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Mason's Famous Lobster Rolls diving into franchising

In a world where innovation can be rare, Mason’s Famous Lobster Rolls is on the cusp of a growing market where the sky — well, the sea — is the limit.

Customers at Mason's pose with the chain's lobster hats.

July 19, 2016 by Matthew Harper — Intern, Networld Media Group

In a world where innovation can be rare, Mason’s Famous Lobster Rolls is on the cusp of a growing market where the sky — well, the sea — is the limit.

"Lobster roll shops are popping up all over, and we are at the early phase of a clear trend," said Dan Beck, who founded Mason's in 2014 in Annapolis, Maryland. "Once consumers try our product, they quickly understand that they no longer have to go to a full-service restaurant with a bib and a nutcracker to enjoy a true lobster experience."

Lobster has increased 2.7 percent at fast casual restaurants in a year-over-year comparison, averaging out at $14.46. It's growing most in that segment as an appetizer/starter with 52.4 percent growth in a year-over-year comparison, said Technomic'sRachel Royster.

"It also grew 0.4 percent at quick-service restaurants, with an average price of $14.65, growing mostly in entrées at 1.7 percent," she said. "Just for comparison, it is trending down 4.3 percent at full-service restaurants, with an average price of $22.65. I think it's safe to say that we have a growing trend in limited-service restaurants at a lower price point.

FastCasual interviewed Beck, who is hoping to ride the wave of the red crustacean’s popularity. After spending two years perfecting the flagship location, Beck said he’s is ready to float his business model into the franchise world.

FC: What types of franchisees are you looking for?

D: Qualified entrepreneurs with a net worth of $250k, relevant business experience, although restaurant experience, while helpful is not required.

FC: What are the investment costs?

D:We are required to by the FTC to state a range of the Total Initial Investment which we show $168,600 to $293,150. In addition to the Franchise Fee of $25k this includes the cost of equipment, construction, signage, interior décor, etc. plus four months of rent, security deposits, initial inventory, miscellaneous reserves and other soft costs.

FC: What are the franchisee fees?

D:$25k per store.

FC: Lobster is known for being expensive. How can you serve it at a fast casual price point?

D:While the cost of lobster is indeed high by fast casual standards the fact that a Mason's Famous Lobster Roll restaurant is simple to operate, labor cost are relatively quite low. The combination of these two makes the financial model in line with the fast casual industry and attractive to franchisees.

FC: What is your growth plan? How many locations and where?

D:Our plan is to have 25 locations open within the next three to five years.

FC: How do you handle supply chain especially when/if you expand further from the coast?

D:We have relationships with lobster suppliers in Maine and a national distribution agreement with a broad line distributor and are able to provide all raw materials including lobster across the U.S.

FC: What types of technologies are helping you run your business?

D:While fast casual restaurants don't generally depend on complex technology, we have POS, accounting, and purchasing systems in place along with a broad reliance on social media.

About Matthew Harper

Matthew Harper is in the Seminary Track program at Boyce College, and is nearing completion of his M.Div. at Southern Seminary He works at the campus writing center where he provides feedback and edits student papers. He interned in the editorial department at Networld Media Group for two years, and won a national award in a student short story competition. He attends and serves at Southeast Christian Church in Louisville and hopes to one day pursue ministry overseas.