City Journal Article

How a Local Eatery Takes Things National

Franchising guru George Naddaff, the man who set Boston Market on the road to success, made his first fortune selling chicken. Now he’s ready to make another with bison burgers.

By Jason Schwartz

George Naddaff got his start in the food biz operating 19 KFCs around Boston in the 1960s. But his big score didn’t come until 1988, when he stopped into a home-style eatery in Newton. He was so impressed that he built it into a national poultry powerhouse called Boston Chicken, then sold it off for millions to buyers who renamed it Boston Market.

Four years ago, driving through Watertown, Naddaff passed a small restaurant called Lo Fat Know Fat and had a familiar feeling. He counted a line of 20 young people snaking out the door—and “being an entrepreneur,” he says, “when I see a line, I get excited.” He pulled over, went in for a bite, and then got down to work.

Now Naddaff’s finally ready to launch the store as a nationwide chain. Here’s how he prepped his latest venture, drawing on the same ideas that made his last one such a juggernaut.

1. A Fat Chance
To its backer, Lo Fat Know Fat (like Boston Market) appeals to an underserved demographic—in this case, young, health-conscious eaters looking to grab fast food made with them in mind (baked fries, less fat in the cheese, etc.).

2. Steak Out
Naddaff spent three weeks eating at Lo Fat Know Fat twice daily, and took copious notes on what he saw. He then monitored its second outpost in Shrewsbury. Convinced the concept was solid, Naddaff bought the company.

3. Test Kitchen
To ramp up efficiency, Naddaff opened more locations and tinkered with their operations. He rejiggered the menu, cut deals with food suppliers, and bought new equipment (including an automated gadget to bake those healthier fries).

4. Identity Crisis
Naddaff hated the restaurant’s name. He tried simplifying it to KnowFat, but that didn’t help—it wrongly implied fat-free food. A marketing firm brainstormed lots of alternatives. UFood Grill, which Naddaff thinks has youthful appeal, won.

5. Vending Cuisine
Franchises are now going for $35,000 a pop, with Naddaff set to earn 5 percent of all sales. To ensure only experienced restaurateurs apply, he insists they buy at least 10 at once. Big deals have been struck in Houston and south Florida.

6. Buy George
To hype the brand, Naddaff inked George Foreman, a perennial spokesman with a serious appetite. The goal is to open 800 UFood Grills in five years—large enough to really cash in on by taking the company public or selling it off.
Originally published in Boston magazine, August 2007
 

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User comments

DREAM CAN COME TRUE ---CARPIE DIEM
Posted by Thomas | Aug. 22, 2007 at 9:10 PM
COMMENT:
THIS COMPANY IS THE NEXT BIG THING, AND IT WILL SUCEED. WHEN YOU HAVE AN INDIVIDUAL SUCH AS GEORGE INVOLVED YOU KNOW GOOD THINGS ARE GOING TO HAPPEN, THIS IS ONE CEO THAT NOT ONLY TALK A BIG GAME BUT HE BACKS IT UP. HE IS ONE GENUINE INDIVIDUAL AND I KNOW THAT THIS IS LATEST ENDEVOR WILL REACH HORIZON NEVER SEEN IN BOTH THE FOOD AND BEVARGE INDUSTRY AS WELL AS HEALTH AND FITNESS. ANYONE SEROUSILY CONSIDERING INVESTING IN A FRANCHISE IN THIS AREA WOULD BE VERY PLEASED WITH THEIR INVESTMENT AS U FOOD IS TO THE FUTURE WHAT THE DOT COMS WERE IN 90'S.

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