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Golden Krust: The Jamaican success story continues
HAWTHORNE... business is not all about what you can get, but that you should give something back
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BY HAROLD G BAILEY Sunday Observer writer editorial@jamaicaobserver.com  
January 9, 2010

Golden Krust: The Jamaican success story continues

NEW YORK, USA — The idea was hatched at Lawrence Tavern in the rugged hills of St Andrew, Jamaica, but as fate would dictate, implementation is being undertaken thousands of miles away here in the United States of America.

It is the outstanding story of Golden Krust Caribbean Bakery and Grill, the wholly Jamaican-owned chain of fast food restaurants now celebrating 20 years of operations.

With more than 120 stores in nine states across the United States, the company is eyeing expansion not only here in the US, but Europe, the Caribbean and Canada.

Lowell Hawthorne, co-founder and chief executive officer, attributes the company’s success to “hard work, foresight and strategic planning.” As he proudly told the Sunday Observer here last week: “Golden Krust is the brainchild of Ephraim and Mavis Hawthorne, my parents.”

Both were pioneers in the baking industry in Jamaica, operating the Hawthorne and Son Bakery in Lawrence Tavern for more than 50 years. Daddy Hawthorne on one of his many trips here saw the opportunity for such a venture and encouraged his son in that direction.

“So in 1989, I decided to heed that advice. I took a leave of absence from my job as an accountant with the New York Police Department (NYPD) and with my wife Lorna who made a similar move from her private sector job, the first restaurant was opened with the name Golden Krust, because our patty would be the main product and we wanted to move away from the family name and do something different.”

The leave of absence for four years was to ensure that they would have jobs to return to in the event the business failed. But, in the first few days “sales exceeded expectations and we realised we were into something big.”

Two more stores were opened in the following two years and within seven years the number had reached an impressive 17. This success led to a decision to operate as a franchise, a decision which has seen increased growth and even more success.

But the company has been forced to diversify its operations as the recession has caused a slowing down in the franchise business.

“The diversification which has seen the company entering the retail business, has led to a 10 per cent growth in sales so far this year,” said Hawthorne.

The move also means the company’s products are now available in supermarkets, schools, penal institutions, hospitals and at sporting events throughout the USA.

Under its planned expansion, the company intends to open 250 new stores in the next five years and Hawthorne said the company had already done the necessary research and has registered its name and products throughout Europe in readiness for its venture into that market.

Cities such as London, Bristol and Manchester with their large concentration of Jamaican nationals are likely to be the initial areas where the company will begin its European sojourn.

Describing the Canadian market as “holding huge potential,” Hawthorne said Toronto would likely be the first to see a Golden Krust restaurant in that North American country.

Asked if the company is likely to enlist on the New York Stock Exchange, Hawthorne said that while he would not relish the dictates of Wall Street “that prospect is a possibility.”

Outside of its core business, the Company has been contributing extensively to education here in the US and Jamaica, under a foundation established in memory of his parents. Hawthorne said the company had provided more than a hundred scholarships up to university level. The foundation has been operating since 2002, “but even prior to that, we have been giving back to the community”.

“We operate on the philosophy that business is not all about what you can get, but that you should give something back,” said Hawthorne.

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