In this FDD Talk 2015 post, you’ll learn the following:
- Section I – Background information on the Beef ‘O’ Brady’s franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a Beef ‘O’ Brady’s franchise, based on Item 7 of the company’s 2015 FDD
- Section III – Presentation and analysis of Beef ‘O’ Brady’s financial performance representations, based on Item 19 of the company’s 2015 FDD, including information on the:
- 2014, 2013, and 2012 average adjusted gross sales for franchised and company-owned Beef ‘O’ Brady’s Family Sports Pubs operating domestically as of the end of the year and were open and operating for at least 18 months before December 31 of each year (“Mature Beef ‘O’ Brady’s Restaurants”)
- 2014, 2013, and 2012 average adjusted gross sales for four geographic subsets of Mature Beef ‘O’ Brady’s Restaurants, consisting of Beef ‘O’ Brady’s Family Sports Pubs operating in the Mid-Atlantic, Mid-South, and Midwest Regions, and the State of Florida
Section I – Background Information
It was 1985 when Jim Mellody dreamed up the idea of an Irish-themed family sports pub. He and his wife, Jeanette, opened up Beef ‘O’ Brady’s first location in Brandon, Florida to rave reviews, and it quickly became known as “Beef’s.”
Along with the Irish theme, the restaurants also feature authentic sports memorabilia, a full bar, more televisions than you can shake a stick at (40-50 per location), game rooms for the kids, and seating for 200.
After more than a decade of refining the business model, franchising began in 1998, and today there are more than 200 locations throughout the United States, even in spite of a series of closures during the Great Recession.
Here’s how Beef ‘O’ Brady’s keeps the luck of the Irish going in the restaurant industry:
A Winning Menu
As one would expect at any sports bar and grille, wings figure prominently in Beef’s menu, and customers can choose from a dozen different specialty sauces ranging from mild to super-hot, including Garlic Parmesan, Honey BBQ, Teriyaki, Mild, Sweet Jalapeño, Beef’s Signature Buffalo, Medium, Spicy Garlic, Hot, Mango Habanero, Extra Hot, and Nuclear.
Beyond wings, there are Angus burgers, pizza and flatbreads, burritos and wraps, sandwiches, soups, salads, dessert, appetizers, and a range of meat and seafood entrees.
Real Estate Innovation
After taking a beating in the struggling economy, Beef ‘O’ Brady’s has emerged with an overhaul the chain calls “Beef’s 2.0,” covering some behind-the-scenes operational updates such as better accounting support for franchisees, but also plenty of menu tweaks and a significant modernization to the interior décor that maximizes seating capacity.
By making its new designs much more flexible than past iterations, the chain can put new locations into sites that many other rigid chains simply can’t even look at. The chain can go as small as 2,800 square feet or up to 6,000.
Beef’s has also teamed up with New York-based Site Analytics, a data company that’s helping the chain make savvier site location decisions.
Experimenting with a New Segment
But the biggest move the chain is in the process of making that has franchisees all abuzz is its testing of new waters in the fast casual segment. The first scaled-down Beef’s Express is open in Lakeland, Florida, so the chain should know by year’s end if it’s going to be a lucrative move.
The menu of an Express will feature the most popular menu items from the restaurant, including burgers, wings, salads, and pastas. Customers order from a counter and take their food to where they want to sit (like Panera Bread).
Although seating capacity will be less than 100, it will feature an 8-seat bar that serves beer and wine. Instead of 50 televisions, there will be just four. The idea is locate Beef’s Express sites near shopping plazas with a strong retail anchor.
As a family-friendly chain, Beef’s takes its community commitments seriously. Each franchisee is expected to work with local youth and adult athletics, community organizations, and schools, not only because it makes good business sense, but because it’s the right thing to do.
Section II – Estimated Costs
- Please click here for detailed estimates of Beef ‘O’ Brady’s franchise costs, based on Item 7 of the company’s 2015 FDD.