Restaurant Brands Bring New Audience to Southeast Operator

Many people were surprised when RE Services Inc., based in LaFayette,Ga., became a Canteen franchise last year. People familiar with the company knew that RE Services alreadyenjoyed a reputation for culinary excellence and had one of the strongest training programs in the industry. What did they need Canteen for?

One reason was the restaurant branded food Canteen was using. Canteen made headlines in 1998 by signing exclusive distribution agreements with several name brand restaurants, including Hardee's, Rally's, Blimpie, Sbarro, Sagebrush Chili, Cheesecake factory, and Nathan's Famous. RE Services Inc., which long prided itself on its signature food offerings, saw enough value in name brand products to join the Canteen organization as a franchise. RE Services already already saw the benefit name brand products provided, particularly in the cold food business, having carried items such are Red Barron and White Castle.

Brothers Stan and Steve Ledbetter, who own RE Services, also liked some of Canteen's proprietary machine styling. But the name brand food was the driving factor in deciding to become a Canteen franchisee.

"The branded foods are growing in double digits," said Stan Ledbetter. As a Canteen Franchisee, Ledbetter also takes advantage of the restaurant coupons that are available to Canteen outlets. Coupons for the restaurant brands are attached to the vended items and redeemed at restaurants. For instancem a customer can pay $2.50 for a Blimpie sandwitch and receive a coupon worth $1.00 redeemable at a Blimpie restauarnt. The coupons are usually offered to new accounts for about a month and a half, Ledbetter said.

The restaurant branded items are typically priced 25 cents and more above the commissary-produced, signature products, Ledbetter noted.

The sales lift has also resulted in lower stales, he added. "We're actually selling more and staling less," Ledbetter said.
RE Services produces some of the Blimpie sandwiches in their own commissary. Other branded items are shipped in from Canteen culinary center or from VSA Inc.