Reggie Nelson began his career in finance but couldn’t ignore the call of full-time entrepreneurship. In 2018, he started his first Kona Ice truck and now owns 4 trucks, 2 Kona Kiosks, and 1 Travelin’ Tom’s Coffee. Talk about expansion! He’s also been growing a family while growing a business. With 2 sons and a daughter on the way, the whole family loves the Kona Ice community.
What made you decide to look into purchasing a franchise?
Franchising has stood the test of time in terms of buying into a proven system, and with a support team behind you.
Going into a new business, you kind of have an idea of what to expect, but you will always have surprises. With a franchise model, you can sort of bet that someone at the Corporate office or another franchisee has encountered what you may be going through in your business and can help you through it.
In addition, business by nature is fairly risky. Buying into a franchise helps mitigate a lot of that risk, and the rest can be navigated through with help and guidance from other franchisees or Corporate. Especially when owning a business with a growing family, you want to know you’re walking into a supportive experience.
When researching franchises, what criteria mattered to you most? How did Kona Ice meet those criteria?
My key criteria that helped drive my search were scalability. I was focused on finding a business that could support density. I was still working in corporate America while launching my Kona business, and having that potential range of expansion in addition to still having a relatively “secure” income was very important to me. Growing a family while growing a business is risky stuff – so I needed to make sure I picked the right franchise.
I also considered the customer’s feedback and connection with the brand that I bought into. Do they like the company? Do they enjoy the product? Who is the target audience? Are there limitations with the potential customers, such as age, ethnicity, accessibility to us, or affordability of the product? Kona Ice checked off all of the boxes in the perfect fashion. Ages 0 – 99 love a cool, sweet treat. Ethnicities were not a barrier/hurdle. Accessibility; we can be found at just about any major city event, school, church, or cruising a neighborhood. The product is affordable, and a family of 4 can all enjoy it for a reasonable price. Lastly, customers love the brand! They feel excitement whenever they see our truck or one of our kiosks and associate it with a good time and a great taste!
Financing can be an obstacle and/or an intimidating factor for aspiring entrepreneurs. How did you find financing options to purchase your franchise?
In-house financing was definitely an advantage for me with getting started. Kona has built a relationship with some really great banks, and they know the business, and that goes a long way when it comes to securing a loan, especially within the mobile business space where the collateral is a work vehicle.
I also used a portion of my 401 (k) to go towards my initial franchisee fee.
Which of your prior skills and experiences do you use in operating your business today?
My prior skills that carried over to my business I would highlight, but not limit to, leadership, marketing, finance (basic business acumen of tracking revenue and expenses), and customer service.
Out of all of them, customer service continues to stand out as the foundation. Without it, you can have the best product and top-tier marketing, but how you make your customers feel whenever they hear your name or your business name will carry the most weight. A lot of our business is generated through word-of-mouth marketing and referrals, and that just leads back to the original customer having a great customer experience. In my operation, we hire character and train for customer service.
During your research, did you use FBR’s website to compare franchise opportunities? What other resources did you use?
I did use FBR’s website when researching and comparing franchise opportunities. There are so many franchises out there and having resources to leverage and narrow down your search is critical.
When doing your research, which questions did you ask the franchisees?
Like many inspiring business owners, one of my first questions were “how much money are you making?” I know that the sales vary based on operation size and demographic but that was a key driver for me. To see the potential of a business.
I also asked questions like
-what are the margins?
– what are some challenges that you faced when you started and now in your tenure?
– If you had to do it all over again, would you or what would you do differently?
– In your opinion, what makes a successful franchise owner in the business?
-Are there any concerns that you see negatively impacting the business in the near future?
Which questions did you ask the franchisor?
One of the first questions that I asked was,
– where do you see the business in 10 years?
– In your opinion, what makes a successful franchisee in your system?
– How are you growing but also protecting the brand?
What were your biggest challenges when you first started out and how did you overcome them?
One of my biggest challenges starting out was getting out of my comfort zone. I wanted to begin my business where I lived initially. It was close to my home and my job at the time. However, it was not the ideal place for growth in the long run. I was a small fish in a big pond.
That following year I then relocated and established the business in an area that had never really heard of the brand. I was then a big fish in a small pond and that is when I really began growing by establishing roots and repeat customers.
How does the Kona Ice support and encourage your success?
The culture of Kona Ice from day one and to today is a family company. They make you feel like an extended part of their family whenever you visit the main corporate office. The team is very responsive and helpful whenever you reach out via email or call with a question. I have become so close with many of them that I will sometimes just text them if I needed something urgently enough.
The training is top tier and it improves each year with new material and as the business grows and economy change. The marketing team is really great and I really appreciate whenever they reach out to the franchisees and actually ask for input on what we would like to see from marketing and ideas from us. It shows that they care.
What are you most proud of and why?
I am most proud of a business that allows me to be a part of my community. I hear it so often that it does not dawn on me at times of how special it is. I can walk into a place with my branded shirt on and someone will point and say, you were at my job or you were at my school. We love Kona Ice! My sons are of age now were if they see the truck, they know that it is their dad’s truck and then of course, they want a Kona! This is definitely one of the perks of owning a business with a growing family!
What advice would you give to potential franchise owners?
For a potential franchise owner, I would say be willing to put in the work. The franchise may have the recipe to give you, but it will be up to the franchisee to implement the recipe and make their operation a success. Also, be patient with yourself. You will make mistakes but learn from them and grow from them. Have a clear picture of what your goal is and circle back to it often to stay focused. You will run into challenges and curveballs but be flexible on the journey but firm on the goal.
Kona Ice consistently ranks high in franchisee satisfaction. This shaved ice truck is top of the line when it comes to culture, leadership, training, and just about every other metric we’ve got here at FBR.
