The franchise playbook: A CEO’s guide to restaurant expansion with Troy Hooper | 065

What does it take to grow a restaurant from a single location to a global phenomenon? In this episode, D.J. sits down with Troy Hooper, CEO of Hot Palate America, the holding company for the rapidly expanding Japanese fast-casual brand, Pepper Lunch. Troy pulls back the curtain on his extensive career, from his early days in the kitchen to leading a global brand. He offers a masterclass on scaling a restaurant business, detailing the crucial transition from hands-on manager to visionary executive. Listeners will learn the key metrics and, more importantly, the mindset required to franchise, the right way to enter new markets successfully, and how to use data to understand your customer on a deeper level. This is a must-listen for any operator with ambitions to grow.

Key Takeaways

• The 3-Thing Rule: To let go effectively, identify the 1-3 things you are most passionate about in your business and focus on them. Outsource everything else to people who are passionate about those specific areas.
• Are You Franchise-Ready? Franchising means leaving the restaurant business and entering the business of providing service to your franchisees. It's a fundamental mindset shift.
• Grow Methodically: The biggest mistake brands make is jumping from one market to another with single stores. Instead, grow adjacent and open at least three locations in a new market quickly to achieve penetration and build an audience.
• Master Market Research: Use technology like geofencing to get demographic and sociographic data on your customers, where they come from, and where else they shop. But don't discount analog research—stand in line at a local grocery store and ask people what they value in a restaurant.
• Real Estate is Everything: After choosing your franchise partner, selecting the right real estate is your most critical decision. It is the most common, painful, and costly mistake. Never call the number on the "For Lease" sign yourself; get professional representation.

Resources

• Pepper Lunch: pepperlunchrestaurants.com
• Connect with Troy: LinkedIn
• Mentioned Tools:
  • Site Zeus

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7shifts is a scheduling, payroll, and employee retention app designed to help restaurants thrive. With an easy-to-use app and industry-specific solutions, 7shifts saves time, reduces errors, and helps keep costs in check for more than 50,000 restaurants.