The Tribune

• Charley’s adds 40 jobs with second Bahamas outlet

• Establishes second restaurant at ex-Carl’s Jr site

• Franchisees: Move post-COVID confidence boost

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A prominent US cheesesteak franchise yesterday unveiled plans to expand to up to seven Bahamas locations as it opened its second Nassau outlet with the creation of 40-50 jobs. 

Zak Fessich, who heads international operations for Charley’s Philly Steaks, told Tribune Business he expected the restaurant chain and its Bahamian franchise partners could add “at least three more locations within the next two-three years” with the latest site acting as the “flagship” for its expansion ambitions.

He added that “everything came together” in enabling Charley’s and its local franchisees, Samuel and Tanya Bethel, to take over the former Carl’s Jr restaurant location on Independence Drive close to the four-way Mall at Marathon junction.

The new restaurant also represents a “milestone” for Charley’s international growth, Mr Fessich explained, as it is the first location outside the US where “wings” are being sold via a drive-through format.

The Bethels opened the first Charley’s location in The Bahamas at Mall at Marathon’s food court in 2014, and the franchise business consultant said both the couple and the brand had been eyeing expansion opportunities for some time.

“They [the Bethels] were looking to expand and finally had the opportunity to make that happen at this location, which is our first using wings in a drive-through setting internationally,” Mr Fessich told this newspaper. “This is a milestone for Charley’s and our Bahamian partners as we look to expand further on the island in the near future.”

He added that Charley’s may ultimately add between three to five more Bahamian restaurants, taking the total to between five to seven. “Moving forward all the locations are going to be based on this location, and will not be mall locations,” Mr Fessich said. “They will be free-standing or strip mall locations with drive throughs.

“I think within the next couple of years, two to three years, we should be able to build at least three more locations. The main focus right now is Nassau. We’d like to open a couple more locations in the future, and other islands would be an option.”

“Our franchisees have been doing a great job carrying out Charley’s vision and mission, and taking care of customers. They’re performing really well when you have an economy in a middle of a pandemic. That shows how strong a business and operation they have from the franchise side. That’s why we’re excited to continue to expand with our partners down here.”

Charley’s second Nassau restaurant site gives it a central New Providence location next to arguably Nassau’s largest crossroads, and in close proximity to heavy consumer footfall areas such as the Mall at Marathon, Solomon’s SuperCentre and Cable Bahamas’ head office. This gives it the ability to attract significant drive-through and walk-in consumer traffic, although Carl’s Jnr seemingly failed to capitalise on these potential advantages.

“We were waiting for the right opportunity,” Mr Fessich said, “and right time to do so. We’ve been looking at this location for quite some time. Everything came together and we moved forward with this one.

“We had the opportunity to employ 40 people, which is great given the current circumstances and condition of the market. This is a win-win for everyone. This is one of our best-looking locations. This a flagship location in Nassau, and this sets the standard for upcoming locations.” It is understood that the new restaurant takes total employment at the two Charley’s sites to around 60-70 persons.

Mr Fessich declined to reveal how much has been invested in the latest Charley’s Philly Steaks location, but indicated that The Bahamas is a key element in what he described as the restaurant chain’s “more aggressive approach” to international growth in 2021.

“As a company we never stop developing, even in the middle of a pandemic,” he added. “Last year we opened 40 new restaurants in the US, and internationally we opened five. This year we will continue on a more aggressive development approach. The plan is to open 90 more Charley’s locations. We don’t intend to stop any time soon.”

Tianya Bethel, the Bethels’ daughter and the Bahamian franchise’s incoming operations manager, voiced hope that Charley’s expansion would give other entrepreneurs and small business owners - as well as Bahamians generally - confidence that the worst of the COVID-19 pandemic and its economic devastation has passed.

“I feel as if people will think: ‘Why do this right now?’ when the country and world, for that matter, are in a global recession,” she said. “But this is a sign of things changing. Things will pick-up. I do think this will be a sign of hope for the Bahamian people that things are starting to get back to normal, that things will be better again.”

Ms Bethel was also optimistic that Charley’s expansion will secure the necessary market share and revenue to sustain it, even though it is entering a crowded franchise and fast food market. Its main competitors include the Myers Group, which has the Kentucky Fried Chicken (KFC) and Burger King brands, and the Tsavoussis brothers’ Aetos Holdings, with Wendy’s, Marco’s Pizza and Popeyes Louisiana Kitchen.

She added that, even before her parents launched the Bahamian franchise, she was confident that the quality of Charley’s food would “speak for itself” and be sufficient to establish a local customer base. “It’s never been a concern for me,” Ms Bethel said. “People go into Charley’s right now for the food. I don’t have any concerns as to how we’ll perform.”

Asked why her parents decided to double their restaurant sites amid COVID-19’s continuing impact, she replied: “I think it’s something we always knew we were going to develop, but in terms of having a concrete plan we decided this off a whim during quarantine. We decided right now would be the time.

“It was always in the contract to have multiple [locations]. It would have happened eventually; it just happened during quarantine.” Ms Bethel said Carmichael Road and Mackey Street were among the possible locations that have been assessed for further expansion, but for now her parents are focusing on their new location.

“We didn’t have to build the drive through; it was already here. Everything just kind of aligned perfectly,” she added of the new site. “This was available. Everything just lined up perfectly.” Charley’s is renting the location from BISX-listed AML Foods, which closed its three Carl’s Jr sites in late 2021 after failing to achieve the desired investment returns.”