Mahoney Committed To Enhancing HoJo Brand Image

LAS VEGAS? At the 1999 Howard Johnson Int?l Conference held here last month, President/CEO Mary Mahoney told franchisees that plans are underway for the company to take advantage of the chain?s new life. ?We?re not your father?s Oldsmobile? we?re today?s Chevrolet,? she said, instilling pride in the franchise community. Addressing franchisees for the first time as president of the brand, Mahoney presented her audience with Howard Johnson?s 1998 highlights, an innovative new 1999 advertising campaign and an aggressive international growth plan to carry the brand into the Millennium. At the conference, which was held at Caesar?s Palace, Mahoney was charged with more than just updating Howard Johnson franchisees. She had to convince them that, even with a new leadership team at the helm, the brand is poised to be a dominant player in the mid-priced segment. ?The real core competency of a winning company is the ability to re-invent itself continuously,? Mahoney said. ?Today, Howard Johnson is back on the industry radar screen in a very big way.? Mahoney told the crowd that in 1998, 110 Howard Johnson property agreements were signed? the most since 1992. In 1999, the brand, which currently has 550 properties, expects to add 15,000 rooms and aims to have 150 international properties open by 2001, Mahoney said. Recently, the company signed its first master franchise agreement in continental Europe for the development of hotels in Rome, Venice and Florence, Italy. Continued brand expansion is also underway in the Middle East with a master franchise agreement in Egypt and the grand opening of the first Howard Johnson Hotel in Beirut, Lebanon. Additionally, 30 Howard Johnson hotels are set for development in the United Kingdom while the brand?s 1999 growth outlook for Canada includes six signed property agreements, 14 agreements received for execution and nine in the discussion stage. Howard Johnson is also anticipating noteworthy growth in Israel and Mexico. Mahoney attributed the brand?s growth to its high quality standards, adding that nearly 1,200 properties were terminated from the Howard Johnson system last year after failing three quality inspections. She pointed out, however, that the company will go to great lengths to help its franchisees succeed. ?The difference with us is that, we could watch them fail three times and take them out of the system, but instead, when we learn they?ve failed we put them on a training plan and offer them interest-free loans (to help them improve),? Mahoney explained. ?We want to stop them from switching brands and keep them in our system.? As part of its effort to give franchisees the tools they need to succeed, Howard Johnson, is also offering its franchisees a comprehensive f&b solution through Orion Food Systems, which has formed a strategic alliance with Cendant, HoJo?s parent company. Mahoney said that, after many franchisees lost money on ventures with companies like Kenny Rogers Roasters, she set out to find a food company with the ?financial wherewithal? for a partnership with Howard Johnson and selected Orion. With a start-up cost of between $40,000 to $60,000, franchisees can choose from f&b setups such as MacGregor?s Market, which requires minimal labor and only 500 square feet of space, offers three meals and guarantees a four-to-one return on investment. Other advantages offered by Orion include minimal food preparation and waste, in-house training, property visits every 14 to 21 days and the option of using existing f&b equipment rather than purchasing all new machinery. In addition to researching f&b options for franchisees, Mahoney?s team also busied itself with marketing strategies since she took over the helm last August. The brand?s objective was to relate to the consumer by playing up its traditional, all-American image. VP/Marketing Chris Blunier, who was appointed to his position one month after Mahoney moved into hers, developed the ?We?ve Got A Name To Be Proud O