What began here as a single meal-preparation store on the North Side in 2004 has quietly become a fast-growing franchisor with 23 outlets in 17 U.S. states and one Canadian province.
Tami Badinger, who owns the company, called Cena Franchising Inc., with her husband, Bruce, says the couple always planned to create something more than a single store.
We knew from the moment we thought of it, we wanted to franchise, she says.
The following year, they sold their first franchise, to a couple in Elk Grove, Calif.
Now, with 22 franchise openings plus the original store under their belts, the Badingers plan to expand further, despite industry projections for slow growth in their niche. Seven Cena outlets are expected to open across the U.S. within the next month or so, and franchise rights have been sold for four other new stores, bringing the total number of franchises the company has sold to 33.
In all, Cena Franchising expects to open about 17 franchise outlets this year, Badinger says, giving it a total of 40 outlets.
They chose the brand Cena because it means dinner in Spanish and Italian. Badinger is a former foreign-language teacher at Ferris High School, as is Cenas vice president of training, Nancy Hough, who helped open the original store. Badinger is president of Cena Franchising. Her husband is culinary arts director.
Cena offers a place where customers can prepare meals on site to bring home and cook, or freeze for a later date. The outlets provide the ingredients, recipes, mixing utensils, and containers needed to make gourmet entrees such as marinated beef tenderloin tip brochettes or raspberry chipotle chicken.
Meal preparation has been one of the fastest-growing segments in the food-service industry in recent years, although that growth is expected to slow, Badinger says.
There were 1,353 meal-preparation outlets in the U.S. in 2007, up from 1,123 outlets in 2006, says the Easy Meal Prep Association, a nonprofit group that tracks the industry and provides information to prospective franchisees. The association estimates that growth will slow this year, with only about 50 new outlets nationwide.
Badinger says Cena should outperform the industry.
She says that Cena stores have profit centers that in some cases bring in as much revenue as the meals themselves, making the franchises unique in the industry. Those profit centers include full wine shops, bakery products, side dishes, and facility rentals.
Cena even sells its own signature coffee, an all-organic, free-trade blend roasted here by 4 Seasons Coffee Co., of Spokane. The coffee is fresh roasted to order for each Cena outlet.
Badinger says Cena prides itself on its selection of a little better wines at very competitive prices, and franchisees are encouraged to help customers pair wines with meals.
Cena outlets also can serve wine in the stores, so customers can sample wine as they put meals together.
Cena facilities can be rented for private parties, Badinger says. Corporations sometimes use a facility as a new twist on an office party, or as a team-building exercise.
When youre done, you have something to take home, Badinger says.
She says franchisees also are encouraged to hold special events such as local wine tastings.
The events, she adds, arent very profitable, but introduce potential customers to the Cena concept.
Our forte is getting people in the door, she says. Cena is a fun place to be. You can have a glass of wine and get some work done.
The original Cena outlet, at 12501 N. U.S. 95 in the Wandermere area, is owned by Cena LLC, a subsidiary of Cena Franchising. It operates like a corporate store, where new recipes and ideas are tested and developed and new franchisees are trained. Customers come there to prepare meals, as at all Cena stores.
About 14 entrees are available at all Cena stores at any given time, and the ingredients to make them are arranged at stations that are grouped in a central area of the store called the plaza. Customers schedule times via phone or the companys Web site to make three to 12 meals at a time.
Meal prices vary by individual store, depending on the location, but the typical cost to assemble 12 meals that serve four to six people each is about $260. Thats less expensive per servingat about $4than a typical fast-food meal, Badinger asserts.
In addition to having customers put together meals themselves at the stores, Cena also offers a service, called Gourmet to Go, in which it prepares meals for customers to pick up, and that segment of the chains business is growing, Badinger says.
The cost for those meals is somewhat higher. For instance a Gourmet to Go chicken Madeira entree typically is priced at $15 and serves two to three people.
Unlike a lot of fast food, nothing at Cena is deep fried, Badinger says.
Cenas meals have less calories and fat than most restaurant food, she says. Were not ashamed of our nutritionals, and we post them everywhere.
Cena charges a $30,000 franchising fee to people who want to open a Cena outlet. That fee provides the Cena system, inclusion on a chainwide Web site, training in operations and administration, and assistance in build-out, Badinger says. It generally costs a franchisee another about $170,000 to open a store, including the cost of inventory, equipment, and furnishings.
Franchisees also pay an ongoing 5 percent royalty on sales and a 2 percent marketing fee.
Before Cena completes a 10-year contract for a franchise, the franchisees are required to come to Spokane for orientation and training.
We call it discovery day, Badinger says. I have to meet them. They have to like me, and I have to like them.
Typical Cena outlets have three to four employees each.
Franchise stores generally occupy 1,200 square feet to 1,800 square feet of space. In addition to the plaza area, they each have space for a wine shop, and seating.
Badinger says Cenas design standards require all stores to have a similar appearance, down to the crystal chandeliers, bistro tables, and Luna Gold wall coloring.
We provide architectural plans, she says.
Franchisees need to attract about 100 regular customers that spend an average of $150 a month for a franchise to be profitable, Badinger says, adding, It generally takes about nine months to get the Cena name out there and develop a customer base.
Cena customers include men and women of all ages, although a typical customer is a woman between the ages of 25 and 65 who has a family, she says.
Cena Franchising has six employees of its own. Badinger declines to disclose the companys annual revenues, but says its goal is to increase revenues by 20 percent this year.
Were putting a lot of money back into Cena, she says. We believe in developing the system.
Contact Mike McLean at (509) 344-1266 or via e-mail at mikem@spokanejournal.com.