Cheba Hut Identifies Arkansas as Key Growth Market

Cheba Hut identified Arkansas as a key growth market, with plans to open multiple locations in the state.

Read the original at 1851 Franchise
Cheba Hut Identifies Arkansas as Key Growth Market

TL;DR

Cheba Hut has identified Arkansas as a key growth market and plans to open multiple locations in the state, following a three-unit deal to bring locations to Little Rock and Fayetteville. The brand's cannabis-themed culture has been successful in college markets and is expected to do well in the Fayetteville market, which has an SEC school.

People of Arkansas, take notice: the counter-culture is coming. On the heels of a three-unit deal to bring locations to Little Rock and Fayetteville, marijuana-themed sandwich shop concept Cheba Hut is exploring additional opportunities to grow throughout the state of Arkansas.

Born in the college town of Tempe, Arizona, back in 1998, Cheba Hut’s cannabis-themed culture has been embraced by a multitude of college markets as it has grown throughout the western U.S.

“Cheba Hut started as a college brand at Arizona State before we moved down to Tucson via the University of Arizona, then Boulder via the University of Colorado-Boulder and then Eugene via the University of Oregon,” said Marc Torres, Cheba Hut’s Chief Operating Officer. “That early development in the Pac-12 Conference generated some awesome rivalries between stores—because we were college-oriented, we would do marketing at games, tailgating events, etc. It really creates a cool sense of internal competition and some engaging elements that you don’t necessarily see with other brands.”

This success gave Cheba Hut the momentum it needed to spark up interest in new markets as the “Green Wave” has spread across the country—in the last year specifically, the brand has blazed its way into the Southeast, signing franchise agreements in Atlanta; Orlando and St. Augustine, Florida; Austin, Texas; and Arkansas , to name a few.

Torres said that markets with SEC schools like Fayetteville are attractive to the brand because the spirited culture that often accompanies sports-oriented colleges aligns with the fun and welcoming feel that visitors can expect to find at their local Cheba Hut. Torres noted several factors related to Cheba Hut’s model and culture make him confident that the brand will do well in the Fayetteville market specifically.

“Obviously, a cannabis theme isn’t for everybody, but we tend to draw people with a little bit more open-mindedness, which you often find in college students,” he said. “Our playful ‘should-I-or-shouldn’t-I’ vibe really touches on that student experience of making your own decisions for the first time.”

Seth Larsen, Cheba Hut’s Chief Relationship Officer, agreed. In an interview with the Fayetteville Flyer , Larsen said, “Traditionally, we are thought of as a college brand. We’d like to be near the University of Arkansas, that makes sense for us.” Larsen continued by noting the broader appeal of the brand, too, adding, “We have always been food-focused, hospitality-driven, and focused on treating people the way they like to be treated. Those concepts can really play well anywhere.”

In discussing the brand’s plans to grow its presence in the state, the Arkansas Democrat-Gazette consulted Martin Thoma, author and principal at Little Rock-based brand leadership firm Thoma Thoma.

“[Thoma] said Cheba Hut's expansion seemed timed with a more relaxed national attitude about marijuana use, with more than 30 states, including Arkansas, legalizing medical marijuana and 10 making the plant legal for recreational use,” the article reads. “Thoma said Cheba Hut was clever, not only to link its brand with marijuana's well-known association with appetite stimulation but with other aspects of pot culture, including relaxation, cheerfulness, friendliness and playfulness. He said there would be some potential customers who won't darken Cheba Hut's door because of its messaging, but that didn't matter much where branding is concerned.

“‘In some ways that's the whole point of a brand,’” Thoma was quoted as saying. “‘You're not only defined by what you say yes to—but sometimes what you say no to.’”

It is the intersection of all of these factors that makes Cheba Hut a truly one-of-a-kind dining experience that extends beyond just college students and has the people of Arkansas buzzing .

Maddie has spent her career in the media industry, serving in various editorial roles before migrating into a hybrid content strategy and PR role with No Limit Agency. Her passion for storytelling and love of writing help her create meaningful content on behalf of her clients and fulfill No Limit Agency’s mission to tell people-driven stories. Maddie is a graduate of Saint Louis University, where she studied Communications with a focus in journalism and media studies as well as Sports Business.

In her spare time, Maddie can be found exploring Chicago’s food scene, watching an NBA game or lamenting over her middling fantasy baseball team.

In this story

This story was originally published in 1851 Franchise on July 30, 2019. Burnaze summarizes and links to the original reporting.

Read the full story at 1851 Franchise

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