Can-Dew Attitude: Richard Bowen
Boston Business Journal - by Keith Regan Special to the Journal
When Richard J. Bowen first began growing the Honey Dew doughnut and coffee shop chain in the early 1970s, the stores drew 70 percent of their revenue from doughnuts and other baked goods and 30 percent from coffee, which was sold mainly in the early morning in 8-ounce cups.
Today, the 149 stores in the Honey Dew Associates Inc. chain derive 70 percent of their revenue from coffee, which is often sold throughout the day in towering cups, in myriad hot, iced and flavored varieties, pulling in the rest of its revenue from a broad and growing range of food products.
“Change is a constant in this business,” said the 62-year-old Bowen, who opened his first Honey Dew in Mansfield in 1973 and a few years later opened one of the first drive-throughs in New England at a store in Plainville, where the chain is now based. “You have to be flexible and ready to adapt. If we had stuck to what we were doing all along, we would have been out of business a long time ago.”
Instead, Bowen is eyeing a period of steady but measured growth for Honey Dew, something he believes is possible even though his chain is the David taking on the Goliath of Dunkin’ Donuts, which has 1,500 locations in New England alone and some 6,000 nationwide. Bowen hopes to see expansion of 10 percent to 15 percent going forward, using a number of tactics, including new franchises, new product rollouts and continued embracing of co-branding and co-locating. He declined to provide revenue numbers.
Recent years have seen Honey Dew invest to win high-profile locations, such as inside South Station and at rest stops on the Mass Pike and other highways.
The recession has slowed growth — sales in 2009 were basically flat compared to 2008 — but Bowen is optimistic about the future.
“We have a big chain here in New England — we’re well aware of that,” he said. “We also know that forever and ever people like an option. I think we’re a good alternative as long as we provide customers with quality, cleanliness and value. Value is the word everyone’s using these days and for us it’s how we keep our loyal customers and attract new ones.”
The time may be right to expand, with real estate and construction costs down significantly and prime sites more readily available than in the past. Dunkin’ Donuts has slowed its expansion in the region and Starbucks recently closed a slew of stores as part of a national restructuring. In addition to stand-alone stores, Honey Dew will likely develop more co-locations with partners such as Tedeschi’s and Honey Farms, Bowen said.
Recessions also often help spark franchise ownership and to help foster growth, Bowen recently brought on board the chain’s first director of franchise development. Larry Flaherty, who started in the role late in 2009, is a veteran of the Papa Gino’s and D’Angelo’s chains, and believes Honey Dew growth will come as franchisees step forward to help offer customers a choice.
“Dick has a very clear vision and he wants to provide the opportunities that he has had over course of years to others, to have them come in and work hard and be successful,” said Flaherty, noting that Honey Dew has also teamed with Boston-based commercial real estate firm The Dartmouth Company to seek out new locations. “Dunkin’ has a great brand and great locations and we have a great franchise, great products, great locations — we compete very well. We don’t have the same number of locations, but that doesn’t mean we’re not competitive.”
Gary Lewis, who now owns six Honey Dew shops south of Boston, said he decided to become a franchisee after twice having electronics manufacturing facilities where he worked shut down. “I wanted something that wasn’t going to close down and go away.”
Lewis bought four stores in 2004, opened two more since and will likely add additional stores in coming years. He appreciates that Honey Dew headquarters remains a friendly, familiar place. “You can call up there and they are easy to talk to and work with,” he said. “It’s a reflection of Dick. He’s very passionate about his business and wants us all to succeed.”
The entire Honey Dew reflects Bowen’s personality and passion, said Bob Ogan, the president of Bake’n Joy, a North Andover-based firm that supplies baked goods to Honey Dew stores.
“Dick is very genuine and authentic and caring and that transcends to the organization,” said Ogan, who has known Bowen for more than 30 years and considers him a close personal friend as well as a business partner. “The people at headquarters emulate a lot of what Dick is about as a person.”
That extends to the individual stores, which is why Honey Dew has been able to compete with Dunkin’ Donuts, Ogan said. “How can he survive in the land of a giant? It’s the cleanliness, the quality but most of all it’s the smiles of the operators who greet their customers. I’m not knocking Dunkin’ Donuts — they’re a great organization. But if you go into a Dunkin’ Donuts and then a Honey Dew, you will feel the difference.”
Heading into the summer of 2010, Honey Dew is rolling out its latest product innovation — a line of international breakfast sandwiches. Each has been carefully developed and tested in the chain’s test kitchen. “We never just throw something out there, we do a lot of testing and making sure we’re giving the customer what they want,” said Bowen. The launch is being backed with a fresh marketing campaign that includes television spots emphasizing the local nature of the Honey Dew brand.
Bowen, who is married and has six daughters, has been at the coffee and doughnut business for 37 years, but has no immediate plans to slow down.
“I figure I’ll take it at least to the 50th anniversary and then maybe I’ll go back to school,” he said.
