Entrepreneurs

Johnny’s grows in Toledo, nation

Written by Duane Ramsey | | news@toledofreepress.com
Anthony Calamunci

Anthony Calamunci

The Toledo-based Johnny’s Lunch franchise continues to expand rapidly nationwide, while also planning to open three new restaurants in the local market.

“As the economy continues to decline, we believe that people will be looking for other more affordable options for eating. We think our concept with a demographic profile for the lower-middle-class market fits right into these economic conditions,” said Anthony Calamunci, president and CEO of Johnny’s Lunch Franchise LLC.

“We’re excited about our potential, building our infrastructure and capitalizing our next phase, but we’re only about two miles into a marathon at this point.”

Calamunci said the Johnny’s Lunch restaurant near Sylvania and Talmadge in Toledo is doing well, especially since introducing the “classic hots” for $2.99.

The new line features quarter-pound hot dogs made from 100 percent beef served in regional varieties, such as Johnny’s Famous original, Chicago-style, Spicy Buffalo, New Yorker, Jersey Slaw and Wisconsin with bacon and cheddar cheese.

The corporation is looking for three additional sites in the Toledo area, including one Downtown, another near Dussel Drive and Arrowhead Park and one near UT in the Dorr-Byrne area. Calamunci said the franchise is working with the city’s development staff to find the right location Downtown with the desired daytime demographic density.

However, interest in Johnny’s Lunch franchises has exploded on a national level, Calamunci said.

“There is no national brand for hot dog restaurants, so there’s a lot of interest in our concept.”

The company recently signed contracts with franchisee groups to open Johnny’s Lunch restaurants in North Carolina, Florida, New York City, the Los Angeles area and several western states.

The franchisor expects to finalize the franchise deal for North Carolina with the Carlson Group in early December. That franchisee plans to open a total of 388 locations with 251 in Florida, 65 in North Carolina, 52 in South Carolina and 20 in Buffalo, N.Y., to complement its Arby’s and TGI Friday’s restaurants in the South.

The Carlson Group plans to open its first store in the Jacksonville, Fla., area. It also plans to have locations in Miami, Orlando, Tampa, St. Petersburg, Gainesville, Tallahasee and other Florida cities.

The West Coast development is contracted with Jerry Conklin of SWA LLC, who is planning a three-store development in the Los Angeles area, 605 stores in the next 10 years and a total of more than 1,000 locations in several states.

Conklin’s franchise is planning stores in California, Colorado, Arizona, Idaho, Nevada, New Mexico Oregon, Texas, Utah and Washington. It would include opening Johnny’s Lunch restaurants in Albuquerque, N.M., Boise, Idaho, Denver, Las Vegas, Phoenix, Portland, Ore., Salt Lake City, Seattle, Sacramento, Calif., San Francisco and San Diego.

Another Johnny’s Lunch is under construction in Cranberry outside Pittsburgh. Franchisee Gary Smith plans to open 43 stores in that metropolitan market, according to Calamunci.

Johnny’s franchisee Mike Basone is preparing to open the first stand-alone unit with drive-through service in Clinton Township north of Detroit by the end of this year. Basone has opened two units in Grand Rapids, Mich., where 28 units are planned with 16 in the Flint-Saginaw market, nine in Traverse City and one in Alpena.

Nick Guerro, a Detroit restaurateur, owns the franchises in Detroit, Wayne County and Lansing, Mich. He recently opened Johnny’s Lunch restaurants in Livonia and near the Michigan State University campus in East Lansing.

“The biggest challenge today is funding for the franchisees,” Calamunci said.

He would not disclose the franchise fees, but reported that a franchisee purchases the right to develop a designated market area with the number of Johnny’s restaurants determined.

He did say it would normally take 12 franchise units to recapture the investment, not including royalty and income.

He and his brother John, vice president of operations, franchised the concept for Johnny’s Lunch founded in 1936 by their grandparents, Johnny and Minnie Colera in Jamestown, N.Y. Their parents, Dianne and Gus Calamunci, still operate the original location there.

The brothers have partnered with George Goulson, who serves as chief development officer for the firm. He is a veteran of developing restaurant franchises for A&W Restaurants and Little Caesars Pizza.

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