Wall Street Journal Headline: "Opening Restaurant Is Risky, But A Franchisee Benefits From Training, Support"

NICHOLASVILLE, KY (Monday, January 01, 2001) - The Wall Street Journal is chronicling the triumphs and tribulations of new Golden Corral franchisee Bruce McIntosh and has found that franchising is a form of entrepreneurship that includes a safety net held by the franchisor.

The national newspaper said on April 18 that for Mr. McIntosh, "the life of a Golden Corral franchisee is a blend of entrepreneur and traditional manager."

"Franchising is a way to offer entrepreneurs some expertise from the get-go and allows expansion-minded chains?food, lodging, auto repair and many others?a chance to grow quickly using other people's capital," the prestigious publication wrote.

Mr. McIntosh, a 44-year-old financial executive turned entrepreneur, looked at the tech world before going into the restaurant business.

"I considered some of the high visibility sectors, but decided the best opportunity was in a traditional franchised business and Golden Corral was the system that appealed to me and my partners," he said.

It was a good decision because the results have been impressive at the family restaurant in this small town in the Blue Grass Country. Mr. McIntosh told the Wall Street Journal that he and his partners had hoped for $60,000 sales in the first week, but that they actually reached $80,000, close to a Golden Corral system record.

First year sales are expected to top $2.5 million. Cost of opening the restaurant, including land, building, equipment and working capital, was about $2 million.

A second Golden Corral will be opened later this year in nearby Lexington, Ky. The partners, whose corporate entity is named Golden Ranch Development, have contracted to open five Golden Corrals in the area.

Mr. McIntosh, completed a 12-week, three-phase training program that helped him prepare for his new life as the operating partner of the 100-employee restaurant. Prior to the launch in mid-February, an "A-Team" of experienced Golden Corral workers from other restaurants moved in temporarily to train his new staff and ensure that the opening ran smoothly.

Golden Corral Corporation of Raleigh, N.C. is delighted with Mr. McIntosh's successful career switch, but Larry Tate, Senior Vice President of Franchising, pointed out that his case is a little out of the ordinary.

"Bruce McIntosh is exceptionally talented and he's backed by one partner who has had a long and successful career in restaurant operations and the other is a real estate expert," he said. "We require that someone in the investor group have restaurant experience and not every franchise applicant can meet that test."

Interest in franchising grows as its impact on the national economy grows. Today these businesses are responsible for nearly half of all retail sales, according to the International Franchise Association. "Success is not guaranteed for franchisees, but they have many important advantages over independents in the same industry," said Don DeBolt, IFA President.

The Wall Street Journal is following the progress of three other early stage companies, in addition to the Nicholasville Golden Corral. The year-long project will include monthly updates in the newspaper and more frequently at a newly launched Internet site, StartupJournal.com. Expert commentary and discussion groups will be included at the site.

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