Hawkins, La-Van 1960–

views updated May 14 2018

La-Van Hawkins 1960–

Franchise owner

Franchisee Beginnings

The Road to Economic Empowerment

Federal Initiatives and Fast-Food

Effectuating Economic Empowerment

As owner of 14 Burger King franchises in some of the nation’s poorest urban areas, including Detroit, Washington, D.C., Baltimore, and Chicago, La-Van Hawkins has become a multi-millionaire who has proven that hard work and dedication to one’s community can facilitate economic empowerment for the African American population. At 6’2” tall and 285 pounds, the imposing 37-year-old has made millions with his, version of the fast food franchise. He has created jobs for thousands of people in Black communities and by this has attempted to help as many people get off welfare as possible.

Franchisee Beginnings

La-Van Hawkins, who grew up in Chicago’s Cabrini-Green housing project, is no stranger to the inner city or to its many problems. His childhood consisted, among other things, in running with a gang and suffering through a $2000-a-day drug addiction. There he experienced first hand, the poverty of life in the inner city. When Hawkins was in the tenth grade, his father died and he was forced to drop out of the private high school he attended to care for his sickly mother. It was at this time that he began working full-time at one of the two McDonalds that his uncle owned. He started out scrubbing toilets, but within a very short amount of time he had become general manager of the busy Water Tower unit in downtown Chicago. By the time Hawkins left McDonalds, he had risen to the position of director of operations. Hawkins left McDonalds in the late 1970s to join the Kentucky Fried Chicken (KFC) chain where he worked for eight years as first an area manager and then a district manager. In 1981 Hawkins began his fast-food ascent with the Kentucky Fried Chicken chain on a special project for more successful marketing toward inner-city patrons.

At a Glance…

Born and raised in Chicago, Illinois in Cabrini-Green’s housing project [former gang member/cocaine addict]; self-made millionaire; franchise owner proposed 125 Burger King units in empowerment zones as part of federal initiative. Education; private high school with full scholarship (grade 10 dropped out to care for ailing mother when father died).

Career: South Chicago McDonald’s franchise (age 11 for uncle Herman Petty); Kentucky Fried Chicken (KFC) (1970-1986); franchisee owner Checkers (1986-1995); owner Inner City Foods Corporation; Burger King empowerment zones (1995-); Chairman/CEO Urban City Foods (1995-).

Awards/honors: Contributor of substantial ($500,000) donations to churches and school programs in neighborhoods with a Hawkins Burger Kings; Million Dollar Man March (1996); provides significant employment opportunities with employee stock options/ownership programs for thousands of individuals in some of city’s poorest urban areas.

within 30 seconds and personal service by Hawkins himself at certain locations, assured the phenomenal success of Hawkins-run Checkers sites, which became instrumental in cleaning up surrounding neighborhoods. Featuring menu items such as honey chicken, chili dogs, Cajun burgers, and fish sandwiches, Hawkins opened one of his first Checkers franchises in 1990 in Evergreen Park near Chicago, the first franchise unit to be certified as an official training store for Checkers employees. By 1995, five years into his Checkers venture, Hawkins, as owner of Inner City Foods Corporation, was running the most successful African American franchise restaurant company in the United States. He owned 47 Checkers restaurants and brought in close to $65 million a year.

The Road to Economic Empowerment

Inner City Foods Corporation, under Hawkins’ direction, concentrated Checkers franchises in urban minority neighborhoods, including sites in Harlem and Brooklyn’s Bedford-Stuyvesant. Hawkins conducted his business with civic-minded aspirations to employ young minority workers, providing them with opportunities for financial independence through increased management and ownership opportunities. “I’m in the unique position to take people off welfare, give them job training, and educate and motivate them,” Hawkins said, according to Nation’s Restaurant News. “And I’m going to show that all the stereotypes about the inner city have been a farce.” Specifically, Hawkins boasted that Checkers employees making $25,000 to $35,000 per year had earned less than $5 per hour a few years prior. Hawkins maintained a focus on economic empowerment in communities where he established franchises. Hawkins added, “My No. 1 goal is to use Checkers brand to provide economic empowerment in the black community and to make as many black millionaires, regional vice presidents, and managers as I can.”

Providing employees with accelerated opportunities to rise through franchise ranks, Hawkins permitted the attainment of financial rewards sooner than in other fast-food chains. For example, two directors of Hawkins-owned Checkers, who began as assistant managers, were earning $75,000 per year each within two years. Hawkins also provided salary increases of two to three dollars per hour for minimum wage earners 90 days into employment, marking the first of five job promotions toward general management positions.

Hawkins fulfilled his objective at Checkers to facilitate economic development and empowerment in Black communities through his motto of “teach, reach, and motivate.” Translated, Hawkins encouraged Black Americans to buy from Black business owners, duplicating similar efforts by former Black activists. These activists successfully established opportunities for African Americans while simultaneously boycotting businesses that engaged in unfair employment practices toward Blacks. Despite the success of his Checkers restaurants, and the fact that he was the largest franchise owner in the Checkers chain, Hawkins soon decided, according to Restaurant Business magazine, that he “wanted something bigger.”

Federal Initiatives and Fast-Food

In 1995, Hawkins found what he wanted when Burger King approached him and asked him to front their newly planned program to set up franchises in urban inner cities. Representatives of Burger King and Hawkins’ newest entity, Baltimore-based Urban City Foods, soon thereafter announced plans to open 125 fast food Burger King Express Ways in nine American cities by the year 2000. The partnership, the largest of its kind in the fast food industry, emanated as a result of presidentially-designated Empowerment Zones and Enterprise Communities. Such areas became part of a major federal initiative in 1995 to boost economies, giving tax breaks as an encouragement for business growth. As chairman and CEO of Urban City Foods (UCF), Hawkins spearheaded the development and operation of unique Burger King Express Way franchises to provide job opportunities for minorities in these federally funded areas.

Effectuating Economic Empowerment

The first group of the proposed 125 Burger King sites included 25 restaurants specifically designed for appeal to urban African Americans. These sites were constructed between March of 1996 and September of 1997 in Washington, D.C., Chicago, and Detroit. Most construction was concentrated in Chicago’s inner-city at a cost of $175 million. These Chicago locations employed African American owners and approximately 2,500 employees from surrounding neighborhoods. Hawkins himself contributed at least $70 million to the Chicago construction. Site locations for these first 25 restaurants also included Washington, D.C, St. Louis, Philadelphia, Los Angeles, Oakland, San Diego, Detroit, and Prince George’s County, Maryland.

Hawkins expected to own an eventual 32 Burger King restaurants in the federally-aided Detroit area alone by century’s end. The planned stores would add to the already existing 20 Burger Kings and 40 McDonald’s chains in the city. Similarly, 15 innovative Burger King Express Ways, under Hawkins’ direction, arose in Oakland, California between 1996 and 1997. Again, nearly 2,000 jobs for local residents were created. Burger King executives limited their initial investments to the first 25 outlets at $ 1 million each, launching Burger King’s entry into the African American market.

With a goal of creating 20,000 new jobs through the 125 chain project, Hawkins predicted that 60% of the franchise general managers would be taken from the crew’s ranks, thereby increasing financial opportunities for employees to include franchise ownership and company loan guarantees. And although there was initial skepticism regarding inner city franchises, from 1996-1997 Hawkins boasted average sales of $1.9 million per unit, almost twice that of traditional Burger King outlets. Each Hawkins unit is a double drive-thru “Burger King Express Way,” with almost none having inside seating.

In partnership with “Black Entertainment Television’s Robert Johnson, Hawkins utilized interior design knowledge, incorporating bright cherry red, metallic silver accents, and neon hues in his restaurants, which studies said appealed to African American inner city patrons.

Additionally, some of the exclusive menu items at these Burger Kings included banana milkshakes and Cajun fries, and excluded things like salads and onion rings. Cultural music in the form of hip-hop and rhythm and blues was also played at these modern Burger Kings. As protection in rough city areas, uniformed Nation of Islam guards were employed to stand alongside the red, black, and green African American flag. With 36 total locations in empowerment zones, Hawkins boasted only one incident of robbery.

While Hawkins had his share of critics, including those within the industry who claimed that he was self-motivated and unwilling to acknowledge efforts by other franchisees, Hawkins dismissed such claims as petty jealousy. Facts supported that the existing minority Burger King franchisees had never built more than two stores per year in comparison with his approximate 25. Not surprisingly, Hawkins predicted that he would establish 400 new Burger King units by the year 2000.

Charitable Donations

The reasons for his success seemed to be as much for the man himself as for the precautions he took. Hawkins engaged in half-million dollar donations to local churches and school programs in neighborhoods boasting his Burger Kings, and therefore local leaders embraced his coming. Hawkins aimed not just to build his business empire, but to build neighborhoods and self-esteem as well. “You give people ownership in the company. You make them want to work hard. It’s all about empowerment,” he said, according to Knight-Ridder Tribune Business News. He claimed that one of the biggest problems with inner city businesses previously had been that these businesses took millions of dollars out of the black communities and put nothing back in. Hawkins has begun to rectify that situation.

He’s Only Just Begun

While some of Burger King’s executives were once wary of Hawkins’ innovative ideas, they have begun to follow in his footsteps, having witnessed the magnitude of his success. Hawkins has succeeded in becoming a civic-minded millionaire, currently worth some $50 million by his own estimates. And besides an announcement expected in early 1998 concerning another 50 Burger King units to be built, Hawkins has continued to enlarge his interests, expanding his business into other food industries. Some of Hawkins’ ventures included the purchase of a 99-unit California-based pizza company called Nancy’s, and plans to launch a family dining concept beyond an exclusive African American market. Hawkins also has intentions of seeking public office in the future, perhaps as mayor to one of the cities he has been helping.

Magnanimous Mogul

Hawkins, who has enjoyed wealth, homes in three cities, and increasing societal influence, has maintained his goal of taking people off welfare by providing them with job training and meaningful employment. Feeling blessed by God, Hawkins has continued to create employment opportunities for impoverished and/or oppressed minorities. As such, Hawkins has increased nationally the African American share of the fast food market.

Hawkins felt the time was right to fully realize his concept of Black businesses giving back to the Black community, especially in light of political shifts away from affirmative action, minority set-asides and other special treatments of economically disadvantaged groups, and his efforts have proved enormously successful. Time will tell the extent to which his efforts have contributed historically to lasting economic benefit for impoverished African Americans.

Sources

Periodicals

Baltimore Business Journal, Sept 16, 1994, p. 36.

Baltimore Sun, Jan 26, 1996, p. C1.

Chicago Sun Times, Feb 23, 1996, p. 43.

Detroit Free Press, Feb 23, 1996, p. A1; Feb 28, 1997, p. E1;

Jet, March 11, 1996, p. 13.

Knight-Ridder/Tribune Business News, Feb 23, 1996, pp. 1, 2.

Nation’s Restaurant News, March 4, 1996, p. 3; March 13, 1995, p. 3.

Newsweek, May 26, 1997, p. 57.

Oakland Tribune, Feb 23, 1996, p. C1.

Restaurant Business, November 15, 1997, pp. 25-30; April 10, 1994, p. 38.

Tampa Bay Business Journal, Jan 21-27’, 1994, p. 1.

Washington Post, Dec 13, 1995, p.F1; Sepll, 1995, p. A10; Jan 30, 1996, p. D1.

—Marilyn Williams and Catherine V. Donaldson

Contemporary Black Biography Williams, Marilyn; Donaldson, Catherine

Hawkins, La-Van

views updated May 17 2018

La-Van Hawkins

1960—

Businessman, restaurateur

Few people have risen so far—or fallen so fast—as businessman and restaurant owner La-Van Hawkins. In 2003, Hawkins was on top of the world: born in the ghettos of Chicago, he had become the owner of more than 100 Pizza Hut franchises in Michigan and the owner-operator of one of Detroit's swankiest new eateries, Sweet Georgia Brown, and the sales of his company made his the twelfth largest black-owned business in the United States; he owned several homes, including a lavish mansion outside Atlanta, and was recognized throughout Detroit when he drove around in his convertible Bentley; and he was courted by local and national politicians. In an adoring profile published in Ebony magazine in April of 2003, Hawkins crowed about his success, proclaiming "I'm proof that you can do anything. I've succeeded against all odds because I refused to be denied."

Barely one year later, Hawkins (along with ten others) was announced as the target of a federal investigation into charges of corruption in Philadelphia, Pennsylvania. Hawkins was charged with funneling bribes to the city treasurer in exchange for supporting Hawkins' business ventures in that city, and with lying to the federal grand jury investigating the case. In May of 2005, Hawkins was convicted on two of the less serious charges, and in October of the same year he was sentenced to serve 33 months in prison and to pay a $25,000 fine. The ongoing case against Hawkins damaged his business interests and revealed that the fast-food mogul had earned many enemies over the years. Former business associates and creditors piled on, suing Hawkins for past damages and overdue payments. His flamboyant lifestyle had apparently been built on credit, and now his creditors wanted their money. According a statement to the Detroit Free Press, Hawkins planned to appeal his sentence and to recover from his setbacks, saying "At the end of the day, we will be victorious."

Rose from the Projects

La-Van Hawkins was born in 1960 and raised in Chicago's Cabrini-Green housing project, known for its poverty, crime, and drug problems. His childhood consisted, among other things, in running with a gang and suffering through a $2000-a-day drug addiction. He told Ebony that his father was a failure at providing for his family, but that he had "street smarts and a street knowledge" that his son inherited. When Hawkins was in the tenth grade, his father died and he was forced to drop out of the private high school he attended to care for his sickly mother. It was at this time that he began working full-time at one of the two McDonalds that his uncle owned. He started out scrubbing toilets, but within a very short amount of time he had become general manager of the busy Water Tower unit in downtown Chicago. By the time Hawkins left McDonalds, he had risen to the position of director of operations. Hawkins left McDonalds in the late 1970s to join the Kentucky Fried Chicken (KFC) chain where he worked for eight years, first as an area manager and then as a district manager. In 1981 Hawkins began his real ascent in the fast-food business when he led the KFC chain on a special project marketing to inner-city patrons.

In 1986 Hawkins left KFC as a regional vice president to become a partner in an investment group with Texas oilman T. Boone Pickens and several others. They worked to acquire the rights to construct Bojangles units in Baltimore, Philadelphia, and Washington, D.C., resulting in 15 new stores. After the stores were completed, the group sold them to the company, yielding profits that Hawkins invested in Checkers franchise units. Top-notch customer service practices, including serving orders within 30 seconds and personal service by Hawkins himself at certain locations, assured the phenomenal success of Hawkins-run Checkers sites, which became instrumental in cleaning up surrounding neighborhoods. Featuring menu items such as honey chicken, chili dogs, Cajun burgers, and fish sandwiches, Hawkins opened one of his first Checkers franchises in 1990 in Evergreen Park near Chicago, the first franchise unit to be certified as an official training store for Checkers employees. By 1995, five years into his Checkers venture, Hawkins, as owner of Inner City Foods Corporation, was running the most successful African-American franchise restaurant company in the United States. He owned 47 Checkers restaurants that brought in close to $65 million a year.

Inner City Foods Corporation, under Hawkins' direction, concentrated Checkers franchises in urban minority neighborhoods, including sites in Harlem and Brooklyn's Bedford-Stuyvesant. Hawkins conducted his business with civic-minded aspirations to employ young minority workers, providing them with opportunities for financial independence through increased management and ownership opportunities. "I'm in the unique position to take people off welfare, give them job training, and educate and motivate them," Hawkins said, according to Nation's Restaurant News. "And I'm going to show that all the stereotypes about the inner city have been a farce." Specifically, Hawkins boasted that Checkers employees making $25,000 to $35,000 per year had earned less than $5 per hour a few years prior. Hawkins maintained a focus on economic empowerment in communities where he established franchises. Hawkins added, "My No. 1 goal is to use Checkers brand to provide economic empowerment in the black community and to make as many black millionaires, regional vice presidents, and managers as I can."

Promoted Minority Employment

Hawkins fulfilled his objective at Checkers to facilitate economic development and empowerment in black communities through his motto of "teach, reach, and motivate." Hawkins encouraged black Americans to buy from black business owners, duplicating similar efforts by former black activists. These activists successfully established opportunities for African Americans while simultaneously boycotting businesses that engaged in unfair employment practices toward blacks. (His detractors groused that Hawkins followed his own policies only when they insured that he made a profit.) Despite the success of his Checkers restaurants, and the fact that he was the largest franchise owner in the Checkers chain, Hawkins soon decided, according to Restaurant Business magazine, that he "wanted something bigger."

At a Glance …

Born in 1960 in Chicago, Illinois; married Wendy, 1994 (divorced 2004). Education: Attended private high school in Chicago (dropped out in tenth grade).

Career:

Worked at McDonald's franchise, South Chicago, c. 1971-c. 1979; Kentucky Fried Chicken (KFC), marketing, 1981-86; Checkers and Bojangles restaurants, franchise operator, 1986-95; Inner City Foods Corporation, founder and owner, 1995-98; Urban City Foods, owner and chief executive, 1995-98; Hawkins Food Group L.L.C., Detroit, owner and chief executive, 1998–; Lineage Group Inc. (Sweet Georgia Brown), owner, 2002–.

Addresses:

Office—Hawkins Food Group, 607 Shelby St., Ste. 200 and 300, Detroit MI 48226.

Bucked Burger King Tradition

In 1995 Hawkins found what he wanted when Burger King approached him and asked him to front their newly planned program to set up franchises in urban inner cities. Representatives of Burger King and Hawkins' newest entity, Baltimore-based Urban City Foods, soon announced plans to open 125 fast food Burger King Express Ways in nine American cities by the year 2000. (Burger King Express Ways are particularly suited to the inner city environment, and rely heavily on drive-thru traffic.) The partnership, the largest of its kind in the fast food industry, benefited from the creation of Empowerment Zones and Enterprise Communities. Such areas became part of a major federal initiative in 1995 to boost urban economies, giving tax breaks as an encouragement for business growth. As chairman and CEO of Urban City Foods (UCF), Hawkins spearheaded the development and operation of unique Burger King Express Way franchises to provide job opportunities for minorities in these federally funded areas.

The first group of the proposed 125 Burger King sites included 25 restaurants specifically designed for their appeal to urban African Americans. These sites were constructed between March of 1996 and September of 1997 in Washington, D.C., Chicago, and Detroit. Most construction was concentrated in Chicago's inner city, at a cost of $175 million. The Chicago locations had African-American owners and employed approximately 2,500 people from surrounding neighborhoods. Similar plans were made for sites in Washington, D.C., St. Louis, Philadelphia, Los Angeles, Oakland, San Diego, Detroit, and Prince George's County, Maryland. Despite initial skepticism from the corporate office, from 1996-1997 Hawkins boasted average sales of $1.9 million per unit, almost twice that of traditional Burger King outlets.

By 2001, however, Hawkins' relationship with Burger King began to sour. He personally owned 28 franchises, but he charged that Burger King was jealous of his success and trying to keep him from owning and operating more restaurants. After hiring noted attorney Johnnie Cochran, Hawkins sued Burger King Corporation for $1.9 billion. After months of legal haggling, the litigants settled out of court. Reports had Hawkins walking away from the dispute with anywhere from $30 to $100 million, in addition to the income earned from selling all his Burger King stores. Hawkins had enjoyed generally positive press coverage prior to the lawsuit, but the publicity attendant on the suit brought out allegations from those within the industry who claimed that he was self-motivated and unwilling to acknowledge efforts by other franchisees. Hawkins' supporters—and they were numerous—pointed out his half-million dollar donations to local churches and school programs in neighborhoods boasting his Burger Kings.

Building a New Restaurant Empire

Following his break with Burger King, Hawkins invested heavily in Pizza Hut franchises in Detroit and surrounding areas. Eventually, he owned nearly 100 such franchises. As with his Burger Kings, Hawkins invested heavily in promoting his Pizza Hut restaurants in urban areas. He placed large posters of himself in restaurants, and customers and employees came to know his striking physical presence. The 6-foot, 2-inch, 285 pound Hawkins visited his stores frequently. Pulling up in his beige Bentley and dressed impeccably, Hawkins motivated his employees and encouraged his customers to feel at home. By the early 2000s, his company, Hawkins Food Group L.L.C., had recorded sales topping $200 million and was earning national attention.

Hawkins sensed that it was time to open his own, high-end restaurant, and he hired some top restaurant personnel to help him create Sweet Georgia Brown, a southern-themed restaurant that opened in Detroit's revitalized downtown. The restaurant opened in 2002 and did $8.5 million in business in its first year. Hawkins announced plans to franchise the concept, further expanding his empire. The opening of Sweet Georgia Brown was part of Hawkins' larger plan to take his image upscale, away from the fast-food business that had made him wealthy. Hawkins' personal wealth had become apparent—he owned homes in Detroit and Atlanta, and was a prominent backer of black political candidates—and he hoped to use the prestige of a high-end restaurant chain as leverage to rise higher in the world of business and politics.

Then, the floor fell out from under the flamboyant entrepreneur. In 2002 Hawkins' had been fined an undisclosed but allegedly substantial amount for failing to pay taxes owed by several of his restaurants. Hawkins' sold his Pizza Hut franchises in early 2003 for $95 million, in part to help him pay the fines. Then, in June of 2004, Hawkins was indicted on three charges in the Philadelphia city government corruption scandal, including conspiracy to commit fraud, fraud, and perjury. The indictment brought to light a number of outstanding claims against Hawkins. According to the Detroit News, Hawkins owed more than $70,000 to a Georgia attorney, $393,000 to a Detroit design firm, $82,000 to a Detroit radio station, and $49,000 to a phone service provider. In addition to these financial woes, Hawkins' wife of ten years, Wendy, divorced him and demanded expensive alimony payments.

When the criminal case concluded in 2005 with a sentence of just 33 months in jail and $25,000 in fines, Hawkins seemed to have gotten off lightly. However, the combined damages from the criminal charges, his personal misfortune, and his business failure—Sweet Georgia Brown was briefly closed in 2005 for failure to pay taxes—appeared to put the once-successful entrepreneur in danger of declaring bankruptcy. It remains to be seen in late 2005 whether the man Ebony once hailed for his ambition and drive to succeed could overcome these obstacles.