Embers America in the news

Santee/Embers Celebrates 50 Years
By Kelly Van De Walle, February 16, 2006

Interview with my Father, Henry Kristal, Co-Founder of Embers Restaurants
By Marissa Krista

Embers America Knows The Way Into Our Hearts - Sun Current Mendota Heights & West St. Paul Edition - August 21, 2003

Developer Building Downtown For Otsego - Minneapolis Business Journal  - May 30, 2003

Embers returns to its roots in ad campaign - Minneapolis Business Journal  - May 30, 2003

Ready to Ride - The Tribune staff Lacrosse Tribune - May 17, 2003

Embers Rolls Out Irradiated Ground Beef Line - Nations Restaurant News - October 29, 2002

New Owners Reopen Restaurant As Franchise - Arrowhead Business Advisor - September 2002

Around St. Paul: Bingo parlor art recalls Sept. 11 - Star Tribune - August 2, 2002 

The Bluffs Embers opens - The Daily Nonpariel - July 13, 2002

Old Payne Reliever becoming a family restaurant - an Embers - Star Tribune - March 11, 2002

Embers sparks ‘individuality’: New franchisees may keep old names - Nations Restaurant News - March 13, 2001

20 to Watch in 2001 (excerpt) - Franchise Times - Nov-Dec 2000

Glowing Embers - St. Paul Pioneer Press - August 27, 2000

Embers Cites New Sites - St. Paul Pioneer Press - July 26, 2000

Embers America Adds Seven New Sites In June - Press Release - July 2000

What is right with people? - St Paul Pioneer Press Bulletin Board - May 28, 2000

Bridgeman's to join Embers America group - Star Tribune - August 13, 1999

Embers America Secures Growth Financing - Restaurant Finance Monitor - May 24, 1999

Embers Suddenly Hot Stuff Again - St. Paul Pioneer Press - April 17, 1999

Once Sagging Restaurant Chain Erases Old Image and Finds New Customers - Finance and Commerce - May 15, 1999

Easter Brunchers Leave Restaurants Holding the Basket - Opening Soon (excerpt) - St. Paul Pioneer Press - April 16, 1999

On the Road Again - Minnesota Business and Opportunities - January 1999

Rekindling an Old Flame - Twin Cities Business Monthly - December 1998

Embers America donates to Maris Cancer Center - Fargo Forum Saturday - October 24, 1998

Embers America Announces New Franchise Owners for Seven Minnesota Restaurants - Minneapolis  Oct. 22, 1998

Rising from the Embers - Restaurant Business July 1, 1998

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Santee/Embers Celebrates 50 Years
By Kelly Van De Walle
Jackson County-Pilot
February 16, 2006

2006 is a big year for the city of Jackson, but it is an equally monumental year for one of its longest- running restaurant chains: the Santee Crossing Embers. 2006 marks its 50th anniversary.

“For a restaurant chain to be around for 50 years is pretty impressive,” says Santee Crossing Embers America owner Tom Erickson.

Few would know more than Erickson, who has been in the restaurant business since he was a teen, learning to cook with his dad and uncle on the railroad. It’s been a long road since then for Erickson, and for the restaurant he currently owns.

“It really is something,” he said.

Erickson has managed/cooked for a Cassidy’s in Hinckley, Minn., a McGuire’s in St. Paul and in Jackson, the Mayflower Café (where Seasonings is now) and the Three Fountain Supper Club before building the Santee Crossing, where he has been manager, cook and owner for nearly 28 years. Erickson and his family built the Santee Crossing in 1978, coinciding with the completion of Interstate 90 in 1979. It was named after a tribe of Sioux that roamed around the area. Erickson joined the Embers chain 22 years later in 2000.

“We’re excited to be a part of Embers’ 50th anniversary,” he said.

Special celebration

To commemorate Embers’ 50th birthday, the last Wednesday of each month, Erickson is donating 10 percent of the total revenue they receive from 4–9 p.m. to one Jackson County organization. For the month of February, that organization is the Jackson Kiwanis Club.

“This is a thank you to the community for their years of support,” Erickson said.

In addition to their donation, Embers will be featuring a special menu item every month. Also, coffee or pop is only $0.56 with the purchase of a feature menu item to commemorate Embers’ opening in 1956. The celebration will run the entire year.

Embers at a glance

The first restaurant opened by co-creator Henry Kristal was called the “Embers Charcoal Broiler.” It was two weeks before Kristal and his partner Carl Birnberg were set to open and they still didn’t have a name. One night not long before opening, Kristal has a dream about embers brightly glowing in a broiler. The next morning he luckily remembers the dream and the name stuck.

The first Embers opened in 1956 in Minneapolis on Lake Stree near Hiawatha Avenue. It had seating for 39 people. All of the recipes were kept in a small tin box in the kitchen, and Kristal and his staff usded to cook the food right in front of their customers. The menu featured a lean, quarter-pound Embers selling for $0.45 and an Emberger Royal, with thick sliced bacon and cheese, which sold for $0.75. Most restaurants serving hamburgers at the time sold only a one-ounce, fried product. The Emberger was char-broiled, featuring Embers’ special sauce.

In addition to the burgers, Embers soon became known for their homemade pancakes and other breakfast items available 24 hours a day. The success of this first restaurant was only the beginning, however. More restaurants were opened in the Twin Cities area between 1956 and 1972, and Embers branched out of the metro area market. Over the years, Embers has continued to grow, with around 37 restaurants throughout the five-state area of Minnesota, Iowa, Wisconsin, North Dakota and South Dakota.

Interview with my Father, Henry Kristal, Co-Founder of Embers Restaurants
By Marissa Kristal 
On November 15th 2005, my father Henry Kristal, co-founder of Midwest restaurant chain Embers Restaurants, was inducted into the Minnesota Restaurant Association Hospitality Hall of Fame. This exciting honor means that not only is my father looked at as a remarkable influence in the industry, but when it comes to being an accomplished restaurateur, he among others, is a Minnesota legend.

As the youngest of his five children, for a long time I didn’t realize the significance of my dad’s work. But now I understand my dad was so much more than just a keen businessman and boss. To his beloved employees he was a mentor, a counselor and most importantly, a friend.

The other night I phoned my dad from my Manhattan apartment in the hopes he’d agree to an interview with me. With intrigue, I listened as he told captivating anecdotes and divulged his opinions of what makes a successful business. What ensues is a candid, heartfelt talk with my 73-year-old father about his humble roots, his years in the business, his feelings on retirement and his reaction to his prestigious award.

Marissa: Dad, tell me a little bit about your upbringing and early family life. What was your childhood like and how do you think that contributed to your amazing work ethic?

Dad: I was born in 1932 in Joliet, Illinois. We were a very poor family and in 1937, when I was 5 years-old, my mom, dad, brother and I moved to St. Paul, Minnesota so my dad could get a better job. We moved into a one-bedroom apartment on Grand Avenue where my brother and I slept on the floor. Of course, this was during the Great Depression, and although my father did find work, even as a young boy, I had to get a job, too. My first job was as a newspaper boy; come rain or shine, I was out there delivering those papers. Then I got a job working in my father’s butcher shop. That’s initially where I learned about food and meats. But disregarding the past year that I’ve been retired, I can’t remember any time in my life when I didn’t work.

Marissa: Wow, Dad! I knew you worked your entire life, but it didn’t quite hit me until now that when most kids are learning their ABC’s and 123’s, you were helping your family make a living. So how did you get into the restaurant business? Why food? Tell me the Embers story!

Dad: Well like I said, I started to learn about food and meats when I was working in my father’s butcher shop. But my interest was sparked at home, too. My mom was an amazing cook. She used to cook up delicious meals using very simple ingredients. We didn’t have the money to buy fancy, expensive stuff. Well that’s when the thought first occurred to me that there ought to be a way for poor people to eat without having to pay an arm and a leg for food. After my first year in college I dropped out so I could join the Navy (during the Korean War) and that’s where I realized that if I wanted a good meal, it was going to cost me more money than I had! My best friend, Carl Birnbirg, and I came up with the idea of starting a restaurant that served good food, but was affordable to the average, every day consumer. So we decided to merge my knowledge of food with his salesman skills and start a family restaurant.

Marissa: So how’d you come up with the name “Embers”?

Dad: Actually, our first restaurant was called “Embers Charcoal Broiler.” It was two weeks before we were set to open and we still didn’t have a name. Then one night I had a dream about embers brightly glowing in a broiler. I suppose it’s a good thing I remembered that dream!

Marissa: What was your first restaurant like?

Dad: We opened our first restaurant in 1956 and it was a 39-seater on Lake Street. We used to cook the food right in front of our customers.

Marissa: I’ve heard you talk about a special recipe box that you used when you first started the restaurant. Tell me more about this, do you still have it?

Dad: Yes, as a matter of fact, we do! I believe it’s still at the office. When we first started the restaurant, we wrote down our signature recipes - like our specialty Embers sauce, pancakes, dressings, etc. - on index cards and stored them in our recipe box. Eventually we changed with the times and modernized our system, but we never threw out our box. It’s a keepsake!

Marissa: Speaking of specialty food items, Dad, tell me about some of yours. Specifically my favorite, the Emberger!

Dad: Our Emberger is different from other burgers because it's broiled on charcoal type burners. We used a special meat formula which gives tremendous flavor, and it was only 10% fat as opposed to the normal 20% or more of the times. And of course, we paint it with our secret Embers sauce!

Marissa: Dad, something very special about you is the way you view your employees. They’re not just workers to you, they’re your friends. They’re all individuals you care so much about. Would you elaborate on your relationships with them and the way you’ve helped your employees throughout the years?

Dad: You’re absolutely right; I care very deeply about my employees. My philosophy is simple: genuinely care about those who work with and for you and let them know that their happiness and their families always come first. In turn, they will care about the customers and treat them right. Above all else, I believe in treating all employees fairly. Throughout the years, I’ve helped employees ranging from janitors to corporate staff with a plethora of problems such as: drugs, finance issues, family turmoil, education, etc. I’ve always had their best interest at heart and I made sure they knew my door was always open and I was always ready to listen.

Marissa: That’s really, really wonderful, Dad. I truly admire that. What has your favorite part about the Embers run been?

Dad: That’s easy – giving young people the opportunity to succeed. I’ve loved watching my employees grow as people and in their careers. My other favorite part has been my friendships with our customers. I love pleasing them, and if there’s one thing I hope we’ve always managed to do, that’s it.

Marissa: Dad, Embers has truly turned into a Kristal family operation! Your oldest son (my oldest brother), David has stepped up and taken over the business, while middle son, Danny, is Vice President of Integrated Business Development for Embers’s sister-company Augeo Affinity Marketing, and youngest son, Adam, is Director of Marketing. How do you feel about having your kids take over the business?

Dad: How do I feel? I’m proud! It’s wonderful to see the members of my family and my former partner’s family joining together to run Embers, Augeo Affinity Marketing and Joey’s Only (Joey’s Only is our family’s third business venture, a Canadian-based seafood joint currently being franchised in the U.S.). They’re the reason for our continued success. And before I retired, it was quite an honor to work hand-in-hand with David, and the moment he figured out what it took to succeed, I stepped out of his way. Now, he’s the decision-maker.

Marissa: As a poor youngster did you ever picture yourself where you are now?

Dad: I hoped I’d get here eventually! Once I understood the importance of money, I made a decision that one day I’d have my own business. I dreamt of being successful while working with others and allowing them to do the same. Of course I didn’t know what type of business I’d enter into, but food doesn’t seem too far off the mark. After all, I love to eat!

Marissa: I know you do, Dad! I think you’ve left quite a legacy in the Minnesota business world. What do you think are the factors that made you such a successful businessman?

Dad: For starters, I had a general knowledge of business itself; that most certainly helps! Secondly, it’s all about the employees. If you have positive, hard-working employees, then you’re going to have a successful company. I also think it’s crucial to think outside the box and take risks. That’s what I did when we started Embers. It was a huge leap of faith and I definitely could have failed, but I absolutely would have failed if I never tried. In fact, Marissa, that’s just what you’re doing now; you’re starting your own career as a freelancer and taking the road less traveled. It’s a risk, sure, but the end result may very well be great success!

Marissa: Gee, Dad, it looks like I take after you in more ways than I thought! So you and several other highly regarded and successful restaurant operators were just inducted into the Minnesota Restaurant Association Hospitality Hall of Fame. What’s your response to this exciting and impressive honor?

Dad: I’m not worthy! That being said, I feel very honored and appreciative!

Marissa: Dad, you deserve this award so much! Clearly, you’ve really impacted the Minnesota restaurant industry. Okay Dad, I’m almost done interrogating you, but before we finish it’s time we get a little emotional. Last year you retired. Actually, you semi-retired; we weren’t allowed to call it retirement because the mere thought of no longer going to the office every day after a lifetime of hard work was terribly traumatic for you. But now, you’ve fully retired and you and Mom even spend your winters far away from Embers in Scottsale, Arizona. How are you feeling now about your retirement? Are you handling it okay?

Dad: Wow was it ever hard to retire! You’re right, I couldn’t imagine not going into my office every day and I was terrified of facing all that free time. But I knew that if I was truly going to turn the business over to my children, then I couldn’t interfere. But because of the wonderful technology of email and the Internet, I’m still constantly in touch with work and very much involved. And as for retirement, it’s not so bad. In Arizona my wife, Cheryle, has graciously taught me how to play golf – or rather I should say, lose to her in golf – and she keeps me very physically and mentally active. We’re always out and about, doing different and exciting things. As far as I’m concerned, I find that these days life is very, very good!

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Embers America Knows the Way Into Our Hearts - Sun Current Mendota Heights & West St. Paul Edition - August 21, 2003

Bringing with it a history of quality and a penchant for innovation, the family restaurant Embers America is using homemade food and down-to-earth prices to find its way into the hearts of more Minnesotans than ever before.

A five year old partnership between co-owners Eric Sandrock and Brad Ireland, Barbara Jean's Embers America recently opened locations in Inver Grove Heights and Cannon Falls, Minn., in addition to owning locations in Burnsville, Milaca, Hastings and two in St. Cloud.

A favorite of families and travelers, Embers America is famous for competitive prices on great-tasting food, delivered with cheerful and efficient service. Specialties produced from the restaurant's kitchens are based on family recipes, as well as on just plain experience with what people like to eat. Favorite meals include Caramel Apple French Toast, Steak and Eggs, the Barbara Jean's Skillet Dinners, and of course, the now-famous, perfectly dressed Original Emberger Royal. Regarding this creation, said Embers founder Henry Kristal, "1 believe we were the first restaurant ever to put bacon and cheese on a hamburger back in 1956."

Barbara Jean's Embers America in Inver Grove Heights offers a homemade special every day - just one example of the planning and care the owners have put into it so that satisfaction and dedication is what customers and employees get out of it. Co-owner Sandrock, reached during a busy day at one of the new restaurants, commended his employees and said that the company's success is built on the hard work and dedication of all. "1 am very pleased to be able to offer careers to so many people through our businesses," he said. "I spend my time training, developing recipes, visiting with guests and helping my managers and staff run our restaurants." He continued, "Although there are many days that I am on my feet for 18 hours at a stretch, when I see how many lives we are touching, I know this is what I am born to do." Embers America is also famous for offering prices as appealing as its food. "When we can offer people on a budget the treat of a great meal at the right price, everybody's happy," Sandrock said.

The original Embers restaurant opened in Minneapolis in 1956, and Embers America, a revolutionary franchise program linking independently owned restaurants, was formed in 1997. Embers America serves more than eight million customers each year at locations throughout Minnesota, Wisconsin, Iowa, North Dakota and South Dakota.

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Developer Building Downtown for Otsego - Minneapolis Business Journal  - May 30, 2003

BY SCOTT O,SMITH

Land Cor Inc. is proposing what Otsego has never really had before a downtown. The Osseo-based developer is already building a $38-million mixed-use project, called Waterfront West, which is adding a hotel, a restaurant and a bank to the small but rapidly growing city of 9,000 on the Mississippi River. But that's just the start. Bob Fields, CEO of LandCor, has grander plans for Waterfront East; a 47 -acre site on the Mississippi River, just across U.S. Highway 101 from the first phase. He hopes to build a $1l4 million project including homes, a grocery store, restaurants, a movie theater, and other retail totaling 250,000 square feet.

"This is the new downtown of Otsego," Fields said. As part of the project, LandCor plans to build a Main Street and include architectural elements that hearken back to Otsego's history as a ferry crossing. The retail center is designed to serve middle-income shoppers looking for a nearby destination, with restaurant and a movie theater. LandCor started developing Waterfront West, a 20-acre site on the west side of Highway 101 about a year ago.

Already open at the site are Black Woods Grill and Bar, Black Woods Banquet and Conference Center and Riverview Community Bank. Construction of a 125 room hotel with a 32,00 square-foot-indoor water park will start this summer. The hotel would either be a Holiday Inn Express or a Quality Inn and Suites, Fields said. The pace of development at Waterfront West has been better than Fields expected. "Within six months we've already determined all the buyers of the land," he said.

Both developments rely on an influx of new residents in the area. Michael Robertson, city administrator for Otsego, said growth in the far northwest section of the metropolitan area lagged behind other areas in the past, but has quickened in recent years after the former township received city status.

The new downtown will take advantage of its half-mile of shoreline on the Mississippi River with a park and walking paths. "All the buildings will be like you would expect to find an old river town," Fields said. Plans call for a brick two-story buildings and one designed to resemble a riverboat. Long-term traffic plans favor the development. The Minnesota Department of Transportation proposes to make Highway 101 a freeway and make Country Road 39 an interchange. That would increase traffic flow through the area, but it won't happen for at least three years, Fields said. Fields hasn't secured tenants for the project.

Audie Tarpley, vice president of development for LandCor, said the project will fill a niche between the discount shops at Outlets at Albertville and the high-end specialty retailers at The Shoppes of Arbor Lakes in Maple Grove. The possible mix of stores might include a grocery, clothing and shoe stores, a hair salon, a business-services store and a bank. Two furniture stores have expressed interest in the site. Also, LandCor is in discussions with theater operators for possibly a 14-screen cinema. The developer is not seeking a large discount retailer.

The project might find securing a grocery store difficult, because the trade area is still developing, according to a real estate source who wanted to remain anonymous. Tarple disagreed, saying that he's in discussions with two interested grocers. Fields wants to lure a fitness center, as well, possibly by emulating the partnership between Eden Prairie-based Life Time Fitness and Maple Grove.

Fields plans to have another developer, yet unnamed, build 40 to 70 for-sale townhomes costing between $400,000-$600,000 each. LandCor is not expected to have difficulty getting the project approved, since the site is already zoned commercial, Robertson said. LandCor is not seeking public subsidiaries for the project. "From our perspective, we're just looking to get diversification in our tax base…For a long time, you had to drive out to get dinner or anything," he said.

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Embers Returns to its Roots in Ad Campaign - Minneapolis Business Journal  - May 30, 2003

BY ANDREW TELLIJOHN AND NICOLE GARRISON STAFF REPORTERS

A 50-year-old St. Paul restaurant chain is recapturing part of its history by bringing back classic menu items and introducing a new advertising campaign. The rebranding continues five years of work Embers America has done to rebuild itself through franchised stores and father-son television commercials.

The new campaign, developed by Greer & Associates, will be fully integrated into television advertising and into the restaurant's feel and even its menu, said David Kristal, CEO. Embers will bring back such items as the homemade pie that for years dotted its menu. "It's the beginning of what we believe will be a two- to three-year effort to reposition our brand," he said. "It celebrates our tradition." Embers is not the first casual dining chain to retrofit its image.

In 1998, Spartanburg,  S.C., based Denny's Corp., which was founded in 1953 and named Denny's Restaurants in 1959, jumped on the I950s bandwagon with its Denny's Classic Diner concept. But, executives at Greer said Embers' rebranding strategy is a bit different and perhaps more authentic. "What the campaign is all about is resetting and style and imagery of their heritage," said Emily Child, director of account management at Minneapolis-based Greer, adding the social and economic climate favors the classic diner and neighborhood burger joint concept. "People are turning to the more tried and true homestyle comfort foods. I think Embers is in a place to capitalize on that."

International Dairy Queen Inc., which opened its first store in 1940, is another chain that has recently retrofitted its image. A few years ago it launched its Grill & Chill concept, which places increased emphasis on its hot food offerings. Restaurants like Embers are wise to promote their history and invoke a bit of nostalgia in customers, agreed Dean Peters, spokesman for International Dairy Queen Inc., Edina. "It's about getting back to when things were a bit more simple," he said, explaining that almost everyone has a childhood memory of Dairy Queen, and many people probably have similar memories of Embers.

While Embers has been known the past few years for its humorous father-son ads, David Kristal will not appear in the first set of ads. An actor will playa youthful Henry Kristal, founder of Embers America. David's father, creating some of the restaurant chain's original recipes from 50 years ago. The real Henry Kristal then will appear on screen affirming what the company is doing today, David Kristal said. The statewide television campaign will kick off the first week of June. The restaurants will take on a new look starting with a new location in Otsego, which will open this summer.

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Ready to Ride - The Tribune staff Lacrosse Tribune - May 17, 2003

By GAYDA HOLLNAGEL 

Keith Bolling had the chance to talk to newspaper and television reporters Friday, but instead he hopped on his new bicycle and headed for home. Advertisement

Advertise Here Directory "Bye, Keith," friends and family called and waved as he rode out of the parking lot without a backward glance at the media gathered on his behalf.

The quiet and speedy departure was typical Keith, said his employer, Herb Bassett, who presented the bike to Bolling as part of an employee appreciation day, marking his 18 years as a day- shift dishwasher and busboy at Embers Restaurant in La Crosse.

"Keith is an extraordinary person," Bassett said. "He's done an extraordinary job for us."

Bolling, who is mentally disabled, was hired at the restaurant while still a student at Logan High School because one of his teachers wanted him to get some work experience, said Bassett, who has managed the restaurant since it opened 30 years ago.

The temporary position turned out to be permanent, with Bolling, who lives with his mother, Delores, riding his bike back and forth to work ever since.

"He caught on very well," Bassett said. "He's the type of individual, once you get him on a system, he remembers it forever. He's always on time; he's never late; he never calls in sick. And when he gets here, I don't have to tell him what to do."

Bolling, who answered a few questions while sharing pizza, cake and ice cream with his family, Bassett and a few co-workers, said the job at Embers suits him fine.

"Good friends, good food," he said, looking up briefly from his pizza. "It's a good place to work, a lot of free food."

He said he also likes the customers and enjoys having a radio for company while he works in the kitchen.

"There's a radio out back I sing along with," he said. Co-workers said Bolling favors the "oldies" and is really good at belting them out.

Bassett said because Bolling is so methodical he serves as a trainer for new employees.

"He's just a very special guy," Bassett said.

Besides working at Embers, Bolling has a daily La Crosse Tribune delivery route and also works as a dishwasher Saturday and Sunday evenings at Fayze's in downtown La Crosse.

Bolling's sister, Cathy Bolling, said Keith also helps her by coming over to her house mornings and waking her kids for school on days when she works a night shift at a local nursing home.

"I don't know what I'd do without him," Cathy said.

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Embers Rolls Out Irradiated Ground Beef Line - Nations Restaurant News - October 29, 2002

ST. PAUL, Minn. (Oct. 29) - Embers America Inc., a 65-unit chain of full-service, family-style restaurants, is rolling out a line of hamburgers with ground beef that has been irradiated to kill any harmful pathogens.

The family-owned company, whose chain is mostly franchisee operated, has branches throughout Minnesota, North Dakota, Wisconsin and Iowa.

A spokeswoman said Embers has been rolling out the irradiated-beef burgers for four to six weeks, at the rate of about eight additional restaurants per week. The burgers are being cooked to order, and requests for rare burgers are being honored, Embers indicated. The chain said it signed a distribution deal with W.W. Johnson, whose Minnesota meat plant is equipped with irradiation processing equipment from San Diego-based SureBeam Corp. Embers said it is the first full-service chain to offer irradiated meat.

Dairy Queen made headlines earlier this year as the first chain to market its use of irradiated ground beef, at test locations in the Midwest.

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New Owners Reopen Restaurant As Franchise - Arrowhead Business Advisor - September 2002

Embers Duluth Grill owners Jaima and Tom Hanson both agree that the cost of doing business as a franchise has had many positive results for their restaurant and is well worth the price. Both are from St. Paul, Minnesota and have been involved in restaurants for over 20 years. In fact, they met in the business and found that they have a natural chemistry for working together.

The first Embers restaurant opened in 1956 in the Twin Cities area and has expanded to 65 restaurants today. Although corporate-backed, Embers had a mom and pop image. The original Jingle may be familiar to some of us: "Morning, noon or nighttime anytime's the right time to remember the Embers." They also used the Sun and Moon in the Logo and "Breakfast is ready!" is on the menu.

At the end of the 1990s, the owners converted the corporation to Embers America and the restaurants to franchises. To start an Embers franchise, owners are charged an original franchise fee and a monthly royalty of 6.5 percent. Owners must use Embers products in their menus (Embers has 30 brand items), with the remaining items on the menu the owner's choice, and must be open from 6:00 a.m. to 10:00 a.m. Embers perform quarterly inspections of each restaurant and require that each franchise be open from 6:00 am to 10:00 pm. The main advantages of the franchise are food purchasing powers, professional marketing materials and national television marketing (sales are better as each advertisement runs).

Tom started his restaurant career as a busser and cook at Embers from 1978 to 1980. In late 1992, Tom took over the management of the Ground Round in Duluth. His memory of his apartment at that time was an "air mattress, a black & white TV and a coffee pot." Jaima and the family joined him in Duluth at the end of January in a six-plex apartment and her memory of that time was "Very cold weather and giant snow banks with no shoveled sidewalks to move everything in."

From there it was to the Old Country Buffet for Tom and Augustino's where Jaima was working as a waitress. Tom then joined her at Augustino's and then it was back to the Ground Round for Tom and on to Blackwood's for Jaima. Tom soon became regional manager and began traveling a lot back in the Twin Cities area.

Tom had always liked Embers and looked them up in Nations Restaurant News and found they were listed as a good restaurant. When Tom saw Kay Biga on television announcing the closure of the Duluth Grill, he decided it was time. They signed the lease on May 7, 2001 and opened for business May 21. Tom partnered with two Embers owners to get the franchise and jumpstart the business. The Hansons bought out the other partners in January of 2002.

Another positive thing about an Embers franchise is that they allow you to put a name on their logo, which allowed them to keep the Duluth Grill name. Their first goal was to change it from a working man's place to a family dining restaurant with customer service as the top priority. The Hansons call their customers "guests." They put in long hours at first, and they still put in six ten hour days each week. Tom is the General Manager and Jaima is the detail person who makes sure nothing is missed. They have currently added word-of-mouth catering to the business and hope to build on that with the theme of "Home meals for the family of four."

"Owning an Embers franchise has been a very good experience," Tom said, and Jaima agrees. They want to be remembered for running a good restaurant. In my opinion they are off to a good start and if you haven't tried their new restaurant now is the time and I would highly recommend it.

If you are interested in further information on franchising, stop by the University of Minnesota Duluth Center for Economic Development and ask for a copy of "An Introduction to Franchising" a collaborative effort by the Minnesota Department of Trade and Economic Development and Briggs and Morgan, P.A.

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Around St. Paul: Bingo parlor art recalls Sept. 11 - Star Tribune - August 2, 2002 

When bingo players finally get a chance to fill their cards at the New York Bingo Palace's first session next Friday, they should be impressed by the new wood relief mural in the lobby. 

Artist Cliff Letty of Sturgeon Lake, Minn., carved the 4-foot-by-12-foot mural at the request of building owner Gerry Frisch. It honors local fire and police departments and commemorates the victims of the Sept. 11 terrorist attacks. 

Two dozen firefighters and police officers attended Tuesday's unveiling of the mural in the East Side building that now houses an Embers Restaurant and the new bingo parlor. 

Among those present was Ron Ryan Sr., a St. Paul police official currently in charge of the Minnesota Gang Strike Force. His police officer son, Ron, was killed in the line of duty in 1994. 

At the ceremony, Mayor Randy Kelly praised Frisch for taking on the difficult restoration of the old Payne Reliever strip club. The restaurant has been open for several months, and after some delays, the first bingo games will be run next week by the Earthstar Project, a social service agency that provides transportation and services for older American Indians. Also expected to sponsor bingo games at the hall later are the Payne Avenue Business Association and the District 5 Planning Council.

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The Bluffs Embers opens - The Daily Nonpariel - July 13, 2002

A full range of menu items are available at The Bluffs Embers, which celebrated its grand opening last week.

The dinner crowd starts to flow into Embers Friday.

The restaurant, located at 2608 S. 24th St., is open 24 hours a day, seven days a week.

"We have a variety of selections, from prime rib and T-bone to fish and chicken," said manager Dale Fleming. "There are also specialty desserts that have been very well received."

Those choices include streusel coffee cake and caramel apple French toast.

From Monday through Friday the restaurant offers daily blue plate specials, and on Saturdays and Sunday there is a buffet from 11 a.m. to 9 p.m.

A salad bar is open continuously.

The restaurant became The Bluffs Embers in April. Prior to that it was Sapp Brothers, and before that it was known as the Truck Haven. There are currently 50 employees.

The interior of the facility was extensively remodeled in conjunction with the latest change.

"It's basically brand new inside," Fleming said. The carpet was replaced, new tile was installed and other interior features were upgraded. Non-smoking and smoking sections are available.

The restaurant has a capacity for 165 patrons. "We also have a private room for parties and family gatherings," he said. The room can accommodate 40 people.

Located near the interstate, The Bluffs Embers benefits from the steady stream of travelers heading east and west.

Fleming said the restaurant continues to be popular with truck drivers, but it is also a favorite dining spot for numerous families.

"We appeal to a lot of patrons because of the menu choices and because of the atmosphere," he said.

The Bluffs Embers is a franchise. The chain has about 50 restaurants nationwide.

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The new East Side Embers will dish up more than breakfast specials and juicy hamburgers when it opens for business today on Payne Avenue.

Also on the menu is a serving of relief and a ladle of hope for residents in this part of St. Paul.

The restaurant replaces, at long last, the old Payne Reliever strip club, which has been closed for more than two years. With a catchy name that hijacked the avenue's identity, the Payne Reliever defined this aging city neighborhood for nearly two decades.

"I know people in Florida who'd heard of the Payne Reliever. It's a funny thing, but it somehow had a national reputation," said Dennis Melander, who'll be running the new Embers. "When people ask where we're located, I ask if they know where the Payne Reliever was, and they always do," he said.

But Melander and building owner Gerry Frisch hope the restaurant opening, to be followed in May by the opening of a bingo palace in the back section of the building, will start to erase those memories.

"Forget about the Payne Reliever. I'm a Payne Believer," Frisch said.

With its newly remodeled art deco exterior and complete inside overhaul, the building looks nothing like its seedy predecessor.

Frisch, a St. Paul attorney and developer, asked his architect to incorporate some designs he'd seen in Miami's trendy South Beach area.

The restaurant fills the Payne Avenue side of the building; the New York Bingo Palace will occupy a spacious rear section. With the kitchen amidships, Melander will be able to serve food to the bingo players, too.

The building, which once housed a bowling alley and a barbershop, was bought in 1978 by Dick Ward, who ran it as a discotheque for several years before bringing back nude dancers in the early 1980s. He added a rock 'n' roll club in the back in 1994.

After a push to limit adult entertainment centers picked up steam in St. Paul in the late 1980s, and led to the closing of the Faust and Flick adult theaters on University Avenue, many Payne Avenue residents wanted the strip club closed, too.

But there were some who considered the Payne Reliever an East Side landmark, attracting well-dressed men from around the Twin Cities area as well as from out of town. Club managers often spoke about how they provided employment for young women, including many single mothers.

The argument festered until 1999, when Frisch, figuring a bingo parlor with a restaurant could help the neighborhood and make some money, bought the building from Ward.

Said Ward at the time: "If people think tearing down the Payne Reliever is going to give the East Side a better image, then I wish them good luck. I don't feel we ever did anything wrong, but we've been an easy target for politicians and outsiders looking to get their name in the paper."

Visions intersect

Frisch had wanted to put in a New York-style deli to go along with his New York Bingo Palace.

(The cross street is York, and Frisch wanted to revitalize the area, hence the New York theme.)

One day during lunch at the nearby Yarusso Brothers restaurant, Frisch met a guy who said: "You should talk to my brother about your restaurant."

That brother turned out to be Dennis Melander, a longtime Embers manager who'd spent 25 years running the chain's operations in Fargo, N.D. But he had family in St. Paul and was interested in working here.

Their visions intersected.

Frisch: "I wanted a family place. I want to be part of the renaissance here on Payne. We're going to change the character of the neighborhood to clean and safe."

Melander: "I wanted a restaurant with a small-town feel, a real neighborhood where we can serve comfort food, hot sandwiches with piles of mashed potatoes. And it's going to be a family place. My sister, Beth, lives on the East Side and she's the general manager. My youngest son, Carl, is the night manager and my son Aaron is the dinner manager."

'Something nice'

The restaurant will be open 24 hours a day, said Frisch, a longtime friend of Embers co-founder Henry Kristal.

He said police officers from the nearby precinct headquarters will be welcome at a back booth, where he has installed a high-speed Internet connection so they can fill out reports while having coffee.

Marlyn Trevino, a veteran community activist who lives six blocks from the new restaurant, says it was a long time coming. The local district council debated ways to close the Payne Reliever for years, she said.

"One of the board members used to stop in all the time, to check it out, he said, to make sure it was still seedy."

Michelle Noha, who works across the street for the East Side Neighborhood Development Company, said the specter of the Payne Reliever continues to haunt all of the positive developments underway in the area.

"But maybe that will start to go away, now that we've got something nice here," she said.

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By Carolyn Walkup

ST. PAUL, Minn. (March 13) — Embers America is seeking to revive its once-tired family restaurant brand through a franchise program that permits existing restaurateurs who sign up to keep their original brand identities.

Unlike most franchising programs, which take a cookie cutter approach to franchisees, Embers allows mom-and-pop family restaurants to retain their former names and signature dishes while adding Embers elements to signage and menus.

Since launching the program two and a half years ago, Embers has grown from 27 to 53 units, all of which have hybrid names.

New franchisees "maintain their individuality and blend that with our marketing, purchasing, technology and other programs," explained David Kristal, chief executive officer of Embers, which was founded in 1956 by his father and a former partner.

Embers’ royalty structure also differs markedly from that of most franchisors, who typically collect about 4 percent of sales. Instead, Embers levies 1 percent of gross sales the first year and 6.5 percent of any sales increase in each successive year.

"We only make money if we build sales," Kristal said. Franchisees also pay a 4-percent advertising royalty, most of which goes toward television.

Some of the newly franchised, existing restaurants are Mr. C’s Embers America in Fergus Falls, Minn.; Sawmill Inn Embers America in Brainerd, Minn.; and University Diner Embers America in Fargo, N.D.

Embers sold all but two of its formerly company-owned restaurants to franchisees. They currently operate in Minnesota, Wisconsin, Iowa, North Dakota and South Dakota. Several franchisees have made commitments to build new stores, the company said.

Converted restaurants must have certain chain-wide consistencies, including signage, merchandising materials and some of Embers’ signature menu items. Otherwise, they are allowed to maintain different looks, store sizes, additional menu items and other touches that have worked for them in their markets.

"Our program balances consistency with the spirit of the individual," Kristal said.

Some of the core menu items franchisees must carry are Embers’ breakfast skillets, omelets, pancakes made from Embers’ original batter recipe, fresh hashbrowns, cinnamon streusel coffeecake, chicken noodle soup and ground chuck burgers, called "Embergers."

After converting, franchisees have achieved average sales increases of 25 percent and have lowered their food costs an average of 4.5 percent, Kristal said. Embers requires all franchisees to make purchases through the Food Street Plus buying cooperative, of which Kristal also is chief executive.

Franchisees are notching average annual sales of approximately $900,000, Kristal said, adding that the range varies considerably depending on unit size. Some locations have only 30 seats, while others have as many as 150.

"We’re very focused on growing concentrically. We want to saturate existing television markets first," said Kristal, who stars in folksy ads for the chain with his father, Henry, who is said to have a "Dave Thomas" style.

The ads market value but not price, as former ads did beginning in 1981 by promoting $1.99 breakfasts. "By the mid-1990s we had a price-loyal customer base, but we began to lose money," Kristal said.

That’s when his family bought out their partner, retooled their restaurants, logo and menu, reduced the number of items from 152 to 85, and came up with the franchising program, which Kristal described as more of a co-branding system.

Unlike some family restaurant chains that have gone after more dinner business, Embers continues to promote its strength of breakfast, followed by lunch. "Breakfast is still our strongest daypart; dinner has too many competitors," Kristal said.

Embers especially likes to co-brand with existing restaurants located in travel plazas and truck stops. This year the company hopes to add 40 converted and new restaurants. Kristal is targeting Nebraska and Illinois as new markets.

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20 to Watch in 2001(excerpt) - Franchise Times - Nov.-Dec.2000

David Kristal, the 30-something lawyer-turned-CEO of Embers America is like the proverbial phoenix rising from the ashes, only this time it’s embers.  Kristal has helped turn the company around from the edge of collapse to a fast-growing franchise- an unorthodox system that people are talking about.  It’s what Kristal calls “an umbrella company for mom and pop restaurants.” Embers co-brands with struggling family restaurants, which keep their own names, under the Embers brand and retain some of their signature menu items.  Franchisees get marketing, training, mass media buying and other support from Embers.  Embers gets increased sales, realizes savings through cooperative buying and improves their resource base.  Is the system working?  Two years and 57 franchises later, Kristal is confident that other select operators will want to weather the storm under Embers’ bigger umbrella.

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In the last two years, Embers America has gone from serious financial trouble to fast-growing franchisor and provider of services for independent restaurants. 

In the last two years, David Kristal has helped steer Embers America, his father Henry's restaurant chain, from the brink of collapse into a fast-growing franchisor and service provider to independent restaurants. The company now has a healthy cash flow.

Independent restaurant owners who join the Embers America franchise add their own names under the Embers brand and can keep their signature menu items. They benefit from combined purchasing power, increased advertising and reduced operating expenses, Kristal says.

After closing about half of its restaurants, the St. Paul-based franchiser had 13 corporate stores and no franchises two years ago. Now it has signed up 51 franchisees, and has kept just two corporate stores. Kristal expects to have 65 to 70 Embers America units by the end of this year, and 200 or more within two years.

The franchising venture led Embers to create FoodStreet plus, a St. Paul-based company that provides volume purchasing and management support services to independent restaurants. The new firm recently landed financial backing from gaming and restaurant mogul Lyle Berman.

Retail reporter Jim McCartney recently talked with Kristal about Embers' new take on the restaurant business. The transcript has been edited for conciseness and clarity.

Q: What changes have you brought to Embers, and why did you make them?

A:  Embers was founded in 1956, and had great success in the '60s and '70s. In 1981 we were the first restaurant in this part of the country to heavily promote a low-priced breakfast, and it worked brilliantly. We offered the $1.99 blockbuster breakfast, we heavily advertised it and it filled up our restaurants.

In the course of the next 15 years, we didn't stop price advertising and we converted loyal customers to price customers. But it's difficult to compete on price alone, and in the mid-'90s we started to lose a significant amount of money. We needed to turn the company upside down or go out of business.

We were in a challenged financial situation, under a lot of debt from our stores. We were hanging onto units that were really dragging down the bottom line and hurting our reputation. We hadn't built a new unit since '78. It took time and innovation to turn the ship.

Q: Why did you go into franchising?

A:  In making our plan, we found that the family restaurants that attracted customers had good access and visibility, and were newer.

Take the Harry and Sally's diner halfway between here and St. Cloud on I-94. It used to be just Harry and Sally off that exit. Now there's a Perkins, a Denny's, a Taco Bell, a McDonald's. It's gotten tough for Harry and Sally because people tend to pull into places they recognize when the leave their neighborhood.

That's why we developed a co-branded concept to support that need for customer recognition. By combining under the Embers brand -- but with ``Harry and Sally'' still part of the identity -- we could improve marketing, increase sales, save through cooperative buying and improve our resource base. We can train together, recruit employees together and use technology better to improve our business.

Q:  Is it working?

A:  Our cash flow position compared to February of 1998 is almost 1,000 percent better on the Embers America side. The increase in sales on converted units is 25 percent. In our segment, if you can do 3 percent, our average cost savings was 4.7 percent -- that savings alone pays for franchise fees to us.

Q:  How did you come up with the idea of FoodStreet?

A:  In April of 1999, we took a step back and saw that there were major cost savings to be had on the purchasing side for a variety of restaurants.

Our program offers cost savings and better service, and enables restaurants to custom order their own choice of pepper, jelly, flour, cooking oils or whatever.

Food distributors have tight profit margins. Unlike a Federal Express, they also have issues like refrigeration and storage -- they need not just volume, but predictable volume. If you can deliver that, they can deliver a better price.

We also have a program that delivers better service and prices in such areas as waste removal and recycling, credit card programs and buying insurance for employees. We also offer accounting, tax service and legal service.

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Embers cites new sites - St. Paul Pioneer Press - July 26, 2000

Embers America, the family restaurant franchise based in St. Paul, said June turned out to be its best month ever for securing new locations.

Embers added seven restaurants in June, five in Minnesota and one each in Wisconsin and Iowa. Four of the locations are existing family restaurants that will become Embers franchisees, two are new and one was a closed restaurant that will reopen as an Embers. The additions will give Embers 53 locations in five Midwestern states.

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FOR IMMEDIATE RELEASE

EMBERS AMERICA ADDS SEVEN NEW SITES IN JUNE,

NOW HAS 53 LOCATIONS THROUGHOUT MIDWEST

ST. PAUL, MN, July 25, 2000 – Embers America, the family franchise restaurant company based here, announced that it added seven new locations during June, making the month a record one for securing new sites. Company CEO David Kristal said that the additional sites will give Embers America 53 locations in five Midwest states.

Kristal said the new locations include five restaurants in Minnesota, one in Wisconsin and one in Iowa. Four of the locations are existing family restaurants that will become Embers America franchisees. These four are located in Inver Grove Heights, Clearwater, and Anoka, Minnesota and in Barron, Wisconsin. The fifth location, in Wadena, Minnesota, is a closed restaurant that will reopen as Embers America. There will also be two brand new Embers America restaurants constructed --- one in Lino Lakes, Minnesota, the other in Sioux City, Iowa.

Kristal added that the Twin Falls Embers America, which opened in St. Croix Falls, Wisconsin in June, is the first "ground up" location that Embers America has opened since 1977. "That location is also off to the fastest sales start of any new Embers America restaurant in our history," he said.

"With these new locations and these new franchise signings, we’re ahead of our plan," Kristal explained. "By the end of this year we expect to have 65 to 70 total Embers America units. When you contrast this with June of 1998, when we had just 13 corporate stores (only two remain) and no franchises, it clearly demonstrates that our concept is proving very attractive to independent restaurant owners and to the public."

Embers America is a family of independent restaurants that have joined together to compete more effectively with the large corporate restaurant chains. Independent restaurant owners who join the Embers America organization maintain their own name and signature menu items yet benefit from combined purchasing power, reduced operating expenses and increased advertising and promotion exposure.

Contact:
David Kristal 651-645-6473 dkristal@embersamerica.com
Adam Kristal 651-645-6473 akristal@embersamerica.com

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From the Ditz of Highland Park: 

“I had some time to kill Monday morning before a 9 o’clock appointment on University Avenue in St. Paul. I decided to stop in at the Embers restaurant between Snelling and Fairview for a cup of coffee and a piece of their scrumptious coffee cake. And acquaintance -killing time as well-walked in and joined me. We had a pleasant conversation until it was tie for the both of us to leave. 

“Arriving at the parked car, I discovered that I had locked my keys in my car. (This is where the ditz part comes in, as I had never done that before.) [Bulletin Board interjects: You’re being too hard on yourself, Ditz! (No offense-the Ditz part, that is.) The ditz part would come in if you make a habit of locking your keys in the car.] My spare set was in my home in Highland Park. 

“My friend, seeing my dilemma, walked up to me and as we were starting to contemplate the usual ‘us a coat hanger,’ ‘call the police’ and ‘call a locksmith,’ an employee of Embers, who had been washing the sidewalk next to my car, walked up to me, reached into his pocket and presented e with the keys to his car. 

“'Take my car,’ he said, ‘and go get your spare keys from your home.’ 

“’But you don’t even know me!’ I exclaimed. 

“’Yes, but I know him,’ he replied looking at my friend, ‘and I trust him.’ 

“So with grace and humility, I took the keys and drove his car to my home, retrieved my spare keys and drove back to Embers. 

“I walked up to the gentleman, and as I handed him his keys, I tried to slip him $10 for the gas used and in appreciation of his kindness. He would not take the money. 

“’Do you have children?’ I asked him.

“’One on the way, soon,’ he replied.

“’Buy something for the baby,’ I insisted.

“He wouldn’t hear of it. ‘Someday, I may need help’ were his parting words to me as I walked away, thanking him again.”

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In a deal that brings together two long-standing Twin Cities restaurant chains, Embers America has signed seven Bridgeman's to its new franchising program.

The partnership will result in Bridgeman's restaurants being renamed Bridgeman's Embers America this fall, when they will begin serving Embers America branded menu items such as the Emberger Royal. Embers, meanwhile, will begin offering Bridgeman's ice cream and malts.

"This is a co-branding between two long-standing traditions," said David Kristal, chief executive of Embers America.

The seven Bridgeman's are in Richfield, Brooklyn Center, Inver Grove Heights, New Hope, Hiawatha Avenue in Minneapolis, Floodwood, Minn., and Superior, Wis. A couple of remaining Bridgeman's may come into the Embers America fold in the future, Kristal said.

Five of the seven were Bridgeman's franchisees that now will operate as franchisees of Embers America. Two others, in Brooklyn Center and Inver Grove Heights, were previously Bridgeman's corporate stores that now will be leased to new franchisees.

Embers America, which dates back to 1956, launched its franchising program 14 months ago. The system, which allows independent restaurant-owners to tap into the marketing and procurement capabilities of a chain, has grown quickly. It now has a total of 37 stores, 34 of them franchise operations.

Bridgeman's, established in 1936, will continue primarily as an ice cream vendor. The company, based in Minnetonka, will focus on selling its soda fountain stations and serving food-service clients.

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Medallion Capital and Embers America announces they had closed on a financing package to allow Embers to grow their restaurant chain. The $3 million debt financing will be used to grow their units throughout the Midwest.

Embers America is a unique concept, by which independent operators sign on as franchisees, keeping some of the independent qualities of their restaurant, but taking advantage of being a franchisee of a larger operation. Benefits include purchasing power, reduced operating expenses and increased advertising/ promotion exposure.

"We have 21 core, Embers-branded items that offer consistency from restaurant to restaurant," said David Kristal, CEO and Co-Chairman of Embers. "But each of our operators brings their own identity and charm to their restaurant. We are working with some incredibly talented people who have their own items that they can bring to the table." Each franchisee is required to be on the Embers Intranet, where, for example, if they need a Father’s Day Promotion, Kristal explained, they can go on the Intranet, ask for that input, and by the end of the day, they may have four or five ideas they can run with throughout the system. "It’s been a tremendous tool. We really learn a lot from each other.

Their growth strategy includes the possibility of more than 50 new locations added by the end of 1999. "We’ve set some extremely aggressive growth targets over the next five years," said Kristal. He added that he felt confident that with their branding programs and other benefits to restaurant operators, that they would reach their goal.

Since the launch of their franchise program 10 months ago, Embers America has grown from zero to 23 franchisees, with 29 corporate and franchise locations throughout Minnesota, Wisconsin, Iowa and North Dakota.

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St. Paul’s Embers America has completed a $3 million financing with Twin Cities based Medallion Capital, in a deal expected to lend new momentum to the familiar restaurant chain’s sweeping makeover.

David Kristal, Embers’ CEO, says the money will enable the company to push ahead with ambitious plans to paper the Midwest with its new franchise concept. Kristal describes the financing as the largest injection of outside capital the company has gotten since he returned in 1997 to run the operation.

Embers America, which now has 27 mostly franchised restaurants, wants 70 by the end of this year.

Henry Kristal, David’s father, co-founded the Embers chain in 1956. It flourished until the 1980’s when competition in the tough-as-nails restaurant business intensified from Perkins, Denny’s and other chains.

The family held company has been unprofitable since the 1995 fiscal year ended June 30, but expects to see black ink once again by December. It could have gone out of business, the younger Kristal says, but for the 1997 sale by Henry Kristal’s partner of his stake in the Embers chain to the Kristal family and the changes that followed.

Today, Henry, 66, and David, 33, are co-chairman. They’re being billed as the star attractions early next month at the annual luncheon bash of the Business Economic Education Foundation, where they will tell the crowd how they revived Embers.

The Embers saga brightened considerably when David, who has a law degree from Stanford University, rejoined the company and began rapping out a radically different business plan. The Kristal family- working closely with a fresh management team, franchise specialist Robert Lennie, the Minneapolis law form of Gray Plant Mooty Mooty and Bennett and later the Todd Daniels ad agency in St. Paul- junked its structure of corporate-owned restaurants and turned instead to franchisees.

Their unusual business plan enable franchisees to keep much of their identity by retaining many of their menu items, while also including 20 branded menu items common to all Embers. Awnings and parts of the interior décor are also common throughout the chain, but franchise owners are allowed to retain far more of their own identity that they could at, say, a Perkins.

The universal menu items, such as Embers’ signature "Embergers" and its cinnamon streusel coffee cake, provide much of the business for the franchisees.

Embers America gets an initial $15,000 franchise fee from each owner, plus annual payments of 1 percent of gross sales and 6.5 percent of sales increases. The franchisees get marketing, training, mass buying and other kinds of support from the Embers America management team based at the company’s modest home office behind its anchor restaurant on University Avenue in St. Paul.

"We kept our individuality," says Al Gmeinder, who owns the Sawmill Inn Embers America in Brainerd. Gmeinder, whose family-run Sawmill Inn has been in business for 18 years in Brainerd, says he has maintained his logging theme and boosted sales by 30 percent since becoming an Embers America franchisee.

At Karl and Cindy’s Embers America in Eau Claire, owner Karl Hartkemeyer says, "If I had to do it again, I’d do it exactly the same way." He hopes to do it again soon, at a second Embers franchise in the Eau Claire area

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Once Sagging Restaurant Chain Erases Old Image and Finds New Customers - Finance and Commerce - May 15, 1999

A year ago Embers restaurants conjured a not-so-flattering image of shabby eateries where people could load up with greasy breakfast or grab some grub after a late night drinking binge.

The St. Paul chain’s marquee meals were the $1.99 Blockbuster breakfast and the $3.99 steak and eggs special. But the company was struggling. Starting in 1993, sales declined for the first of five straight years. In a world of Perkins, Denny’s and a zillion other chains competing for customers; hearts and stomachs, Embers future seemed in doubt.

Then founder Henry Kristal and son David restructured the business and began a series of quirky television commercials that have revived the company’s sagging fortunes.

The Embers America chain has gone from 0 to 25 franchises since last June and expects to have 65 restaurants operating under the company’s banner by the end of the year. The chain closed unprofitable restaurants, but still owns and operates four outlets.

How the Kristals managed to resuscitate the company in a highly competitive industry was the subject of the monthly luncheon of the Greater Minneapolis Chamber of Commerce on Thursday. Both Kristals told the audience that their speed of light turn around was almost as scary as it was inspiring.

"The pressure in the past year has been intense," David Kristal said.

He credited several factors for the rebound, including what Kristal called "personality, baby." In an era when every KFC and McDonalds’s looks pretty much the same from one city to the next, Embers America allows a local franchise owners to tinker with their menus and restaurant designs to give each outlet its own personality.

The Embers in Crystal, for instance, might specialize in meatloaf, while the Embers in St. Louis Park might be known for its batter-fried fish on Friday nights. Structurally, the restaurant’s building each have a distinct look, except for their glowing yellow, blue and white Embers signs out front.

"Every one of our restaurants is different; every menu is different; the whole feel is different,: David Kristal said.

At the same time, the company requires consistent levels of service, quality food and cleanliness, he said.

The Kristals also encourage innovation, a company trademark since the firm opened its initial restaurant in 1956. Embers was the first chain in the country to cook meals at customers’ tables, the first family restaurant to advertise on television, the first restaurant besides White Castle to offer news paper coupons, the first to make pancakes from scratch, and the first to serve hamburgers with strips of bacon on them, Henry Kristal said.

In the 1980’s we grew and prospered," he said. But when Embers stopped being creative at a time when new restaurants were entering the national market and others were adding to their menus, the chain began to flounder, Kristal said.

That’s when Kristal bought out his longtime partner and asked his son to come on board. They decided last year to "blow everything up" including their traditional menu, and to start from scratch, he said.

The company also launched a training program for employees, hired a new management team and began project SOAR, a corporate effort that is designed to create a work atmosphere that is supportive, objective, accountable, and responsive.

The Kristals attracted local franchises by offering bargain-basement franchise fees. They charged restaurant owners $15,000 to operate under the Embers logo, compared with fees ranging from $25,000 to $80,000 for franchises with other companies.

Every Embers franchise pays the company 1 percent of its gross sales and a 6 ½ percent fee on its annual lift. Lift is the amount that gross sales increase from one year to the next.

David Kristal, 33, a Stanford University law school grad who serves as CEO of the company, credited his father for taking the financial risk that rescued the company from near ruin.

"There isn’t a person today who would have done the deal that my dad did," he said.

Henry Kristal, 67, who is president of the firm said, he is having the time of his life. Reviving the ailing company has been as much fun as starting it 43 years ago, he said.

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The sought-after Tex-Mex skillet and the Cajon skillet at the Uptowner in St. Paul also will be available across the river next month when Beth and Bonnie's Embers America opens at 33rd and lake in Minneapolis.  Partner Beth Freeburg, who used to run the Uptowner (according to her mom/partner Bonnie Freeburg: "She did everything") took copies of the recipes with her.

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Does Henry Kristal want to be the next Dave Thomas? Is coffeecake really better than doughnuts? Are blue menus unlucky? In the coming months, Henry Kristal and his son, David, may answer these cosmic questions, as they carry out their plan to revitalize the 42-year-old Embers restaurant chain.

Like Thomas, the Wendy’s restaurant chain founder whose low-key commercials have made him a household "face," Kristal is an unassuming, 60-something, successful Midwestern restaurateur, who’s starring in his own series of TV spots. In the commercials, Embers founder Kristal and his son, David (the firm’s CEO), explain their plan to "hit the road" and enlist good, independent restaurants to join Embers America as franchisees. The TV ad campaign is the most visible part of a $5million effort to regain the top-of-mind consumer awareness Embers enjoyed back in the 1970’s when the "Remember the Embers" catch phrase was among the most familiar slogans on Minnesota TV.

St. Paul born Henry Kristal and his then partner, boyhood friend Carl Birnberg, opened their first Embers in October 1956 at 2501 E. Lake. It was a 39 seat diner ("four booths and the rest counter stools," Kristal recalls) financed in part by a loan from a local restaurant equipment supplier. "Back in the ‘50s, there were not a lot of restaurants around other than greasy spoons. At the good ones, it cost $4 to $5 for a steak diner, which was a lot of money in those days. We wanted to give people good food at low prices." The formula worked, and about six months later Kristal and Birnberg opened their second outlet in St. Paul’s Highland Village neighborhood.

The Ember’s chain continued to grow until the early ‘80s reaching a peak of 27 restaurants scattered throughout the five-state-area and $25 million in annual sales in the early ‘90s. After a point, expenses began to grow faster than revenues, and the chain reported its first losses in 1996 and 1997. After Henry bought out this longtime partner, the Embers braintrust pondered ways to spark a turnaround.

Just as Embers was experiencing its own hard times, a number of evolving trends had made independently owned restaurants an endangered species, the Kristals note. Local food-and-beverage markets have become increasingly competitive, with larger, chain players moving into smaller markets they once ignored. Labor costs have also risen due to growing government regulation and low unemployment.

Still, "good operators who serve good food at a reasonable price in a clean environment with outstanding service are going to succeed. That formula, combined with locations that offer great visibility and access, still equates to success in our industry." David contends.

The franchising strategy was hatched during a brainstorming session last September at the Eagan offices of Alliant Food Service that included the Kristals and their COO, Brad Birnberg, son of co-founder Carl Birnberg. Although similar franchising strategies have obviously succeeded in a number of other industries, "no one in our business has attempted to do what we’re doing," David says. "It’s one of those really simple, good ideas. At the unit level, the economics make sense, and it’s relatively easy to roll out."

To use one of the business buzzwords of the ‘90s, it’s all about branding. Independent restaurants who join Embers America gain the benefits of Embers’ long-established Midwestern trademark, along with purchasing power and other economics of scale enjoyed by the big chains. Henry calls it "a David and Goliath plan to give the little guys the weapons to win with" while retaining their independence.

"We discovered there were a lot of independents out there who were having a very difficult time competing with the majors. They couldn’t buy like the majors could, advertise like they could, or afford the training programs.

"There were a lot of things they couldn’t do to compete with the majors yet there are some successful operators out there. We had already established some pretty good purchasing connections, so we put together a plan to allow them to operate as effectively as the biggest chain."

The Kristals worked out a formula with one major supplier that would guarantee pricing to potential franchisees comparable to that enjoyed by majors such as Applebee’s, Perkins, Denny’s and others, then they went out and began to sell the idea. When the Kristals began marketing their franchising concept, they also found some interest among some operators of their "directly operated" restaurants around the five-state area in "buying us out and going into business for themselves." Henry notes, "Part of the what makes the whole program work is that the owners are the operators."

To further modernize, the Kristals have compiled "a huge group" of proprietary recipes and made them available to franchisees on the intranet they’ve developed to link Embers outlets, David says. Franchisees are required to offer 22 of Embers "core" menu items, but retain their own food and drink specialties.

In late ’97, Embers closed 10 under-performing outlets in Minnesota, Iowa, Wisconsin, and South Dakota. In a year of "massive turnaround," we’ve made tremendous progress, although it’s still relatively early to measure results," David says. Still after averaging monthly sales increases of 4 to 8 percent in the first half of fiscal ’98, the chain finished its year with an 18 percent increase in annual sales, to $16.6 million.

Early in 1998 Embers America began selling its franchise concept. The commercials have been airing in two-week bunches since early February, with the goal of achieving 800 "rating points," in ad business jargon- in other words, airing them at the right times and often enough so (theoretically) they’re seen an average of at least eight times by every viewer in the local TV market.

When the Kristals began planning their ad campaign, the original marketing ideas freelancers presented "weren’t believable." David says. "So my dad and I took a step back." The pair decided their best bet was to "tell the world we’re working harder and harder every day to make the customer’s experience better, we actually are doing that. It’s simply applying our internal operations strategy to our marketing program."

Dave Thomas’ familiar Wendy’s commercials did influence the creation of the Embers America spots, David notes. At some point, the Kristals and their marketing advisors realized that the kind of off-beat approach favored by the Wendy’s founder also fit their objectives. "We wanted to be noticed, and to do that you have to do things a little bit differently." David says their ad consultants warned them of the "tremendous risk" of non-actors attempting to act, "particularly as it relates to our credibility with the audience. It was a risk we were willing to take," David says.

Another concern was that after advertising prices for nearly 15 years, "we were deeply concerned that if we stopped adverting price we’d lost 20 percent-plus of our customer base overnight," David says. Still they took the leap; since February 1998, Embers hasn’t mentioned low prices in its ads. "Even in that context, sales have still grown.

In spite of their ad gurus’ misgiving, the commercial roles are not really a stretch for either Kristal, he adds. "I don’t have to act; I just stand up and say what I say all day," says David, who relayed an anecdote that testifies to the believability of the duo’s work at TV pitchmen. In one of the Kristals’ "on the road" spots, they advertise a traffic cop who has pulled them over to try Embers’ coffeecake because "it’s better than a doughnut." Not long after the spot began airing, David was shopping at a convenience store one morning when a fellow customer recognized him from TV and chided him for buying doughnuts.

The commercials also contradicted conventional industry wisdom by not showing food in the spots. To live up to the company’s pledge to constantly work at improving the customer experience, the retrenching plan includes menu revamping, kitchen retrofitting, employee training, and some remodeling. As part of their extensive restaurant redesign, the risk-taking Kristals have also defied at least one restaurant industry taboo by using the color blue in their menus. As another example of their marketing creativity, David came up with a winning gimmick for the legions of calorie conscious diners with cravings- "the world’s smallest hot fudge sundae" for 35 cents- subsequently augmented the "world’s smallest cheesecake."

The Kristals’ message seems to be getting across. In early November they signed their 14^th and 15^th Embers America franchisees, in addition to six previously corporate-owned units that have been taken over by former Embers employees. What David characterizes as "pretty aggressive" goals include 50 new restaurants in 1999 and 1,300 over the next five years. They hope to move into the St. Louis and Kansas City markets in the next year or so, extending their reach one TV market at a time.

The TV commercials’ simple, direct message has apparently hit home, Henry says. "We’ve gotten many, many calls from people who know we’re doing this and want to see their local, family restaurant do well. They’ll call and say, ‘There’s "x" restaurant in Brainerd; you really ought to go see them.’

"We believe very strongly we’re creating opportunities for owner-operated restaurants," he adds, pointing out he’s "always been a fighter for the little guy" as a Minnesota Restaurant Association board member. "One reason the formula is so compelling, it’s the ideal system for independent restaurant operators to become part of a family without giving up the identity they’ve worked to build for so many years. I love it because it works for the ‘ma-and-pa’s’- which I like to think we are, too." Will Henry Kristal

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At 33 Embers America CEO David Kristal has given up the practice of law and a secure position to run his family’s slipping chain of restaurants. Can he re-ignite the glory of Embers past?

Rekindling an old flame

In the wee hours of morning not long ago, a herd of bleary-eyed Uptown bar-goers rolled into a booth at Embers America on Hennepin Avenue. Hungry, thirsty, and not exactly sober, a glimmer of recognition flashed across their faces as Embers America CEO David Kristal filled their water glasses. "You look just like the guy in those TV commercials," one of them said.

"Really? Well I am that guy," Kristal replied.

"No way. We’re coming to this restaurant for the rest of our lives!"

Kristal laughs at the end of the story, turning heads at nearby tables during a recent interview over pancakes and coffee at the Embers America on University Avenue in St. Paul. Tall, slender, and possessing a ready, high-voltage grin, you might not guess that the fate of his family’s business rests on his shoulders. Named company CEO last year, the 33-year-old Kristal, who spent the first seven years of work life as a high-powered lawyer and business developer, is directing an aggressive franchising program designed to revive the struggling restaurant chain. He’s also throwing himself into the project with extreme energy, an approach that has him busing tables at 3 a.m. and starring in a clever series of TV commercials with his father, Embers co-founder Henry Kristal, 66.

Are the efforts working? While the franchising program seems to be making progress, it’s too early to tell. And, behind the high-energy antics lies a daunting challenge for the younger Kristal, but one that he couldn’t refuse.

David and Goliath

On a Tuesday night last May, David Kristal was eating at J.D. Hoyt’s in downtown Minneapolis, when he spotted a man who looked like Roger Enrico, CEO of PepsiCo Worldwide. "One of the guys I was with said , ‘Yeah, it looks like Enrico.’ So I’m on him in a matter of seconds," Kristal says, as he leans forward excitedly. "I introduced myself as the CEO of Embers America. And then Enrico said, ‘We were just talking about the Embers America brand and what you’re doing in the market place and how timely we think it is.’ And he [Enrico] proceeded to tell me about our concept for the next 20 minutes."

In short, the Embers America franchising plan must be making news if it’s reached Enrico’s corporate circles. The idea is to recruit successful independent restaurateurs throughout the area as Embers America franchisees. Here’s how it works: for a $15,000 franchise fee, a 1 percent royalty on gross sales, and a 6.5 percent royalty on any increase is sales after the franchise agreement is signed, a local restaurant, say, "Sam’s Family Diner," can become Sam’s Embers America. "What we do is the ultimate in co-branding," says Kristal. "We capture the advantages of large-scale restauranting with the real identity and charm of the local mom-and-pop diner."

Why would a local diner want to join Embers America? In addition to saving 30 percent on food and supply purchases through collective buying power, Kristal explains, there’s the benefit of collective advertising power- a huge advantage, particularly for restaurants on highway locations in heavy traffic streams. Highway drivers usually can choose from such well-known options as Denny’s, Perkins, McDonald’s, and Burger King, along with a lonely independent like Sam’s Family Diner. Statistics show that most people won’t stop at the independent because they don’t know what they’re getting. The logic of Kristal’s concept is that when presented with Sam’s Embers America, people will know the brand, and therefore will be more likely to eat there. Says Kristal: "It’s the classic David-and-Goliath story. It’s the little guys fighting back against the bigger players coming to town."

One such "little guy" is Dennis Kroshus president and CEO of Randy’s Family Restaurants in Fargo, North Dakota. Kroshus began thinking about becoming an Embers America franchisee when Fargo underwent a franchise explosion that created 57 new restaurants over a two-year-period. Randy’s Family Restaurants had been voted the top family restaurant in the Red River Valley, but sales weren’t reflecting that. Desperate to save his business, he began looking for a way to fight back. Says Kroshus: "I saw the [Embers America] commercials about the time I was saying, ‘What am I going to do about all these franchises taking my business away?’ "

A former Perkins franchisee, Kroshus was impressed by the fact that it only cost him $15,000 to get started with Embers America. Other franchises demanded $275,000 and would have required him to gut his entire building. As an Embers America franchisee, Kroshus must offer certain core items- Embers America pancakes, burgers, chicken sandwiches, and French fries- but he can keep his own signature menu items. While he has to use Embers America signs, menus, and awnings, he can retain the other elements of his restaurant’s unique look. "Others are more expensive and you have to do it exactly the way that they tell you," he says. "Embers says, ‘You have to do these items, and you can do the rest however you want.’ They don’t want to run your business."

As for results, Kroshus says he’s seen a 20 percent increase in revenue since switching to Embers America. He also notes that David Kristal was the one who ultimately convinced him to take the plunge. "They weren’t a voice in the industry until David got in there and started kicking butt," he says. 

A young punk from Minnesota

David Kristal has taken a roundabout path to the Embers America CEO position. After graduation from Stanford Law School in 1990, he accepted a position with Winthrop & Weinstine, a St. Paul- based law firm known for its entrepreneurial spirit.

The Highlight of Kristal’s law career came when he was serving as one of two Winthrop & Weinstine lawyers representing a small Atlanta company bidding on the contract to clean up and restore New York City’s World Trade Center after it was bombed in 1993. Despite some intense competition from Fortune 500 firms and the New York Port Authority, Kristal’s client won the contract. Says Kristal: "People were looking at us and saying, ‘Who are these punk kids from Minnesota?’ "

While successful, Kristal left the law when he realized he was more interested in business. "The part I liked most about it was the business of law: putting deals together, negotiating," he says, "I didn’t like having to draft documents or doing a lot of writing or research."

The family business also played a role. After leaving Weinstine & Winthrop in 1993, Kristal logged on his first block of time on the Embers rescue squad. Frustrated by the chain’s sagging sales, and thinking new blood might help, Henry Kristal asked David to join the firm. Carl Birnberg, the elder Kristal’s business partner and company co-founder, brought in his own son Brad as well. It didn’t pan out. Frustrated by continuing disagreements and a lack of progress, David Kristal ended his stint as company vice president and general counsel after only two years.

In 1995, Kristal went to work for Weisman Enterprises, a Minneapolis-based development firm. At Weisman, he helped develop Cum Laude, a consulting company that works with colleges, universities, and school districts to help generate new forms of revenue and develop private-public partnerships.

While he says he enjoyed working at Weisman, Kristal’s next job offer came in the form of a plea for help, and contained a dimension no amount of recognition or mega-bucks salary could match. The call was from Dad, asking him to save the family business.

Remember the Embers

Even though he turned the leadership of Embers America over to his son last July, Henry Kristal still puts in full a work week at the company’s corporate headquarters in St. Paul. A white-haired man with a gentle demeanor, he has a mischievous twinkle in his eye, one that makes you believe he relishes the nutty Embers America TV commercials. (In one, he dressed up as George Washington, complete with Revolutionary War-era clothing and a powdered wig.) As he carves a path through the crowded dining room to the corner booth just vacated by David, he smiles and waves at customers, many of whom he knows by name.

Henry Kristal met Carl Birnberg when he was in fifth grade. Both had mothers who were wonderful cooks. When the pair entered the Navy together, they soon grew tired of eating greasy-spoon hamburgers, but found that they could afford little else on a sailor’s salary of $17 or $18 a month. Navy food—"a bunch of mashed potatoes and a whole lot of overdone meat," according to Kristal- filled their stomachs, but didn’t measure up to home cooking.

As two slices of coffee cake drizzled with melted butter arrive at the table, Henry Kristal recalls how he and Birnberg came up with the idea for the first Embers. "We used to write back and forth to each other," he remembers. "We’d say, ‘Wouldn’t it be great if there was a place that common people could go and have a good meal for a low price?’ That became our goal."

In 1956, the pair opened the first Embers on East Lake Street in Minneapolis. It was an immediate hit. From that first year, through the 1960’s and 1970’s, the company’s flames burned hot. By 1978, there were 26 Embers in Minnesota and across the upper Midwest.

Along the way, the company reinforced its brand with a number of cool innovations. It led the charge in offering big burgers made with high-quality cuts of meat, and Kristal and Birnberg swear they were the first restaurant to put bacon and cheese on a hamburger. They also note that Embers was the first restaurant chain to advertise on television, the first to advertise on television in color, and the first to run coupons in the newspapers.

In the 1980’s, however, when Embers began advertising low-price discount meals like its "Blockbuster Breakfast," the company began to slip. Although the discounts brought more people into the restaurants, they also caused the chain’s profit margins to gradually shrink. Henry Kristal says he never intended to serve low price breakfasts 12 months out of the year, but he and partner Birnberg disagreed about how long to adhere to the discount price strategy. "Henry and Carl had very different philosophies about the business," says Brad Birnberg, who is now the chain’s chief operating officer. "Henry’s very aggressive. He’s a risk taker, and my dad is more conservative."

By the mid 1980’s, the discounts were sucking the life out of the company. Henry Kristal and Carl Birnberg found themselves without enough money to renovate their restaurants- something they normally had done every five to six years. Then came another wrong turn. Embers finally raised prices on discounted items that had been bringing people in the door. The result: "We lost those people," says the elder Kristal. "You can’t raise prices in this business and maintain your customer base. They know it right away."

The 1980’s also ushered in some new competitors to the family-restaurant niche. Quite suddenly, well-funded players such as TGIFriday’s, Applebee’s, Chili’s, and others began taking a huge bite out of the Embers customer base. Embers also made things worse by developing an inconsistent reputation. "Some times it was good and sometimes not," says Brad Birnberg. "It may have taken a little too long, it may not always have clean, the service may always not have been great, but the food was always high quality."

Henry Kristal says he and his ex-partner don’t spend time casting blame for the mistakes of the past. "There are things we could have done that would have prevented us from going into a tailspin, but that’s water under the bridge," he says, "Now, David’s doing positive, fun things."

The Right Man for the Job

David Kristal says he knew things had to change in order for the company to survive. Growing up, he had worked as a cook and waited tables at the Embers on Robert Street in West St. Paul while attending Sibley High School and the University of Minnesota. Later, he still ate at Embers often enough to see that things were headed in the wrong direction. He just didn’t think he would be the one to set it right again.

During a series of Kristal family gatherings in 1997, Henry talked to David about taking over as CEO of the family business. Henry had recently bought out Carl Birnberg, and he sensed the time was right for a change. David was the natural choice, given that the Kristal family now controlled 100 percent of the business. "When he was working in the law firm, I used to think it would be nice to have that kind of intellectual level in our company," Henry says. "I never dreamed it would happen."

Before returning to the company, however, David Kristal made one demand. "I said, I’ll come back to the company, but there can be only one decision maker, one leader,’ " he recalls.

The elder Kristal immediately agreed. "It was a nervous decision for somebody my age, especially when the company had been going backwards, to take a youngster who is on the threshold of a brilliant career and let him leave that career," Henry says. "I felt very guilty and very nervous for a long time, and I will until we’re sitting back on top again."

Despite such pressure, David Kristal certainly doesn’t act nervous, and he says he has no regrets about the decision to return. Still, the road ahead looks tough. In order to put Embers America back on top, he’s had to commit to some aggressive numbers: 50 new franchises by mid-1999 and an additional 1,300 over the next five years. Because the Embers America franchise program is designed to bring local restaurant owners on board quickly, however, Kristal is confident he can reach those big numbers.

Talk to Kristal for a few minutes and it’s easy to see that he loves the challenge, however intimidating it seems. "Once it’s [the restaurant business] in your blood, you can’t get it out," he says, displaying the big smile. "It’s high energy, high pressure and high stress. It’s a blast."

Even his friends from the fast track aren’t really surprised to see him enjoying himself. Juan Saboter, a long-time friend of Kristal’s from law school, says David seems to be in the right place. "He could make so much more money doing something else, but I’m surprised he didn’t [return to the family business] sooner," Saboter says. "David’s a family guy through and through."

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Three hometown restaurants joining forces under the Embers America brand to fight back against the invading industry giants by cooperative purchasing, marketing and community action raised $1,111 for Roger Maris Cancer Center in Fargo.

Pictured (R to L) are: Brad Faudrich, owner/operator of Village West Randy’s Embers America; Dennis Melander, manager of Embers America on Main; Dennis Kroshus, owner/operator of Randy’s South Embers America; and Jane Bartholomay, director of Annual Giving at Roger Maris Cancer Center.

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Expanding Franchise Program Focuses on Family Owned Restaurants

MINNEAPOLIS – Oct. 22, 1998 –

Officials at St. Paul-based Embers America today announced plans to introduce new ownership at seven of its Minnesota restaurants.

Effective immediately, Embers America will welcome new franchise owners at the existing Edina, Uptown, Maplewood, St. Louis Park, Hudson Road, Rochester and Mankato locations. These new owners will operate the franchise locations as Embers America continues to expand its franchise concept throughout the Midwest.

"We are thrilled with this new group of franchise owners," said David Kristal, CEO and co-chairman of Embers America. "Based on their collective experience and talent, we’re convinced this is the most appropriate strategy to help us achieve our objectives."

Those objectives include the possibility of more than 50 new locations to the Embers America program by mid-1999. These additional family-owned restaurants will have an opportunity to maintain their current name, signature menu items and identity while benefiting from combined purchasing power, reduced operating expenses and increased advertising/promotion exposure.

"We’ve set some extremely aggressive growth targets over the next five years," said Kristal. "With our branding program, which offers independent restaurant owners additional opportunities to better compete against the large national brands, we fully anticipate reaching those objectives."

Already this year, Embers America, a network of independently owned and operated restaurants in Minnesota, North Dakota, Wisconsin and Iowa, announced plans to partner with the current owners of St. Paul’s Downtowner to operate Eddy’s Embers America and with a Fargo, North Dakota-based restaurant group to operate two Randy’s Embers America locations. Several other locations have been converted to franchise operations.

Embers America, a revolutionary new franchise program linking independently owned restaurants, was formed in 1998. With 19 locations throughout the four-state region of Minnesota, Wisconsin, Iowa and North Dakota, Embers America serves more than 2.6 million customers each year.

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When you’re a small time family restaurant chain, stagnation can easily become a way of life. But for David Kristal, CEO of Embers, that way of life was getting old. The 26 units in Minnesota, Wisconsin, the Dakotas, and Iowa had been steadily losing money since the 1970’s. "We’ve been in survival mode until now," says Kristal, whose father, Henry, founded the chain in 1956. Sales had hovered around $22 million since the early ‘80s, as costs and competition continued to escalate. Sales peaked at $22.5 million in 1993, but then fell 8% in the next four years to 20.7 million by the end of fiscal 97’. Problems ranging from poor management to lackluster service plagued the restaurants, and competing casual and family chains muscled their way into Embers’ territory.

To attempt to comeback, the chain is currently in the midst of a $5 million repositioning effort, the crux of which is a franchising concept called Embers America, which Kristal dubs "an umbrella company for mom-and-pop restaurants." Targeting independent family restaurants along major freeways and secondary highways throughout the country, Kristal hopes the concept will combine Embers’ organizational and marketing clout without sacrificing the franchisee’s personality. "It’s really the ultimate in co-branding," he says. "The mom and pops are trying to fight against the big chains, and this gives them the financial backing to do that."

Embers, started in St. Paul by Henry Kristal and Carl Birnberg, became known in the Midwest for big burgers and comfort foods. Local legend has it that the chain invented the bacon cheeseburger and was the first 24-hour restaurant in the country. Its slowdown began in the ‘70s, followed by "very uninspiring financial results in the last 15 years," according to Dick Youngblood, a business writer at the Minneapolis Star Tribune.

The real downturn came in the mid- ‘80s, when, according to Kristal, management "stopped managing the restaurants and became caretakers. Service wasn’t a concept to them, and things just fell by the wayside."

To counter that particular problem, Embers has invested in an employee retraining program called SOAR, designed to promote entrepreneurial thinking and customer satisfaction. "SOAR stands for Supporting, Objective (in feedback), Accountable for actions, and Responsive to needs," he says.

Embers’ struggles weren’t limited to its customer service, though. "They also had some internal problems," says Youngblood, including a difference of management strategies by its co-founders. In early 1997, Birnberg retired, and Henry Kristal hired his son David as COO. Birnberg’s stepping down proved to be the catalyst the Kristals were looking for. "That’s when we could finally start to make changes," he says.

The Kristals immediately jumped into rehaul mode. "Our philosophy was start with the menu and go from there. Then we wanted to really blow up the advertising and marketing- we wanted to get away from the price." So far,