Loyal following of chess players

Magic Johnson has magic touch in business, too
USA Today
By Matt Krantz

From experience comes business

It’s that niche that has morphed Magic Johnson from a name on the back of a basketball jersey into a brand in its own right. Magic Johnson Enterprises is a private company that owns or helps operate companies ranging from more than a dozen 24 Hour Fitness centers, more than 100 Starbucks locations, food service companies, a T.G.I. Friday’s in Los Angeles and other businesses across the country. The company also has a private investment arm, with $1 billion in cash, which Johnson says will help the company expand, especially now that real estate can be bought at low prices.

It’s just as Johnson saw it. The inner-city market was a big opportunity for someone with the knowledge to go after it, he says. “I knew that because I lived it. I just turned it into a business.”

It’s hard to summarize the swath of Johnson’s businesses, as they range from food service to job placement and coffee. But the common theme of most is the marriage of his name alongside another well-known brand. Together, Johnson and another company enter urban markets that some have long avoided.

The Magic touch is taking chains with a familiar formula that plays well in the suburbs, and tailoring them so they fit the customers and tastes of the inner city. Rather than having to drive to the suburbs, residents can stay put and frequent Johnson’s local twist on a national chain. Completing the circle, Magic Johnson Foundation, Johnson’s philanthropic arm, invests in the community by building computer centers and other social services, helping to build goodwill with the residents.

Johnson is scarce on the details on precisely what the things are that he does to make his version of chains different that those in the suburbs, or in his words, “Magicize” it.

But he uses an example to describe how the first Starbucks he opened in Los Angeles is different than others in the sprawling chain. Johnson noticed many regular customers at the Starbucks gathered to play chess. It was a scene reminiscent of the casual chess tournaments that take place in inner-city parks.

So Johnson bent the corporate rules to make the chess players more welcome. After getting approval from Starbucks, he installed several picnic tables outside that not only captured the vibe of the chess tournaments but also let the local residents know they were welcome. Now, the Starbucks draws a loyal following of chess players, who lure friends and other chess players, he says.

Burger King restaurants that Johnson owns are also a little different. Customers hear Magic Johnson’s voice on the loudspeaker in the drive-through, instead of a canned anonymous voice.

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