Franchise overload
Juici Patties hits pause on new applications for franchises in the US following oversubscription
In light of what appears to be an “overwhelming demand for franchises in the US”, local patty company Juici Beef Limited said it has had to close off applications for the remainder of this year.
In an e-mail response seen by the Jamaica Observer, the company recently informed an interested party in the US that it would not be able to process their application at this time due to higher than expected requests.
“I hope this e-mail finds you well. We want to extend our sincere gratitude for your interest in becoming a part of our franchise family. I am writing to inform you that due to an overwhelming response, we have reached our capacity for franchise applications for this year. Regrettably we are no longer accepting new applications at this time.
“In order to ensure the success and quality of our existing franchise locations, we must maintain a manageable number of new franchisees. When we are ready to resume accepting applications we will send you a text message or e-mail,” the response from Juici Patties USA stated.
The cost for franchises, which range from US$347,000 for small stores up to US$793,000 for larger outlets, includes a US$30,000 franchise fee and development support.
“At Juici Patties we don’t take your investment for granted. We help our owners get their restaurants open and operating and our experience in the fast-casual field means that we’re standing by to assist you through any potential issues,” a notice on the company website stated.
Following the successful opening of its first store in the US, demand for products in that market continues to be high. At the store opened at the end of March in Hollywood, Florida by the youngest franchisee Rhea Wright, record sales were seen with the store selling almost 5,000 patties on the first day of opening — an amount equivalent to what would have been expected to be sold over five days. Since then, sales continue to track at above 3,000-3,500 patties per day as people from other states as far away as Oregon travel to Florida to purchase products.
Daniel Chin, one of the directors of Juici Patties and the CEO of its US operation, responding to questions about the latest developments concerning the overwhelming demand, told the
Business Observer that the company has so far signed 40 franchise agreements in the US.
“Based on our production capacity, we can only open 40 franchises in the United States for now. We’re now working to expand capacity and will reach out to all applicants via text message and e-mail once this is done,” he stated.
Leading up to the opening of its first US store, Juici Patties said it has, over a two-year period, had to vet more than 4,700 applications. Bullish on the build-out of its business in larger economies of scale, the company is also now finalising plans for the opening of other locations in Florida and other parts of the US as it accelerates plans to have stores scatted across all 50 states — some of which are timed for opening as far as 2028.
“We plan to expand to other countries eventually, but our focus right now is on the US market,” Chin said.
Active in the local landscape in which it now has 65 stores, following the start of activities in 1979 by his father Jukie Chin, the director of operations said plans are also underway to add more franchises. The last local outlet was opened in March of this year in Montego Bay, St James, during the same time of its first US store.
“Yes, there are also plans for a few more locations in Jamaica and we’ll keep customers informed as we provide more information at the appropriate time,” Chin said.
Signs at Portmore’s newest shopping centre, Hung Way Shopping Mall, which opened in December, suggest that the Juici Patties franchise will be opening another store in Portmore soon.