In this FDD Talk 2016 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 2016 FDD
- Section III – Presentation and analysis of Beef ‘O’ Brady’s financial performance representations, based on Item 19 of the company’s 2016 FDD, including information on the:
- 2015, 2014, and 2013 average adjusted gross sales for Company-Owned Beef ‘O’ Brady’s Full Service 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 Company-Owned Beef ‘O’ Brady’s Restaurants”)
- 2015, 2014, and 2013 average adjusted gross sales for Franchised Beef ‘O’ Brady’s Full Service 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 Franchised Beef ‘O’ Brady’s Restaurants”)
Section I – Background Information
A Family-Friendly Irish Pub
The first Beef ‘O’ Brady’s was opened in 1985 by Jim Mellody in Brandon, Florida. Mellody had the idea to open a family-friendly Irish pub where alcohol, except for hard liquor, would be served. Over the next decade, Mellody continued to open locations in Florida and the Southeastern United States.
Mellody sold most of his interest in Beef ‘O’ Brady’s in 1998 to Family Sports Concepts, Inc. He retained an interest in 13 locations until his death in 2002. After Mellody’s death, the rest of his interest was sold.
1998 was also the year that Beef ‘O’ Brady’s officially began franchising. The company continued to expand and by 2002, there were 44 Beef ‘O’ Brady’s locations. Over the next decade, the company continued expansion mainly throughout the Gulf/Southern Coast of the United States.
In recent years, Beef ‘O’ Brady’s has entered into additional U.S. markets. Today, Beef ‘O’ Brady’s has over 220 locations throughout the country.
Expanding the Franchise
In the past few years, Beef ‘O’ Brady’s has pushed the company’s expansion further. It has plans to have 250 locations by the end of 2020.
The company is currently entering new markets including Houston, Dallas, and Dayton. While there are currently no locations in the Houston and Dallas areas, Beef ‘O’ Brady’s already has a few locations in other parts of Texas. The company feels that the demographics of both Houston and Dallas will be good for business. According to Beef ‘O’ Brady’s, both cities are filled with “a seemingly unlimited group of potential patrons, from families and business professionals to college students and tourists.”
Enhancing Operations Through New Technology
Beef ‘O’ Brady’s recently upgraded all of its POS systems and databases with cloud-based software from FSC Franchise Company. With the new technology, Beef ‘O’ Brady’s has been able to sync the information from all of its locations and franchise owners onto one platform.
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According to Joel Uhl, COO of FSC Franchise Company, using a cloud-based system ensures that everyone at Beef ‘O’ Brady’s can operate on the same platform.
New Locations to Open in Old and New Markets in Home State of Florida
In addition to expanding into new territories, Beef ‘O’ Brady’s has plans to open new locations in both new and old markets in its home state of Florida.
The company plans to open a location in Newberry, Florida due to the large success the company has had in nearby Alachua County. Beef ‘O’ Brady’s hopes to build on the momentum in these two areas and move north into the Gainesville and Jacksonville markets.
The company previously had a location in Jacksonville, but it was shut down a few years ago. Beef ‘O’ Brady’s plans to move back into the area by targeting suburban locations rather than the downtown area.
The restaurant hopes to establish itself as part of these communities and become a “home away from home.”
Inconsistent Rankings on Entrepreneur’s Franchise 500 List
In the last decade, Beef ‘O’ Brady’s has often, though not always, ranked on Entrepreneur’s annual Franchise 500 list. In 2017, Beef earned spot No. 307. The restaurant chain did not rank in 2016 or 2015. It did rank in 2014 at No. 395, which was the lowest spot for the company. The restaurant’s highest rank was No. 132 in 2007.
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 2016 FDD (updated).