Cheese Biz Hoping To Go National

Dirk Bruley and his wife, Wendy, opened their first Chedd's Gourmet Grilled Cheese restaurant in Denver's Uptown neighborhood in the spring of 2003. Now, with two locations and four years of experience, the Wisconsin-themed grilled- cheese joint, with its 35 cheeses, 12 breads and various meats and vegetables, is looking to go national.

Bruley, a Wisconsin native, and business partner Jamie Jalazo are finalizing the approval that would allow Chedd's to franchise in all 50 states.

By franchising, the group hopes to join a long list of homegrown success stories. The International Franchise Association, which assists and advocates for franchisers and franchisees, has 50 Colorado- based members spanning various sectors.

The most successful among them are major players in their industries: Quiznos Sub in Denver has 4,000 sandwich shops around the world; real estate company Re/Max, also from Denver, has more than 6,000 offices in 63 countries; and Centennial-based tire retailer Big O Tires has 540 locations in 21 states and Canada.

But Chedd's is also entering a crowded market that has seen several local upstarts, including Heidi's Brooklyn Deli, Spicy Pickle and Blokes BBQ (which operates as Brothers BBQ), jump into the franchising fray.

Franchising is a risky and expensive proposition, especially for a company that is still relatively young, said John Imbergamo, a marketer with experience working with restaurants.

The three things a potential franchisee looks for are a proven system, a marketable brand, and a recognizable look and feel, Imbergamo said.

The look and feel of Chedd's Denver location is a motley assortment of inherited tables and plastic lawn chairs, as well as a lot of Wisconsin memorabilia, including plastic blocks of cheese, more than 100 wall-mounted 'Sconsin license plates and a Cheesecyclopedia.

But Bruley and Jalazo have designed logos, menus and uniforms - black-and-cheddar- orange shirts with checker-pattern collars. They also have a prototype of the diner table with a cheddar-orange surface that will be the standard in Chedd's stores.

The goal from the beginning was to franchise, Bruley said.

"We never opened this business to make grilled-cheese sandwiches the rest of our lives," Bruley said. "I like helping people get going, working with a new owner and helping them be successful. That's what I find rewarding." By going national, Chedd's is looking to capitalize on the boom in the "fast casual dining" genre, defined as restaurants offering the speedy service of fast food with higher-quality meals.

Fast casual, which includes restaurants such as Chipotle and Noodles & Co., is a $70-billion- a-year industry, according to trade magazine Fast Casual. It's also one of the fastest-growing.

In Colorado, the creation of fast-casual concepts is hotter than a Chedd's panini grill.

"When you look at in terms of successful operations, Denver is kind of the birthplace of fast casual," Imbergamo said.

Bruley noticed the trend five years ago, eventually deciding on grilled cheese after seeing that no one else was doing it.

"Not to bad-mouth McDon ald's or Wendy's - I've eaten there enough times in my life - but people don't want to eat that all the time," Bruley said. "But they also don't have a two-hour lunch where they can sit down." Bruley, 41, and Jalazo, 39, come from business backgrounds, with Bruley managing the National Car Rental franchise at Denver International Airport. Jalazo worked in marketing.

"A lot of people don't think we can make it happen because maintaining 35 cheeses is very tough to do, but we continue to break through barriers of traditional restaurateuring," Jalazo said. "There's just no one else doing what we're doing." Staff writer A.J. Miranda can be reached at 303-954-1381 or [email protected].

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