Franchise Talk

Local entrepreneur planning oodles more restaurants

November 8th, 2006 | Author: Jack

There’s just one Oodles Noodles and Dumpling Bar open, but entrepreneur Dae Oh has big expectations for his quick-casual Pan-Asian restaurant. Oh plans to franchise the noodle concept, and he expects to have at least two more local restaurants and a dozen franchised outlets regionally by mid-2008. “I’ve been working on this for about 2½ years,” Oh said. “Everything is standard, from the sauces to the furniture to the vendor relationships. It will be easy to replicate.”

The initial Oodles, 765 Neil Ave., has been open two months and is exceeding initial sales projections, said Oh, who also owns Asian restaurants Shoku in Grandview Heights and Tyfoon in the Arena District.

His next Oodles shops will be on E. Main Street in Downtown’s Market Exchange District and in Clintonville. He plans to own others, but they will be in and around Chicago.

The chain is being expanded with the aid of Franchising Unlimited of Canfield, Ohio. The company helps owners put together franchising packages, including training and support. Nicholas Stefanec, managing partner in Columbus for Franchising Unlimited, said Oh’s concept is perfect.

“The trend in dining has been leaning away from fast food and toward a healthy, fast-casual experience,” Stefanec said.

Each Oodles unit is expected to earn more money than the average sandwich shop, Oh said. The start-up fee should be about $250,000, including a $50,000 franchise fee.

That cost is at the low end for a restaurant, according to statistics from the International Franchise Association, a trade organization based in Washington.

Total fees vary dramatically among concepts. In the fast-food category, for instance, franchises can begin at less than $180,000 and reach $3 million.

There are about 2,500 franchised operations in 75 sectors, ranging from preschools to senior-citizen facilities.

Food properties make up about one-third of the nation’s 800,000 franchises, said IFA spokesman Terry Hill, who pointed out that the industry continues to expand.

Entrepreneurs are continually coming up with new franchise ideas. So far this year, 177 concepts have been added, including 63 during the third quarter alone.

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