Franchising

McAlister’s Deli hits 500th unit

Provided

October 19, 2021

Atlanta-based McAlister's Deli has made Tennessee home to its 500th restaurant, opening west of Nashville in Dickson, Tennessee.

The chain has opened 22 locations since January and has experienced strong sales, putting it on track to be a billion-dollar brand by 2024, according to a company press release.

"Over the past 13 years, it has been exciting to watch McAlister's Deli expand its footprint at a rapid pace. Reaching 500 restaurants nationwide is a landmark milestone for the company," Mike Freeman, chief brand officer, said in the release. "The addition of a new prototype in 2018, updated interior design and greater emphasis on consumer accessibility contributed to this achievement. It's rewarding to see the investments we've made positively impact our growth, and I am proud of our franchisees, corporate team members and each guest who played an integral part in our journey to 500 restaurants."

Leading the charge to 500 locations is McAlister's largest franchisee David Blackburn, CEO of Southern Rock Restaurants, who began franchising with McAlister's in 2011. The Dickson restaurant marks his 95th location with an additional 38 stores in the pipeline. Since becoming a McAlister's Deli franchisee, Blackburn has served nine years on the Franchise Advisory Board, three years as the co-chair of the Operations Culinary Committee for product and execution development, and he is a member of the Brand Strategy committee.

"We've been a proud franchisee of McAlister's Deli for over 10 years and are thrilled to be opening the doors to the brand's 500th restaurant," he said in the release. "The corporate team has consistently provided a high level of support, which has given me the confidence to continue growing our portfolio with the fast casual chain."

Heading into the fourth quarter, McAlister's has signed 63 franchise agreements in 2021. Like Southern Rock Restaurants, other large-scale McAlister's Deli franchisees have plans to build new McAlister's Deli restaurants, contributing to the brand's current growth pipeline of more than 300 restaurants. For example, longtime franchisee The Saxton Group recently signed a deal for 32 restaurants, further demonstrating franchisee belief in the brand. Additionally, McAlister's franchisee Guillermo Perales, CEO of Sun Holdings, plans to open 51 restaurants over the next six years.

The chain's prioritization of enhancing the guest dining experience with improvements to its mobile app and loyalty program, leveraging digital technology to increase the number of service options to make the brand more accessible has helped fuel growth, Freeman said. Earlier this year, for example, it launched tableside ordering, which allows customers to skip the line and order at their table with the mobile app. Since the launch, participation rates on the mobile app are up seven times from what they were pre-pandemic, ultimately increasing revenue and driving customer loyalty among new and existing guests.

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