Bill Phelps and Rick Wetzel were employed with Nestle when the idea for Wetzel’s Pretzels came to their mind. Both of them were on a business tour while Rick told Bill about a concept borne by his wife. The concept was to manufacture large and soft pretzels for marketing at the mall. That very night, they took their seats at a pub and chalked out their business strategy on a paper towel.
Rick Wetzel sold off his Harley Davidson motorcycle to aid in accumulating funds for the entrant business venture that they began in their free time. They also introduced a partner to assist in making the cooking formula in Phelps’ Kitchen. At the time to start their first outlet, Wetzel and Phelps convinced the proprietor of a shopping mall to visit their house and taste their conception. The proprietor liked it very much and was ready to let out Wetzel’s Pretzels its first outlet.
This happened way back in 1994. Around a year after that, luck favored Phelps and Wetzel when they received a golden handshake package from Nestle. Before deciding to franchise in 1996, they launched many more outlets. By 2012, there were around 250 Wetzel’s Pretzels outlets throughout the United States with plans to launch services in India and Japan in the same year. The company netted over $100 million through online sales and in 2011 same-outlet sales were higher by 9%.
The Success Story of Bill Phelps and Rick Wetzel
Wetzel’s Pretzels is a US-based franchise quick-service restaurant chain that was set up in 1994. The food chain kick-started its operations at South Bay Galleria, Redondo Beach, CA.
At present, Wetzel’s Pretzels has expanded operations to more than 300 locations across 28 states of the US. Besides, it has an overseas presence in six other nations.
Wetzel’s Pretzels outlets are present in shopping plazas, amusement parks, outlet hubs, particular discount retail shops, airports, and train stations.
Phelps and Wetzel went for franchising of their brand in 1996 and they are in co-branding association with leading names like Swensen’s, Juice It Up!, Cold Stone Creamery, and others.
In 2019, Bill Phelps quit as CEO of Wetzel’s Pretzels following an extensive stint of 25 years. After him, Jennifer Schuler took up the responsibility of the CEO. Bill Phelps stayed as a prominent investor in the company. The headquarters of the fast-food restaurant chain is based in Pasadena, California.
When they launched the first Wetzel’s Pretzels bakehouse in Redondo Beach, CA, way back in 1994, Rick Wetzel and Bill Phelps equipped themselves with a dream and a yummy recipe for delicate pretzel flawlessness. They did not have to wait long for extensive queues of voracious customers, created and drawn by lip-smacking delicate pretzels that were hand-tossed, fresh-baked, and spicily served straight from the kiln.
As the word-of-mouth about the quality of their golden-on-the-outside pretzels dispersed widely, Wetzel’s Pretzels included extra items to their menu.
At present, Wetzel’s Pretzels has a robust presence in over 340 fresh bakeshops throughout the United States and across the world. It has set up outlets at prime locations such as Walt Disney World Resort and Disneyland Resort, California.
Every bakehouse of Wetzel’s Pretzels survives by the novel imagination of its originators. From the very beginning, they decided that every superior-quality pretzel will be made from fresh bread and baked in-shop unfailingly round the day, to make sure a tasty offering for every customer, no matter when he or she feels satiated for a pretzel.
1994 –1st Outlet
South Bay Galleria, California housed the first outlet of Wetzel’s Pretzels. Both the co-founders, Phelps and Wetzel served fresh hot pretzels to the customers themselves. Hard work did not deter them from taking their new business venture ahead.
1995- Hollywood
Wetzel’s launched their first outlet in Century City. They were gradually becoming famous.
1996- Wetzel Dogs
Phelps and Wetzel certainly let the dogs out. Both the co-founders acted as trendsetters in the food manufacturing business. Their store was the first one to introduce delicious pretzel-covered hot dogs – yummy!
1996- Go Large or Go Home
Both the co-founders were determined to go large. That is why they kick-started Wetzel’s Pretzels in the Garden State Plaza, one of the leading shopping plazas in the US.
1997- Universal City
Both Rick and Bill believed that they were destined for the big screen. So, they were successful to set up their outlet just beside the big screen at Universal City Walk.
1998 – Global Recognition
No boundary could stop them. Foodies across the world craved pretzels. That is why they brought them to their chirps in Puerto Rico.
1999 – Staples Center
Looking at other customers frolicking made them hungry as well. So, they thought about a pleasant salted pretzel for them.
2000 – Dodgers Stadium
They served Wetzel dogs and pretzels during a baseball game at the Dodgers Stadium. This was certainly an iconic and savoury moment for them.
2001- Downtown Disney District at Disneyland Resort
They began creating memoirs with fresh hot pretzels at Downtown Disney District in Disneyland Resort.
2001 – 100 Units
They got one step closer to winning global domination…
2003 – Disney Springs at Walt Disney World Resort
They were going big time in 2003! They brought in invitees from across the world to the yummiest pretzel in the globe at their new outlet in Orlando, Disney Springs.
2008 – 200 Units
The ancient Roman Empire had some influence on them.
2014- Dog Bites
Taking pigs in a cover to a higher level was an easy undertaking.
2015 – Pizza Bitz
There was stiff competition all the time. That is why they applied garnishes of delectable pepperoni and fresh blended cheese on their Bitz to remain the market trailblazer.
2016- 300 Units
Wetzel’s Pretzels are now an industry giant.
2016- Fulton Station
The West Coast joined hands with the East Coast via opening their outlet at Fulton Station, NY.
2018 – Crispy Dog Bites
This was a new trick by them to win over new customers.
2018 – Downtown Disney District at Disneyland Resort
They set up their new flagship store. So, the magic moments just got tastier.
Winning investors during its successful journey
In 2007, Levine Leichtman Capital Partners Inc., a private equity firm based in Los Angeles acquired a huge stake in the firm for an unrevealed sum. Bill Phelps still is a stakeholder of 20%. At the same time, Rick Wetzel enjoys a minor share.
Levine Leichtman Capital Partners sold off the principal stake In October 2016 to CenterOak Partners LLC, a private equity firm located in Dallas, Texas. This happened after maintaining the majority share for nine years.
At a point in time, the Famous Players theatre chain in Canada dished out Wetzel’s Pretzels. However, these were stopped when Cineplex Galaxy took over the film shower in 2005.
Products that made Wetzel’s Pretzels Popular
1) Foods
The lion’s share of the menu of Wetzel’s Pretzel’s comprises its autonym, pretzels. They are available in various aromas like
- Wetzel’s Original (non-buttered or buttered)
- Almond crunch
- Cinnamon sugar
- Jalapeño
- Cinnamon glaze
- Pepperoni
- Garlic
Besides, they introduced other pretzel food products like the “Wetzel Dog” which is a pretzel covering a “total-beef” hot dog. Foodies can have it with or even without cheese. Wetzel’s features dog-bites & cheesy-dog-bites as well. Small-sized pretzels known as Wetzel Bitz are also available that are offered with either sugar and cinnamon or salt and butter.
The food chain also marketed dips for the “Wetzel dogs” and pretzels. The present listing of seasonings includes jalapeño cheese, cheese, caramel, pizza sauce, cream cheese, and sweet glaze.
2) Beverages
Wetzel’s Pretzels is also famous for its beverages menu including
- Frozen Granita, a cold variety of Italian dessert (pudding).
- Frozen Lemonade, marketed in a range of flavours.
Bill Phelps & Rick Wetzel suffered a fairly slow growth in the beginning, but the consistent struggle and the patience made them reach their current position. Every milestone added a chapter to their success story. With their every upcoming endeavour, they themselves led the way to be established as brands.
Rick Wetzel’s leadership
Rick Wetzel eagerly nods to a corkboard in his office full of sticky notes with relevant quotes and leadership ideas as he considers how he leads his staff. This leadership board acts as a daily reminder to follow through on his three essential leadership qualities: be outrageously optimistic, remain consistent, and create a road to a great goal. Rick recognizes that these measures assist in attracting top personnel and that a fun, results-oriented work atmosphere is critical to maintaining those top performers. Rick Wetzel takes excellent satisfaction in his low turnover rate, which he credits to treating his staff properly, praising their successes, and providing adequate vacation time to unwind. “It’s all about defining the course and ensuring it’s properly stated,” Rick says as a Wetzel’s Pretzel’s CEO. He acknowledges his skills and steps out of the way to enable others to lead in areas where he is not an expert, much like any effective strategic leader. Rick Wetzel delegates responsibilities easily and is ready to give assistance and knowledge when needed. One of the virtues he instills in his staff is his collaborative attitude. Rick thinks that you create your luck rather than being lucky. When something excellent comes along, if you’re prepared, you’ll be able to seize the chance to make it happen. In over 25 years as an entrepreneur, his conviction in empowering people and allowing them to choose their path has allowed him to develop successful enterprises. Rick Wetzel net worth is $480 million.
What inspires Bill Phelps?
Bill Phelps’s father created rawhide dog treats, and Bill had a family company selling pet items. In 1990, Bill coordinated the sale to Nestlé, and afterward, Bill went to work for Nestlé, where He went to work with this guy named Rick Wetzel. They both strolled into a pretzel shop when on a work trip to Seattle, and it was just what the visitor was searching for. It was excellent, fresh, hand-rolled, and low in calories. “We stepped into the pub that night, took a napkin, and started writing a business plan.” He often tells people that Rick and Bill have been the two stupidest guys at Wetzel’s because they left our wonderful marketing careers to work in the rear of a pretzel shop. Their goal was always to be a Ben & Jerry’s of a pretzel category. They had no prior experience with licensing or the restaurant industry. “We are making this up as we go,” Rick remarked. They relied heavily on exceptional product innovation, which stemmed from our Nestlé backgrounds and business research, which is a component of marketing. Bill Phelps had anticipated franchising to be a difficult task akin to herding animals. The extent to which he learned the industry from my franchisees has been the biggest surprise. They created the business by continually refining the concept by studying what the top franchisees performed. There’s also a lot of white area at Wetzel’s. They have a lot of potential in unconventional regions as well as worldwide. For years, the brand has slipped under the radar, but now it’s reaching a stage where there’s a lot of buzz. Rick Wetzel is indeed a seasoned businessman. He came to Bill Phelps with the concept for Blaze Pizza five years ago. He took one look at it and said, “I’m in,” and Bill became Blaze’s No. 2 investor. It was a grand slam home run. He adores Wetzel’s and refers to it as my third kid. In Bill’s kitchen. They both created the original Wetzel’s pretzels 24 years ago. Bill Phelps net worth is $1.5 million.
Wetzel’s twisted Pretzel Combination
Wetzel’s Pretzels understands how and where to put on a show, perhaps since they started in Los Angeles. With their buttery, doughy fresh fragrances wafting from the windows, their made-fresh, hand-rolled pretzels draw crowds. It’s Showtime after the aroma and flashy signs have enticed people in. The dough of Wetzel’s Pretzels represents the show’s growing star, as seen through the window. Employees, or pretzel manufacturers, twist the doughy delicacies with such dexterity that it appears to be simple. There are various variants available in addition to the traditional Wetzel Original Pretzel. Sinful Cinnamon & Almond Crunch are two flavors of pretzels. Cheese enthusiasts will enjoy the Cheddar Melt, Grateful Garlic, Toppings Twist, Jalapeño Parmesan Melt, and Jalaroni from Wetzel’s Pretzels. Dog Bites, which are 100 percent beef small hot dogs wrapped in a hot pretzel and covered with bubbling cheese, are a fun option. And then there is the Classic Wetzel Dog, Cheese Dog, & Jalapeno Cheese Dog on the menu. With Wetzel’s Pretzels slogans like “The dogs that make people beg,” the pretzel firm has a good sense of humor. Customers may also choose dips with their pretzels, such as cheddar cheese, jalapeño cheese, pizza sauce, or sweet caramel glaze. Choose from the Wetzel Bitz, Pizza Bitz, Almond Crunch Bitz, or Cin-A-Bitz if you like little bite-sized pretzels. These transportable, shared snacks were ready to fulfill salty or sweet appetites, whether you go large or small. They also introduced a new flavor of Boba-Drinks like the Mango Boba Frozen Lemonade, making waves all over social media. This is how the business of Wetzel’s Pretzels reach to the market position where it now belongs.
