Southern Bells Inc. was created in 1982
as a franchisee of Taco Bell. Craig
Fenneman and his partner, Charlie Brown, were in the process of building
their first restaurant when PepsiCo offered
to sell two existing stores in Bloomington
and Columbus, Ind. Since that time, the
company has grown through acquisitions
and new development to 62 restaurants.
Fenneman became interested in the
restaurant business after he was a landlord
for a variety of full-service restaurants. The
financial viability of the restaurant business,
coupled with his enjoyment of serving people, made this an attractive business proposition.
Early on, financing for land, buildings and equipment
was difficult. Most
bankers had not
heard of Taco Bell
and were reluctant
lenders. Pledging
other assets and personal guarantees were
the norm. Franchisees were expected to
complete all aspects of development, including site selection, construction, equipment
and training.
Fenneman saw the restaurant business as
an opportunity to meet several goals. The
first was to find a business that allowed for
growth. Another important focus was the
ability for Craig to own the sites on which he
built restaurants. This was a perfect fit for
Fenneman — a cash-flow business that
allowed him to build equity in real estate.
In addition to building his own business,
Fenneman has focused his energies on helping shape the industry. He served on the
board of directors of the National Taco Bell
Franchisees for six years where he helped
effect changes in concept development,
building design and national insurance programs for franchisees.
HOW TO REACH: Southern Bells Inc., www.southernbells.com or (317) 788-0374