When Joshua Richman joined the six-unit Happi House fast-casual chain as president and chief executive in March, his instructions from the board were to grow the brand. After a 12-year lull in franchising, the San Jose, Calif.-based concept, which specializes in “California-style teriyaki,” is ready to pursue that goal, Richman says.
Why are you going to resume franchising?
California is experiencing the same economic woes as the rest of the country, although we have found that Northern California in particular has a high number of middle- and upper-management professionals who are looking for economic stability through owning their own business. In tough economic times, starting a business behind a proven concept can make sense for someone who has an aptitude for the restaurant business.
Why did the brand, founded in 1976, stop franchising?
A number of factors, including the need to maintain tighter control over its system operations. Happi House operated until 2007 without a full-time, experienced chief executive. With a decision by the board of directors to grow the brand, I was recruited to develop Happi House for franchising in October 2007.
What’s your experience in the industry?
I’m 38, and I’ve been in the restaurant industry my entire working life. I most recently spent 18 years with Straw Hat Pizza as president and CEO, and with Kevyn Johnston [Happi House’s director of marketing] totally recreated that brand. [Straw Hat is a 50-unit pizza chain based in San Ramon, Calif., which is owned by the franchisees as a cooperative.]
With only six units, what can you show a prospective franchisee to prove that the concept has legs?
It may be a little premature to accurately answer this question. On the upside, Happi House is highly systematized, well branded and a leader in our segment. By the time of our registration, Happi House will have all of the expected components of a successful franchise, despite our size.
Why didn’t Happi House open more company stores in the past decade?
This has really been a family business for much of our history. I believe that the lack of professional restaurant leadership has held the brand back.
Will serving Japanese cuisine require special skill sets among your franchisees and their team members?
No. As part of our trademarked “Teriyaki Infusion” cooking method, our recipes and system have been fine-tuned and streamlined so that the skill set is very much the same as for other quick-service concepts. I think that a new franchisee will be very happy with the simplicity and quality of the operation. We don’t do anything intricate like sushi.