How Layne’s Has Cracked the Code on Combating Costs

Layne’s Chicken Fingers , the emerging fast-food chicken concept, has risen to be quite the standout within the over $50 billion space by incorporating innovations and support systems typically found at franchise giants into their business model. Another differentiator it brings is its ability to control costs for franchisees.

“It’s a relationship business,” said Samir Wattar , COO. “I don’t go out chasing the best prices. I chase great relationships, and the prices come along with them.”

Wattar’s careful approach has benefited franchisees throughout the system, lowering both startup and ongoing costs associated with food, machinery, real estate and labor.

“I know people who could not find products in 2022,” he said. “We were able to maintain our supply chain, and because I nurtured those vendor relationships, now that we have entered 2023 with confidence that we will remain supplied and not be overcharged.”

To Stay Ahead of the Curve, Wattar Watches the Market Reports

“What do we do? We sell chicken,” he said. “Every morning, I get a report on the chicken market. I look at what it’s doing, where it’s going, and if there are any pitfalls on the way so I’m ready.”

Being educated prepares Wattar to negotiate with vendors, but it also provides a level of foresight that some businesspeople may not dedicate time to. He explained that in this current moment, whatever the market may do in the next three to four months has likely already been determined. So, planning six or more months ahead creates the space the company needs to see the trends before they materialize and secure the best deals.

“I can give you an example. Mid-year last year, the market point for frying oil dropped below what was expected,” he explained. “Because I’m continually educating myself, I was aware of the drop. I called the supplier with which I have a relationship and told them I would commit to purchasing from them for 2023 if they would agree to the lower price. I didn’t get to actually see the benefit until January, but I was able to protect our system, and we’re seeing the benefit right now.”

Relationships Take the Lead in Machinery and Real Estate Negotiations

Machinery pricing, unlike food, does not oscillate quite as dramatically with the market, so relationships must take the lead. Wattar explained that building a reputation of loyalty over a willingness to chase the best price has served him well in this area.

Further, when working with an established vendor, offering bulk agreements can be attractive to both parties.

“If I commit to outfitting 10 restaurants through a single vendor in 2023, I can secure better pricing. They know I am loyal, and they are willing to work with me on the price to secure guaranteed sales,” Wattar explained.

In real estate, the Layne’s corporate team leans both on real estate partners and the individual franchisees. While it has established relationships with very well qualified real estate professionals who can help source properties, franchisees’ willingness to propose a unique build-out within a pre-existing building can be a cost-cutter, too.

“If the economics and layout of a given building seem like they’ll work for the specific market, we have no reason to say no,” he added. “We’ve had restaurants that did not completely follow the prototype but still exceeded expectations because of the market.”