Smart Business Magazine, August 2013

August 2013 Smart Business Dallas 15 Birthplace Warren Ohio Education He received a bachelors degree in accounting from the University of Southern Mississippi and a masters degree in business with an emphasis in finance from the University of Texas at San Antonio Hes also a CPA What was your very first job I worked as an auditor for Holiday Inn in Memphis Tenn after graduating from college It was there that I got my first exposure to international business because I traveled all over the world auditing various subsidiaries Who do you admire most in business and why I admire Dick Frank who served as chairman and CEO of CEC Entertainment Inc from March 1986 to December 2008 He was not only a great person but from a business perspective he was a great simplifier He was bombarded by opportunities demands and challenges all day long but he had a way of filtering everything down into a few simple priorities He would often say that the key to business success is keeping guests happy or pursuing the right opportunities He definitely had a knack for keeping everyone focused on what was important What is your definition of business success First of all Im not sure that you ever get there because success is a never ending journey But over time seeing people grow is not only rewarding its the hallmark of a high quality organization thats financially successful Its all linked together you cant have financial success unless you have successful people What was the best business advice you ever received You cant go from good to great if you get spread too thin Focus on what you do best execute and your company will be successful NAME MIKE MAGUSIAK TITLE PRESIDENT AND CEO COMPANY CEC ENTERTAINMENT INC The Magusiak File Prospective franchisees are screened by staff and then interviewed by the executive team Those passing muster then spend time in a U S store to get a feel for the guest experience and the basic operating model We spend a lot of time with prospective franchisees and we turn down a lot of people but our slow and cautious approach has helped us avoid false starts Magusiak says Actually many of our franchisees have been so successful theyve asked to purchase additional development rights In addition to turning a profit Magusiak expects franchisees to boost the local appeal of Chuck E Cheeses brand by suggesting advantageous modifications to the companys menu and operating procedures For example the franchisee in Monterrey Mexico added piñata rooms and in Santiago Chile the chicken wings are spicier than those served in U S restaurants to satisfy the taste buds of local residents To ensure that modifications dont stray too far from the companys core values and brand alteration requests are reviewed and approved by the companys executive team We dont want to change whats sacred about Chuck E Cheeses Magusiak says But if you hire smart passionate people with good judgment you need to listen to them For instance targeting teens instead of children isnt an option and its not OK to remove pizza from the menu But Magusiak had no problem shutting down a salad bar in a Chilean store after sales records showed that locals werent embracing the concept Customization is less important if youre selling products over the Internet Magusiak says But its vital when youre selling an experience and our franchise model has been instrumental in helping us develop a local approach and a solid business plan Walk before you run Magusiak honed his expansion strategy for three to four years while using his existing staff to identify and develop selected global opportunities While some executives might question his speed his methodical approach was designed to protect the companys Takeaways Identify global expansion opportunities by evaluating a regions tangible and intangible assets Look for aligned values when selecting business partners Be patient test and achieve profitability before aggressive global expansion