Industry Eyes the Growth of Shane's Rib Shack

2000 Fast-Casual Barbeque Restaurants Planned Nationwide

Here's an interesting franchise concept reported on the Tennessean that caught my eye. The industry is watching to see if this regional fast casual concept of barbeque ribs might have legs to go nationwide. Or will a nation focused on looking fit be comfortable with the larger than life spokeperson of founder Shane Thompson (pictured)? Mr. Thompson and his backers believe so. The shack he opened in this Atlanta suburb four years ago is now 40 restaurants in 8 states. And parent company Raving Brands has a bodacious goal of reaching 2,000 locations across the country by 2020. (Goals like these are rarely followed up on or checked but it still is one heck of a goal.) Compare that to the largest U.S. barbecue chain that now has only about 150 restaurants.

Costs for a fast-casual seem lower than expected, $400,000 to $500,000 on average for a 2,500-square-foot restaurant. Each restaurant has only 20 to 30 employees, and no servers. Franchisees pay a $25,000 initial fee, and each year they pay 5 percent of sales.