In the early 1990s, Phil Greifeld and two partners tried to make a go of operating home-furnishings stores in the Northeast. It didn’t work out, and by 1995 they liquidated the business.
“Then I had to go out and look for a job,” he said. Luckily, Quad-C Inc., which backed Greifeld’s venture, had recently purchased Atlanta-based Huddle House and invited him to join the Huddle House management team. He first served as chief financial officer and became chief executive in 1998.
“It’s been a good run ever since,” he said.
Huddle House, founded in 1964, now has 440 units in 18 states.
What’s a typical day like?
I have probably the next month scheduled out for meetings and appointments, but it never holds true to form. There’s always something going on. You wake up and say, “What am I going to be hit with today?” I try to communicate with franchisees as often as I can. The overriding thing is if there’s a need or requirement or issue about a franchisee that comes to the forefront of everyone’s day.
How do you make Huddle House stand out?
A lot of folks kind of put us in the family-dining segment. I guess I go with that, but we’re kind of a hybrid out there. Our competitors are the QSRs in various marketplaces. We’re a lot of different things. In some marketplaces we can be a steakhouse. In some we’re the casual-dining operation. A function of who we are and [whom] we compete with gives a broad spectrum of appeal to a lot of customers.
Do you feel more pressure from competitors?
FAST FACTS AGE: 46 BIRTHPLACE: New York EDUCATION: bachelor’s degree in business economics, State University of New York College at OneontaPERSONAL: married, two daughtersHOBBIES: skiing, reading, occasional hunting
For me it’s not so much the competition, it’s really looking at the consumer base. We’re clearly getting punched by economic conditions. What we are trying to do is offer a lot of value pricing. We’re offering some things we hadn’t done in the past. Combo meals for lunch and dinner—that’s been well-received by our customers.
Are people dining out less?
We’re most pleased that we’re holding our own in the breakfast daypart, which is our bread and butter. Where we see a decline in traffic is dinner business. If someone’s going to cut back, it’s easy to cut back on dinner.
What’s your top-selling menu item?
It’s our Big House Breakfast Platter. It’s one of the everyday value menu items that we’ve had on the menu for four or five years now. It’s priced at $4.99, and that’s a great price for a sit-down meal. It’s a compelling value proposition that’s hard to turn away from.
Have consumer tastes changed?
For us it’s more of a robust flavor profile, specifically as it relates to Mexican fare. Relating that to breakfast, where we have a large percentage of sales, it’s picante sauce. We brought in picante sauce three years ago, and I noticed a sales trajectory where it keeps going up and up and up every year. It’s the Hispanic trade we’re attracting.
What challenges are you facing?
For us it’s clearly the economy. In terms of financing, it’s not a challenge. Finding real estate is more challenging, but you just have to work much harder at it. I think the economy will get better later in 2008. Now is the time to build and lock in what I consider advantageous interest rates.