QSR June 2023

FRANCHISE FORWARD / CONTINUED FROM PAGE 16

ONES TO WATCH / CONTINUED FROM PAGE 14

growth’s sake,” Kwon says. “We proba bly could have opened up for franchising three years ago, but we said, ‘No, we’re not going to open it up until we’re ready, until we have the numbers and we’re confident with how stores are performing.’” That strategy paid off when the com pany appeared on “Shark Tank” last spring. Kwon says it was the numbers, along with a taste of spicy Korean barbe cue beef, that sparked interest from the potential investors. While all five sharks made offers, the brand ultimately struck a deal with Mark Cuban, taking a $1 mil lion loan in exchange for a 5 percent stake in the business. “I knew exactly what investors want and what’s important to them because I’d been sitting in their chair as an investor before joining Cupbop,” Kwon says. “Numbers talk, and the fact that we were able to accomplish everything through organic cash flow really got them interested.” The business has only accelerated since then. AUVs are clocking in around $1.1 million, and same-store sales are consis tently growing in the double-digits. Margin profiles are strong, too. Those numbers are giving him confi dence in the brand’s ability to accelerate its national expansion through franchise growth. Cupbop late last year announced it was opening up opportunities. The footprint stands at 47 stores throughout Utah, Idaho, Arizona, Colo rado, Nevada, and Oklahoma. Cupbop has stayed true to its food truck roots with small storefronts and simple operational procedures, offering a stream lined business model Kwon believes will help attract the right partners. He says the front-of-house setup is sim ilar to Chipotle. Each cup starts with rice, cabbage, and noodles. Guests choose their protein and pick from a variety of sauces, with heat levels ranging from 1-10. “There is an outsized secular growth happening for Asian concepts,” he says. “Stacked on top of that, everything Korean is cool right now. From K-pop, to K-dra mas, to ‘Squid Game’ on Netflix, people are very interested in Korean culture, and with that, demand for Korean cuisine is growing.”

expresses similar sentiments toward authority shifts. However, he affirms, “The execution doesn’t change.” While standards may not differ, there is no denying Yadav and Mumtaz felt the pressure of becoming a franchisor. Yadav says the responsibility of wins and losses falls squarely on the franchisor’s shoulders. Moreover, the biggest hurdle he faced with the purchase of Taco Cabana was the adjustment from a publicly traded company to a privately held one. “The mindset is different,” Yadav explains. “There is a culture difference between public and private currency and the way you obtain your capital needs. That switch, and the switch from franchisee to franchi sor, is all in the mindset.” Once Yadav adjusted his outlook and recognized the duty shifts, finding the balance in Yadav Enterprises’ portfolio became seamless. “I’ve been in the business for so many years, and there’s been time to rebuild and learn from any mistakes,” Yadav says. “Franchising, having mentors, learning the best practices that work for other brands have all made things easier for me to imple ment and change my mindset." Things like reworking the front and back of the house, investing in innovations, simplifying product procedures without sacrificing quality, and reforming displays so customers can order products easier are all ways Yadav Enterprises found success in both franchisee and franchisor segments. Yadav believes the same core business practices that made him successful as a franchisee will be the same ones that grow his brand as a franchisor. He points to a future revitalization of the Taco Cabana brand and opportuni ties for additional acquisitions of Jack in the Box locations. No matter if a brand takes the seat of a franchisor or a franchisee, objectives are still the same, Mumtaz says. “We want to fix ourselves,” the CEO says. “We want to make sure that our prod uct is good, and that our customers are happy. Every day is a new learning oppor tunity."

Sam Danley is the associate editor of QSR . He can be reached at sdanley@wthwmedia.com .

Satyne Doner is a staff writer at QSR . She can be reached at sdoner@ wthwmedia.com .

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