- November 22, 2024
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After he earned an accounting degree at the University of Georgia, Chris Elliott didn't go to a numbers firm.
Instead, he became a store manager for Wendy's.
It didn't seem like a track to executive positions at Pizza Hut, Church's Chicken, Cinnabon and now one of Tampa Bay's largest franchising outlets. But Wendy's turned out to be the just-right starting spot.
It was because Elliott liked people. His "no drama" attitude helped him keep calm during the possible disasters that can strike a restaurant, from grease spills to running out of soda.
And he was very comfortable in the lobby, taking care of guests.
"I'm a people-oriented person," says Elliott. "You just kind of have to be geared that way."
Today, he manages restaurants in a different way. He runs hundreds of them through a Tampa-based FSC Franchise Co. The privately-held company owns the brands Beef 'O' Brady's, The Brass Tap and, as of late last year, Newk's Eatery.
Officials said in a news release that 2023 was a record year for the company's deals: FSC Franchise opened 10 new Brass Tap locations and one Beef 'O' Brady's, while awarding another 36 and four, respectively. It ended the year with 135 units of Beef 'O' Brady's and 45 units of The Brass Tap in its portfolio.
And 2024 could bring as many as 55 new FSC Franchise stores: Thirty-five will be Brass Tap stores. Five will be Beef 'O' Brady's units. And as many as 15 Newk's stores could open this year, company officials say.
More good metrics: The firm topped $500 million in cumulative revenue in 2023, a 4% jump over 2022. Its 2023 EBITDA was 15%, says Elliott, and he predicts it will be 15% in 2024, too. He's happy with that, since an EBITDA over 10% in the hospitality sector is a strong measure of cash profit.
Newk's is the newest entry to FSC's brand umbrella. The Southeastern fast-casual chain has 97 stores in 13 states, from Gainesville through Texas to Denver. (So far, none in Tampa Bay or south of Alachua County in general, though it had a store in east Manatee County that closed in 2022 after being open for six years. A Clearwater location also closed.)
Elliott has helmed FSC Franchise for almost 14 years, and has been in the restaurant business for 40 years. The company is owned by CapitalSpring Private Equity of Nashville, as well as those in management.
CapitalSpring infused capital into FSC Franchise in 2017, and CapitalSpring's investment team leader Wade Daniel predicted at the time Elliott and his team would "accelerate the growth of two proven franchise systems. In many ways, FSC represents our prototypical transaction where we seek to invest capital with a proven and committed management team to take their business to the next level," CapitalSpring said in announcing its 2017 infusion.
The Newk's deal was announced Dec. 20. Financial terms were not disclosed. But the accountant in Elliott comes out when talking about the Newk's brand, noting the outlet has strong average unit sales volume of $2.3 million per year.
And it adds energy to FSC Franchise.
"It's complementary to the other brands," says Elliott. "Food quality, very high. A broad, loyal customer base."
But won't three brands cannibalize each other if they are near each other? No way, says Elliott. Beef 'O' Brady's is a family sports bar. The Brass Tap is an upscale craft-beer bar. Newk's is fast casual. They won't pull from each other, he says.
So, strategically, what else was there to the acquisition beyond money? Elliott again reverts to the managerial analyst, noting the buying power the three brands will have when FSC Franchise goes to market to purchase food.
"You get more volume, you get better deals," says Elliott.
It's an arrangement restaurants need to win, he says.
"We want to be where the puck's going to be, not where it is now," says Elliott, using a Wayne Gretzky philosophy.
Like many franchise companies, FSC Franchise owns some of the stores. Elliott says about 15% of the system are corporate units: 32 units of Beef 'O' Brady's, 29 units of Newk's and one Brass Tap. The company has 60 corporate employees and 1,600 employees at its corporate stores.
The company's success has motivated its corporate employees, Elliott says. He likes to keep them motivated, so he has allowed a hybrid work schedule. That in turn led to better work, he says.
"We hire work horses, not show horses," says Elliott. "We work in the office three days a week and from home two days a week, except for senior management. Productivity has gone up and so has employee satisfaction. We are always focused on the future."
With all the growth, the company also had one minor recent setback: It tried to launch a fast-casual chicken store, The Hatchery in the late summer 2020. The store number didn't get high. "The Hatchery was a chicken concept we created that opened during COVID and didn’t survive COVID," Elliott says.
But the other businesses did and Elliott now sees more growth and demand for restaurants, generally for a simple reason.
"It's an industry people love," says Elliott. "Honestly, my favorite thing to do is to go out and eat with friends."
