Cousins Subs

When cousins Jim Sheppard and Bill Specht moved to Milwaukee from Atlantic City in the early 1970s, they identified a need for an East Coast-style submarine shop in their new hometown. Modeling their subs to the sandwiches they grew up with — hoagies, grinders and heros — the duo opened

a quick-service restaurant aptly named Cousins Subs. Each morning, the two baked Italian bread to surround a selection of high-quality ingredients. Today, 33 years later, the chain comprises 176 stores in 10 states.

Units average annual sales of $350,000, with larger ones bringing in up to $1 million. Nearly 70% of Cousins' business is takeout, which includes party subs and platters. While some of the larger stores might ring up to 250, daily transactions average 150 per unit at an average check of $7-to-$8.

"We're still an East-Coast sub concept that has maintained the original point of differentiation as found in our credo: 'Better Bread, Better Subs®™,'" says John Pryor, who joined the company as president in November 2004. "The subs are larger than most of our competition's — they're 7½ inches and 15 inches. We use very high-quality ingredients. And, our stores are clean, offer quick, friendly service, are designed with uplifting colors and have a fun atmosphere."

The company began franchising in the early 1990s, according to Maria Piotter, vice president of franchising. Piotter began working at Cousins 20 years ago when she was a college student. Presently, the company is in the process of increasing the ratio of franchised stores to corporate stores. It is selling 30 of its 40 corporate stores — they were first offered to the employees, then to existing franchisees and now to new franchisees.

To make stores more attractive to franchisees, Cousins continues to update prototypes to reflect the decor preferences of the day. Franchisees now have a choice of color palates. "Now, the trend is earthtones," Piotter declares. In 2002, a new interior developed by Plunkett Raysich added soft green, vibrant blue and black accent colors to the chain's trademark red and yellow color scheme. In addition, custom casework was added to the front service counter to promote more grab 'n go and impulse purchases of chips and bottled beverages.

Cousins also uses a specially designed equipment package for easy installation in different locations. "We used to build restaurants around the equipment," Pryor explains. "But now, our standard equipment package allows us to keep costs down and makes it easier for franchisees to get involved with our chain." New stores, many of which are in strip malls, measure 1,600-square-feet.

At nearly all stores, Cousins relies primarily on an assembly process to produce its products. The menu is similar in all locations and typically features at least 13 of the same submarine combinations. Some stores offer as many as 28 varieties while others offer pastrami and regional specialties.

The menu also features freshly made-to-order salads and a variety of breads, including Italian, wheat, Parmesan-Asiago, low-carb wrap, and specialty sandwiches, such as Tuscan market club, spicy chicken Sedona and classic cubano pork.

The BOH consists of a cooler/freezer and dry storage, an ice machine and bin, slicers for meats and a prep table with a sink. Dough for the subs arrives at the stores frozen (via a manufacturer that makes the dough to Cousins' specs). When needed, staff members place the dough in a proofer, which is situated beneath an oven, and then transfer it into the oven for baking. Crew also bake cookies in the same oven. In some stores, the oven/proofer is visible to customers. Though on-site baking is done today at all units, notes Megan Scott, project manager for The Boelter Cos., which provides layout and design and serves as the chain's equipment and smallwares dealer, in the early years, bread was baked at a central bakery and delivered to stores.

Ingredients for subs are housed in a cold rail positioned on a large sandwich board. Visibility to the customer varies from store to store, depending on layout. Adjacent to the sandwich board are microwave ovens for warming sandwich ingredients.

The addition of microwaves to the equipment package took place in the early '90s, replacing the grills found in the original stores, according to Scott. Today, grills are found only in a few of the Milwaukee stores.

"We believe we can get greater product consistency at all of our stores without the variables that arise when cooks are grilling products," Piotter explains, adding that the microwaves aren't heavily used because nearly 70% of orders are served cold.

Behind the service counter, two to three countertop warming units, depending on location, hold soups and warm meatballs and marinara sauce. Nearby is a coffee maker and soda and cup dispensers. Refrigerated cases at the front of the counter display bottled beverages.

Cousins realizes certain efficiencies during the pre-ring process. "Customers make decisions, place their orders and pay," Piotter comments. "They are given a ticket with a number, which is called when the order is ready. We've found this system to be efficient because once orders are placed, staff can concentrate on making the sandwiches and salads. We can pick up the pace if needed. On average a staff member makes a sandwich in 30 to 40 seconds."

According to Pryor, the company hopes to double its size within five years. "In order to build the brand strategically and drive the brand in markets we're already in, we must keep Cousins' mission and standards solid," he says. "We'll stick to our strong lunch and dinner day parts, continue to include drive-thru windows when possible and build our catering business." Another emphasis will be to build strategic partnerships and share spaces with brands such as Big Apple Bagels, which primarily features breakfast items. Other agreements are with Figaro's Take and Bake Pizza and the Chocolate Shoppe, an ice cream concept.

Without a huge marketing budget, Pryor says, Cousins will continue its "feet on the street" strategy in which company representatives introduce products to potential customers in professional buildings, schools and corporate office buildings. Just as important to the chain's continued growth is keeping the equipment package simple, easy to maintain and appropriate for high-volume customer demand.