![]() ![]() Business was just great through last summer,” Phelps says. “Our business went crazy as we saw that happen with a lot of the drive-thru guys. ![]() The company created roots during COVID, and it’s not pulling up now. Consumers will have a lot more choices for eating and drinking now that California reopened its economy, but Phelps doesn’t expect Dave's to be negatively impacted. Instead of being "screwed," as Phelps once feared, “business went through the roof,” as more consumers turned to convenience and mobile ordering.Įven as dine-in returns, off-premises has stuck. In two weeks, the chain's entire off-premises channel ballooned to 60 percent, and eventually peaked at 63 percent. At the onset of the crisis, the brand saw 9 percent of its business come from third-party deliveries and zero from online orders. We take people that have multi-unit, fast-casual experience that have done this before because we don't have time to train people that aren't restaurateurs.”ĭave’s offering became more enticing throughout COVID as the chain proved it was pandemic-proof. “We don't take any mom-and-pops,” Phelps says. The other, of course, is the quality of franchisees. ![]() One part of it is over-investing in the development team so the right infrastructure and support systems are in place for franchisees and their general managers. Phelps knows Dave’s is expanding quickly, but there’s a plan in place to ensure it’s done responsibly. Plus, the target is Gen Z and young millennials, and those groups are in every market, he says. Dave’s uses this philosophy because it’s already proven the product works in every market it’s entered, so putting an emphasis on geography isn't as necessary. The company wants area developers with experience, the right values, and the ability to build many stores in a short period. In terms of growth, Phelps says conventional wisdom would tell you it’s initially based on demographics and the area, but the CEO says the true beginning point is franchise partner quality. Everything else is franchised, and Phelps says that proportion will remain the same going forward. Of the 14 open restaurants, two company-operated flagship locations are based in the Los Angeles neighborhoods of Fairfax and Northridge. The quick growth is primarily through franchising. Pandemic or Not, Dave’s Hot Chicken is Growingĭave’s Hot Chicken Blazes Ahead Into Nationwide Growth So they were very, very excited about the potential for the brand.” “And so smart franchisees follow good unit economics, and they looked at it, talked with other franchisees that opened up their stores, and the business was just really, really solid. “The brand itself has this cult following, and the appeal of it is just kind of crazy,” Phelps says. The chain, which is now up to 14 stores, is scheduled to open 30 more by the end of 2021. That figure is now in the 400 range, which includes more than a dozen states and markets like Boston Oklahoma City Indianapolis Fort Wayne, Indiana Cleveland and Columbus, Ohio. To put a number on that dream, Dave’s sold the rights to 285 locations in 2020. Business surged, and the growing chain was able to “sell more than we ever dreamed of” in terms of franchise territories, Phelps says. It appeared Dave’s was vulnerable, but reality proved the opposite. Not to mention, Dave’s entered the pandemic as a young brand with three units and a pipeline full of restaurants after launching a franchise initiative in October 2019. Quick-service restaurants saw transactions decline 38 percent in the week ending April 5, according to The NPD Group. “We thought we were kind of screwed,” Phelps recalls.Īnd there were reasons to be fearful. He thought the worst when the brand's home state of California became one of the first places to shut down on-premises dining last year. To say 2020 was a crazy year would be an understatement, Dave’s Hot Chicken CEO Bill Phelps says. ![]()
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