Courtesy of Slim Chickens
Who can resist Southern hospitality—or Southern comfort food for that matter? Based on the performance of Fayetteville, Arkansas-based Slim Chickens, which prides itself on offering “Delta food where food is honest and meals are social,” few can.
In Technomic’s ranking of the top 500 restaurant chains in the U.S., revenue at Slim Chickens spiked 46% in 2017.
Slim Chickens, a fast-casual restaurant chain, now has 82 locations, having opened 16 stores in 2018, a rapid increase. Of that number, 61 are franchised and 21 are company-owned. Moreover, it has crossed American borders. Of its 82 stores, 5 are located overseas: 3 in the United Kingdom and 2 in Kuwait. Many of its American eateries are located in Texas and Arkansas.
And the growth keeps proliferating. If everything goes according to plan, it expects to have 100 stores by the end of 2019.
The average dinner check is a modest $9, so it’s value-oriented for most people.
Here what Slim Chickens’ cofounder and president/CEO Tom Gordon says about its fast-accelerating growth:
Slim Chickens’ revenue rose 46% in one year. Why?
Tom Gordon: We’ve added a lot of outlets; that’s the big thing. We’ve also added a technology piece, an online ordering app on your mobile telephone. That item alone added over $2 million in revenue last year.
What keeps customers coming back for more?
Gordon: In my humble opinion, we have the best products compared to our competitors. If we can deliver that great quality, products, and services in an efficient and effective way, our team members have a smile on their face, and they’re honestly engaged with their guest, we believe it’s a winning proposition.
Courtesy of Slim Chickens
Gordon: When you walk in, you’ll hear blues music. It’ll be loud. We want to jolt you out of your day-to-day existence and give you a break from your workplace and whatever you’re doing that evening. We want to be a place where it’s comfortable for friends to socialize, families are welcomed, and where food is quick and within a reasonable price.
Describe the menu.
Gordon: The workhorse of our brand is chicken tenders, French fries and the 17 different dipping sauces we have available for the guest. We also have exceptional sandwiches, salads, wraps, and several different flavors of Buffalo wings.
Slim meals and chick meals are two of most popular dishes. What are they?
Gordon: Slim meals are five tenders, French fries, toast and dipping sauce; chicken meals are three tenders.
Who’s the target audience?
Gordon: Fortunately for us, we have a broad set of guests. We see everything from suits to muddy boots.
You decided to franchise. Why?
Gordon: About five years ago, large legitimate franchisees, those that have multiple other brands under their belt, started noticing us and calling us. We thought it was a great opportunity to expand the operations in a less capital intensive way.
Is there private equity funding backing the growth?
Gordon: Zero. Our growth is self-funded, based on organic growth. We get inquiries from private equity firms all the time. We want to maximize the valuation and have a solid foundation before we go down that road.
Who are the ideal franchisees?
Gordon: We target those who have at least some basic infrastructure above store level. We also target those who can do three restaurants or more.
On what basis do you select new locations?
Gordon: We want to make sure the markets can be efficient, media dollars can go far, and real-estate dollars can go far. We want to make sure our franchisees have the best opportunities for success. Downtown Manhattan won’t be impossible, but the right franchisee has to be media efficient in New York City.
Why has Slim Chickens proven so popular overseas in the U.K. and Kuwait?
Gordon: I don’t think it’s far off from why we’re popular in the U.S. We’re differentiated against competitors in the U.K. and Kuwait, the way we are in the U.S. The product overseas is very unique, and it’s garnered a fast following.
There may be 100 Slim Chickens by the end of 2019. Rapid growth can be a trap. How maintain quality when you’re expanding so rapidly?
Gordon: Strategically, we plow nearly all of our income back into the company. We have hired an exceptional team of professionals, probably far more than any advisors would tell us to. Our group of professionals run the railroad every day, manage the quality of our product and earnings, and who make sure we are always headed in the right direction, and not getting over in front of the skis.
Courtesy of Slim Chickens
Gordon: I can’t think of any place where people don’t like chicken and French fries. We are working on outlets in Maryland and New Jersey.
Chicken and waffles and chicken wings aren’t healthy meals. Many American consumers are watching their cholesterol, so why go to Slim Chickens?
Gordon: From day one, we offered all of our tenders grilled. And chicken is often considered as a healthier alternative to beef.
Can you eat a healthy meal there?
Gordon: A grilled salad, a grilled tender wrap, or grilled tender plate with side salad,
Any thoughts of going public?
Gordon: I’m not against it. We’ll weigh our options as we go through the U.S. and the world. We have to do what is right for the franchisees and the team here, and determine whether we go public or take on private equity partners in the future.
Your LinkedIn profile says you’d like Slim Chickens to be a 600-unit chain by 2025. Is that doable?
Gordon: Absolutely, it’s doable. As we ramped up with growth, we have to add new franchisees, who all do one or two stores, but it’s like compounding interest. They’ll want to do another store, and as we get to 70 franchise groups, doing one store a year, the number start tacking up exponentially.
Describe the three key to growth in the future?
Gordon: 1) quality franchisees, 2) quality real-estate strategies, 3) development of a national marketing presence.
https://www.forbes.com/sites/garystern/2019/02/19/southern-hospitality-paying-off-for-restaurant-chain-slim-chickens/ 2019-02-19 20:41:00Z
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