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| by Judy Kneiszel | |||||||||||
| Imagine an old-fashioned chocolate malt made from a premium ice cream and as thick as wet cement. Next to it picture a juicy hamburger made from fresh ground chuck and served hot on a toasted bun with a light touch of butter on its crown. Would you wait a few minutes longer and pay a little more for this retro lunch than you would for a standard fast food shake and burger? Craig Culver is betting you would.
Craig Culver is the co-founder and president of Culvers Frozen Custard and Culver Franchising System, Inc. This empire of ice cream began 16 years ago as a single converted drive-in restaurant in Sauk City, Wisconsin and has grown to 110 stores in 11 states throughout the Midwest. A Culvers Frozen Custard restaurant is a hybrid of fast food and family sit-down, and the concept seems to have caught on. Culvers serves food that is cooked to order, not just assembled when ordered. Customers get their food how they want it, and they get it hot. |
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| Our prices are a little bit higher and the wait is a little bit longer, said a Wisconsin Culvers franchise owner, Mike Busalacchi. But customers will wait and pay more for quality food in a clean, friendly environment.
Culvers mission is to provide enhanced customer service while serving quality, affordable food in a clean, friendly, quick service family atmosphere. A tall order for a burger joint, but then, Culvers isnt your typical burger joint. The menu is made up of a variety of sandwiches including a Norwegian cod fillet sandwich, a pork tenderloin sandwich, a Philly ribeye steak sandwich, and a sourdough turkey BLT. |
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| There are five fresh salads on the menu for those who are health conscious, and a chili cheese dog for those who arent. Culvers forgoes breakfast, focusing instead on lunch and beyond. Dinner offerings include fish, shrimp and fried chicken baskets served with coleslaw and fries or real mashed potatoes, which means they were never dehydrated, reconstituted, flaked or powdered.
Then, of course, theres dessert. For the uninitiated, frozen custard is a freshly made premium ice cream. Custard has much less air beat into it than ice cream, making it extremely heavy and dense. Cream and eggs add to its rich flavor and velvety smoothness. At Culvers, the custard is made in view of the customer in small batches throughout the day. Freshness is truly the key, Culver said. When were the busiest, we have the best custard because its the freshest. One-third of Culvers sales is custard, another third is their trademarked ButterBurgers and everything else on the menu combined makes up the remaining third. Culvers is Americas largest frozen custard establishment and will serve more than 49 million scoops this year, employing 38 dairy farms year round. Every day, in addition to chocolate and vanilla frozen custard, Culvers offers one of 141 officially sanctioned flavors of the day, even though Craig Culver is a self-proclaimed vanilla guy. |
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| Cleanliness and food safety are as much trademarks of the Culvers franchise as ButterBurgers. | |||||||||||
| The Challenge of Food Safety
Fresh meat, fresh custard and fresh salads may make for the tasty fare, but fresh ingredients make the risk of foodborne illnesses higher than in a restaurant where everything comes from a freezer or a can. We want to stay on the cutting edge of food safety, Culver said. Barbara Behling, Culvers director of public relations, said while the state and federal standard is to have one employee per store who is certified in food safety, Culvers has four per store, and a goal of five. In part because we have fresh product we have to have higher standards, she said. Fresh product has a limited shelf life. We cant just throw it in the freezer, we have to order better and rotate. All of Culvers meat is specially packed for them in white boxes with user-friendly food safety messages printed on the outside to remind workers of good handling practices on a daily basis. White is the predominant color used in the interior design of Culvers restaurants too. We have white restaurants because if you can keep white clean, you know its really clean, Behling said.
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| To maintain consistent quality, Culvers corporate headquarters specifies all gas-fired equipment, complete with brand and model, for all its 110 stores. Why gas? Its clean, its dependable, its economical and I can get it wherever I go comments Tom Williams, Culvers corporate architect. | |||||||||||
| Community Involvement Proves Good for Business
Safety and cleanliness are just two of the values at the heart of the Culvers philosophy. Being good corporate citizens in the communities where they are located is important as well. Culvers donates generously to charitable organizations, and franchisees get involved in civic organizations, neighborhoods and schools because its good for the community, employees and business according to Behling. You have to be a partner with your community in order for your community to embrace you, Behling said. Some of Culvers well-publicized partnerships include their Eat More Pork campaign designed to raise public awareness of low pork prices. Not to slight their dairy friends, Culvers launched the Drink More Milk campaign when the price paid to farmers for milk hit an all-time low. This summer, Culver bid $11,000 on the Reserve Grand Champion steer at the Wisconsin State Fair and then donated the animal back to the fair to raise an additional $5,000 in a second auction. The funds went to help rural and urban kids throughout the state and the steer was donated by both buyers to a Milwaukee food bank where it provided more than 600 meals.
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| Back to the Future
In keeping with its small-town beginnings and mom & pop philosophy, most of Culvers original stores were located in communities of 10,000 people or less. Over time, we started putting them in bigger areas and found they could do a lot more business, Culver said. Now as we expand were hitting bigger cities. Suburbs work well for us demographically. Tom Williams, Culvers corporate architect, said to be successful, a Culvers franchise needs to be seen by 20,000 cars a day. But its not a necessity to be on a freeway, he said. What we need for a good lunch crowd is business, industry and schools. For dinner we need rooftops, meaning residences. We look for a combination of both when we select sites. We sell an upscale product compared to typical quick serve places, Williams added. So were looking for people with household incomes that allow them to eat out often and a willingness to pay for quality products. In two to three years, Culver sees his business at 200 stores, and a little further down the road he sees expansion leveling off at 500 or 600 locations. Opening restaurants is not the most important thing, Culver said. Sure, Im competitive and I always want to do better than last year, but its most important to grow each individual restaurant. We take care of one customer at a time and open one restaurant at a time. Williams said he and other members of Culvers corporate staff are involved in selecting the best location for new restaurants and the best equipment for those new establishments. That equipment, from grills and fryers to heating units and water heaters, is gas-fired. We definitely tell them (franchisees) what equipment to use, he said. We send out cooking instructions for each menu item, and those instructions were developed on specific pieces of equipment. If we are to have consistent quality, we have to all use the same equipment. Why use gas? Its clean, its dependable, its economical and I can get it wherever I go without major service extensions, Williams said. The downside to electricity is that in almost every location it is more expensive than gas. He said he also has questions about the reliability of electricity. My estimation is that in two years the grid for electricity will be maxed out in many locations, Williams said. There isnt a lot more for them to provide. I havent had any indication of that happening with gas.
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| Marilyn Jacobson, Wisconsin Gas Sales Consultant advises Culvers franchisee Joseph Fall on new gas equipment and energy cost comparisons. | |||||||||||
| The Culvers Franchisees
Ninety percent of Culvers Frozen Custard restaurants are franchised and are owner-operated. Each new franchise owner pays a $45,000 franchise fee to use the Culvers name, products, trademarks and support services. The price of a typical Culvers with 95 seats, including building, land and equipment, is more than $1 million. Prior to opening a restaurant, new franchisees must successfully complete a 60-hour evaluation period and an intense 16-week training program. During the program owners receive training in operations, sanitation, safety, advertising and marketing, employee recruitment, relations and retention, financial management and leadership. Culver Franchising System, Inc. owns four training restaurants in Wisconsin that serve as hands-on training grounds for new franchisees. In addition, Culvers corporate office in Prairie du Sac is equipped with a full learning center classroom and test kitchen. If we dont train them here, theyre not going to adhere to the Culvers way, which we think is pretty good, Behling said. Culver Franchising System, Inc. also conducts seminars and an annual convention to bring franchise owners and managers together to discuss industry topics and trends. All are designed to improve skills, leadership and profitability. Ninety-five percent of Culvers franchisees attended last years annual convention, and two of those absent would have gone if they hadnt been busy having babies that week. Theres so much learning and networking that can increase your profit, Behling said of the annual convention. Why wouldnt you go? As for franchisees having babies? Well, were a young company, Behling said. Theres a lot of entrepreneurial spirit. |
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| There are two things Mike Busalacchi and Joe Fall agree on: Culvers Frozen Custard is a great franchise, and the Milwaukee area is a great place to have one.
Fall, who hails from suburban Chicago and has also lived in both Iowa and Wisconsin, chose Grafton, a village of 10,000 souls 20 miles north of Milwaukee, as the place he wanted to operate a Culvers franchise because people already knew what custard was. While Falls Texas relatives thought he was talking about pudding when he first told them about Culvers custard, the premium ice cream needs no explanation in Wisconsin. Going for some custard, is what people do on a hot summer evening in the dairy state. This December, Fall will be bringing Culvers custard and ButterBurgers to another near-Milwaukee community when he opens a second franchise in north suburban Brown Deer. Busalacchi, the new owner of a Culvers franchise in Jackson, 25 miles northwest of Milwaukee, has been in the restaurant business for 22 years. He could have chosen one of the better known names in fast food when he decided to go it on his own, but to his thinking, Culvers stood out in the crowd. They take care of people and are dedicated to the business, Busalacchi said of the Culver family. Someone else in the Milwaukee area is taking care of these two Culvers franchisees when it comes to their energy needs, however. Wisconsin Gas Sales Consultant Marilyn Jacobson advises foodservice customers like Fall and Busalacchi on new gas equipment and the savings they will realize when they choose natural gas over a competitive fuel. Wisconsin Gas facilitates customer service from putting the pipe in the ground and the meter on the building for service to Energy WI$E consulting on energy efficiency, Jacobson said. Fall is in the process of purchasing equipment for his new Brown Deer location including a 60-inch gas grill, five deep fat gas fryers, a gas water heater and a booster water heater. It is specified by Culvers that we use gas, Fall said. Because its very important that each franchise maintain the Culvers quality standards. By choosing gas-fired equipment, Fall will qualify for more than $1,000 in rebates from Wisconsin Gas. High-efficiency gas equipment will lower operating costs and save you money, Jacobson said. Installing a gas booster heater can save you up to two thirds of your current water heating costs. |
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| The utility also offers a helping hand to customers who dont want to make a huge capital outlay.
To avoid the up-front costs of buying a water heater, Busalacchi decided to lease a 200,000 BTU high-efficiency water heater from Wisconsin Gas Leasing Services for his Jackson location. The program made sense because it offset the equipment expense, he said. Busalacchi also received a rebate of $1,050 from Wisconsin Gas for the purchase of a 200,000 BTU gas griddle and four 120,000 BTU gas fryers when his restaurant opened in February. |
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| Culvers franchisee Mike Busalacchi and Lisa Miller of Wisconsin Gas Leasing Services discuss the leasing program and natural gas equipment. | |||||||||||
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| Culvers Gas Equipment
Cooking Equipment: 1 Keating Miraclean Model 60 x 30 Gas Griddle 2 Carrier Combination Gas Heating, Electric Cooling Rooftop Unit 185,000 BTU Heating Capacity |
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