Strategies for Sustainable Growth in the Restaurant Industry: A Case Study of Mo’Bettahs
Explore how Mo’Bettahs, a Hawaiian cuisine concept, has achieved substantial growth by focusing on operational strategies and maintaining margins.
Photo by Tim Mossholder on Unsplash
Photo by Tim Mossholder on Unsplash
Founders' Vision and Growth Trajectory
Mo’Bettahs, founded by brothers Kimo and Kalani Mack in 2008, has rapidly expanded its footprint, capitalizing on the growing popularity of Hawaiian cuisine in the U.S. mainland. With an initial focus on introducing their native food to a new audience in Bountiful, Utah, the restaurant chain saw significant success, culminating in about $80 million in sales and over 50 locations by the end of 2023. This growth reflects a strong consumer interest in diverse culinary experiences and the founders' commitment to sharing their cultural heritage through food.
Photo by Tim Mossholder on Unsplash
Operational Discipline and Focus on Margins
CEO Rob Ertmann's strategic approach to growth emphasizes operational efficiency and maintaining healthy margins. By prioritizing food quality, service excellence, and profitability, Mo’Bettahs has been able to sustain its expansion while ensuring financial stability. With average unit volumes nearing $2 million and store-level margins around the mid-20% range, the company's unit economics have piqued investor interest and positioned it for continued success.
Efficiency through Process Optimization
An essential aspect of Mo’Bettahs' success lies in its relentless pursuit of efficiency through process optimization. By bringing some food preparation in-house and streamlining operations, the restaurant chain has managed to reduce costs and enhance margins. For example, transitioning from pre-battered chicken to in-house preparation not only improved product quality but also saved on distribution expenses, showcasing the company's commitment to operational excellence.
Photo by Tim Mossholder on Unsplash
Strategic Growth Planning
Mo’Bettahs' growth strategy centers on strategic expansion along established corridors and identifying untapped markets with growth potential. By focusing on existing operational strengths in regions like the I-15 and I-35 corridors, the company can leverage its resources effectively and maintain operational efficiency. This targeted approach to growth ensures that Mo’Bettahs can scale sustainably while delivering consistent quality across its expanding network of restaurants.
Photo by Tim Mossholder on Unsplash
Future Outlook and National Expansion
Looking ahead, Mo’Bettahs aims to continue its disciplined growth trajectory, with plans to exceed 100 units in the next three to five years. The company's brand appeal, anchored in Hawaiian barbecue and signature plates, positions it as a strong contender for nationwide expansion. By prioritizing community-centric dining experiences and a focus on quality and value, Mo’Bettahs is poised to fill culinary gaps in diverse communities across the country, showcasing the potential for continued success and growth.
