Costi Counts Chips as Fish Chain Feeds Success |
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Steve Costi expects Steve Costi Seafoods to grow to 18 stores--four corporate stores and 14 franchised outlets--by the middle of November. Costi opened his first store in 1985, and credits the franchise model for the rapid growth of his business. In fact, Costi says his acceptance of the franchise model came as a result of his inability to find a good manager to run one of his stores. "I was ready to throw in the towel and sell it, when I finally met someone who said, 'I want to use your name and for you to supply the fish but I'll run the business," says Costi. The ability of the franchisee to boost the profitability of the store by 40 percent finally sold Costi on the franchise model, and Costi says he now receives many requests from entrepreneurs who want to become Steve Costi Seafood franchisees. A Steve Costi Seafood franchise costs anywhere from $300,000 to $450,000, and the seafood chain also charges a 5 percent franchise fee and a 1 percent marketing fee. Costi says the franchise model works so well because it puts owners behind the counter. Costi credits franchisees with being his best salespeople. (www.theaustralian.news.com.au)
