Why Teriyaki Madness CEO is confident about 500-unit growth strategy

Claiming to double your restaurant unit count in one year may seem pretty gutsy, but Teriyaki Madness CEO Michael Haith isn't afraid to say it aloud. 

Founded in 2003, the Las Vegas-based concept now based in Denver started 2019, with about 40 units but will end it with more than 80. The growth plan doesn't stop there, however, as the chain will hit 500 by 2026. And that's a "minimum," said Haith, who purchased the brand in 2016, from the founding brothers, who still own five locations.

"500 is not our goal as much as it is a conservative forecast for the next five to seven years," he said in an interview with FastCasual. "It is the number we will be at as a benchmark towards our 10-year goal."

Since taking over, Haith — who came to Teriyaki Madness from Maui Wowi and Doc Popcorn — and his team have implemented processes and systems to focus on growth. And that team includes several industry veterans: 

• VP of Marketing Jodi Boyce, who worked for Quiznos and Smashburger.
• CFO John Miller, Chipotle's former CFO.
• VP of Operations Janice Branam, whose tenure includes Smashbuiger and Quiznos.
• Joe Gordon, who worked for Noodles and Co., is VP of Supply Chain.
• COO Erin Hicks, formerly of Maui Wow.
• VP of Real Estate Peter Harding, who came from Einstein Bros.
• VP of Real Estate Hank Janik of Schlotzsky's.

"We have invested a tremendous amount on resources to fully support a collaborative relationship with the franchisees and the growth of an international brand," Haith said.

Those resources include a redesign and launch of a loyalty platform for the chain, which has reported only three down quarters in the last 11 years. It posted a same-store sales increase of 11.5% last year, and Haith expects a 9-11% increase this year primarily as a result of increased traffic counts.

FastCasual recently sat down with Haith to learn how he intends to take — TMAD — as he refers to it, across the nation. 

Q. What will the redesign entail? 
A. No back- of-the-house robots or kiosks for TMAD! Our new design is an update that best reflects our irreverent brand voice, our quality ingredients and high-touch, fast casual service. 

Our focus is implementation of technology through our app, third-party delivery and data analysis to help our franchisees to benchmark, identify and employ best practices to achieve maximum profitability.

Q. When will the redesign begin?  
A. Elements of the new design will begin to be implemented in our very next shop build. 

Since our shop branding depends on symbolic icons to connect our shops, not all shops need to look the same. Our signage, marketing and essence create brand consistency allowing each shop to fit the community and be unique to the shop owner.

Q. How much do you expect it to cost? Why is it worth it?
A. With the exception of our new technology investments, our new design intends to hold the cost of furniture, fixtures, or other equipment and construction very close to the current cost or even less.

New technology, the ability to service our take-out, third-party delivery and catering are between 60-80% and climbing weekly. Logistics require a larger waiting area and tactics to make them comfortable. If current franchisees perceive value, they will implement.

Q. Will you change the menu? 
A. As with design, we are continually testing and updating. We will continue to preserve a simple menu with new and exciting items while maintaining a solid business model that reduces labor and food costs and improving margins. Anything we change is designed to increase franchisee profitability.

Q. How did your time at Maui Wowi and Doc Popcorn prepare you to oversee the major growth you have planned? 
A. Both Maui Wowi and Doc Popcorn grew tremendously fast, and the experience I gained has gone a long way on our gearing up for aggressive growth. 

Q. Have you rolled out your loyalty program? Is it digital? Do you have an app? Did a third-party company help create it? 
A. Our loyalty program is right around the corner. We are at the front of the technology transformation in the restaurant sector. A strategic partnership with OLO and Punchh, two of the leaders in providing a customized, professional App, gift card, third-party delivery and a loyalty program, has been our strategy to, as always, work with the best.