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Tulsa man wants to expand Dippin' Dots franchise
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January 25th, 2009


Ryan Hausher foresees great opportunity in Oklahoma's first full Dippin' Dots store.

But he anticipates even more potential building sales beyond that 906-square-foot Promenade Mall site, which he sees as a launch pad for offsite sales.

"Our goal is to do as many outside sales as possible - fundraisers, catering, corporate events ... anything fun," said Hausher, a franchise industry and corporate American veteran. "I'd like to take the three franchise locations that I have now and develop an attraction in each area where Dippin' Dots is the go-to company when you want to raise money."

At $12,500 each, his new firm Ryadd LLC of Tulsa acquired franchise kiosks from the 22-year-old ice cream chain at the Towne East Mall in Wichita, Kan., at the Northwest Arkansas Mall in Fayetteville, Ark., and at Tulsa's Promenade Mall.

While these kiosks offer lower costs, Hausher said the smaller platforms not only restrict the number of flavors he may stock - such as Strawberry Cheesecake, Java Delight or Birthday Cake - but also don't allow room for distinctive products like Dot Cakes, Dotwiches, or Dots'n Cream.

And there's definitely no room for shakes, malts, sundaes or other traditional treats made more distinctive by the cryogenically frozen pellets, which must be stored at 40 degrees below zero.

So Hausher took his Promenade location to a leased storefront, the first in the Sooner State for the Paducah, Ky., company. He will celebrate its grand opening Jan. 24.

"We thought we'd pioneer the inline store in Oklahoma and make it as successful as possible," he said.

The choice increases his cost from the $30,000 to $60,000 expected for a kiosk to the $80,000 to $235,000 he said may accompany an inline store. Since the Promenade slot formerly housed a Dairy Queen, providing all the necessities for a food operation, that limited his expenses to cosmetic changes - color scheme, signage and the like.

Hausher estimated his initial investment at less than $100,000, although he plans to move the Wichita franchise to a smaller mall in Fort Smith, Ark., for closer proximity. He hopes to record monthly sales of $7,000 to $15,000 at the kiosks and $15,000 to $25,000 at the Promenade storefront, with a minimal staff of three employees at each location.

"That's the beauty of it," he said. "You don't have such a vast menu that your labor eats you up."

The extra room at Promenade allows Ryadd to stock and manage offsite events, either through direct sales or by staffing booths. He already has deals to sell Dippin' Dots at festivities with Union High School and Guts Church in Tulsa.

"Events are where I'd like the lion's share of the profits to come from," Hausher said. "It's great exposure for the product, it's great exposure for the company, and we're able to give a little back."

Such offsite sales also allow him to expand Ryadd's franchise area without adding storefronts.

"Dippin' Dots as a store is very accommodating in your ability to branch out," he said. "My goal is to have more outside business than inside business."

The larger Promenade spot also gives Ryadd room to create new specialty products like the Birthday in a Box, which features a Dippin' Dots cake, balloons, hats and other celebration fixings for 12 to 14 people. Its price remains undetermined.

Getting into business for himself promises a quality-of-life change for Hausher and his 13-year-old daughter, Addison. Their first names determined the company's moniker.

"She can't wait to help out in outside events this summer and learn the ropes," he said. "Maybe one day she'll have an empire to take over."

That depends on his starting and building a business under one of the worst economies in decades. But with long-term relationships under two lenders to draw from, Hausher remains optimistic.

I think something fun is always good to bring to kids and adults when times are tough," he said. "Even in tough times, people still want to be happy and eat ice cream."

He has already fielded expansion offers from other malls in Oklahoma. In February he intends to launch a Dippin' Dots vending machine in a Bartlesville shopping center. The Dripping Springs Yacht Club at Grand Lake may receive one this summer.

An inline store at Quail Springs Mall also may develop this year, providing a similar events platform in Oklahoma City.

"We just watch how we expand and do it very methodically and definitely not try to overexpose ourselves," he said of expansion. But he also pointed all such moves to one foundation for success.

"When you have Dippin' Dots, they come," he said of customers. "For a lot of people, it's a destination location. They'll seek out Dippin' Dots."


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