The franchise industry employs millions of people in its almost 800,000 establishments. In addition, industry statistics for 2015 show the total economic output to be close to $900 billion. Those are huge numbers. Have a look.
It took some risk on the part of a few entrepreneurs (decades ago) to help franchising become what it is today. Most of us think about McDonald’s as the brand that brought franchising into the forefront, and Ray Kroc did open the franchise floodgates when he started opening his fast food restaurants. But, he wasn’t the only one with vision.
I’m going to introduce you to one of the early pioneers in franchising -- a gentleman who helped put franchising on the map...freeway maps, in this case.
Howard Johnson
Howard Deering Johnson opened his first business near Boston, in 1925 and, believe it or not, it wasn’t a motel. It was a drugstore. (Most people, when they think of Howard Johnson’s, think of Howard Johnson’s motor lodges.)
Johnson’s drugstore was very successful, but not because of the pharmacy. The store’s success came from the store’s soda fountain, so Johnson wisely decided that he needed to add another food product. So, he came up with a new recipe for ice cream that included butterfat (which made it more flavorful).
All 28 varieties of his ice cream became extremely popular, so he decided to open several concession stands along the beach during the summer tourist season. In addition to his ice cream, he sold hot dogs and beverages. Can you guess what happened next?
Restaurants
If you guessed that sit down restaurants bearing the Howard Johnson name started opening all over the place, you’d be correct. And, they were franchise businesses.
Howard Johnson’s restaurants opened in areas where freeways and turnpikes were being built. As a matter of fact, the first turnpike restaurant in the U.S. was opened by Howard Johnson's on the Pennsylvania Turnpike.
When I was a kid, my uncle, Allan Levine (who was in sales and on the road quite a bit), talked about Howard Johnson’s a lot. I reached out to him on Facebook to ask him what he remembered about Howard Johnson’s:
“Howard Johnson’s was the only rest stop restaurant on the Pennsylvania Turnpike. Back then, there was no competition. Their ice cream was pretty good, their food was ‘eh’ if you liked cheese sandwiches. And they served milk shakes and sodas. Fact is most folks needed a rest real bad, and they were the ones with the bathrooms. One more thing: they had air conditioning and our cars were boilers in the summer.”
Howard Johnson’s Next Franchise Business
By 1954 (a year before Ray Kroc took control of McDonald's), Howard Johnson's had 400+ restaurants. They had so popular that they gained a "pet name" with the general public: many referred to Howard Johnson’s restaurants as "HoJo’s." But Mr. Johnson wanted more, so he decided to enter the motel business.
The first Howard Johnson’s motel, called a motor lodge, opened in Savannah, Georgia.
Getting into the motel business was a great move because it took advantage of a brand that was already well-known to road-weary business and vacation travelers. The Howard Johnson brand consisted of a bright orange roof that jumped out at them as they were driving along the nation’s highways looking for restrooms and a meal.
Howard Johnson’s Today
Howard Johnson’s motels still dot the highways here in the U.S., but now they’re called Howard Johnson Inns, and their modern accommodations feature their trademark vibrant orange accents along with upgraded room amenities like USB-equipped lamps and back-lit mirrors.
As said earlier, Ray Kroc often gets credited with the vision of what franchising could be, but Howard Johnson also saw the future.
A future with millions of business and leisure travelers driving long distances to their destinations. Travelers who needed food and lodging. Travelers who he knew would recognize the bright orange roofs of his businesses, his brand.
The Franchise King®, Joel Libava, is a top franchise expert. He’s written over 2,000 different articles on franchise ownership and personally consults with people who are looking to buy a profitable franchise. Go here to find out how The Franchise King® can help you become your own boss.