Small Business Success Story: Native New Yorker
Published August 09, 2007

Floyd and Judy Anderson discuss how they turned their family-owned restaurant from a small business dream into a big business franchise.

By: MATT ALDERTON

Like so many Americans, Floyd and Judy Anderson wanted to do something different. They wanted to work for themselves, to pursue their dreams. And heck, while they were at it they wanted to stay warm, too. So more than 36 years ago, in 1975, the Andersons packed up their belongings, piled into the family van with their four daughters and headed west toward Phoenix from Buffalo, N.Y. What they would do when they got there they didn't know. But still, they went.

The road to Phoenix was more than 2,000 miles long—plenty of time to decide what their new life would look like. Somewhere between New York and Arizona, they decided it would look best with a restaurant in it. After all, they had a passion for people and for food. It just made sense.

"It was always a dream of mine to own a restaurant," Judy says.

So after just a few short months in Phoenix, the Andersons bought LaMonica's, a small pizzeria near Arizona State University. They weren't yet used to Arizona's dry heat or scorpions, but thanks to their new purchase, Phoenix was beginning to feel like home.

The restaurant business wasn't easy, however. In its first year, the new LaMonica's borrowed a lot of money, but made very little.

"There was a time when we rang in $40 a night, and that was the only income for our family," Floyd says. It wasn't enough to pay bills—the family's van was repossessed—or even feed them; their Christmas dinner that year was peanut butter and jelly sandwiches with powdered milk.

Despite numerous menu changes and promotions, customers refused to come. Nothing worked—except Buffalo wings, that is.

Building Their Business

Before hot wings were a sports bar staple, the Andersons had sampled them at their Buffalo birthplace, the now famous Anchor Bar. It worked there, and they thought it could work in Phoenix, too. So they added wings to their menu and gave the restaurant a new coat of paint, as well as a new name—Native New Yorker—inspired by Barbara Streisand lyrics.

"Native New Yorker was one of the first establishments to offer chicken wings outside of Buffalo, N.Y., over 30 years ago," Judy says.

Customers out West fell in love with wings. Word spread and the Andersons' once empty restaurant was packed within a matter of months. Suddenly, immediately, Native New Yorker was a legitimate, profitable business.

The Andersons weren't prepared for their business boom, though. They didn't have employees or suppliers, so their children had to step in as wait staff and Judy had to comb local grocery stores for chicken, which Floyd trimmed by hand.

"Without the struggles," Floyd says, "I don't know that we would appreciate our successes as much."

Destination: Franchise

By the early 1980s the Andersons had hired the employees they needed and found the suppliers they required. Their hardest times were behind them, and their future ahead.

The Andersons opened five more restaurants in the greater Phoenix area and slowly matured their concept from one that was all chicken wings to one with broader appeal—a sports-themed family restaurant that serves traditional American fare.

In 1992, with more than 15 years of struggles and success under their belt, the Andersons decided to make their small business big.

"We always received a lot of interest from local entrepreneurs, and also from out-of-town visitors wanting [a Native New Yorker] in their town," Judy says. "We really felt we understood how to operate a restaurant and thought we could pass on that information and help others to be successful."

The Andersons decided to turn their small business into a national franchise. They met with an attorney, who helped them build their infrastructure, and today they have 20 locations, with more than 50 others in development throughout Arizona and surrounding states.

How to Turn Your Business into a Franchise

Just because you start small doesn't mean you can't finish big. The Andersons are proof of that. They built a business they believed in, and wanted to share it with as many people as they could. You can do the same thing.

"With passion comes profit," Judy says.

If you're interested in expanding your company—and creating opportunities for fellow entrepreneurs in the process—it may be time to franchise. Consider the Andersons' 10 tips for becoming a franchisor:

1. Build your business. "Work, work, work on your business," Judy says. Successful franchises exist in virtually every market and industry. What unites them all, however, is a founding franchisor—that's you—that spent time learning the business and developing a concept.

2. Take risks. Risk-taking begets learning, and learning begets success. Good franchisors have learned hard lessons prior to franchising that they can pass on to their franchisees.

3. Achieve financial health. "Make sure the main reason you are franchising is not to fund your business," Judy says. "Your corporate business needs to stand on its own financially."

4. Get a good attorney. Franchises are long-term relationships between franchisor and franchisees, built primarily on legal documents. Having a good lawyer to help you navigate requirements, contracts and systems is essential.

5. Bring in franchise experts. Franchising consultants are key. They can help you with start-up, strategy and more. "You can try and figure it out on your own," Judy says, "but you might cause more harm than good."

6. Create marketing programs. Build a brand, a message and tools that your franchisees can use to promote their business. Your assistance brings them—and you—higher profits.

7. Document everything. Franchises are like well oiled machines; every piece has a purpose, and they come with owners' manuals in case of malfunction. "Create detailed, friendly, usable documentation that is easily updated as reference materials for your franchisees," Judy says. Document everything from operations to financials in order to help your franchisees succeed.

8. Communicate. You're not a mind reader, and neither are your lawyers, consultants or franchisees.

9. Be open to change. "Have a system in place for accepting franchisees' ideas so they have an outlet for their suggestions," Judy says. "But use your years of expertise and experience to sift through all the thoughts for ones that might benefit the entire organization."

10. Stay small—no matter your size. Don't forget the things that made you successful in the first place. "Make a good product," Judy says, "charge a fair price, give service with a smile and don't shy away from your success—embrace it!"