
Posted August 26, 2011
By Greg Griffin
Rob and Renee Israel have come a long way from their first day selling fresh popcorn in the mall.
For five hours on that day in December 2003, the storefront at FlatIron Crossing mall in Broomfield was deserted. Rob was panicked, until about 1 o'clock, when the smells of its uniquely flavored popcorn finally lured in customers.
"Nobody eats popcorn in the morning," he said. "I didn't know that."
There was a lot to learn, it turned out, about the fresh, all-natural popcorn business. The Israels spent the next six years perfecting their product and their branding, expanding to locations throughout the metro area and developing a plan to take Doc Popcorn national and international.
The couple began selling franchises in 2009. Two years later, Boulder-based Doc Popcorn's growth is, well, popping.
"When we started, the intention was to go big or go home. But it took longer than we thought," Renee Israel said. "It's not as simple as it looks. If it were that simple, there would be a lot more players out there doing what we're doing."
They see little in the way of direct competition for fresh gourmet popcorn sales in malls and other high-traffic areas on a national scale. More broadly, Doc Popcorn competes with other mall-based sellers of fresh snacks, such as pretzels and cookies, Rob Israel said.
Doc Popcorn now has 30 open units — either storefronts, kiosks or carts — and more than 175 in development in 22 states and the District of Columbia. The Israels own Doc Popcorn units at the FlatIron, Aurora and Cherry Creek malls and at the Pepsi Center. They have agreements with 42 franchisees, most of whom have rights for multiple units.
Rob Israel sees a market for 1,000 units in the United States, and he's in discussions that could lead to Doc Popcorn's first international locations.
Backing the couple's growth binge is Franchise Sherpas, a Greenwood Village-based consulting and investment firm co-headed by Maui Wowi Hawaiian founder Michael Hait.
Popcorn has always been sweet and sugary and pre-popped. This is fresh, all-natural popcorn popped right there," said Haith, whose firm invested in Doc Popcorn. "No one else is doing that. That's what we look for, that point of differentiation. And they've proved that it works."
Doc Popcorn has nine flavors, including Klassic Kettle, Triple White Cheddar, Hoppin' Jalapeño and Sinfully Cinnamon. The corn, which the Israels tout as "all-natural," is popped fresh daily on location and also is sold packaged in some Whole Foods stores.
A small bag is $3.50 and a large $4, though prices can vary. Gift items range up to $40 for a 3.5-gallon tin.
The couple is seeking franchisees. So far, the typical franchisee is a business executive looking for a way out of the corporate world. Some have bought options for up to 10 units. Franchise costs range from $60,000 to $150,000 per unit, depending on the number, type and location.
Rob Israel, 49, is a former apparel company owner, and Renee Israel, 43, has a background in marketing and branding. They moved to Colorado in 2003 from New York City to open their first Doc Popcorn location.
Eyad El Misarti, 2, left, and his brother, Ahmed, 6, look over the different flavors of popcorn at the Doc Popcorn stand at FlatIron Crossing mall in Broomfield. The stand is the first one Rob and Renée Israel opened, in 2003. (Helen H. Richardson, The Denver Post)
Renée and Rob Israel, founders and owners of Doc Popcorn, work at their stand at the Flatiron Crossing mall. (Photos by Helen H. Richardson, The Denver Post)
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