Browns Restaurant Group (BRG) is discerning about all aspects of its franchising business, from interior design and menu development, to franchisee recruitment and site selection. That philosophy, says Bruce Fox, executive VP of Business Development at BRG, has been key to its “slow and methodical” growth.
“We have a dedicated team of culinary professionals who spend a tremendous amount of time on recipe development, flavour profiles, improving current menu items and introducing new menu items,” says Scott Ward, president, BRG. “Because our brands are stretched across a wide geography, there’s considerable work required to make sure we can get all our ingredients through the distribution system and that our menu items are resonating in all markets.”
The Vancouver-based franchisor, wholly owned by Scott Morison, offers and supports franchises under the names Browns Socialhouse, Browns Crafthouse and Liberty Kitchen in Canada, and Scotty Browns in the U.S. Last year, BRG recorded $258 million in annual sales, boasting a 29-per-cent increase against 2021 ($200 million).
“The pandemic made us focus on off-premise dining and we’ve effectively doubled our off-premise sales,” says Ward. “Pre-pandemic, we were about five to seven per cent and now we’re between 12 and 14 per cent, depending on the market. We studied the channel, streamlined the work flow of the kitchen, improved packaging materials and re-arranged the store layouts to best accommodate both takeout traffic and on-site diners, as well as our staff.”
BRG opened five stores in 2021 and one in 2022, all of which underwent layout changes to accommodate a better takeout and delivery experience. By the end of 2022, BRG was operating 79 units (77 in Canada and two in the U.S.) So far this year, BRG has opened Liberty Kitchen Lawson Heights in Saskatoon, Sask., with plans to open five additional restaurants: Liberty Kitchen Gardiner Park in Regina; Browns Socialhouse in Tofino, B.C.; Browns Crafthouse in Ottawa and Saskatoon, Sask.; and Scotty Browns in Kilauea, Kauai, Hawaii. If all openings are completed on schedule, BRG will boast 86 units by the end of 2023.
Generally speaking, Fox says each brand occupies approximately 4,000 sq. ft. and can accommodate up to 150 in the dining room and 90 on the patio, depending on the mix of seating. The company has done several conversions this year and is planning more.
The process of securing real estate and a suitable franchisee is one that BRG does differently than most. “Typically, companies will scout a location then find a franchisee, but we don’t do that. We’ve flipped the whole process on its back. Before we secure any real estate, we approve a franchisee for a given market. We have an existing franchisee community that wants to expand and grow,” says Fox. “We’re [looking for] franchisees who have several years of management experience in the premium casual category. Franchisees must also have access to capital. Our restaurants can cost up to $3 million to build, so we’re looking for roughly $750,000 up front.
“There’s so much that goes into selecting a new location,” says Fox. “When it comes to assessing a new market, there has to be adequate consumer demand for our category. [We also] assess the labour pool. The community needs to be large enough to recruit staff for both the front and back of house. Obviously, when it comes to a specific site there are factors such as parking and visibility as considerations.”
Looking ahead, BRG plans to open six additional stores in 2024 and is currently in the process of putting several new projects into the pipeline. Next year also marks the company’s 20th anniversary.
“Development timetables have slowed down due to post-pandemic supply-chain issues,” says Fox. “Deep fryers and kitchen equipment can take up to 18 months, while cooler boxes can require a year in some cases. Glazing and steel are long lead-time items as well. From franchisee approval to opening day, we’re looking at a minimum of 12 to 18 months these days.”
Despite lingering pandemic-related challenges, Fox says the company is hopeful it can reach its major milestone with the opening of 100 locations over the next couple of years.
BY NICOLE DI TOMASSO
