Dream Dinners CEO Focused on Business Model, Not Litigation

With the lawsuits mounting and the profits dropping, it’s time to play CYA and put on a game face that gives the impression that Dream Dinners is a respectable company and one that actually has a business plan.

Darin wants everyone to know they have 180 stores open, but that there indeed have been some closures. But fear not, those closures were all part of the master plan. Most of these closures would be due to their restructuring and would have nothing to do with this business not being able to handle any sort of competition, or the fact the owners went bankrupt due to that same competition and spending any profits they do make or digging into their own pockets to create massive advertising campaigns since the company itself is either unable or unwilling to.

Dream Dinners also claims they have a great relationship with their owners, that they will compete in the $25 billion retail food space and the lawsuit has been cleanly compartmentalized from the business.

So to compete in this new $25 billion retail space, does that mean Dream Dinners actually plans to spend some money on national marketing? We should expect TV and magazine ads every month from now on? We should be able to open national magazines and see full-page Dream Dinners ads? We should see Dream Dinners sponsoring TV shows or creating commercials that will be seen from coast to coast?

Does Dream Dinners have a great relationship with their owners because they let them out of their failed business contract if they agree to pay $20,000 and promise not to file litigation? Darin claims they have no reason to settle their cases, but certainly seems interesting they’re adding this non-litigation clause when stores need to file bankruptcy and thus break away from Dream Dinners.

And Dream Dinners is a financially sound company that’s in better shape than their competitors because they are selling antiques out of their home office as a side business to pay the rent on the building? Or is it because they are robbing Peter to pay Paul and using money ear marked for charities to cover debts and loans? Or is it they have so much money coming in from owner royalties even though dozens of owners are either not paying them or have fallen several months behind in their payments. Let us not forget some of those previous Top 10 stores, some of which were able to generate $1 million in sales, have now closed their doors.

But according to Darin the market has stabilized and that Dream Dinners is in front of all the major trends. So as 1000 stores have closed since 2006 (nearly half), the market has stabilized. Since most stores can barely get 200 people through the doors in a single month, they are giving busy mom’s exactly what they need. Since the foods costs have almost doubled in the last 6 months and the cost of each meal continues to go up Dream Dinners and other meal prep kitchens are at the heart of the effort to put dinner back on the table. The number of people taking part in the meal assembly process is decreasing every month. And it’s not even meal assembly anymore; it’s simply a “grab and go” or “take and bake” operation. The concept of meal assembly bears a striking resemblance to the deli section of the local supermarket.

Dream Dinners is completely and utterly committed to their owners which is why when something goes wrong they blame the owners and say they are too focused on the bottom line and actually earning a living. They didn’t follow the model. They didn’t give away enough food in Sneak Peeks. Dream Dinners didn’t supply false earning statements; the owners were just too wrapped up in the idea of running their business for a profit. Dream Dinners is about being part of a community, not making money.

SNOWHOMISH, Wash. (Blue MauMau) - CEO Darin Leonard said he came into Dream Dinners last February with his eyes wide open in regards to the litigation the company was facing. “We can never predict the outcome, but we believe we will prevail on all the merits of the cases,” Leonard said in an interview this week. “We have not settled and I have shared with my organization that it is not my intent to. But you never know.” Although there was speculation that the legal action would grow, he thought nothing out of the ordinary in that litigation was already commonplace in today’s franchise world.

Dream Dinners, a meal assembly franchise company, has been hit with two new lawsuits just this year, both now filed in state court in Washington. As reported last week, one lawsuit representing two franchisees in Ohio has been amended to include the franchisor’s attorneys as defendants, alleging illegal earnings claims among the allegations. The second lawsuit, representing approximately fifteen owners, is expected to be amended shortly on similar grounds.

Leonard again confirms that Dream Dinners has approximately 180 locations.  Although they did have 240 locations at one time, they have done some reorganizing of their owner partners. “There have definitely been stores that have closed.” He adds that some of it has actually been according to plan. Right now the chain is not growing.

Dream Dinners CEO Focused on Business Model, Not Litigation | Franchise News

10 Comment(s)

  1. Guest had this to say on | Nov 3, 2008 | Reply

    I demand a recount on the number of stores open. I think he took the liberty of using the October numbers even though he knew that it would be substantially less in November.

  2. Ex Owner had this to say on | Nov 3, 2008 | Reply

    Oh - this burns my butt!! Some of the closures were actually planned?!!?!?? You mean, you meant to take all my savings and retirement and leave me in $200,000 worth of debt. Geez, sure wish you would have shared that plan with me!!! JERKS!

  3. Sarah Rivers had this to say on | Nov 3, 2008 | Reply

    I agree with Ex Owner…

    As an early-entry franchisee, I would have LOVED to have seen the PLAN for store closure disclosed in my UFOC (though personally, I’ve started referring to it as the O-FUC).

    This statement, more than any of the other bu!!sh!t in Der’s comments, caught my attention.

    Were MY stores PLANNED for closure?
    If so, wish they would’a told me.
    If not, which stores were planned closures (or a better question: which still are?)

    Happily Dreamless,
    Sarah Rivers
    Former Owner, Dream Dinners Raleigh, NC
    Former Owner, Dream Dinners Cary, NC

  4. big meg had this to say on | Nov 3, 2008 | Reply

    When Darin started meeting with the owners after announcing to us in a webinar that he was the new CEO, we collectively asked him for a grace period from our standard of performance minimum, and to only pay royalties on actual revenue. We told him it would be a good faith gesture towards the majority of owners that were not meeting this standard, that Dream Dinners did really think of us as family, and we would in return be more willing to work with them during the period of finding solutions for making the stores profitable. He said he would check on it, and then came back with, “the attorneys won’t let him do it.” Bull-s**t! Now I realize, it was all part of their PLAN?!!! We were just acceptable collateral damage towards the greater good of DD Inc., as opposed to the needs of the many bankrupt former Dream Dinners “Family”!!! I wonder if they had meetings on how long the bottom 10 stores would last, (or the bottom 50 I should say), and what our “coaches” could say to us, and do for us, (the scripted blah-blah-blah, and nothing, respectively!!) I am glad to be done, and I wish the DD litigants all the best with their lawsuit!

  5. Still Hopeful had this to say on | Nov 11, 2008 | Reply

    Hows this for numbers…we were store number 89 Which I guess puts us way above the bottom 50 and we were 8 grand below the “performance standard.”

  6. Tuckerbox had this to say on | Nov 20, 2008 | Reply

    The question I would have to ask is, what plan did they offer you to get you closer to the top 10 or even into the top 50? Since they obviously has a performance standard how did they help stores who fell below it?

  7. Catwoman had this to say on | Nov 30, 2008 | Reply

    Just a little Real estate Info. for you all. . . The Dream Dinners Headquarters Bldg. in Snohomish is up for sale. DD does not own the building, they lease it. The listing says the building is not leased.

    Guess DD is moving their HQ’s to a barn in someones backyard.

  8. Tuckerbox had this to say on | Dec 2, 2008 | Reply

    That’s interesting that they would be trying to get rid of it. It makes you wonder, are they moving to a larger location because of expansion or are they scaling back because of lost staff? It was previously mentioned they were running another business out of the corp office to try and pay the bills. It’ll be very interesting to see where the corporate office get moved to and how much space they have when they’re done.

  9. Geoffrey Donovan had this to say on | Dec 10, 2008 | Reply

    Super Suppers has moved its headquarters into its Hulen test store and has apparently severed ties with the Culinary School of Ft. Worth.

  10. Tuckerbox had this to say on | Dec 10, 2008 | Reply

    That is a strange turn of events. So which part is Judie still associated with? Has she ditched the cooking school or has she put Super Suppers behind her? From previous comments it seems Judie has stepped aside from her Super Suppers duties and turned over the reigns to another group. Either way this sounds like a less than happy split between the two.

    It makes it even more interesting since the article released by QSR yesterday make it very clear that recipes assembled in the Super Suppers store were created and refined with the Culinary School walls.

    I’d really like to hear more about this one.

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