'Emperor' Returns to State

Philip M. Hoag, alumnus and legendary entrepreneur

. April 26, 2010

East Lansing, MI - (April 22, 2010) - Philip M. Hoag (BA '67), beloved member of MSU's renowned championship football team, alumnus, and legendary entrepreneur from Baltimore, MD returned to campus last month to speak with students in The School of Hospitality Business and share his business insight with them.

Christened many years ago by School Director Dr. Ron Cichy (BA '72, MBA '77), “Emperor” for his empire of 40 Burger Kings, Phil wears the name well. He began his entrepreneurial “conquests” in New York City right after he graduated, building and operating its first national fast food brand restaurant, Kentucky Fried Chicken.

In 1975, the “Emperor” became a franchisee for Burger King Corporation. Over the past 35 years, he has not only owned and operated 40 Burger Kings in several states, but during that time he has also developed and operated Duff's Cafeteria and two table-cloth restaurants (Richard's). He is currently “growing” seven Qdoba Mexican Grill restaurants.

Phil spoke to students in Dr. Seung Hyun Kim's HB 375 - Hospitality Marketing on Practical Marketing Tips. He also addressed Dr. Jeff Elsworth's HB 358 - Hospitality Business Ownership on Development, Financing Franchises, Lessons Learned - Positive and Negative - in Being an Entrepreneur.

The students were privileged to hear Phil's perspective on marketing. He discussed Burger King's marketing strategy. It spends $500 million in advertising a year, and it is driven by the media, particularly TV and some radio. Phil has been on the Burger King Marketing Team for three different terms. The team includes “corporate, franchisees, and J. Walter Thompson Advertising Agency.” All three, Phil said, “have different goals.”

Phil went on to explain that through Burger King development, he knows real estate, bankers, and the community in Baltimore. He kicked off his first Qdoba in 2003 with only $10,000 in the budget for marketing. He said, “We grew and marketed our seven Qdoba's with no TV, no radio, and no print. We connected with local community and high schools.” We decided to “get the food in people's mouths and minds.”

In addition to marketing, Phil shared his thoughts with the students in HB 375 on the keys to success in building not just one business but several - from the operations, building, banking, and real estate perspectives.

“You have to care about your people,” he said. “It takes time to care, to build the relationship with each of them. The experience of being an entrepreneur is more important than making lots of money.”

Speaking to students in HB 358 about franchising and entrepreneurship, Phil said that franchisors today want fewer franchisees who each develop more stores. The keys, he said, are “good locations, the right brand, building them right, and then grinding it out.” He shed light on other particulars: the store has to have the right square footage, for example, because “it will be what your costs are based upon.”

He said, “Real estate is the 'real' business. You have to have the right concept and then own the real estate.” He shared his own consolidated financial statements, his profit and loss statements, and his cash flow statement - amazing real-life insights from a very successful leader.

With both groups, Phil's generosity and humility shone through. He offered his cell phone number to the students, so they could phone him anytime and discuss ideas.

As a defensive end on the MSU football team, playing on the same line as Bubba Smith and with other legendary players such as Charles Thornhill and George Webster, Phil also enticed the students with sports references fresh in their minds. He spoke to the students only two days after the game in the second round of the NCAA basketball tournament, in which MSU player Korie Lucious hit a 3-pointer with under a tenth of a second left to beat Maryland.

Phil may live and work in Baltimore, MD, but he is a true Spartan fan. He said, “Shoot the shot, like the shot at the buzzer against Maryland. And practice, practice, practice. The player who made that shot must have practiced that shot hundreds, thousands, maybe a million times.”

He urged students to get involved and participate in clubs, saying, “Be part of developing your leadership while you are an MSU student.”

Phil met with five specially selected students, all budding entrepreneurs, for a small group luncheon on campus, and had one-on-one chats with those students interested in becoming entrepreneurs after each class.

He was named an honorary faculty member at the close of his visit to campus, and in a gesture that truly highlights his generous spirit, he offered to purchase a seat in the revitalized Culinary Business Learning Lab before going back to his empire!

About The School of Hospitality Business at Michigan State University
Recognized as the top-ranked hospitality business school in the world, The School celebrates its 83rd year anniversary in 2010. The School has more than 9,000 graduates worldwide, including a number of leading academicians and industry executives, who have earned both undergraduate and graduate degrees. Founded in 1927, the mission of The School is to continually enhance The School's leadership position in hospitality business education through teaching, research, and service. The School offers an exceptionally well-crafted curriculum, taught by innovative professors who are leading textbook authors, sought-after consultants, and respected researchers. The mission of The School of Hospitality Business Alumni Association is to provide active leadership in support of the mission of The School of Hospitality Business through membership participation, image enhancement, financial commitment, and promotion of synergies among students, faculty, alumni, and friends. The First, The Original, and STILL The Leader. . . The School of Hospitality Business. For more information, please visit www.bus.msu.edu/shb/