Make & Take Gourmet: Meal Prep Franchisor Takes Failures in Stride
April 28, 2008 by Sean Kelly
Filed under Business
(FranchisePick.Com) Some new franchisors might be alarmed when two three of their first franchises fail and their franchisees lose hundreds of thousands of dollars. But for Make & Take Gourmet founder Michele Bellso, franchise failures seem to be no big deal.
According to Bob Niedt’s initial story and a followup piece this past Saturday in the Syracuse, NY Post-Standard, two Make & Take Gourmet meal assembly kitchen franchisees have hung up their aprons for good – within a week of one another.
But Michele Bellso, founder of the now-14 unit chain, isn’t letting a little thing like two three* of her first franchise owners losing their $174,500 to $292,000 investments get her down. In fact:
Late Friday, Bellso sent out a blast e-mail to her customers, saying she expected some stores would close as the business model evolved.
Michele Bellso’s main concern is obviously to bolster the spirits of her remaining franchisees, and to boost their confidence in her commitment to their success:
Bellso said they anticipated some franchises might not survive.
“We expected that, as with any franchise, including the McDonald’s and Burger Kings of the world, there would be failures,” said Bellso. “Every franchise has failures. It could be rising food costs, management, or adapting to emerging trends.”
With 12 Units & a 12.5% 18%*Failure Rate, Bellso is clearly an “industry leader.”
In the article, Bellso is quoted:
“We continue to be an industry leader… Interest in franchise stores is continuing, and we’re committed to the evolution of the best business model to succeed. I can honestly say that Make and Take Gourmet’s future is looking very bright.”
If Make & Take Gourmet has collected $420,000 $450,000 in franchise fees alone (14 15 X $30,000) and franchise interest remains strong despite minor negatives like failing stores or an “evolving” business model**, it’s clear that “the future is looking very bright.”
But very bright for whom?
* Someone corrected me in the comments: “They’ve lost three stores. The one in Clifton Park shut down a while ago”
** Sometimes known as “Not having a clue”
WHAT DO YOU THINK? SHARE A COMMENT BELOW.
__________________________
Visit FRANBEST’s: Unbiased franchise information, franchise interviews and detailed, searchable information on 400 franchise and business opportunities.
.
Franchisees, customers & experts vote for their favorite new franchises at Top New Franchise: Who’s hot. Who’s not.
Sean
Boy, I guess they don’t have much integrity! I see the picture very clearly now. This just isn’t good business nor are they “okay people” as I said earlier. I hope there aren’t more people who will get taken advantage of by them.
Thanks!!
I tried to “book a session” for the Vestal store…Does that signal yet another closing? Better readjust those figures….and still the Bellsos, I’m certain, will assume NO responsibility for the stores closing. How many more families will be devastated before they stop selling stores????
As I said in another post, the only “ZORS okay people” in my book in the Meal Assembly Industry is Main Dish Kitchen…they have actually STOPPED selling franchises..
I have nothing but disrespect and disdain for the M&TG and their ilk…including Mr. EMP and his pals…
Kanegirl3:
I didn’t read the whole thread at meal assembly watch… what do you do in the industry? Did you say you’re in Rochester? What is the local reputation of those two companies and its founders? Have you been to one of their meal sessions?
I am an ex-franchisee of a very minor MA company.
What I know of the industry is through direct experience. There is no secret in the MA circles online that I can be a cranky pantz and am VERY vocal about the industries short-comings and my opinions of ZORs and the major Independent MA Assoc.
I have lost 25 years of hard work and material worth to this industry. I am a culinary professional and have worked professionally in the culinary world since I was 16. I am MUCH older than that now.
This was my second foray into the franchise world, the first experience didn’t work out so well, we decided we were mismatched and sold the holding before the build-out process started.
The second experience ended worst then the first, by a margin of about $425,000 (with out the cost of losing our home and cars added in)..
Hard life lessons learned and a bankruptcy later, I am wiser, more vocal and much poorer for the experience.
I am so glad that you used your noggin and didn’t buy into this dandy idea…
Congrats!
Sorry Sean,
I just realized you were asking Kanegirl her bio not Kanegirl asking me-DUH!!!
K
Sean
Not Rochester, Syracuse. That is where corporate headquarters for M&T Gourmet is as well as their advertising company. I do not work in this industry or the food industry. I heard about them, made a visit for a session and then decided to look for a franchise and researched out MAK franchises, several of them in fact. In researching M&T Gourmet I learned of their advertising company and meal prep marketing.
Awhile ago in my research I came across meal assembly watch and noted that the industry wasn’t doing so well so I stopped looking.
I have been to Make and Take Gourmet and I must admit they have really nice stores. The quality of food is very good. You can tell they have issues with the operations. The staff is sometimes excellent and sometimes marginal. I think this has to do with the fact that the founders don’t have a background in retail or food operations. The reputation in Central NY is good. I also know that in casual conversations franchisees have not felt the support or training was there for them.
I have other info but maybe I will email you privately.
Kelly
Glad to hear your bio anyway. I always loved the food industry but took a different route in my life. I thought for a minute I was going to be able to follow my passion but thankfully because of the openess and honesty of people like you I was able to step away. There are still other opportunities out there for me – not just this one. I wish you luck in your future.
Guest
Yes, I just went to their website and it states the Vestal, NY store is closing. That’s store number 4 closing for Make and Take Gourmet.
Regarding Make and Take selling unregistered franchises – the first “franchise”, located in East Rochester, is owned by a relative (Dave B’s sister I think) – the same relative owns the store in Webster. So it’s all in the family.
k_in_rochester wrote: Regarding Make and Take selling unregistered franchises – the first “franchise”, located in East Rochester, is owned by a relative (Dave B’s sister I think) – the same relative owns the store in Webster. So it’s all in the family.
Thanks for visiting and contributing, k. What about the other stores? Like the first one that closed in NY? Or the ones mentioned by Michele in the article that were “licenses” to be “switched” to franchises?
I’m not an attorney, so I could be wrong, but I don’t think family relations are exemptions from franchise laws. I think that its the business entities and whether the three elements that make a business a franchise are present (Use of a shared name, payment of a fee, ability to mandate operational procedures/practices).
I know family is relevant in employment law. Do you have info on a family exemptionin franchising, k?
This is totally infuriating to me if that woman is actually the sister of the owner’s husband!!! They give out her name for perspective buyers to call to conduct due diligence and I’m one of them. I remember asking if I could call others and they try to convince you its not necessary. I got to talk to just one other owner who is now closed. Shouldn’t they have to disclose that she is a relative. I mean really how honest can she be?????? This is total fraud in my book.
Kelly aka MM and Tuckerbox:
I run a software company that sells meal prep software, and although I’m a fan of full disclosure, I am going to remain anonymous to avoid the appearance of soliciting business. I’m not going to comment on Make and Take, but I have two comments/clarifications to make on some recent posts. I am not in any way attempting to criticize these posts, and feel they do indeed serve a purpose, but I also want to make sure that people don’t lump all vendors/suppliers to the meal prep industry in one boat.
First I want to point out is that not all vendors who are listed on the easymealprep (aka Bert) website and newsletter are connected with his businesses. Even though we are listed on his site, he doesn’t direct business to us nor does he get any sort of finders fee – it’s just a straightforward set price advertising purchase. I can’t speak for the other vendors listed, but that’s our deal. It makes sense to us from a business perspective since he has a large audience in this business.
Second, I just want to point out that not all vendors supplying services to this business are also promoters. Our philosophy is to make and sell software that serves the needs of our customer base, whatever that may be. Obviously trying to lure more people into the business would benefit us, but frankly we have better things to do with our time. Even if we did sell things like recipes or “how to” guides, I doubt we would try to hide it under a different company. If you have a respected brand name, then why wouldn’t you want to use it on everything you do?
That’s it, thanks for listening.
swvendor: Good points well-stated. Tactful self promotion makes the blogosphere spin, so as long as you’re participating in the discussion and not just hawking wares, feel free to linkback to your website using the url comment box thingy. (We’ll find a way to hit you up for ad dollars somewhere along the way…)
I’m not anti-meal assembly kitchen. I just don’t think it’s a good franchise concept. The economic premise for franchising is that you accept a greater financial burden and restrictions in exchange for the greater benefits of having time-tested proven systems and valuable support programs. An “Experimental” franchise concept provides the burdens without the benefits of a franchise.
That doesn’t mean it’s wrong, IMHO, to help those already in business survive, nor to market to those thinking about opening a meal prep business – independent or franchised… as long as you’re not lying about it.
People are free to do what they please with their money – whether it seems stupid or risky to others. I’ve been railing about the stupidity of the Cereality Cereal Cafe franchise for a year… reporting on stores closing in 6 months, 3 months, over and over. You can’t Google them without running across the FranchisePick.com Cereality posts. Still, a woman mortgages her house and invests $350K because she thinks people will pay $6 for a bowl of Fruit Loops.
I don’t feel bad for her in the least; in fact, I started a Cereality Dead Pool for betting on her closure date. Sometimes Franchising is God’s way of telling people they have too much money.
I object to companies – like Make & Take Gourmet – claiming they have the whole thing figured out when they’re pitching their franchise, then later claiming they’re figuring it out “on the fly” and they expected some franchise stores to fail.
I don’t subscribe to the “acceptable losses” strategy unless the franchisees know that’s the game they’re playing.
This industry has a huge problem: at least in the fitness industry people make New Year’s resolutions to get back into shape.
Who makes a resolution to prepare food in advance?
Yet, that is the behaviour modification that this industry requires.
Good luck with that.
AMEN.
Sean,
Thanks, but I’ll pass on becoming “public”. It really doesn’t help us much since there aren’t that many meal prep software vendors out there, and anybody looking will easily find all of us using google, easymealprep of IAMPB. On the other hand, it would keep me from speaking freely, and could cause people think everything I write is because I want to sell more.
You nailed the key point though – “as long as you’re not lying about it”. That’s way too common in the business world, and buyers should always beware. That’s why sites like this are so valuable, but as we know many people don’t bother doing their homework. It’s really a shame because 10 years ago it would have been difficult if not impossible to communicate with others who are in similar situations.
Swvendor,
Thank you for setting me straight.
K
Swvendor;
What is your solution to the behaviour modification problem, I mentioned above?
Kelley,
One thing I dislike about email and forums is that it’s hard to know if people are being sincere or not. I try to take the positive interpretation, and therefore will will you’re welcome, and I’m glad my posted were helpful.
Michael,
I honestly don’t spend time thinking about the state of the meal prep industry in general. The only reason I posted here was that I read some things that could be misinterpreted and therefore could have a negative effect on us, and wanted to give some clarifications. If I see similar things I will post again, but I’m definitely not the one to come up with ideas to help save the industry.
Just info…
As franchisee’s we know that the Bellso’s Designworks has a off shoot that sells marketing and promo etc. to indepents. It is in the UFOC. I read it thoroughly, asked questions and was satisfied with the answers.
Also it was never promoted that they had all they ideas. In fact is the constant idea exchange that leaned us towards Make and Take.
The ability to change for our specific market is an amazing freedom in franchising. And to have a constant pool of ideas to pull from is great. I see no problem with the fact that M&TG has the vision to see there needs to be some growth and change. If meal preps across the country are closing. Possibly M&TG will be one to survive as we flex with the needs in our individual areas.
Also I knew from the beginning that a family member was vested in this. That to me speaks volumes in a positive way. It was never hidden from us. I also met with two owners who gave me the tour, answered questions and literally opened their books and talked straight about the cost involved and no representative from corporate was present. I was encouraged to call and talk to other owners and I have hosted prospective franchisees in my store.
Just info from someone who is living it and not just from those that are trying to second guess or to compare it to other models and ZORs.
swvendor said: You nailed the key point though – “as long as you’re not lying about it”… That’s why sites like this are so valuable, but as we know many people don’t bother doing their homework. It’s really a shame because 10 years ago it would have been difficult if not impossible to communicate with others who are in similar situations.
The blogging phenomenon has the potential to truly transform franchising, and business in general. It’s introduced the concept of “transparency,” and too few businesses understand how to join the conversation openly and honestly. The traditional PR agency tells clients not to acknowledge negative PR… don’t fuel or validate the conversation. They tell clients to ignore blogs like this, as they are not “legitimate media.”
It’s exactly the wrong reaction. So is talking to a lawyer to find out if you can suppress open conversation. By not joining the discussion, not clarifying mistaken impressions, and failing to benefit from public input, silent franchisors do not improve their image nor protect their brand.
Anonymity by a franchisee who could get sued for posting negative comments is understandable, but is puzzling when by an industry vendor or a franchisee defending the franchisor. Not wrong, but puzzling.
Make & Take Owner provided: … info from someone who is living it and not just from those that are trying to second guess or to compare it to other models and ZORs.
Thanks for joining the discussion. I agree that the perspective of someone who is “living it” is invaluable. I’m surprised – and puzzled – that it took 75 comments on this post alone for that to happen. I’m puzzled as to why neither other franchisees nor the franchisor have commented. Michele Bellso has never seemed shy in publicly sharing earnings claims, sales of unregistered franchises and prior expectations of franchisee failures, yet she remains silent… both here and on her local newspaper’s comment board.
This is a discussion, and a search for the truth about franchising, not a witchhunt. If the real story here is how misquotes in the press can make an caring founder seem cold and calculating, or how a new franchisor can get bad legal advice on franchise registration, or how someone can make initial mistakes but is willing to stop and take corrective action, I would love to report that.
However, when this many (alleged) mistakes seem to have been made so early on, and the franchisor fails to address serious concerns, the story tends to escalate. IMHO the franchisees who are still open should take a much more assertive and active role in protecting their brand and their business – not by dimissing negative impressions or blaming their fallen comrades, but in getting serious about fixing what’s broken. If these are simply misperceptions, as you say, M&TG should at the very least hire a competent communications firm to keep their firm for becoming the next poster child for increased franchise regulation.
I did post before, sorry, I didn’t realize that I put Make and Take Franchisee on that post rather than owner. I was basicly dismissed, and post were being made that were completely incorrect. No one here said anything that responded to my post in a positive way.
When asking about the closed stores I was encouraged to speak with the owners by corporate, they gave me their prospective, but they would not speak for the owers side. I have over the past months I have a handle on why they closed. People who don’t know the Bellso’s blast away at the kind of people they are when they have no first hand knowledge to do so.
You said we traded autonomy for huge franchise fees. I have tried to say that it is not that way, we have tremendous freedom to make our stores work with in our communites.
All the things people are trying to say were hidden from us ie. meal prep marketing…etc. Now that went into a witch hunt, which is crazy. we all knew about it and then it is our choice to move forward with a franchise or not.
It is just hard sitting here reading everything and shaking my head when people have no clue what they are talking about. Anyone wants to make comments on the industry as a whole is one thing, but finger pointing, accusations should be done out of first hand knowledge and of course is not. But makes for great contraversy. But in that contraversy has anyone thought that with spilling out untruths and such that you may be hurting those of us still open? The post from swvender prompted me to post again. But doubt anyone will believe anything I have to say.
Make & Take Franchisee: Looks like we were both wrong. You did respond to this post right away. However, you were also wrong in that I responded to both your comments immediately.
If by a “positive” response, you expected that your comments would be accepted without suspicion you should share your name and store location. We obviously have many corporate employees and franchisors posting as happy franchisees. I always give the benefit of the doubt, but if you’re posting anonymously what you say comes with a grain of salt. Why would a happy franchisee proud of her decision and speaking in defense of the franchisor be afraid to share her name and link to her store page? I’m not doubting… just saying that anonymity weakens the credibility and casts some doubt.
I asked after your first comment if the failed franchisees were free to speak, and you never answered. I would be happy to get information directly from others “living it” as well as the Bellsos. I’ll be happy to clear up any misunderstandings on these posts, and will post any rebuttals, clrifications or related announcements. I’m easy to contact: info[at]ideafarm.net.
I hope this does turn out to be the case of a caring franchisor who just needs some serious media and PR training.
Sean writes: “I hope this does turn out to be the case of a caring franchisor who just needs some serious media and PR training.”
Oh, cum’on!!! You have been correctly slagging another franchise system for far less than this!
This system is a piece of crap, designed and promoted with out the slightest idea about change human behavior.
Sean, don’t make me come after you as lying, two faced shill like promoter. Ok, ok, I am joking!
But seriously, don’t let your foot up now. This whole industry is based on some fantasy: nobody makes a New Year’s resolution that they will do more cooking in advance. Bye, bye meal prep.
Michael Webster wrote: Oh, cum’on!!! You have been correctly slagging another franchise system for far less than this!… But seriously, don’t let your foot up now.
I was trying to nurture my kinder gentler side, Michael.
I was trying not to run off the sole Take & Take Franchisee to participate (which I’m sure you’ve done now)
I was trying to be more subtle with my forked tongue (by suggesting to the owner of an ad agency that she hire a competent firm).
But the main reason I am inclined to relent is that if I disclose how bad I really think this opportunity is, Bob Purvin will ride in and slap an AAFD Fair Franchising Award on them!
(Sorry… I know it’s wrong, but I’m weak. You can call me a lying two-faced shill at your convenience for payback)
Seriously, though, Make & Take Owner, Michael Webster is an experienced franchise and business attorney who, despite being Canadian and on the board of the American Association of Franchisees & Dealers, is highly respected.
I am highly disrespected but have been in franchising for 20 years and been involved with the development of more than 100 franchise programs.
Our strong reaction to what we’ve seen and heard about this franchise is pretty unique. Believe me, there is trouble ahead.
This franchisor claims to have a proven system, site and demographic criteria, and to approve locations.
Have you ever been to Hermitage, PA? It’s a rust-belt town of 16,000 with an average household income of $39,000. The big nights out are all-you-can eat wing night at the Lube (Tuesday) and the Mud Bog on Friday, where people pay to watch their neighbors drive through a huge mud puddle.
East Rochester, Auburn NY, Manchester, New Hartford all have lower household incomes than Vestal, which just closed.
People who don’t know the Bellso’s blast away at the kind of people they are when they have no first hand knowledge to do so.
With four closed stores, why don’t you suggest to the Bellsos that they 1) immediately discontinue marketing or selling any more franchises so they can focus on supporting the open stores, and 2) stop collecting franchise fees from stores that have not yet reached break even. They will each be incentivised to get to profitability.
That would be a great opportunity to demonstrate their commitment to their franchisees’ success.