Cheba Hut’s Madison, Wisconsin Location Smokes the Competition and Grows by 22 Percent in 2018, Celebrates With Free Nug Giveaway on May 8th

Cheba Hut*’s Madison, Wisconsin restaurant started slow and steady when it first opened in January 2013, but a combination of increasing brand awareness and digital marketing efforts has dramatically increased its profile.

The Madison store has always been popular with the college crowd, but things took an even more favorable turn for the brand in 2018 when decreased market saturation opened the doors for college-age customers who had previously dined elsewhere.

“We saw some competitors in the market fall off and so those customers started to try us out,” Cheba Hut Chief Operating Officer Marc Torres said. “Since we have a really amazing product that’s a lot better than much of what’s out there, our Madison restaurant was able to gain quite a bit of traction. It’s just been heating up out there in Madison.”

In 2018, sales at the Madison Cheba Hut store grew by 13 percent in the first quarter, 17 percent in the second quarter, 22 percent in the third quarter and 33 percent in the fourth quarter, Torres said. Sales reached just under $1 million at the end of 2018, which marked a 22 percent increase from 2017, Torres said.

“It’s just getting busier and busier as competitors have dropped off and as we’ve really dialed in some of the locals,” Torres said.

The momentum continues. The brand is already seeing more than a 30 percent first-quarter increase. To celebrate this uptick in traffic propelled by strong customer support, the Madison Cheba Hut is giving out free ‘Nug’ sandwiches from 11 a.m. to 2 p.m. on Wednesday, May 8.

“There has just been really good traction out there,” Torres said. “We’ve been able to convert those new, local customers and it’s really helped fill out sales.”

The brand has seen this kind of surge in demand before, as its Eugene, Oregon restaurant had a similar experience.

“It was similar in that there was only one store in the state,” Torres said. “It takes a little longer for traction to gain locally, but once it catches and the word starts spreading, it really starts to take off. We’re seeing the same kind of 20 to 25 percent increases as we have in Madison. The Eugene location hit $1 million in 2018.”

Torres attributes that growth to a combination of Cheba Hut’s digital marketing efforts and brand awareness.

“Some of the digital and social media things we’ve done over the past couple of years have really helped,” Torres said. “We re-did our website and made it more SEO-friendly and local-search friendly, so now, when you search for sandwiches in Madison or in Eugene, Cheba Hut shows up better on those searches.”

Once a customer has had a taste of Cheba Hut, it’s hard to curb the craving. Torres noted the brand’s commitment to quality.

“I think our customers are more aware of what they’re eating these days,” Torres said. “They’re more conscious of the value they’re getting for their dollar. We supply a really good product at a really good value. Our sandwich bread is baked by actual bakers, not someone making $12 behind the line. We’re not using frozen dough balls. When you look behind our service line we have measuring spoons. We have measuring bowls. We’re making our food, not taking it from a bag and making your sandwich.”

The brand’s success in Madison bodes well for its Midwestern expansion plans. Cities in the Midwest where the brand would like to establish a presence include Ann Arbor, Michigan and Columbus, Ohio, particularly around Big Ten Conference universities.

“The Midwest is one of our biggest target markets,” Cheba Hut Chief Relationship Officer Seth Larsen said. “The success of our Madison location proves that consumers are willing to try new things and are seeking higher-quality eating options. We’re confident that an expanded brand presence in the region will be very well-received.”  

Torres noted that brand enthusiasts drive to the Madison restaurant just for Cheba Hut.

“The success of the Madison store is leading the way for future success in the Midwest, where we’re kind of breaking down some barriers with conversions,” Torres said. “People tend to have misconceptions of what we are and what we do, but as soon as they come in and see our product and try our product and see that people are happy to be here and want to be here, then their perceptions change. We’re turning guests into die-hard fans and that’s going to pave the way for a lot of success in the region. We’re very excited to bring out some partners to help develop the area.”

The startup costs for a Cheba Hut franchise range from $336,000 to $678,000. The franchise fee is $40,000. To learn more about franchising with Cheba Hut, visit https://1851franchise.com/chebahut/info/index.html.