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Melt, Inc.
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SHANE’S RIB SHACK DISCOVERS MAGIC OF THE SHACK IN FREE-STANDING UNIT STORE DESIGN AND REAL ESTATE
Former and Existing QSR Locations First Step
ATLANTA (March 3, 2010) – Shane’s Rib Shack, the national barbeque concept acquired by Petrus Brands in 2009, is eyeing strong growth potential in 2010-2011 in the form of free-standing real estate. Despite the success of its original free-standing “Shack” in McDonough, Georgia, its previous ownership opted for strip center environments which have historically generated results, but have also struggled in the difficult economic environment.
“There’s not a franchisee out there (in any concept) who would tell you we are in a dramatic economic recovery, yet our new free-standing unit model is ‘crushing it,’” explains Shane Thompson, Founder and President, Shane’s Rib Shack. “Of course, we give a great deal of credit to our franchisees; however, these numbers are so strong that we have come to the conclusion that free-standing real estate speaks to the brand’s ideal environment.”
Recent free-standing openings with drive-thrus, conversions from quick service restaurants, are generating sales 30 to 50 percent higher than other store formats. To support its “BBQ-FSU” strategy, Petrus Brands is launching a real estate buy-back option for existing QSR franchisees who currently own a quick service restaurant and the real estate, but would rather move to a leasing model.
Petrus Brands, in collaboration with a real estate development partner, will step in and convert the brand to a Shane’s Rib Shack and acquire the real estate. The cost to convert existing real estate is significantly lower and takes less time to construct as compared to other QSR concepts. When using this model, Shane’s is able to keep costs low because of its flexibility with store design. Shane’s embraces the philosophy that each location should have its unique characteristics much like the Original Shack.
“This strategy couldn’t be better timed given the combination of ideal real estate deals, strength of our FSU model and QSR operators who are frustrated with smaller revenues and overburdened corporate franchises,” explains Chris Morocco, chief executive officer of Petrus Brands. “While we are also seeing positive numbers on those free-standing units with drive-thrus, we see the drive-thru as a bonus to our catering and take-out and less a critical component of the FSU success.”
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