In this FDD Talk post, you’ll learn the following:
- Section I – Background information on the Black Bear Diner franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a Black Bear Diner franchise, based on Item 7 of the company’s 2019 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Black Bear Diner franchise, based on Items 5 and 6 of the company’s 2019 FDD
- Section IV – Number of franchised and company-owned Black Bear Diner outlets at the start of the year and the end of the year for 2016, 2017, and 2018, based on Item 20 of the company’s 2019 FDD
- Section V – Presentation and analysis of Black Bear Diner’s financial performance representations, based on Item 19 of the company’s 2019 FDD, including information on the:
- 2018 average, median, high, and low gross sales for the 68 franchised Black Bear Diner restaurants in operation for one year or longer and provided the franchisor with the necessary data as of the effective date of the 2019 Franchise Disclosure Document
Section I – Background Information
16 Things You Need to Know About the Black Bear Diner Franchise
Partners with Postmates to Launch On-Demand Delivery
1. In early June 2019, Black Bear Diner announced that it had partnered with Postmates to bring Black Bear Diner’s home-style comfort food classics direct to customers’ doorsteps. The delivery will be available to customers in select Black Bear Diner markets where Postmates operates.
2. Bruce Dean, co-founder and chief executive officer of Black Bear Diner, said, “We are always keeping our guests top-of-mind, whether that’s through hospitality and a welcoming atmosphere in our restaurants or by making sure our delicious food is available conveniently through premium delivery. This partnership with Postmates will make it even easier for our customers to enjoy our delicious food at home. As one of the fastest growing franchises in the country, delivery is an important extension of our growth and we are looking forward to extending to our guests Postmates’ premium on-demand delivery experience.”
3. Dan Mosher, senior vice president, merchant lead for Postmates, added, “We are happy to add Black Bear Diner to our extensive list of partners and bring the popular restaurant’s home-style food to customers at home. We want to give our customers the most choices of any delivery platform so they have the power to have anything delivered, like Black Bear Diner, on demand.”
Expands Menu to Elevate Evening Dining
4. Near the end of April 2019, Black Bear Diner launched a new effort designed to elevate its dinner service. Black Bear Diner will now offer three Carving Station Dinners: Santa Maria Tri-Tip, Smoked Beef Brisket, and Roasted Turkey. In addition, the diner has added Pasta Primavera, a vegetarian addition to its Fit and Focused menu, as well as a Roasted Half Chicken, to its menu.
5. Additionally, Black Bear Diner has updated some of its Comfort Food Dinners, including customer favorite Slow-Cooked Pot Roast to include savory mushrooms and a rich beef gravy, and Housemade Meatloaf to be an even larger portion size and have a more savory taste profile.
6. Patrick Griffin, director of culinary services for Black Bear Diner, said, “When it comes to the flavor and quality of our food, we’re always striving to make our menu more delicious and more satisfying. Guests who come in will now taste a gravy that’s more savory, a meatloaf that’s more tender and a range of menu items such as Smoked Beef Brisket that make every visit that much more special.”
7. The new Roasted Half Chicken and Carving Station Dinners are now available daily starting at 4 p.m. On Fridays, Black Bear Diner also offers an All-You-Can-Eat Fish Fry starting at 4 p.m., and on Fridays and Saturdays, customers can enjoy the Prime Rib special.
8. In addition to its new and updated menu items, Black Bear Diner has also updated its front-of-house service. Staff will now have separate uniforms beginning at 4 p.m.; subtle and ambiance-setting music will be played during dinner, with songs specifically selected for evening; and, where able, diners will lower the lighting for a better dinner atmosphere.
9. Bruce Dean, chief executive officer of Black Bear Diner, added, “All meals, but dinner especially, should be special, a time when family and friends can come together over a delicious meal prepared with thought and care. This is exactly the type of experience we offer at Black Bear Diner, with a menu that evokes the flavors of homemade recipes and service delivered with genuine hospitality.”
Strengthens C-Suite Executive Team with Two Promotions
10. In mid-April 2019, Black Bear Diner announced the promotion of Anita Adams to president and chief financial officer, and Steve Standlea to chief operating officer. Both Adams and Standlea will report directly to Black Bear Diner CEO and co-founder Bruce Dean.
11. Adams joined Black Bear Diner in March 2017 as CFO. Standlea joined the company in September 2017 and most recently served as senior vice president, operations support. As part of a strengthened C-suite leadership team, both individuals will focus on advising Dean and continuing to improve operations and drive sales growth.
12. According to Dean, “Anita and Steve have been strong members of our leadership team and these promotions signify the importance of their leadership and vision for Black Bear Diner, as we continue to grow and expand. Anita has played a strong role in growing our business beyond a traditional CFO role. She has become a trusted voice of advice and leadership to myself and others at Black Bear Diner.”
13. Black Bear Diner was founded in 1995 by Bruce Dean and Bob and Laurie Manley in Mount Shasta, California. The Manleys and Dean were interested in opening a restaurant that served homestyle and old-fashioned comfort foods at an affordable price. The business partners named their new restaurant after the Manleys’ art gallery, Black Bear Gallery.
14. While the Manleys did not have restaurant experience, Dean was a restaurant industry veteran. Dean contributed to the brand’s early success by leveraging his early beginnings in the restaurant business. Additionally, Dean is credited with creating many of Black Bear Diner’s most popular and best-selling food items. He is also responsible for the brand’s “bear-sized” portions, a brand commitment to deliver unrivaled comfort food value and portions to its guests.
15. Initially, Black Bear Diner grew slowly, primarily in the Western United States. The brand began franchising in 2002. Black Bear Diner is working on its expansion plans for the rest of the country.
Entrepreneur’s Franchise 500
16. Black Bear Diner ranked No. 228 on Entrepreneur’s 2019 Franchise 500 list.
Section II – Estimated Costs
- Please click here for detailed estimates of Black Bear Diner franchise costs, based on Item 7 of the company’s 2019 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on Black Bear Diner’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2019 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
- Outlets at the Start of the Year: 55
- Outlets at the End of the Year: 59
- Net Change: +4
- Outlets at the Start of the Year: 59
- Outlets at the End of the Year: 68
- Net Change: +9
- Outlets at the Start of the Year: 68
- Outlets at the End of the Year: 75
- Net Change: +7
- Outlets at the Start of the Year: 19
- Outlets at the End of the Year: 27
- Net Change: +8
- Outlets at the Start of the Year: 27
- Outlets at the End of the Year: 38
- Net Change: +11
- Outlets at the Start of the Year: 38
- Outlets at the End of the Year: 45
- Net Change: +70
Section V – Financial Performance Representations (Item 19, 2019 FDD) and Analysis
- This Item contains Gross Sales information about franchisee-owned Black Bear Diner restaurants for the year ended December 31, 2018.
- In determining Gross Sales, the franchisor does not include sales tax collected from customers, discounts deducted from the prices charged, and/or amounts reported for employees’ meals.
- The franchisor has only included franchisee-owned Black Bear Diner restaurants in operation for one year or longer that have provided it with the necessary data as of the effective date of the 2019 Franchise Disclosure Document, in providing these calculations.
- The information has not been audited or reviewed by an independent certified public accountant; it is derived from unaudited financial reports submitted by franchisees as part of the franchisor’s reporting requirements.
- The information is based on reports received from 68 Black Bear Diner restaurants. For the year ended December 31, 2018, there were 75 franchisee-owned Black Bear Diner restaurants in operation.
- These numbers can vary considerably due to a variety of factors, such as: location, local popularity and consumer tastes in general, physical layout, competition from other similar and dissimilar restaurants, management capabilities, and local market conditions.