Los Angeles-based Dave’s Hot Chicken is on a red-hot growth trajectory, with 20 locations and open and dozens more on the way — an expansion strategy fueled by franchisees. CEO Bill Phelps shares his thoughts on how franchising has changed because of the pandemic, and what operators can expect from franchising in the future.
Join us in Denver Oct. 4-6 for CREATE: The Future of Foodservice, where Phelps will share more on Dve’s Hot Chicken’s franchising strategy.
How did the pandemic change how you approach and recruit potential franchisees?
We were stunned by the fact that even during the pandemic, we were able to sell a lot of franchises, and it was basically done the way we’re talking now — in Zoom meetings. We had discovery days with franchisees on Zoom calls, and then we would review business plans with potential franchisees on Zoom calls. And we would basically come to agreements the same way. We were stunned by it, but it worked really, really efficiently, which surprised us all.
What was the biggest change in your mindset in going from face-to-face meetings to Zoom?
You never thought that you could engage people and make them invest literally millions of dollars in a concept just by having Zoom meetings. It actually worked incredibly well; it was very efficient and you learned to adapt. That’s one of the things that I give our team so much credit for, is their ability to adapt and to make the changes necessary to not only perform but to thrive in this environment.
How’s growth been for Dave’s and your franchisee base?
We’re very lucky. We happen to hit upon a concept that is just kind of amazing. The product is amazing. The marketing is amazing. The story of the founders is kind of surreal, and it just hits on all cylinders. So it’s one of those things we don’t even have to advertise at this point. The word of mouth is so powerful that we’re getting people interested from all different kinds of concepts looking for something new to grow with. We’re in a very enviable position that we’ve got something that’s, not to use that pun, it’s really a hot concept and it’s just really exciting.
At this point, what do you see as the future of franchising?
It’s interesting. With the number of independents that went out during the pandemic, it was just really kind of horrific for the industry. What you found is that the franchisees found a way to survive, and I think the franchise world — especially in food —is better, stronger, than ever, and you’re going to have great franchisees continue to perform incredibly well and the business will only get better.
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