TL;DR
Cheba Hut, a marijuana-themed sandwich shop, had a successful 2019 with six new shops opened and 14 franchise agreements signed, and plans to expand to five new states in 2020. The brand is prioritizing supporting its new and current franchise owners to ensure their continued success.
It’s not often that a young franchise brand gets to celebrate expansion to an entirely new coast; new shops in New Mexico, Colorado, Nevada, Arizona; the rollout of a new bar program; a new corporate headquarters; additions to its leadership team; and agreements to bring shops to five new states... all in the span of a single year.
That much and more can be said for Cheba Hut, the marijuana-themed sandwich shop that turned in a 2019 for the books. As the fast-growing brand kicks off 2020, there’s a lot to be proud of in the rearview mirror—but even more to look forward to in the year ahead.
Riding the ‘Green Wave’ to even greater heights, Cheba Hut opened six new shops, including one in St. Augustine, Florida, in 2019 in addition to signing 14 franchise agreements for a total of 42 new shops. With those deals, the brand is now set to expand its presence in California, Oregon and Florida and break into Arkansas, Texas, Georgia, Lousiana and Washington in the year ahead. That’s something serious.
“We had a killer 2019 that took us to the next level, but we’re not even close to done,” Cheba Hut founder Scott Jennings said. “Growing the brand the way we were able to last year was incredibly exciting, but we’re not just one of those franchise brands that celebrate units sold—we celebrate shops opened and multi-unit franchise deals realized. We commit to opening three shops with each of our franchise owners for a reason: our word means something.”
After putting a crooked growth number on the board in 2019, Cheba Hut is extremely well-positioned to further build on this momentum in the year ahead, especially considering the rapidly changing national attitude toward cannabis culture and the positive effects it has had on the brand’s development. Before it does so, though, Cheba Hut plans on dedicating ample time and resources to working closely with the franchisees it has brought into the system to reach their full potential and ensure their continued success.
By pressing pause on its franchise development efforts toward the end of last year in order to prioritize supporting its new and current owners in every aspect of their forthcoming and existing businesses, Cheba Hut is redefining what it means to be a franchisee-first business.
“We don’t just talk the talk, we walk the walk,” Jennings said. “The incredible development of our franchise system afforded us the opportunity to refrain from pursuing new deals for a time so we could give our franchise owners our undivided attention. We want to grow with our current franchisees. We want to honor our multi-unit deals. These people joined the Cheba Hut family because we’re not like the other guys—and that was just one step in the plan for us to show them exactly why.”
Cheba Hut’s ‘no corporate bullshit’ attitude has allowed the brand to treat its franchise awarding process more as an acceptance program than a monetary goal to achieve, which means the brand is willing to say ‘no’ just as much as it says ‘yes’ to prospective owners in order to ensure the integrity of its franchise system.
“We’re seeking savvy entrepreneurs who are passionate about and excited by our culture and are as committed to the brand’s collective success as we are,” said Chief Relationship Officer Seth Larsen. “We’re treating our awarding process with the respect it deserves, meaning we’re putting lot of thought into who we’re letting walk through the door. Doing so helps us lay the groundwork for even more growth with our existing partners as we pursue a 100% open rate with our franchise agreements.”
As the brand continues thoughtfully pushing forward, a team mentality and culture of collaboration will continue to be an integral component to Cheba Hut’s systemwide success in 2020.
In this story
This story was originally published in 1851 Franchise on March 7, 2020. Burnaze summarizes and links to the original reporting.
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