Cheba Hut’s Investment in Company-Owned Stores is Powering its Next Round of Sub Sandwich Franchise Growth

In its 20th year of business, Cheba Hut continues to stand out in the fast-casual restaurant franchise sector by imbuing the brand’s culture into the back end of the business just as much as the front end.

Toasted subs and local beers in a fun, eclectic atmosphere has always been a draw for Cheba Hut customers, but it was evident to the brand’s corporate team that taking Cheba Hut further forward required leadership to become more involved in the everyday workings of the franchise. By changing its development focus to investing in company-owned stores, Cheba Hut has been able to establish the systems and structure capable of keeping brand culture at the forefront and is diving back into franchise development reinvigorated.

“The first big move we made in developing company-owned stores was bringing on a director of operations named Cody Edgin,” Cheba Hut COO Marc Torres said. “His previous experience growing company stores helped us figure out how to dial in on in-store operations and develop programs like our delivery, catering and bar services. [Edgin has] been innovative in terms of training, store procedures and streamlining processes across the board,” Torres added.

Establishing this system has paid huge dividends for Cheba Hut in franchisee relations, Torres noted. The brand tests all new programs, products and LTOs through company-owned stores before taking it to the franchise community, which Torres pointed out as a substantial differentiator.

“There’s an advantage to having skin in the game,” Torres said. “We have real life intel from stores on a daily basis which we take very seriously. This has helped franchisees gain confidence in the brand when they know the decisions being made impact us personally as well,” he added.

Cheba Hut also uses staff from its company-owned stores in its training process for new store openings to impart the importance of maintaining the brand’s culture upon new employees. “Pulling trainers from those stores directly helps new employees and managers understand the experience we provide customers and ensures each new store opens with that culture in place,” Torres said, “which is very important because the initial team hired on sets the tone of a location for years.”

As Cheba Hut looks toward the future with franchise growth, the corporate team has plans for development, too. “One of the reasons I’m most excited for our impending growth is because we will be able to continue focusing on building out our team,” Torres said. “With our strong company culture, we don’t see a lot of turnover, so this gives us the opportunity to develop with people who can offset our beliefs and introduce new perspectives at every level,” he added.

The brand’s mantra of embracing the counterculture is evident in its business practices, making the franchise one that promotes individuality and gives franchisees a voice in their own stores. “Our founder, Scott [Jennings], always says that with Cheba Hut’s marijuana theme, we’ve been paddling out for 20 years and we’re now ahead of the curve with the ‘green wave’ sweeping the nation,” Torres said.

“We want that same emphasis on staying ahead of the growth on the franchise side of things. By taking the time to refine practices in company-owned stores, we’ve given ourselves the space and time with the development of our support systems to understand exactly what is necessary to prepare every franchise for success,” Torres said.