Springfield to get Dagwood’s Sandwich Shoppe

The Dapps, who already own Business Financing Solutions Inc. and TP Dapp and Associates, have become market partners for Dagwood’s Sandwich Shoppes LLC.

In that role, they will open at least one fast-serve sandwich shop and sell about 64 more franchise locations. Their territory includes Springfield, Joplin and Kansas City.

“We’re absolutely thrilled to be a part of this,” said Tom Dapp, who plans to open his first restaurant at an unspecified south-side Springfield location by May 15.

Dagwood’s Sandwich Shoppes has headquarters in Clearwater, Fla., and is based on “Blondie” comic strip character Dagwood Bumstead.

The restaurants feature more than 20 sandwiches, soups and salads. Sandwich offerings include hot pastrami, tuna melt, New Orleans roast beef po’ boy, turkey avocado club and the Dagwood, which features three slices of deli bread with 12 toppings for $8.90.

Unique business model

Springfield will be one of the first cities with a Dagwood’s Sandwich Shoppe. The company launched less than a year ago and opened its flagship store just four months ago in Palm Harbor, Fla.

There are currently only three locations open, all in Florida, with about 20 more under development.

However, company officials plan to have at least 3,000 restaurants operating coast-to-coast within five years.

CEO Lamar Berry, who co-founded the company with second-generation “Blondie” creator Dean Young, said they should have 60 restaurants open by year’s end, with about 350 more opening in 2008.

“Dagwood’s is going to be a formidable force,” Berry said. “We’re pretty comfortable saying that now because of the early demand (for) and success of our market partner territories.”

Dagwood’s Sandwich Shoppes has established 89 market territories. Market partners are responsible for selling restaurants to franchisees in their territories.

The company has sold about 20 market territories, which cost between $100,000 and $300,000.

Meanwhile, franchisees pay a $20,000 franchise fee per store and pay 6.5 percent royalties. Startup costs for franchisees should be about $250,000, Berry said.

Market partners pocket 70 percent of the franchise fee and 40 percent of the royalties for their efforts.

“The model, I think, is a pretty interesting one,” Berry said. “You have a fully operating franchise support arm in the Springfield area.”

Dagwood’s Sandwich Shoppes admittedly is undertaking an aggressive expansion plan, going from zero to 3,000 restaurants in just five years. Its CEO says that’s a realistic goal, because sandwich restaurants are increasingly popular, especially with baby boomers, and they’re relatively easy to operate.

But with Subway and Quiznos already operating thousands of locations nationally, is there room for another sandwich-shop chain? Subway, for example, has more than 20,000 locations in the United States and another 7,000 in other countries.

Berry says there’s room. So does Rob Wilson, public relations coordinator for Subway.

“We welcome the competition,” Wilson said. “Whenever another sandwich competitor opens, it simply makes customers more aware of sandwiches as an option to greasy burgers.”[[In-content Ad]]