Derrick Hayes' Journey to 100 Locations for Big Dave's Cheesesteaks

In this episode of EYL, hosts Rashad Bilal and Troy Millings sit down with guest Derrick Hayes, the owner of Big Dave's, to discuss the challenges of succeeding in the restaurant business and the future of his franchise.

Derrick starts off by sharing a harsh truth: if you only have one location, you won't be making much money. The restaurant market is incredibly competitive, and profit margins are typically only 15% to 20%. One mistake, like someone eating three cases of his wings, can significantly impact the bottom line. To truly succeed, Derrick believes that multiple locations are necessary.

When it comes to franchising, Derrick emphasizes the importance of finding the right operators. He wants people who know the business and are committed to its success. If someone lacks experience, they can hire people who do. Derrick's motivation comes from a personal place: watching his father pass away, he is driven to prove himself and leave a lasting legacy as one of the greatest entrepreneurs.

The hosts explore the topic of scaling the business. Derrick initially planned to start with 40 or 50 franchises and then slow down, but due to the overwhelming interest, he now has 1600 applicants waiting. The goal is to open 100 locations in the next twelve to 24 months, but if the right opportunities arise, he may consider expanding even further. Derrick is confident in his team of operators and believes they can handle any number of franchises that come their way.

To become a Big Dave's franchisee, Derrick requires potential partners to commit to opening five locations. They can choose the locations themselves within the markets outlined in the company's franchise disclosure. The applicants also need to pay a franchise royalty fee based on their weekly sales. Derrick emphasizes that he wants partners who are focused on building opportunity and not just driven by money.

When it comes to selecting a location for expansion, Derrick considers energy and the judgment of character. He looks for business-minded individuals who have a vision and are committed to working together to achieve it. He believes that bringing city culture and community into each location can enhance the brand without changing its concept.

While Derrick is open to adding new items to the menu, he believes in keeping it simple and effective. He explains that some menu items, like chicken wings, don't make much profit due to their bone-in nature and the potential for mistakes or inconsistencies. The focus at Big Dave's is on quality, with chicken breast being a staple ingredient for their sandwiches.

Overall, Derrick Hayes is driven to build a successful franchise and leave a lasting legacy. He believes in finding the right operators, creating opportunity, and focusing on the bottom line. With plans to open 100 locations in the next few years, Big Dave's is set to make a name for itself in the restaurant industry.

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