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Franchise Focus: Charleys VP to grow revenue by 10% in 2017

John Woo, VP of development for Charleys Philly Cheesteaks, chatted with FastCasual about the success of the brand and how technology helps the business run smoothly.

June 2, 2017

Charleys Philly Steaks may have more than 570 locations across 19 countries today, but 30 years it was just a small Philly cheesesteak shop near the campus of The Ohio State University. The chain, which specializes in Philly cheesesteaks, gourmet fries and fresh lemonade, has consistently grown 10-20 percent over the past decade and experienced two consecutive years of approximately 10 percent same-store sales growth in 2014 and 2015, John Woo, VP of development, said in an interview with FastCasual.

"Last year we saw same-store sales growth of approximately 3 percent, outperforming QSR industry trends," he said. "Although our brand footprint may have changed over the years, our philosophy to serving up fresh, grilled-to-order Philly Steaks has not," he said. "Partnering with like-minded, passionate franchise owners and providing ongoing training and guidance has ensured that customers have a great experience no matter which Charleys location they visit."

Woo chatted with FastCasual about the brand's focus on training and technology helps the business run smoothly.

Q:  What is the growth plan over the next five years?

Woo: Most immediately, Charleys Philly Steaks has a goal to grow total revenue in 2017 by at least 10 percent.

We're proud to have grown every year, and currently more than 90 percent of our restaurants are in mall food courts, airports or on military bases. While we are always going to be interested in new mall opportunities that make sense for the brand, we are focusing much of our development efforts now and in the future on opening new locations in strip centers and free-standing locations in order to grow.

Q: What do you look for in a franchisee?

Woo: Our founder, Charley Shin, knows that opening a franchise is a tremendous opportunity because he started this business with a dream of opening and owning his very own restaurant more than 30 years ago. His entrepreneurial spirit, tenacity and work ethic have guided us from day one, and we certainly look for the same qualities in our franchise partners.

Q: Why would someone want to becomea Charley'sfranchisee?

Woo: Charleys Philly Steaks has been named the No. 1 Philly Cheesesteak Franchise in Entrepreneur every year since 2001. We've been perfecting our craft for more than 30 years, and pride ourselves on serving our customers the best Philly Steaks, always grilled fresh-to-order. We know that consistent customer satisfaction translates into successful franchisees.

We also have one of the lowest franchise fees and royalty rates compared to industry competitors, while still providing a strong base for our franchisees to succeed through a comprehensive training program.

Franchisees spend three weeks at Corporate Headquarters in Columbus, Ohio for training, where they are given the tools to get stores started off strong through hands-on experiences and one-on-one training with key members from each corporate department.

Q: What types of tech do you use to help run operations?

Woo: Most of our mall locations have an iPad ordering system to expedite the ordering process during peak hours when lines may be long. Once an order is placed at the register, crew members call it out over a microphone, and it also appears on monitors at the grilling station to help improve speed and accuracy.

Charleys also uses a program that helps to maintain accurate store inventory levels, and provides suggestions on future orders based on recent customer purchasing trends.

Some of our hood ventilation systems are computerized to slow down or speed up fans based on the temperature of the grills and fryers to help conserve electricity.

We have many multi-unit franchise owners who use in-store cameras that provide a live-feed on their smartphones to assist with operations oversight no matter where they are.

Moving forward, Charleys is looking to launch online ordering, which is currently in test at several locations, and there is a mobile loyalty app in the works to reward our customers for continued visits.

Q: What is the one piece of advice you would give to any franchisee or restaurant operator?

Woo: I would tell them to focus on their strengths. It's easy to succumb to the temptation of running in all different and new directions, but that can result in the dilution of your brand. Focus on what makes your restaurant unique and run with it.

I would also encourage them to lean on corporate's experience and wealth of capabilities. At Charleys, we are constantly working to make our franchisee's businesses more profitable and their lives easier whether it's providing ongoing training, offering new technologies to improve operations, or assisting with local store marketing ideas.