How Much Can I Make as a Shuckin' Shack Franchise Owner?

Shuckin’ Shack, the 16-unit seafood restaurant franchise based in North Carolina, is having its best year ever, smashing sales records week after week compared to previous years. Bouncing back from pandemic shutdowns and capacity restrictions, the brand has seen nearly double digit sales increases in comparison to pre-pandemic numbers in 2019.  

This growth, coupled with the fact that Shuckin’ Shack is eyeing several key markets in the southeast and midwest for continued expansion, means there’s never been a better time to become a local owner. One of the most common questions prospective franchisees ask any brand is, “How much can I expect to make as a franchise owner?” and Shuckin’ Shack’s recently updated FDD provides potential owners with a clearer understanding of what they can expect with the booming seafood brand.

“We want to be as transparent as possible in the FDD,” said Jonathan Weathington, Shuckin’ Shack’s CEO. “When someone asks us, ‘How much can I make as a franchisee?’, we turn the conversation around a bit to ask them who they want to be. Then, we use the FDD to show them what they can expect while emphasizing that their potential as a new and longstanding franchisee is really unlimited.”

The updated financials show most Shuckin’ Shack locations are pulling in nearly $1 million in average unit volume (AUV), a statistic that not many restaurants can currently boast, especially following the challenges brought on by the COVID-19 era. But prospects looking at Shuckin’ Shack’s FDD should pay particular attention to Paycheck Protection Program (PPP) funds and how they impact a unit’s net profit. 

PPP funds are not reported as part of a unit’s income, said Weathington, so the reported net profit for each location may appear low at first glance. However, because the PPP funds are subsidized, those looking over the brand’s Item 19 should add the total amount of the funds granted to that location’s net profit in order to get the most accurate profit amount. Doing so will show that every location turned a significant profit in 2020 even with additional required expenditures on payroll. 

While many restaurants are beginning to recover from a roller coaster year, Shuckin’ Shack’s team says the brand’s 2021 success goes far beyond the pandemic.

“It’s our brand positioning more than anything else that has led to the swell of business this year,” said Brian Rogers, owner of the Hickory, North Carolina Shuckin’ Shack. “People don’t cook seafood at home, and they want a great experience dining out. We’ve put ourselves in a position where they trust us to deliver on both of those things.”

 Shuckin’ Shack is cruising through the summer months, and there are no signs of slowing down both on the consumer and franchise development fronts. Currently, the brand is eyeing expansion in new markets including Nashville, Tennessee; Louisville, Kentucky; and Columbus, Ohio in the coming months, and the pipeline of prospective franchisees is full.

“Our pipeline has never been stronger,” said Weathington. “If we even sign half of the candidates that we currently have, we’ll have a record-breaking year. As of now, I expect the brand to double in size over the next 24 to 36 months. That’s an incredible feat in and of itself, let alone following the challenges of 2020 and we couldn’t be happier.”

Interested franchise prospects can visit https://shuckinshackfranchise.com/ for more information about the overall investment, timeline, and more information about the brand’s FDD. 

ABOUT SHUCKIN’ SHACK

Shuckin' Shack Oyster Bar grew out of a vision for a local establishment that would appeal to families of all ages. A place where friends and family can enjoy fresh, delicious meals and creative cocktails in an environment that exudes relaxation. Shuckin' Shack offers its guests a "lifestyle experience" in addition to exceptional seafood. The brand started as a 900-square-foot shack in Carolina Beach, North Carolina, in 2007 and began franchising in 2014. Today, Shuckin' Shack has grown to 16 locations across five states, and soon to be six, with several more locations slated to open by the end of 2021. To learn more about Shuckin’ Shack, visit: http://www.theshuckinshack.com.