Employee Turned Franchisee Grows Alongside Cheba Hut in Albuquerque, New Mexico

Isaac Montoya was a part of the Cheba Hut* family long before becoming a franchisee. He started out with the brand in 2012 while he was still in school, and eventually worked his way up through the ranks to become a franchisee. And even though Montoya didn’t accept a role with his local Cheba Hut restaurant in Albuquerque, New Mexico with an end goal of becoming a local owner, he says the path that led him there was completely natural.

Montoya said, “I was actually a general manager of Cheba Hut here in Albuquerque while I was still in college. Then, after a couple of years, one of the partners that owned the location I was working at dissolved their ownership. The owners needed help, so I invested with them and acted as an owner/operator and general manager for about two years. At that point, I pulled myself out of the general manager role and strictly worked as a franchisee.”

Right now, Montoya owns one Cheba Hut location. However, that’s expected to change soon. They recently looked at a second location in Albuquerque, and they’re planning to expand to three locations within the next few years.

That potential for growth is part of what inspired Montoya to move from a general manager role to that of a franchisee. Since day one, he recognized that Cheba Hut is a franchise system that’s designed to be successful in a variety of communities across the country.

“The biggest thing that drew me to the brand was opportunity. Cheba Hut is a smaller company, which creates opportunity because you can grow with the brand rather than investing into a large corporation. Being a part of a smaller company creates a tight-knit group of individuals at both the corporate and franchisee level who are all working toward a common goal,” said Montoya. “And to be honest, part of what attracted me to Cheba Hut is the fact that it’s a more affordable brand to roll with. It’s not that we have cheap people, but because we’re small, the investment level is more affordable.”

Franchisees interested in becoming Cheba Hut franchisees can expect their initial investment to range from $336,000 to $678,000. Aspiring franchisees who want to be area developers with three franchises, on the other hand, can expect their initial investments to fall between $977,000 and $2,003,000, including a $135,260 to $137,000 franchise fee.

By making that investment, franchisees like Montoya gain access to a variety of competitive advantages, including initial and ongoing training, a strong support team and access to a close-knit network of franchisees who leave the lines of communication open to share best practices and tips for success. Cheba Hut franchisees are also able to tap into the brand’s unique positioning in the marketplace that includes its explicitly marijuana-themed branding.

For franchisees who are just breaking into the brand — or the franchising industry in general — Montoya recommends taking full advantage of those perks and starting things off at full speed.

“I think my advice would be to go all in. That’s the biggest thing — this is a brand with a great product and great atmosphere, and it’s worth it to dive in and embrace it all,” Montoya said. “Don’t hold back on anything. If you can, I’d recommend investing in multiple locations. In my experience, I’ve found that it’s easier to manage multiple locations from an operations and marketing standpoint. Especially in a city as big as Albuquerque — you need multiple locations to make the Cheba Hut name known.”

As Cheba Hut continues to cast a wider net and establish itself as a leading player in the sandwich segment of the restaurant franchising industry, Montoya is eager to continue growing alongside the brand. While it may have a reputation for serving the best “toasted” subs, Montoya says that Cheba Hut’s marijuana-themed marketing isn’t anything to be overlooked.

He said, “We’re not just a bunch of Joe Schmoe stoners. There’s a bit of that stigma that comes with our brand, but it’s not the case. We’re real players in the world of business. We’re not doing anything outside of what everyone else is trying to do — make good food and deliver the best possible product to our customers every day.”