The barbeque chain based in Minnetonka will have its 18 new branches in most of the southern part of California. Moreover one new venue will be opened in Yakima Washington, Missouri, Independence, Michigan, and Lansing Cities. Famous Dave’s success is a good motivation to those who are planning to buy a business or searching for franchises for sale.
Famous Dave’s Spokeswoman told the Twin Cities Business about the opening of all its new restaurants in two years with most of them becoming operational by next year.
Opening more Famous Dave’s branches in California will increase its presence in the state, adding more to its 14 restaurants that opened in January.
John Gilbert, CEO of Famous Dave’s stated that the signing will give them a perfect start in their aim of having 50 new venues in the next couple of years. He added that having more deals will make the growth potential of Famous Dave’s look impressive. With impressive growth record, more individuals will be attracted to buy a business franchise of Famous Dave’s.
The Famous Dave’s has 132 franchises in 53 locations. At present, its geographic footprint spans one province in Canada and 33 states. In July, Famous Dave’s first international venue was opened in Winnipeg. According to Brett Larrabee, the director of franchise sales and development, the Winnipeg location has exceeded all of their expectations, providing the enterprise its highest sales ever.
The revenue of the company in the latest fiscal year, which ended in January, had a 4% growth or about $154.8 million. However its current net income was down by 22.9% compared to the previous year.
Its quarter sales, which ended in September 30, amounted to $39.9 million, 2.6% higher from the same period a year ago. However the net income amounted to $845,000, which was 46% lower from the similar quarter a year ago. According to Famous Dave’s, its 3rd quarter earnings have been badly affected by its timing on direct-mail marketing and media spending, which occurred on the 4th quarter of the prior year. The margin pressure brought by the benefit, commodity, and labor costs were also cited as contributing factors.
Last month, Gilbert became the company’s CEO, replacing the former CEO Christopher O’Donnell who became the President and COO.
When the C-suite transition was announced, Aric Nissen, the company’s Marketing VP told the Twin Cities Business that Gilbert and O’Donnell are unique people possessing excellent skills while working with the company’s board together. He stated that O’Donnell’s strength will be in operation while Gilbert will give attention on the company growth and franchises for sale, emphasizing on brand management and marketing.