Sandwich Business Spreads Out

GREENVILLE (Wednesday, December 01, 2004) - Duke Sandwich is well known by plenty of Greenvillians and soon will be known throughout a four-state region.

The company, founded here 87 years ago, has begun the sale of franchises, said Andrew Smart, Duke's president. Its first closing is anticipated by the end of the week. Four stores are expected to open by spring, two in the Upstate and two in the Lowcountry.

Interest has been strong, Smart said, and plans are to roll out the franchise restaurants in the Carolinas, Georgia and Tennessee initially.

Although Duke Sandwich is a relatively small company with about 30 employees, the sandwich business is big, Smart said. Americans spend about $15.8 billion a year on sandwiches of all types, he said, and the business is expected to grow by 8 percent over the next five years.

The company, founded by Eugenia Duke and bought by Allen Hart, started out as a wholesale business, selling sandwiches to military camps, textile mills and drugstores. In the 1950s, it moved into the retail side of the business, Smart said. Duke Sandwich offers a variety of sandwich spreads, including the signature Duke's chicken salad, as well as meat and peanut butter and jelly sandwiches.

Currently, Duke Sandwich includes manufacturing, wholesale, retailing and franchising. It operates three company-owned stores in Greenville and Duncan.

A couple of years ago when officials of the family-owned business were discussing future growth, Smart said they decided to help others have the same type of opportunity they had with Duke Sandwich.

That's when franchising became the company's focus for growth, he said.

"The first franchises will be in the Upstate and probably the Low Country," he said, adding he met Tuesday with a group from Charleston interested in the concept.

"We're looking for people who have experience in running a business or a restaurant," he said. "We've had a great response."

Franchise costs will range from $82,000 to $240,000, based on a variety of factors including location and whether or not a building already is owned, he said. Duke Sandwich must approve all the locations before a franchise can be purchased. Also, the company has set up a territory protection plan to allow new restaurants to be added without infringing on existing ones.

Although two company-owned stores are in Greenville, most of Greenville County and the outlying cities are open for development, he said.

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