Pros and cons of owning a business in Toledo
TOLEDO – Honey Baked Ham was established in Detroit in 1957 by Harry J. Hoenselaar, and it quickly became well-known for its food quality and patented spiral slicer. Since then, it has grown to over 400 locations across 40 states.
Honey Baked Ham is now eyeing Toledo for future expansion, adding another popular location to the Glass City’s growing roster of businesses. As of now, there are two seasonal locations only open during certain holidays (one in Sylvania and one on Navarre Ave. in Toledo), and another open year-round 5212 Monroe St.
Eric Edwards, who assists with growth development for Honey Baked Ham, liked what the company saw in Toledo.
“We started looking at places across cities, across the country where we’re currently not at, and then we started looking at what would be the best markets for us to be in,” he said. “The Midwest, in general, is a very strong territory for us as we started drilling down to the actual cities.”
Edwards added that Toledo was just one of the absolute best cities that the company felt it could be matched up with.
Specifically, the company liked the city’s diverse economy, infrastructure and growth. Honey Baked Ham has locations in surrounding markets but not as much representation in Toledo, and they are confident the city has enough customers.
“We want to see a really well-established infrastructure,” he said. “We want to see a city that’s growing. We like to see a city that’s got a diverse economy, and what we think is going to be a really good customer base,” said Edwards.
Currently, Honey Baked Ham only plans to open one new location. The company is at the stage where it’s looking for a brand partner to work with, but would love to have one built by either late 2025 or sometime in early 2026, Edwards noted.
To run a franchise, the franchisee attends extensive training at the corporate headquarters in Alpharetta, Georgia. After that, the company works with the franchisee to train the staff. Edwards said that many of their franchisees will go on to open multiple units. He also said that the new location would create 10-12 jobs, but that number could easily triple during their peak season.
The city of Toledo is growing, according to a Coworking Cafe study released in 2024. Its data, gathered from 2018 – 2022, showed a 90 percent increase in new business applications in Toledo.
Debbie Flores, interim director of small business development at the Toledo Regional Chamber of Commerce, said this information aligns with what the Small Business Development Center experienced over that timeframe. She said the number of clients they have helped start a business has doubled.
“Running a business in Toledo, whether it’s a franchise or a local operation, has some clear perks compared to bigger cities. I’d say operating costs, like rent and wages, are more reasonable here, which helps you keep overhead manageable without feeling pinched in certain sectors,” Flores said.
“There’s less competition, as well, so you’ve got space to make your mark. Toledo is a mid-sized community. So it has a tight-knit feel that’s perfect for building a steady customer base and creating strong local partnerships such as networking with other businesses.”
Flores also noted some disadvantages that business owners or franchisees will face in Toledo. The market is much larger in bigger cities, which will make your audience feel smaller, depending on the industry, and the infrastructure is not as expansive as bigger metros.
“Employee retention can be a bit of a challenge at times,” Flores added. “If you’re running a franchise, you got to follow their rules, which can limit your flexibility. Owning your own business gives you the freedom to adjust to what Toledo folks would want. Overall, the balance of reasonable costs and support in the community makes it a smart spot to set up shop. Either way, if it’s a franchise or local-owned, I think Toledo is a good area.”
Flores thinks Honey Baked Ham is a strong match for Toledo because it is “a widely recognized brand that customers already trust, which helps build its loyalty right from the start.”
She noted that the chain restaurant business has been growing in Toledo lately, mentioning places like Raising Cane’s, Ben and Jerry’s, Super Chix, Culver’s, Dunkin’ Donuts and Five Guys expanding in the city. Chain restaurants create jobs which boost the economy; they also provide consistent food experiences.
While they have their advantages, chain restaurants have some drawbacks compared to local restaurants.
“Local restaurants tend to keep more of their earnings circulating in the Toledo economy, while chain profits often flow out to corporate headquarters.”
Stacey Mallett, vice president of communications at the Toledo Regional Chamber of Commerce, pointed out some ways that chain restaurants have an advantage over local establishments.
“One of the other things we find is national chains have substantial marketing budgets, enabling them to launch widespread advertising campaigns, and that can make it challenging for local restaurants to compete for customer attention.”
Flores advised businesses and franchises in Toledo to stay on top of cash flow, manage expenses, develop a strong marketing strategy, build a positive work environment, and emphasize customer service. She said that strong community support makes Toledo a smart choice for a locally owned business or a franchise.
Mallet added that business owners should take advantage of resources in the community, such as the Small Business Development Center and the Minority Business Assistance Center, to avoid making costly mistakes. Their services are available at no cost.
