By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
Aetos Holdings yesterday said it was targeting an “underserved chicken market” with its third fast food franchise, and expressed optimism that its latest global brand will “more than exceed” their financial goals.
Chris Tsavoussis, Aetos’s president, said that while it had agreed to develop five Popeyes Louisiana restaurants over an eight-year period, it was more focused on developing a partnership with a brand he described as “a great fit”.
Speaking after the official opening of the first 4,000 square foot Popeyes restaurant in the Bahamas, Mr Tsavoussis told Tribune Business that construction on the former ‘greenfield’ site had taken just 14 weeks and four days.
Disclosing that “a little more than” the original $2 million investment budget had gone into the restaurant, he added that Aetos had been able to attract “some great, great employees” among the 100 Popeyes staff that had been hired.
Explaining how Aetos Holdings and Popeyes ultimately teamed up, Mr Tsavoussis said: “We feel the chicken market in this country has been underserved; not served in a relevant way.
“Where we think there’s an opportunity we look at it, and Popeyes has done a phenomenal job in the last seven years with their marketing strategy, what they deliver, their own value proposition, we just felt it was a great fit.”
Long-standing personal relationships also brought the two sides together. Andrew Skehan, president of Popeyes Louisiana’s international business, told Tribune Business that the fried chicken chain only came to the Bahamas because it was able to partner with Mr Tsavoussis and his brother, Terry.
He had known the duo since his prior career as head of international business for Wendy’s, the hamburger chain for which the Tsavoussis brothers also hold the Bahamas franchise.
The pair also dealt with Popeyes’ global chief executive, Cheryl A. Bachelder, when she was Domino’s Pizza’s chief marketing officer and they operated that franchise, too.
Mr Skehan said he had been seeking to expand Popeyes to the Bahamas since taking his current post four-and-a-half years ago, and told Tribune Business: “It was Chris and Terry, or no one.
“I’ve been looking to come in here [the Bahamas] ever since I took over international for Popeyes. It was just a matter of when Chris and Terry were ready. We wouldn’t have come here with any other partner. If it was not Aetos, we would not be here today.
“Having the right partner makes all the difference in the world in our business. If you have the right partner, they can take a mediocre brand and do well. In this case we believe we have an outstanding brand and an outstanding partner, and expect their early success to continue.”
Mr Skehan added that Popeyes could not have made a better launching statement than its first Bahamas restaurant, and said: “This has, I would say, exceeded our expectations.
“It’s the type of restaurant we want to use for a model for our partners around the world. The quality of the construction, the quality of the design, jumps out. It’s edgy, contemporary in a warm way, and it also tells the Popeyes story.
“I don’t know what we could have done to make a bigger impact between this restaurant and the Popeyes Bahamas Bowl. It’s about as good as it gets. This is the best, the best opening that I’ve been a part of.”
Popeyes’ brand recognition among Bahamian consumers is already strong as a result of its sponsorship of the Bahamas Bowl college football game, played on Christmas Eve at the National Stadium.
Mr Tsavoussis agreed that the Bowl Game was “an absolute win” and that “it doesn’t get better than that” from a marketing perspective, but acknowledged there “was a lot of pressure” to complete the first Popeyes restaurant and get it operational prior to the event.
He disclosed that Aetos Holdings manages its own construction, overseeing the entire building, procurement and materials supply chain to ensure its properties are completed on time.
“I know for us, when we give our operations team a date, they nail it,” Mr Tsavoussis told Tribune Business. “No wiggle room, no excuses, we have to hit that date.
“It makes this restaurant a more profitable venture. We know eight months before we do something what it’s going to cost. We negotiate with vendors, and know what the pricing structure will look like to run our theoreticals, a gamut of analyses, models to figure out what’s ahead.”
Mr Tsavoussis said Aetos Holdings had “signed on for five stores over eight years” in the Bahamas with Popeyes, but emphasised that there was no pressure from the franchisor for rapid, mass expansion.
“We’ll take the market year by year, see where it’s at and go that way,” he explained. “We’re not pressured to open stores every week.
“For us, it’s about partnership. It’s not about going to make more money. It’s making sure we have the right partnership with the right franchise.
“We love what they can bring to the table. Popeyes is not the type of franchise that will say: ‘We want 12 stores open tomorrow or you will lose your franchise rights’. They want great partners that will grow and develop the brand.”
Mr Tsavoussis said Popeyes would throw the same amount of resources and support behind a franchisee opening a few stores, such as the Bahamas, and another opening 200 stores.
“We have a break even, where we need to be, and I think we’ll more than exceed that,” he told Tribune Business of Aetos’s initial goals for Popeyes.
“For us, it’s about doing the job right, and we’re really firm believers that if we do the job right, a lot of other things will follow.”
Popeyes will be competing directly with the likes of Kentucky Fried Chicken (KFC) and Bamboo Shack in the intensely competitive fast food franchise market that exists in the Bahamas.
The acquisition of the Popeyes franchise gives the Tsavoussis brothers and Aetos Holdings a ‘chicken’ franchise to pair with their existing ‘fast food’ hamburger and pizza offerings, Wendy’s and Marco’s Pizza.
They are now battling with George Myers, and the Myers Group, and BISX-listed AML Foods and its Domino’s Pizza and Carl’s Jnr brands, to lead the Bahamas’ fast food franchise market.
The restaurant and food franchise industry appears, along with web shop gaming, to currently be one of the few growing and job-creating industries within the Bahamian economy.
Comments
ThisIsOurs 8 years, 4 months ago
Road traffic need to address those lines. It's ridiculous for someone to sit on a line by Shell gas station waiting to get through a drive through by fox hill. It's called obstructing traffic, it's on the books, there's a fine for it. Yesterday I saw a 70+ year old man struggling to cross the 4 lane HIGHWAY on foot. These people are worse than the Doris Johnson students making a nuisance of themselves in traffic. Worse than that, someone stuck in that ridiculous backup, did a u-turn in the middle of Prince Charles, in the front of two lanes of oncoming traffic. When people predictably start getting hurt, I hope the company pays the hospital bill.
ThisIsOurs 8 years, 4 months ago
The company should be made to pay for two traffic police or security to cut off that line at a reasonable number of cars
TalRussell 8 years, 4 months ago
Comrade ThisIsOurs what a testament to we's passion for deep fried chickens with your visible portrayal of how you saw a 70+ year old man struggling to cross the 4 lane highway on he foots - outs looking for his chance munch on some that fine Louisiana’s juicy Popeye chickens.
Good for Pop's who at 70+ knows good chickens once he can locate them - and may the good lord takes a Popeye licking for him to him enjoying another 20+ years juicy mouth watering chickens hunting.
ThisIsOurs 8 years, 4 months ago
Lol. I'm glad the company is a success, don't get me wrong, but the road was converted to dual lanes for a reason. Traffic is ridiculous. Those people will be sitting for at least one hour before they even get in the parking lot. Added to that you cannot be allowed to indiscriminately cross a highway, that's also an offense "jaywalking". It's dangerous
sealice 8 years, 4 months ago
when the police start enforcing all the traffic laws in the bahamas we'll have another "teachable moment" in history....
thomas 8 years, 4 months ago
UNDERSERVED ...really?
ohdrap4 8 years, 4 months ago
yes, the bahamas imports only 17 million pounds of chicken a year according to caricom
please sir, can i have some more?
GrassRoot 8 years, 4 months ago
underserved fried chicken market, my fat a?s.
DonAnthony 8 years, 4 months ago
It is time the government imposed a special tax on all fast food restaurants. Why should I pay extra taxes (NHI) for all of these obese masses of redundant protoplasm ( Fat people) who gorge themselves and will burden the public healthcare system with completely preventable diseases and by the way continue to make these men fantastically rich. They reap the profits while we pay the bill for the diseases caused by all this unhealthy fast food. Tax fast food heavily and therefore encourage persons to eat healthier!
sheeprunner12 8 years, 4 months ago
Operative statement: numbers houses and fast food outlets are the only places hiring right now ............ and yes there should be a 5% tax on fast food + VAT to help pay for NHI ............. fast food is just like alcohol and tobacco
GrassRoot 8 years, 4 months ago
you will have the tax in the form of your NHI contribution. the money that poor people used to buy insurance (if they could afford) they can now invest into the underserved chicken market, and get free diabetes monitoring through NHI without any copay. Nice. Can you imagine what people will do all day, when they are unemployed and bored? maybe a field trip to the doctor?
USAhelp 8 years, 4 months ago
What a bunch of cry babies. If i want chicken i will wait in line. Free interpriese is good for all all sell chicken in shop or sell penutes or paper on the side of the road.
ThisIsOurs 8 years, 4 months ago
They ain't supposed to be on the side of the road either, all of these "little" infractions lead to increased disrespect for law, because "I can get away with it". You can't block a public road to satisfy your selfish needs. There are other businesses and homes on that side of the street. Pay a security and cut the line off at a reasonable number of cars.
sheeprunner12 8 years, 4 months ago
Agreed............ if you build a restaurant to seat 500 and serve drive thru, then you need a sizeable parking lot
ThisIsOurs 8 years, 4 months ago
I wonder if any of the principals of the restaurant have to sit through that traffic to drop their kids home from school. What would the restaurant say if traffic from another Prince Charles business blocked their entrance for days? People always seem willing to ask others to suffer through things they themselves could never imagine, would ever experience or ever be willing to endure
Why can't we do things 1."Decently "and 2. "In order"
Regardless 8 years, 4 months ago
another sad statement.....people will line up for hours in a queue, causing inconvenience for others in transit and in one instance an accident over fried chicken. Such a brilliant people have evolved in this nation in the last 40 years. Truly would be a " Greek tragedy" but in this instance, seems to be another conquest.
TalRussell 8 years, 4 months ago
Comrades where is your compassion for juicy deep fried chickens lovers? From sounds it you guys has long been ready call out traffic policeman''s start ticketing Popeye's loyal customers.
One day you mad at PM and his Universal BAHAMACARE, you don't believe government is on the level about anything, don't believe what media tells you, the boss is a prick, BTC dropping ya calls, banks are crooks, BEC can't keep damn light on - and now you messin with the chicken merchants business.
Good God Almighty, what manner of people has they become when nothing or no one can please them?
Not good when they treat a foreigner like Popeye with such hurry up and move that damn car from blocking me from rushing wager my chicken lunch money with the numbers man's.
If i was Popeye store owner, I'd sell numbers with me chickens.
ThisIsOurs 8 years, 4 months ago
Lol. Actually Tal, I was expecting the police to show up on their own volition to break up the mess, I was sincerely surprised that they didn't. If that was the bar on Prince Charles or a private party causing that backup, they would have been there in a minute.
I am super happy that 80? People have employment at a restaurant that hopefully has a bright future. But this ain't right. What happens when school opens in January. That's 3 weeks away.
sansoucireader 8 years, 4 months ago
Foolishness. I live in the east and have watched the POPEYE'S building go up. They should have put in a separate lane for turning into the property because they are now blocking the lane for drivers who want to continue east (like me!) or turn left onto Fox Hill Road. Lack of planning, and where's Road Traffic or security (someone!) to sort this mess out. Also, I don't know what 'underserved chicken market' Chris Tsavoussis is talking about because in the little stretch of Prince Charles Drive there is SAMMY'S CHICKEN, IMPERIAL CAFE and BAMBOO SHACK. Don't forget rotisserrie chicken @ nearby Super Value/Quality Market and several jerk places nearby in Fox Hill. KFC is heading west on Prince Charles as well. Chicken Wars in the east: choose your restaurant!
ohdrap4 8 years, 4 months ago
and, remember let's count the faied chicken franchises: 1. rollo pollo 2. chicken delight 3. chicken unlimited 4. church's chicken 5. the previous incarnation of popeye's
after junkanoo and christmas the novelty will be gone, the money too, so no lines.
banker 8 years, 4 months ago
It's just the Tsavoussis brothers trying to eat George Myers corpulent lunch. I recall a certain story that I heard where some unnamed business siblings drove a competing pizza franchise out of town by conducting a jihad of calling in fake telephone pizza orders day and night until the franchise became unprofitable. Business is war on a civilised scale.
TalRussell 8 years, 4 months ago
Comrades in the Spirit of Christmas I need addressThisIsOurs recollection about seeing a 70+ year old man struggling to cross the street during high traffic period as he made his way toward the new Popeyes Chicken Shack.
I now have it on the best of street-wise mythical authority that the 70+year old man's attempting cross da traffic busy street may have just been none other than the bonafide Santa Clause making his way for a Santa's job interview with the Tsavoussis brothers to work as their onsite Santa over da Christmas at Popeyes newest underserved chicken location.
Can't help but wonder if Santa succeeded in beating out the yellow chicken costume man's, for the seasonal job in our "underserved paychecks" market, and will Tsavoussis brothers be adding Popeyes mouth watering Cajun style turkeys to their local Underserved Restaurant's Christmas and beyond the season's Menu?
by TalRussell
ThisIsOurs 8 years, 4 months ago
When you write Santa, tell him to eat in moderation. It's highly seasoned and SALTY!!! That means Bahamians will love it, but it won't help our blood pressure readings much. A friend was too excited to bring me some:) he LOVED IT. Another friend told me someone brought him some,and he LOVED IT. Both taking advantage of the short lines on Sunday morning. I said to one of them, it's ok but very salty, I can still taste the salt, he said "oh I was wondering what that aftertaste was. No wonder I suck down those two bottles of water". Moderation Santa, moderation.
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