When Mike and Linda Fujita visited Edmonton in the fall of 2007 for a family reunion, they happened to see a line of people extending out the door of a local business. "We thought we should stop and see what all the hoopla was about," says Mike Fujita. "It turned out to be a bread store."
To be exact, it was a COBS Bread store. Curious about the commotion, the couple got in line. "We thought we'd take some to the reunion and see what everyone thought," says the 49-year-old. "And, well, we just fell in love with it. That was our first inclination that this might be what we wanted to do."
While the Fujitas had never heard of the COBS bakery franchise until that moment, the first Canadian location opened back in 2003. The chain is an offshoot of Bakers Delight, an Australian company launched in 1980 that has 650 stores in Australia and New Zealand. Since the Bakers Delight brand had already been claimed in Canada by a muffin-mix producer, the Canuck division was renamed COBS, which stands for "celebration of breads." COBS now has about 60 corporate and franchisee locations in Ontario, Alberta and British Columbia, and plans to open as many as 100 stores per year in Canada over the next five years.
The franchise has staked its reputation on being every neighbourhood's "local baker." Most stores are located in residential districts and endeavour to become a household name in the community by regularly handing out product samples, taking part in civic events and supporting local charities. And each store makes its own baked goods on site every morning, starting in the wee hours, so the product hits the shelves hot from the oven.
When the Fujitas fell in love with the COBS concept, they were operating a Chevron gas station attached to a Triple O's fast-food restaurant in Kamloops, B.C. "It taught us a lot about how to run a successful business, but we were at the point where it wasn't challenging any more," says Fujita. Chevron's business model is more a leasing arrangement than a franchise; after 13 years, "we wanted something of our own," he says.
Fujita contacted COBS's Canadian head office in Burnaby, B.C., and forwarded his resumé. He learned that the average cost of a franchise, including construction and equipment, was $450,000. This would be a significant investment for the couple, who would need to obtain a small business loan.
As a first step in acquainting aspiring franchisees with its bakery business, COBS requests that they attend a two-day orientation session conducted by the company's manager of training and development. Fujita was asked to show up at a company-owned location in Vernon, B.C., at 3 o'clock in the morning on both days. (He stayed overnight in Vernon, on his own dime-the rule rather than the exception throughout the training program.)
Looking back on those early days, Fujita doesn't hesitate to admit that he had his doubts. "I never had any inclination to be a baker," he says. "I was definitely scared. But that's the great thing. They can teach just about anyone to bake." The first morning, he was put on "the bowl," where the ingredients are mixed. From the bowl, he moved to processing-where the bread is shaped-then to the oven, and finally to customer service.
COBS's screening regimen includes financial and criminal checks on all candidates, and an interview with the company's vice-president of franchising. "I came out of the interview feeling really confident," says Fujita. He knew that a handful of other applicants were vying to get a COBS location in his hometown of Kamloops, but thinks his track record with Chevron pushed the decision in his favour. (COBS's acceptance rate for potential franchisees is relatively low: Only about 20% of those who express interest qualify, and only about half of those who qualify actually go on to become franchisees.)
After an additional three weeks of orientation-this time, in Port Coquitlam, B.C.-COBS gave Fujita a week-long "cooling-off period" to consider whether he wanted to take the final steps toward becoming a franchisee. He took the timeout, but he didn't change his mind.
