The funny name came together quite by accident, but the formula for the success of Hogi Yogi Corp. was meticulously worked out.
"I had been a certified public accountant for five years," said company founder Mike Clayton. "At that point in my life - I was 27 - I decided I wanted to go into the fast-food industry, but it wasn't until I'd done a lot of research that I knew what it should be."He concluded that the '90s would be a decade of health consciousness - healthy people who wanted healthful foods that fit into their fast-paced lifestyles. He decided to offer a healthful sandwich with a healthful dessert and make it fun.
He had a friend whose father had invented a dessert machine that used natural yogurt without adding air or sugar. The results tasted like ice cream and even had the texture and appearance of ice cream, but with the nutritional value of yogurt.
Clayton enlisted a few investors to take a risk with him. They went through "hundreds of names" until one Sunday at the family dinner table, someone made a joke about his "hogis and yogis' and the name stuck.
"That was it. At first, everybody thought it was funny and a few probably wondered if we were serious," said Clayton. "But it's something people remember. It's been a good choice."
He chose lively decor in maroon and teal, with black and white checkerboard trim. Every store would have a light and airy look, with campy art and Dalmatians on the walls.
He set prices to appeal to the budget-conscious.
That was five years and four stores ago. Today, the original Orem store is just one of 78 Hogi Yogi's that will be open in Utah, California and Arizona by the end of 1995.
In another three years, Clayton expects the franchise to be known nationwide. He is already involved in site selection and franchise negotiations in Oregon, Washington, Colorado and Texas.
"We'll take over from the West this time," he laughed.
"It's caught on really well," Clayton said, "Even better than we'd hoped. I was going to be content with just the four stores. The growth has amazed us."
Clayton said he didn't start out expecting to franchise. However, after his stores were successfully operating in Logan, Orem, Provo and West Valley City, the demand dictated that he consider it.
But he insisted that franchising the stores would wait until he "perfected" what he had - stores showing "healthy" profits.
Since then, it's been a roller coaster ride to keep ahead of the Hogi Yogi train. Would-be investors call him constantly, eager to get in on the ground floor of what seems to have the promise of becoming a major chain.
Clayton is hard pressed to make it to every store opening. He's having to schedule time for himself and has had to learn to delegate responsibility. That's been tough because he prefers a hands-on style of management and has very specific ways that he wants things done.
"All of the products must be approved so they will not vary," he said. "We want customers to get the same sandwich in American Fork that they get in St. George."
Customers seem to like the low-fat menu, ranging from a variety of sandwich choices (98 percent fat-free meats on white or wheat fresh-baked buns) to yogurt - chocolate or vanilla - with a choice of hundreds of mix-in combinations of fruit, candy, cookies, even apple pie. Clayton's personal favorite is the barbecue chicken sandwich and chocolate yogurt with almonds.
Clayton says he hires people who know how to make a customer feel welcome. At the same time, he says, he trains them to be quick at making a sandwich and ready to acknowledge that the customer is always right.
"The employees are the heart of our business. They create an atmosphere and mood that brings people back in."
In return, Clayton feels the corporation tries to treat its employees well. He hopes many of them, hired while still in high school and college, will make Hogi Yogi a career.
He has opportunities for managers, which can provide them a stepping stone to good business experience and lifetime jobs as franchise owners.
"Making something happen is really where it's at,' said Clayton.
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ADDITIONAL INFORMATION
Clayton's suggestions for new entrepreneurs
- Have enough investment capital to weather at least the first two years and unforeseen circumstances, such as Utah's winter weather, which slows the sale of yogurt during part of the year.
- Don't over extend yourself or your means. Make sure what you have to sell is profitable.
- Look for honest, hard-working employees.
- Buy right, the right products at the right price, the right location.
- Never short the customer on quality.
- Recognize that word-of-mouth is the kind of public relations communication that moves faster than any other medium.
- Maintain quality employee relationships. Learn delegation.
- Avoid debt as much as possible.
- Regard the competition as a healthy part of the marketplace.