Home » San Francisco Passes ‘Happy Meal Ban’; New Restaurant Franchisees Face Tougher Requirements

San Francisco Passes ‘Happy Meal Ban’; New Restaurant Franchisees Face Tougher Requirements

November 24, 2010 | By Jennifer Heigl

Whoa! In a groundbreaking move Tuesday, the Board of Supervisors of San Francisco overturned Mayor Gavin Newsom’s veto of a locally-regulated food nutrition ordinance that would require fast food businesses, like McDonald’s, to alter their kid-friendly meals.

According to CNN, the newly-approved ruling will require all fast food meals that include toys to adhere to new nutritional standards or be removed from menus. Though Newsom vetoed the ordinance earlier this month, the board was able to override the decision during an 8-to-11 vote Tuesday evening.

“From the Institutes of Medicine to the World Health Organization, we know that reducing the consumption of junk food by kids could spare the health of millions and save billions of dollars to our overstrapped public health system,” said Supervisor Eric Mar, sponsor of the legislation.

“That’s why pediatricians, educators, parents, community health advocates, and thousands of individuals lined up to support this ordinance,” Mar added.

The new legislation, which under the new regulations would require that any meals with toys include fruits and vegetables and amount to less than 600 calories, will go into effect December 1, 2011.

San Francisco is the first U.S. city to implement such a ruling.

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Bad news for food entrepreneurs hoping for an easy ride with a franchise purchase. According to a recent article in The Wall Street Journal, the struggling economy has trickled into franchise sales, with most lenders requiring additional resources for new franchisees. In addition to tight funding avenues, most franchisors have increased requirements for owners as well, with many expecting previous business experience in addition to full-time, on-site devotion.

“We’re looking for those that have experience…sweating about payroll and paying taxes every month,” [Popeye's Vice President of Development Greg] Vojnovic says.

Sandwich company Firehouse Subs is now requiring up to 30% as down payment for new franchisees – a bill that could come to $80,000-90,000 out of the gate. The chain, however, is pleased with the results of the change, stating that “the quality of the applicants is higher than it’s ever been in the 12 years the company has franchised, and stores that opened this year are pulling in sales that are 17% higher than those that opened earlier.”

Looking to own one of the 26-store Zoup Fresh Soup Company locations? Expect to show evidence of a net worth, with cashflow, upwards of $500,000. According to Eric Ersher, managing partner and founder of Zoup, don’t think about it if you’ve got another day job, either.

“The downturn highlighted the importance of fitting with the culture,” says Mr. Ersher. “Those stores that had either absentee or not-engaged owners have not fared as well as those that continue to be passionate leaders.”

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