Operations
Teriyaki Madness seeing success with turnkey-management system
Launching a new operations model amid a pandemic may have been a bit risky, but it's paying off for Denver-based Teriyaki Madness.
October 15, 2020 by Cherryh Cansler — Editor, FastCasual.com
Launching a new operations model amid a pandemic may sound a bit risky, but it's paying off for Denver-based Teriyaki Madness. In June, the 71-unit chain launched an affiliated restaurant management company — Restaurant Sherpas — to help franchisees manage locations.
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| Teriyaki Madness CEO Michael Haith created Restaurant Sherpas to help franchisees manage their day-to-day operations. |
The test results speak for themselves, said CEO Michael Haith, who partnered with investment firm Globofran to manage shops in Wheat Ridge and Denver, Colorado. In August alone, year-over-year sales were up by 42%, orders were up by 15%, and the average ticket was up by 25%.
"Restaurant Sherpas solved a need primarily for absentee owners who want to invest but not be involved in the day-to-day operations," Haith told FastCasual. "Our locations are typically franchised to individuals or investment groups, and many choose to include Restaurant Sherpas as a turn-key solution."
Restaurant Sherpas costs the franchisee 3% of sales.
"Running a great restaurant requires a dedicated and hands-on team committed to making sure each and every guest has an excellent experience," Haith said. "Restaurant Sherpas allows owners to have the confidence this happens, even in their absence."
The Restaurant Sherpas-managed location in Wheat Ridge, for example, has mastered execution with a flatter ramp-up period due to a constant focus on profitability, said Haith, who admitted that although the majority of the chain's units are managed by owner operators, Restaurant Sherpas is an opportunity for those who want to rapidly expand and recognize the 20-25% return on passive investment.
TMAD has partnered with FirstPathway Partners to open a total of six shops (to start) in Wisconsin and Illinois, all of which will be operated by Restaurant Sherpas. The first opened in Brookfield on Sept. 16 with great first-week sales, Haith said.
"When we made the decision to pursue investments in franchise restaurants we needed to find a partner that would help us bring professional management to a new and exciting investment opportunity," FirstPathway Partners Executive Vice President Dan Wycklendt told FastCasual. "Restaurant Sherpas was exactly what we were looking for. With their creative approach, combined with their understanding of what it takes to open and operate a restaurant, Restaurant Sherpas has made what is a very complicated process a simple one and has enabled us to focus on what we know best, creating successful investments for our partners."
Several new and existing TMAD franchisees have also partnered with Restaurant Sherpas to either run their shop or provide extra training to make sure the shop is running smoothly and is operationally sound.
"As a turn-key solution, Restaurant Sherpas provides not only a far ranging team in the Teriyaki Madness shops, it is contracting with national suppliers in all phases of the building and operations of Teriyaki Madness throughout North America," Haith said.
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