about how difficult financing still is, that the economy is sluggish. What’s your opinion about that? What’s your personal or your corporate outlook on where we’re going?
Mike Reynolds: Well, I think one of the upsides of this conference has been being able to connect with the lenders directly and actually it’s been uplifting to see how anxious these lenders are to provide capital.
Bob Coleman: You’re at 145 units. You and I talk a year from now, where are you going to be at?
Mike Reynolds: Well, we’re looking to do about 20 percent a year.
Bob Coleman: Nice.
Mike Reynolds: On average. Our lead generation’s at about 200 percent this year, a qualified lead generation of at least 100 percent and we’re looking at multiple unit development more being the case than not the case which is great.
Bob Coleman: This is viewed primarily by lenders. Give them the elevator pitch, why should a lender be interested in Robeks?
Mike Reynolds: Well, I’d say the two to one return ratio on our investment to return. We’ve got the opportunity to – you can lend to us to a chain that has over 100 stores that are successful and developed.
Bob Coleman: What’s the average loan?
Mike Reynolds: The average loan is about $150,000.
Bob Coleman: Okay, great. Great, Mike?
Mike Reynolds: I enjoyed it, Bob. I appreciate it, thanks.