Since launching its franchise system late in 2022, Hawaiian Bros already has 116 units in the development pipeline thanks to five multi-unit deals, with the fifth coming at the end of last year.
The latest deal is with Rock Hawaiian, part of Dallas-based Rock Strategic Group, for 18 locations in San Antonio. In operation since 2007, Rock Strategic has 73 units with brands Jack in the Box and Golden Chick across Texas, Nevada and Utah.
For Rock Strategic CEO Chris Aslam, entrepreneurship goes back a generation. His parents opened their first Jack in the Box in the 1980s and he grew up in the industry as the family’s portfolio grew to five locations.
After finishing school, Aslam’s parents lost one of their restaurants to a fire and were facing financial issues. To help them, Aslam worked with his business partner, Edith Diaz, who’s now Rock Strategic’s president.
As the duo assisted Aslam’s family, they also decided they wanted a restaurant of their own and opened a Jack in the Box in 2007.
“All we had to our name was a little bit of money and we had asked the brand if they would sell us some stores,” Aslam said. “They didn’t have any available, so we had to build. We found a site in an underserved part of town, and luckily the banks lent us on it. We put everything we had into that and took a risk in our early 20s, and it ended up taking off out of the gate.”
The success of that location served as the launchpad for the building of a multi-concept portfolio over the next 15 years. The addition of Hawaiian Bros, said Diaz, came about “because several of our employees had heard about it and were really getting excited about it.”
Chris Aslam is the CEO of multi-concept franchisee group Rock Strategic.
“I became aware of them around the same time,” Aslam said. “I serve on the Texas Restaurant Association and as we were hearing that from employees, Hawaiian Bros representatives had joined the board of directors. I started talking to them and I was really impressed. They are a new brand that’s really appealing to a wide audience.”
Hawaiian Bros has 40 locations open in eight states across the Midwest and Southwest, having opened 12 units in 2023. In Texas alone, 21 locations are open, with a concentration in the Dallas area.
Grant Kreutzer, vice president of franchise development, said the brand’s strategy has focused on the recruitment of multi-unit owners. Stine Enterprises, the first franchisee for Hawaiian Bros and also a Jack in the Box operator, signed a 75-unit development agreement and also acquired 11 corporate locations as part of a deal in early 2023.
“There’s been a huge response since we signed our first group,” Kreutzer said. “Since then, we’ve brought on four additional groups to develop different markets. We continue to do outreach, but we’ve garnered so much interest already because of the simplicity of our operations and our AUV is higher than most in our category.”
The average unit volume for Hawaiian Bros in 2022 was $3.5 million, and Kreutzer said the concept sits between the quick-service and fast-casual restaurant categories. In addition to the solid AUV, Rock Strategic’s leaders said the ability to introduce a new cuisine to their markets is another benefit.
“It’s a unique offering,” Aslam said. “Everyone knows Hawaiian food, but not everyone gets to experience it and that’s very intriguing to us. There aren’t many Hawaiian-inspired restaurants here and I know people are very excited about getting one.”
Since getting to know the brand better, Aslam said he’s also impressed with the Hawaiian Bros culture. “For being such a small brand, they’ve figured things out that other very well-established brands haven’t,” Aslam said. “That’s based on their efficiency and technology. The way they go about everything and how they treat their employees was unique, and it’s what sealed the deal for us.”
Kreutzer said Rock Strategic is the type of franchisee the brand wants, too, both for the group’s background and market knowledge.
“They’re a good fit because of their proximity to the market and operating experience in Texas,” Kreutzer said. “They’ve proven they can operate, manage and develop in new markets. They’re already in Las Vegas and developing units in Salt Lake City, and they’ve done developments in San Antonio.”
While signing franchisees like Rock Strategic will remain part of the brand’s strategy, Kreutzer said expansion will also come via company-owned units, with about a 50/50 split. Over the next five years, Kreutzer said the brand is looking to sign between 20 and 40 multi-unit franchisees to develop their respective metro areas, except for regions that require more than one owner, such as Atlanta or Los Angeles.
After launching its franchise program in late 2022, Hawaiian Bros has grown to 70 locations.
Quick Hits
Dill Dinkers signed a 20-unit deal for expansion of the pickleball concept in the Charlotte, North Carolina, market. The agreement is with former PE teacher Mandy Cash, who’s partnering with her parents, John and Donna Sieverts, on the venture. Based in Maryland, Dill Dinkers opened its first location in November 2022 and now has four company-owned locations.
Big Chicken, a fast-casual concept founded by Shaquille O’Neal, signed a six-unit agreement for the Boston area. The deal is with business partners Martin Lachance, Barry Lattuca, Michael Scibelli and James O’Hanlon. The team already has QSR experience, operating two Mooyah Burgers, Fries & Shakes restaurants in Boston.
Slim Chickens signed a five-unit agreement for expansion in northern Virginia with the husband-and-wife team of Oubab and Lama Khalil of Khalil and Hamoudi S.L. Companies. In addition to real estate development, Khalil and Hamoudi S.L. Companies has Tropical Smoothie Cafes and a coffee shop in its portfolio. Founded in 2003, Slim Chickens has more than 250 locations.
Vicious Biscuit began working with Pivotal Growth Partners last year to push franchise growth.
Cookie Dough Bliss & Creamery inked its first multi-unit deal with a pair of experienced franchisees. Business partners and brothers-in-law Kevin Coffman and Ryan Moon, who are multi-brand, multi-unit franchisees with Urban Air Adventure Parks and Goldfish Swim Schools, signed on to open five locations in Houston. Cookie Dough Bliss & Creamery opened its first location in 2017 and today has five units.
Smalls Sliders is entering the Austin, Texas, market with a five-unit deal. The agreement is with real estate executive Jonny Rodgers, who has more than 20 years of experience in property development. Backed by 10 Point Capital, Smalls Sliders was launched in 2019 by Brandon Landry, who also co-founded Walk-On’s Sports Bistreaux.
Early childhood education concept Marigold Academy signed its first multi-unit deal to develop sites in New Jersey. The agreement for three locations is with Radha and Rishit Bhatt, who will open units in Princeton, West Windsor and Hamilton. The Bhatts bring experience in corporate roles, with backgrounds in human resources and finance. Marigold Academy was established in 2019 and began franchising earlier this year. The brand has two locations open.
Cookie Dough Bliss & Creamery signed its first multi-unit deal for the Houston market.
Fast-casual breakfast brand Vicious Biscuit signed a three-unit agreement to expand in Mississippi. The deal is with brothers Cliff and Hunter Russum, who will bring the brand to Hattiesburg and Jackson. The brothers bring experience as franchisees of bar and grill concept Mugshots, with three locations. Founded in 2018, Vicious Biscuit has six locations open in the Carolinas and Florida. It also inked a six-unit agreement with new franchisees Carl Albright, Ken Troutman, Dave Ost and Curtis Fox, who will develop units in northeast Ohio. The group’s experience ranges from corporate leadership to construction and small business ownership.
Zaxby’s, a Georgia-based QSR chicken brand, signed a three-unit deal for Kentucky and Indiana. The agreement is with Manish Malhotra, who has experience in the restaurant and hotel industry, working in corporate roles for Marriott and Arby’s. He also became a franchisee with Arby’s in 2015. Zaxby’s was founded in 1990 and has more than 900 locations across 17 states.
Captain D’s, a fast casual seafood concept, signed a three-unit agreement expanding its presence in the Atlanta market. The deal is with Farid Khan, whose portfolio includes a rental car business, gas stations and a commercial real estate and management company. He also brings experience in the hotel industry and as a Marco’s Pizza owner. Established in 1969, Captain D’s has more than 530 locations in 23 states.
The Wire is the place to find news of multi-unit development agreements, brought to you by Senior Writer Matthew Liedke. Want more? Sign up for the e-newsletter at franchisetimes.com/e-newsletter. To share your brand’s multi-unit deals, email details to [email protected]