Southpaw co-founders Erica Spector Wishnow and Judd Wishnow own nearly 200 units between Dunkin’ and Taco Bell. The pair met in 2008 and say their investments in people are paying off as the business grows.
Being persistent can pay off. After “bugging Taco Bell relentlessly,” Judd Wishnow and Erica Spector Wishnow added the franchise to their portfolio with the rights to develop in Hudson Valley, New York, where they had a handful of Dunkin’ restaurants.
Initially, the pair wanted to acquire existing Taco Bells under their company, Southpaw. “They said, that’s great. Get in line,” Judd Wishnow recalled of the franchisor’s response. Instead, the pair developed new stores before the company agreed to sell Southpaw 24 corporate units in Louisville, Kentucky, in 2018.
Private equity firm Orangewood Partners formed ABTB with Southpaw that year to buy the Louisville Taco Bells. The group bought another eight stores in April 2019. Orangewood sold its stake in the business in early 2023.
The husband-and-wife duo met in 2008 through a mutual friend who thought they’d make good business partners. They had finance backgrounds and weren’t sure what to do next, Wishnow said. Real estate could’ve been an option, but the market was much less appealing during the 2008 financial crisis.
“I asked Erica to humor me and consider doing something in fast food, because I am the core customer. Erica is a lot healthier than me,” Wishnow said. Despite not eating off the menu, Spector Wishnow loved the Dunkin’ business model. In 2010, they bought 11 Dunkin’ units in Hudson Valley.
By the time they bought the Louisville Taco Bells, Southpaw had about 30 Dunkin’ stores. It was around that time Judd Wishnow suggested investing in the business’ infrastructure so the two weren’t wearing every hat to keep Southpaw running. “It’s paid off in spades,” he said.
Dunkin’ has more than 9,600 units open worldwide. System sales in 2022 were $12.4 billion.
“Judd and I have gotten pretty good at hiring people that are better and smarter than us to really take the jobs that they’re best at,” Spector Wishnow said. “We are the best cheerleaders and supporters.”
Today, Southpaw has nearly 200 units across both brands. On top of Judd Wishnow’s bias toward the products at Dunkin’ and Taco Bell, they each appreciate the cult-like followings and recession resistance.
In September, Balance Point Capital invested in ABTB, following Orangewood’s divesture of the group, to finance the acquisition of 39 Taco Bell stores in Atlanta.
Even through the pandemic, the Great Resignation, inflation and supply chain issues, Southpaw’s stores were resilient, Judd Wishnow said. Southpaw reports annual systemwide sales of around $300 million.
The two brands complement each other “in every way,” Judd Wishnow said. Dunkin’ has better morning sales, while Taco Bell is stronger in the evening. Dunkin’ has a solid regional presence in the Northeast, and Taco Bell excels everywhere else. Owning the two brands proves beneficial when Taco Bell is seeing a sales dip and Dunkin’ is thriving, or vice versa.
“Because we have such a great team around us, it allows us to continue to grow our company and scale it,” Spector Wishnow said. “That’s how we prevent being spread thin.”
The name Southpaw refers to the boxing stance in which a boxer has their right hand and foot forward. It’s typically a position for left-handed boxers, and while Judd Wishnow is a lefty, that’s not why they picked the name. It’s a reference to the movie “Rocky,” one of the Wishnows’ favorite films. Their plight as franchisees has a similar storyline.
Taco Bell proves successful for the Wishnows through acquisitions and new development.
“When we met, we were both a little bit lost in terms of what we wanted to do professionally,” Judd Wishnow said. “Meeting each other, we lifted each other and took ourselves and our relationship and our business to the next level, because of the way we work together—like Rocky and Adrian.”
Southpaw is open to adding more brands, but for now wants to double its unit count in five years within the Dunkin’ and Taco Bell systems. “Go with what you know. If it’s working, don’t deviate,” he said.
“We came into this business with big eyes,” Spector Wishnow said. “But our original desires have never wavered. We want to be the best operators in the system.” She admits Southpaw’s goals are lofty ones, but that doesn’t hinder their drive to grow and to provide an upbeat environment for their employees.
In their positions, they “don’t think as much about the customer,” Judd Wishnow said. “We take care of our employees. They’re going to take care of the customers.”
Southpaw offers mental health support services for employees and uses software called the Wow Program. It’s set up like a Facebook newsfeed and employees can send colleagues “wow points” to congratulate them on a job well done. Then everyone sees the kudos in the newsfeed. Employees can later trade the points for prizes.
“A lot of the time … the crew members, who actually are the ones who interface with customers maybe more often than even management, they don’t really often get rewarded,” Judd Wishnow said. “We want everyone to feel excited about the fact that they’re working for us and that if they’re doing a good job, there’s going to be financial or some sort of benefit for them.”