Bruster's, eyeing growth, scoops up TCBY veteran

By Teresa F. Lindeman,
Post-Gazette Staff Writer
Wednesday, February 6, 2002

Bruster's Ice Cream & Yogurt, which has been dishing up treats with increasing speed in recent years, is preparing for more growth with the hiring of a former executive with TCBY Systems Inc., the frozen yogurt phenomenon of the 1980s.

Bruster's Ice Cream & Yogurt has hired Jim Sahene, right, former president and chief operating officer of TCBY, as its first-ever chief executive officer. Sitting next to him is founder Bruce Reed -- the Bruce in Bruster's. (John Beale, Post-Gazette)

Jim Sahene, 41, was president and chief operating officer of TCBY until last summer when it was sold to Mrs. Field's Cookies. Now, he'll become the first ever chief executive officer for Bruster's.

The step marks a new level of maturity for the company that began serving vanilla and chocolate in 1989 out of a single ice cream shop in Bridgewater, Beaver County. Bruster's has since spread to 100 locations across several states, with another 55 to open in 2002.

Founder Bruce Reed -- the Bruce in Bruster's -- decided a year ago the business had grown to the point at which he needed help from someone with more strategic planning and marketing skills. "Entrepreneurs don't run companies," said Reed, who will continue to do things he enjoys, such as lead franchise seminars and work on operations issues.

Sahene had stayed in Little Rock, Ark., after the company was sold. When Reed called him about Bruster's, the fit worked for a couple of reasons. Sahene spent his early years living in Penn Hills and later worked in Western Pennsylvania for the Sheetz convenience store chain.

He also was attracted by the chance to help drive another company's growth. He'd started at TCBY as a store manager back when the company had 200 locations. By 2000, there were 3,000.

Sahene remembers it as a bumpy ride. Frozen yogurt's early success brought so many competitors that TCBY's last years were a struggle. Sales had started to slide, and it spent a lot of time trying to team up with other brands such as Subway sandwiches and shift from larger, older stores to smaller locations. Ultimately, a decision was made to sell the business outright.

"He gets a shot to do it all over again and not make the same mistakes," said Reed. "We'll make mistakes. But it's a heck of an edge."

Besides frozen desserts, Bruster's and TCBY also share a reliance on franchisees. Only five of the 100 Bruster's shops are company-owned.

The system shares both the risk and the reward. In addition to a $30,000 fee, the total investment by Bruster's franchisees can range from $88,000 to $953,000, according to Entrepreneur magazine. Franchisees also pay an ongoing royalty fee of 5 percent.

While franchising can create conflicts between independent operators with ideas of their own and a company focused on creating a single, quality image, Reed has only good things to say about the setup. "They have a vested interest. It's easier [having] them worrying about two or three stores than us worrying about 1,000."

Entrepreneur magazine listed Bruster's at 130 in its 2002 rankings of the nation's largest franchisers. That's up from 441 in 1999, but still trails competitors such as No. 16 Yogen Fruz Worldwide, No. 18 Baskin & Robbins and No. 37 Haagen-Dazs Shoppe Co. Inc.

The two Bruster's executives are confident their growth will continue. They estimate there will be between 300 and 400 Bruster's Ice Cream shops within three or four years. Sales this year should reach $50 million, aided in part by America's growing desire for more fattening ice creams.

Indeed, while sales of ice cream and related frozen desserts at supermarkets slipped almost 2 percent last year, according to the International Dairy Foods Association, sales of the richer, higher fat ice creams such as Bruster's premium stuff have been experiencing double-digit gains.

If Bruster's growth continues, Reed said, the corporate culture won't be allowed to change. He's proud of promotions such as free ice creams to those wearing pajamas or free banana splits to those who bring their own bananas. Making it a fun place to work has helped keep teens on the job. Reed estimates 98 percent of the employees are between the ages of 14 and 18.

Sahene couldn't be hired until everyone agreed he would fit in. All 12 of the employees at Bruster's small Bridgewater headquarters on Mulberry Street got to interview him.