Culver Franchising System Inc. has named Phil Keiser its next CEO, replacing Craig Culver, the company’s cofounder and only CEO to date, the quick-service operator said Tuesday.
Keiser will become CEO of the Prairie Du Sac, Wis.-based company on June 15, the day Culver turns 65.
“It’s important for every business to have a strong succession plan so the right people are in the right positions to lead into the future,” Culver said in a statement. “What makes me excited and makes my decision easier is that the reins are being turned over to someone who has been responsible for so much of our success for so many years.”
Keiser has been with Culver’s for 19 years, and has been president and chief operating officer since 2003. Under Keiser’s leadership, the 535-unit chain opened 330 units, and surpassed $1 billion in systemwide sales in 2014.
Culver will remain the company’s chairman, and will still be its visible spokesman, appearing in its “Welcome to Delicious” ads. Keiser will lead daily operations.
“Really, not much is going to change,” Keiser told Nation’s Restaurant News. “Craig is going to stay very active as the face of our brand. He’ll be the chairman of the organization. It’s not like he’s riding off into the sunset. The roles have just changed.”
Keiser joined the company in 1996 as director of operations and held various other jobs before becoming chief operating officer. He said that he’s had active discussions with Culver for about a month.
“The reality of it is Craig and I have worked together for 19 years,” he said. “We’ve evolved as the organization grew. This is just another step in our evolution.”
He said that few things will change, and anything that does change will simply be a matter of Keiser doing things differently than Culver.
“We’re at a good place as a brand now,” Keiser said. “We had a fantastic 2014. We’re off to a good start in 2015. This is a planned succession, versus one where we have to make a change.
“My priorities are to keep doing what we’re doing very well. Keep focused on our critical success factors. Keep our core values aligned. Keep ourselves positioned for growth and keep evolving on the things we’re working on.”
Culver, his wife Lea, and his parents George and Ruth turned the family’s old A&W restaurant in Sauk City, Wis., into Culver’s in 1984. The restaurant specialized in a Midwestern favorite, frozen custard, along with its signature ButterBurgers, served on toasted and buttered buns.
The company has successfully moved away from its Midwest base in recent years, opening in places like Phoenix and Utah. In Florida, the chain opened units in areas where Midwesterners went to retire. And transplanted Wisconsinites showed up in force, proudly displaying their heritage as fans of the Green Bay Packers football team and the University of Wisconsin.
“We had openings where the guests show up with Cheeseheads or Badger gear,” Keiser said. “They probably had them in their closets or whatever.”
Culver’s restaurants are known for their bright blue color scheme — including their roofs — and broad menu. Culver’s was the 49th largest restaurant chain in the US in 2013, based on data from Nation’s Restaurant News’ Top 200 census.
The chain opened 34 new restaurants in 2014, and plans to open another 40 locations in 2015. Culver’s now operates restaurants in 22 states. All but eight of its locations are franchised.
This story has been revised to reflect the following update:
Update: Feb. 10, 2015 This story has been updated with quotes from Phil Keiser.
Contact Jonathan Maze at [email protected].
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