Franchising

Hoots CEO on decision to franchise now: 'Why not?'

Sal Melilli, CEO and creator of Hoots,

December 15, 2020 by Cherryh Cansler — Editor, FastCasual.com

Although the pandemic has wreaked havoc on restaurant expansion plans all over the world, Hoots Wings — a fast casual spinoff launched three years ago by Hooters CEO Sal Melilli — doesn't belong in that camp.

Sal Melilli said the time was right for franchising Hoots.

In fact, Melilli, who called it an "exciting time to open locations," has not only opened three Hoots during COVID-19 but also announced last week the launch of a franchise program. He said both decisions were a testament to the concept.

"Right now, there is a growing demand for chicken wings, and it is as a good an opportunity as any to expand and open franchises," he told FastCasual. "Like the entire sector, when the world shut down, we felt that pressure on sales. However, Hoots came back very quickly and robustly because of the very model of the concept."

That concept — even pre-pandemic — focused on off-premise eating through pick-up and delivery.

"Based on the nature of the model and the demand for our product mix through delivery, we came back faster than most restaurant concepts," said Melilli, who is also a longtime Hooters licensee in Chicago, New York City and Florida.

Hoots has three company-owned locations in the Atlanta area as well as four licensed locations in Illinois and Florida.

"Hoots Wings is inspired and backed by Hooters, which results in franchisees getting access to a great leadership team, who have proven they can lead a franchise to success

The cost to invest

Melilli said the overall investment to open a Hoots will vary depending on the area — suburban vs. urban — for example, as well as if the buildout will be within an existing restaurant space or is new construction.

"The one thing that is consistent is that initial franchise fee is $30,000, and every franchisee will pay royalties on an ongoing basis," he said.

"(Franchisees) are joining a segment that is growing exponentially. Along with pizza chains, chicken brands are some of the few restaurants thriving during the pandemic, and Americans are eating more wings than ever before."

About Cherryh Cansler

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Cherryh Cansler is VP of Events for Networld Media Group and publisher of FastCasual.com. She has been covering the restaurant industry since 2012. Her byline has appeared in Forbes, The Kansas City Star and American Fitness magazine, among many others.

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