There are many reasons to consider franchising with Shuckin’ Shack. The seafood restaurant brand has no real competitors in the space and operates as a franchise in a sector that typically sees mom-and-pop enterprises. Unlike such businesses, Shuckin’ Shack is an established and sophisticated franchise with a proven business model that has been making waves since it was first founded in 2007 as a 900-square-foot shack in Carolina Beach, North Carolina. 

Then there are the brand’s environment-friendly practices. In an age where more and more consumers are aware of the foods they consume and their impact on the environment, Shuckin’ Shack stands out as a brand committed to sustainability. This includes participation in efforts such as Skip the Straw. 

These are all great reasons to franchise with Shuckin’ Shack, but they are not the only ones. Shuckin’ Shack is a profitable franchise opportunity thanks to its franchisee-friendly economics, strategic industry partnerships and restaurant dimensions that require less labor. 

According to the brand’s Item 19 in its 2019 Franchise Disclosure Document (FDD), average sales for franchise locations over 1,800 square feet were $1,203,750.11. With the investment for a Shuckin’ Shack capping at just over $540,000, that’s an average asset turnover ratio exceeding 2:1. 

Then there are the brand’s franchisee-friendly economics. Shuckin’ Shack collects a 3% royalty fee in the first year of a franchise’s operation, a 4% royalty fee the second year and a 5% royalty fee the third year and every year beyond that—that is something to consider.  

When it comes to the actual restaurants, Shuckin’ Shack is ahead of the curve in the market. The brand likes to describe itself as a full-service restaurant in a fast-casual box, as it does not require franchisees to operate huge spaces. A typical Shuckin’ Shack restaurant is between 2,200 to 3,200 square feet. This makes for a more agile design that allows franchisees to enter their markets quickly. Plus, this means the restaurants will consistently hum with business. 

“Restaurants at 2,600 square feet is our sweet spot,” Bartlett said. “That contributes to less costs for a potential partner, including labor costs. In the restaurant industry, as from cost of goods, the highest cost is labor. At Shuckin’ Shack, thanks to our smaller size, our labor costs are lower than normal.” 

Then there are the brand’s industry relationships. Shuckin’ Shack has a purchasing partner in the Stevens Group, which means the brand’s franchisees get discounts on products. 

“As a brand with a small number of units, we might normally pay a higher price for the goods we use, but Steven Group helps us purchase at a lower cost,” Bartlett said. 

Shuckin’ Shack also has a quicker training process, which contributes greatly towards its profitability. Bartlett noted that another franchise might typically do training over the course of eight weeks, but Shuckin’ Shack can do it all in five weeks. 

“We have such a simplified method that we use and conduct,” Bartlett said. “With the simplified systems and procedures that we have in place, it allows us more time to concentrate on the guest experience.” 

Today, Shuckin’ Shack has 15 locations across five states with several more in development. The brand is looking to expand, particularly in markets such as Atlanta and Florida. With its franchisee-friendly economics, profitable business model and commitment to sustainability, Shuckin’ Shack is clearly a brand to watch in 2020. 

The startup costs for a Shuckin’ Shack franchise range from $234,200 to $541,350. The franchise fee is $37,500. To learn more about franchising with Shuckin’ Shack, visit https://www.shuckinshackfranchise.com/.