Despite its initial failure in both the Chattanooga and Memphis markets, officials with The Melting Pot want to expand the fondue restaurant chain across Tennessee with new franchisees.
To entice potential restaurateurs to re-open the shuttered stores, the Melting Pot announced a plan to offer its "Path to Grow" financing for those who want operate the existing Melting Pot location in Chattanooga or Memphis but don't have the resources needed to build a new unit.
The Melting Pot closed its Chattanooga restaurant near Hamilton Place mall in September 2012 after three years of operation. But the parent company says there is still an opportunity for the right franchisee partner to potentially reopen the former location or open a new Melting Pot restaurant at a new site in the market.
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The former Melting Pot on Lifestyle Way in East Brainerd has remained empty and store officials said a new franchisee could use that site to enter the market for only a fraction of the typical $1 million expense for a new Melting Pot store.
"Our new financing program combined with our reduced franchise fee offer is giving entrepreneurs with restaurant operations background the ultimate turnkey business opportunity so that they can hit the ground running." said Mike Lester, president of The Melting Pot.
Among 130 restaurant locations, the Melting Pot operates successful units in three other Tennessee towns: Gatlinburg, Knoxville and Nashville.
But Dan Stone, vice president of franchise development for the Melting Pot, said the former franchisees for the fondue restaurant chain in both Chattanooga and Knoxville "turned out not to be the right fit" and both got caught in the recent economic downturn.
""Finding the right franchise candidate is not a perfect science," Stone said Tuesday. "While we've had a lot of success with husband and wife teams from outside of the restaurant industry like what we had in Chattanooga, they just didn't work out in Chattanooga. When they made some unfavorable marketing choices with Groupon discounts and the recession hit, they had trouble making it go."
Since then, the economy and the geography of the East Brainerd site have improved with new hotels and stores moving into the area.
Customers cook their own meals in fondue fashion at the Melting Pot, making the restaurant "a very unique concept," Stone said.
Although the company has targeted Chattanooga and Memphis as potentially successful markets, Stone said both cities "are one pot towns" and the company is not looking for multiple stores in either city.
In Memphis, Stone said the former franchisee "unfortunately made some bad decisions" but the company has maintained a strong Memphis tie with more than $9 million of support of the St. Jude's Children's hospital over the company's 40 year history.
Stone said most of Melting Pot's expansion this year will come overseas with units in Asia and the Middle East. Domestically, the company is targeting growth markets, including Anchorage, Alaska; Dallas, Hartford, Conn.; and Los Angeles.
The Melting Pot was recently ranked sixth out of 38 concepts in the casual dining segment of the Nation's Restaurant News 2014 Consumer Picks Survey.
The Melting Pot offers an assortment of flavorful fondue cooking styles and a variety of unique entrées served with signature dipping sauces. The menu features a variety of la carte selections, highlighting customizable options that invite guests to enjoy one, two, three or more courses as they select any combination of individually-priced cheese fondues, salads, entrées and chocolate fondues.
Contact Dave Flessner dflessner@timesfreepress.com or at 757-6340.
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