To Empire Builders,
We’re back with another newsletter - this time with a bit of history on KFC in Utah, as well as my podcast with Sean Thomas - the grandson of Wendy’s founder Dave Thomas.
Let’s dive in 🫡
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What’s on My Mind 🧠
KFC in Utah…
KFC has roughly 3,500 franchise locations in the U.S., but in Utah, it’s not quite the same.
Like any franchise, each location has to pay royalties to the franchisor. So in the case of KFC franchise owners, their royalties are paid to Yum! Brands, the ~$40 billion parent company of KFC.
Except…for the franchisees in Utah. The state is home to about 40 or so locations. They look like any other KFC, and their menu (from what I can tell) is largely the same.
But those locations don't answer to Yum! Brands.
Thanks to a deal dating back to 1964, they pay royalties to a company called Harman Management Corp. Turns out, the first Kentucky Fried Chicken didn’t open in Kentucky. It actually opened in Utah in the 1950's.
Side note: Utah Fried Chicken doesn’t really have the same ring to it.
The franchisee of location #1 was a gentleman named Pete Harman - a good friend of Colonel Sanders (the statue in the picture above is Pete Harman and Colonel Sanders at KFC #1).
Thanks to the success Pete had with his initial location, Colonel Sanders gained the confidence to franchise KFC nationally.
Fast forward to 1964 when the Colonel is getting acquired -
As a way of saying thank you for Pete’s important early contributions, the Colonel carved out the state of Utah in the sale of KFC.
So to this day, Harman Management Corp is not only a franchisee of KFC, with ~260 locations across 8 states, but they’re also exclusively -in the state of Utah - the franchisor of the brand.
It’s the only concept I know at international scale with a nuance like this.
If anyone out there knows anyone at Harman Mgmt, I’d appreciate an intro as I’d love to chat with them and learn more about their history!
Live on Empires 🎧
A New QSR Franchise Recently Launched
Sean Thomas is the grandson of legendary Wendy’s founder, Dave Thomas.
Along with the Venture Kitchen team, he’s a co-founder of Minnie Bird, which recently began franchising.
In our conversation, Sean shares what it was like growing up with Dave, and gives some inside baseball on Wendy’s origins.
We also discuss the journey building Minnie Bird, their early franchising success (3+ franchisees already), and their 3 core product pillars:
Fried chicken
Dirty soda
Free ice cream!
Check out the conversation on Apple, Spotify, YouTube, or wherever you get your podcasts.
QSR Corner 🍔
Whataburger Adds $4 Value Menu
Low-priced options could attract diners in new markets and sustain sales in core trade areas.
Wendy’s Could Be…Going Private?
Nelson Peltz, who has been heavily involved in the fast-food chain for two decades, is moving closer to a purchase.
Starbucks Unicorn Frappucino Goes Viral
The chain spent months building anticipation for the drink, which was available for just two days and drove a 28.5% traffic bump compared to a typical Saturday.
California Pizza Kitchen is Deploying 1k Kiosks
A partnership with retail tech company T-ROC Global could help CPK reverse the steady erosion of its store base by reintroducing the brand to more consumers.
A&W is Betting on Bigger
The larger prototype format is designed to foster meaningful guest connections through hospitality and differentiate the brand from transactional QSR dining rooms.
Inside Dutch Bros’ Growth Strategy
From a strong leadership pipeline to healthy quarterly openings, the drive-thru coffee chain is seeing positive momentum across several parts of its business.
Best of the Rest 🧱
French Florist is Driving Sales With a Human Touch
The floral franchise is growing, with 20 units in nine states.
Buc-ee’s Debuts in Arkansas
The Texas retailer has reached its 14th state, with plans for opening in more than half a dozen others still underway.
Target’s Turnaround is Gaining Steam
The retailer saw a 7.2% year-over-year increase in food and beverage sales during the second quarter, helping to fuel single-digit advances in net and identical-store sales.
That’s it for today’s newsletter, if you enjoyed it, please forward to anyone else in your network who would benefit or find it interesting!