How franchisees are facing the difficult operating environment

In this episode of A Deeper Dive, Jonathan Mays interviews Raj Patel, a franchisee with nearly 100 Dunkin' locations and several Dave's Hot Chicken restaurants, to discuss the current operating environment for franchisees. Patel shares his insights on the success of both Dunkin' and Dave's Hot Chicken, attributing Dunkin's success to its strong operations, continuous beverage innovation, and value offerings, while Dave's Hot Chicken benefits from its exceptional product and strong leadership. The conversation explores development strategies, competition for restaurant real estate, the costs associated with different sites, and the importance of a strong franchisee-franchisor relationship. Patel also details his approach to evaluating real estate deals, emphasizing the significance of rent, guarantee structure, and the overall financial model, and touches on the increasing competition and high rents in the current market.