Hawaiian Bros nears 100-unit pipeline with latest franchisee deal

Dive Brief:

Hawaiian Bros has built a pipeline of almost 100 units through four franchise agreements, the company announced Thursday.
Its latest agreement with Ohana Restaurant Group, a newly formed company, will develop seven Hawaiian Bros units across four markets. It also franchised the company’s Springdale, Arkansas, restaurant.
Earlier this year, the QSR chain signed its first multi-unit franchise deal with Stine Enterprises to develop 75 units through 2032.

Dive Insight:

Hawaiian Bros, which has 39 units open in seven states, began franchising last year and has been targeting operators with over 10 years of experience. The concept boasts 30-second drive-thru times and average unit volumes of $3.5 million. Off-premise service makes up about 80% of its business, with 50% of total sales coming from the drive-thru.

Ohana Restaurant Group is owned and operated by Zach Fugate and cousins Nick and Nathan Blasi. Fugate, who has become the designated principal for Hawaiian Bros responsible for operations and real estate selection, leads the Pizza Hut division at Fugate Enterprises, a family business in operation since 1974. Fugate Enterprises operates 150 Pizza Hut and 75 Taco Bell units across several states.

Ohana’s franchisees will further Hawaiian Bros’ Midwest footprint and expand into new regions. Ohana will develop in Wichita, Kansas; Joplin and Springfield, Missouri; and in Arkansas cities of Bentonville, Fayetteville, Rogers, Springdale and Ft. Smith. Stine Enterprises will develop across Arizona and North Texas. DKPM Investments Corp and BraveHart Development LLC, additional Hawaiian Bros franchisees, will develop five and 10 units, respectively, according to a press release. DKPM will open its restaurants in Omaha and Lincoln, Nebraska, while BraveHart will focus on development in Iowa. These agreements total 97 units.

The chain joins a growing list of mid-market concepts looking to join the 100-unit club through franchising. Walk-On’s Sports Bistreaux and Bar has built up a 100-unit pipeline with plans to open 20 to 25 openings annually. Rush Bowls expects to triple its store count with its 100-unit pipeline while Toppers Pizza’s goal is to exceed 100 units within the next three years.