Setting the Course: California Operator Grows while Navigating Big Changes

By: Kevin Behan | 5,531 Reads | 5 Shares

Featured in: Multi-Unit Franchisee Magazine: Issue 3, 2024

%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E+Harsh+Ghai+%3Cbr%3E%3Cstrong%3ETitle%3A%3C%2Fstrong%3E+CEO%3Cbr%3E%3Cstrong%3ECompany%3A%3C%2Fstrong%3E+Ghai+Management+Services%3Cbr%3E%3Cstrong%3ENo.+of+units%3A%3C%2Fstrong%3E+140+Burger+King%2C+36+Taco+Bell%2C+28+Popeyes+Louisiana+Kitchen+%3Cbr%3E%3Cstrong%3EAge%3A%3C%2Fstrong%3E+39%3Cbr%3E%3Cstrong%3EFamily%3A%3C%2Fstrong%3E+Wife+Gubir%2C+daughters+Saanjh+and+Reyhat+%3Cbr%3E%3Cstrong%3EYears+in+franchising%3C%2Fstrong%3E%3A+14%3Cbr%3E%3Cstrong%3EYears+in+current+position%3A%3C%2Fstrong%3E+2%3C%2Fp%3E%0D%0A%3Cp%3EHarsh+Ghai+has+made+good+things+happen+over+the+past+five+years.+When+he+was+profiled+in+2019%2C+he+was+the+largest+Burger+King+franchisee+and+operated+more+than+150+restaurants.+Since+then%2C+Ghai+has+sold+approximately+20+Burger+King+restaurants+in+the+Midwest+and+focused+his+growth+primarily+in+Northern+California.+He+added+locations+as+far+north+as+the+California-Oregon+border+and+acquired+high-performing+stores+in+San+Francisco+and+Sacramento.+In+total%2C+he+operates+140+Burger+King+restaurants.%3C%2Fp%3E%0D%0A%3Cp%3ESoon+after+Popeyes+Louisiana+Kitchen+was+acquired+by+Restaurant+Brands+International%2C+Ghai+purchased+most+of+its+restaurants+in+the+Sacramento+market+as+part+of+a+15-unit+deal.+It+was+a+full-circle+moment+for+Ghai+because+his+first+experience+with+franchise+ownership+came+with+the+chain+shortly+after+he+graduated+college.+He+recalls+that+he+failed+miserably+and+left+the+brand+in+2012.+Now%2C+he%27s+optimistic+about+the+growth+opportunities+with+Popeyes+and+has+28+locations.%3C%2Fp%3E%0D%0A%3Cp%3E%22We+love+the+brand%2C+and+there+is+tremendous+demand+for+chicken+concepts%2C%22+Ghai+says.+%22We+are+very+excited+about+the+growth+opportunities.%22%3C%2Fp%3E%0D%0A%3Cp%3EWhen+he+stepped+away+from+Popeyes+a+dozen+years+ago%2C+he+stepped+toward+Taco+Bell.+Ghai+has+36+Taco+Bell+franchises+but+plans+to+double+his+current+count+over+the+next+three+to+five+years.%3C%2Fp%3E%0D%0A%3Cp%3E%22Being+represented+by+three+brands+is+very+appealing+to+us%2C%22+he+says.+%22It+enables+us+to+scale+much+faster+that+way.+We+need+to+have+at+least+50+units+of+each+brand+for+it+to+make+sense+for+us.%22%3C%2Fp%3E%0D%0A%3Cp%3EOn+the+personal+side%2C+Ghai+and+his+wife+Gubir+welcomed+a+second+daughter+to+the+family+last+year.+It%27s+a+busy+time+as+he+balances+operating+more+than+200+restaurants+with+raising+a+young+family.%3C%2Fp%3E%0D%0A%3Cp%3E%22There+are+a+lot+of+ups+and+downs%2C%22+he+says.+%22Owning+a+business+and+being+my+own+boss+is+definitely+helpful.+It+gives+me+a+bit+of+freedom+and+flexibility.+Having+the+support+from+my+amazing+wife+and+family+helps+as+well.+Our+entire+extended+family+lives+close+by%2C+and+that+is+very+beneficial.+We+are+fully+invested+in+our+children%27s+lives.%22%3C%2Fp%3E%0D%0A%3Cp%3EDuring+the+past+five+years%2C+Ghai+navigated+Covid+and+other+industry+challenges.+As+with+most+business+owners%2C+Ghai+was+forced+to+adjust+his+business+practices+on+the+fly.%3C%2Fp%3E%0D%0A%3Cp%3E%22Our+first+reaction+was+to+take+care+of+our+people+and+be+sensitive+to+everyone%27s+needs%2C%22+he+says.+%22We+implemented+hazard+pay+for+our+employees+for+the+first+three+months%2C+and+we+didn%27t+hesitate+to+shut+down+dining+rooms+or+install+shields+between+customers+and+staff+to+protect+them.+Every+day+was+a+challenge%2C+especially+in+the+first+45+days.%22%3C%2Fp%3E%0D%0A%3Cp%3EAs+the+country+recovered+from+Covid%2C+the+restaurant+industry+faced+a+new+set+of+issues+that+tested+its+operators.+Many+restaurants+experienced+severe+staffing+shortages+after+the+pandemic%2C+stressing+their+ability+to+operate+and+serve+customers.+After+California+recently+raised+its+minimum+wage+to+%2420+per+hour%2C+owners+are+seeing+new+problems.+Ghai+says+it+was+difficult+to+find+employees+last+year%2C+but+open+positions+receive+two+to+three+times+more+applicants+this+year.+The+question+now+is+how+to+find+a+way+to+pay+those+employees+without+hurting+the+bottom+line.%3C%2Fp%3E%0D%0A%3Cp%3EGhai+is+committed+to+tackling+these+issues+head-on+by+working+with+local+legislators+and+continuing+to+grow+his+business.+%22We+love+doing+business+in+California+and+will+keep+fighting+for+what+is+right+to+manage+the+complexities+of+the+business%2C%22+he+says.+%22We+are+cautiously+optimistic+and+believe+we%27ll+come+out+stronger+on+the+other+side.%22%3C%2Fp%3E%0D%0A%3Ch2%3EPERSONAL%3C%2Fh2%3E%0D%0A%3Cp%3E%3Cstrong%3EFirst+job%3A%3C%2Fstrong%3E+I+first+started+working+on+weekends+when+I+was+14+at+the+Burger+King+my+father+owned+in+Benicia%2C+California.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EFormative+influences%2Fevents%3A%3C%2Fstrong%3E+My+parents.+As+a+second-generation+franchisee+and+first-generation+immigrant%2C+I+watched+my+father+start+from+the+bottom+up+to+create+the+American+dream.+He+put+everything+into+growing+the+family+business+while+my+mom+worked+to+help+make+ends+meet.+Their+work+ethic+and+commitment+to+education+laid+the+foundation+to+help+us+to+become+successful.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EKey+accomplishments%3A%3C%2Fstrong%3E+Growing+our+family+business+portfolio+from+20+units+to+200-plus+units+since+I+graduated+college.+In+2019%2C+we+were+recognized+as+Burger+King%27s+Global+Franchisee+of+the+Year.+In+2023%2C+we+were+again+recognized+as+the+brand%27s+North+America+Franchisee+of+the+Year.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EBiggest+current+challenge%3A%3C%2Fstrong%3E+Working+through+the+tough+legislative+environment+in+California.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3ENext+big+goal%3A%3C%2Fstrong%3E+Achieving+%2450+million+in+company+EBIDTA.+We+are+almost+there.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EFirst+turning+point+in+your+career%3A%3C%2Fstrong%3E+My+entry+into+Taco+Bell.+I+owned+about+25+Burger+King+restaurants+at+that+point.+It+was+good+to+diversify+into+a+good+brand%2C+and+it+solidified+me+as+a+multi-brand+restaurant+operator.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EBest+business+decision%3A%3C%2Fstrong%3E+Diversifying+into+Taco+Bell+and+Popeyes+and+focusing+on+established+brands+instead+of+emerging.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EHardest+lesson+learned%3A%3C%2Fstrong%3E+It+can+be+tempting+to+jump+into+emerging+brands%2C+but+they+require+a+lot+of+time%2C+focus%2C+and+capital%2C+and+many+of+them+are+not+supported+in+the+manner+they+should+be.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EWork+week%3A%3C%2Fstrong%3E+Seven+days+a+week+with+plenty+of+working+vacations.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EExercise%2Fworkout%3A%3C%2Fstrong%3E+I+start+my+morning+with+a+workout+and+try+to+get+in+a+long+walk+before+the+end+of+the+day.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EBest+advice+you+ever+got%3A%3C%2Fstrong%3E+It+may+seem+simple%2C+but+%22patience+is+a+virtue.%22+I+learned+patience+in+business+from+my+father.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EWhat%27s+your+passion+in+business%3F%3C%2Fstrong%3E+My+passion+is+my+people+and+my+restaurants.+I+feel+at+home+when+I+am+in+stores+and+interacting+with+the+people+who+make+us+successful.+Having+relationships+with+team+members+and+managers+is+very+important+to+me.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EHow+do+you+balance+life+and+work%3F%3C%2Fstrong%3E+Having+support+from+an+amazing+wife+and+family+is+very+helpful.+Since+my+wife+also+works+in+the+family+business%2C+we+find+ways+to+support+each+other+and+raise+our+kids+at+the+same+time.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EGuilty+pleasure%3A%3C%2Fstrong%3E+I+love+sports%2C+and+I+have+a+dangerous+sweet+tooth.+I%27m+also+a+foodie+and+a+sucker+for+a+plated+dinner.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EFavorite+book%3A%3C%2Fstrong%3E+%3Cem%3EDune%3C%2Fem%3E+by+Frank+Herbert.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EFavorite+movie%3A%3C%2Fstrong%3E+%22Interstellar.%22%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EWhat+do+most+people+not+know+about+you%3F%3C%2Fstrong%3E+That+I+am+from+an+immigrant+family+and+did+not+live+in+the+United+States+until+I+was+9+years+old.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EPet+peeve%3A%3C%2Fstrong%3E+Aggressive+business+tactics.+I+also+learned+from+my+father+to+find+win-win+solutions.+While+it+is+important+to+have+the+ability+to+be+shrewd%2C+you+shouldn%27t+always+feel+like+you+have+to+get+one+over+on+another.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EWhat+did+you+want+to+be+when+you+grew+up%3F%3C%2Fstrong%3E+A+businessperson.+My+father%27s+experience+was+in+the+hospitality+industry%2C+and+I+was+always+fascinated+with+the+family+business.+I+wanted+to+follow+in+his+footsteps.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3ELast+vacation%3A%3C%2Fstrong%3E+We+just+finished+a+quick+trip+to+Cabo+San+Lucas+and+are+headed+to+Europe+in+August+with+my+entire+family.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EPerson+you%27d+most+like+to+have+lunch+with%3A%3C%2Fstrong%3E+My+grandfather%2C+whom+I+never+met.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cimg+style%3D%22float%3A+right%3B%22+src%3D%22https%3A%2F%2Fimg.franchising.com%2Fart%2Farticles%2F8807_1.jpg%22+alt%3D%22%22+width%3D%2230%25%22+hspace%3D%2210%22%3E%3C%2Fp%3E%0D%0A%3Ch2%3EMANAGEMENT%3C%2Fh2%3E%0D%0A%3Cp%3E%3Cstrong%3EBusiness+philosophy%3A%3C%2Fstrong%3E+Taking+care+of+your+people.+In+restaurants%2C+we+are+in+the+people+business+first.+I+consider+myself+a+gardener+who+really+just+needs+to+water+the+plants.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EManagement+method+or+style%3A%3C%2Fstrong%3E+Servant+leadership.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EGreatest+challenge%3A%3C%2Fstrong%3E+Getting+our+team+members+and+legislators+to+understand+that+we+are+a+family+business.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EHow+do+others+describe+you%3F%3C%2Fstrong%3E+Fun+loving+and+innovative.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EHave+you+ever+been+in+a+mentor-mentee+relationship%3F+What+did+you+learn%3F%3C%2Fstrong%3E+Yes%2C+my+greatest+mentors+have+taught+me+to+be+patient%2C+deal+in+good+faith%2C+and+build+relationships.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EOne+thing+you%27re+looking+to+do+better%3A%3C%2Fstrong%3E+I+continue+to+strive+to+improve+our+people%27s+working+experience.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EHow+you+give+your+team+room+to+innovate+and+experiment%3A%3C%2Fstrong%3E+I+try+to+allow+leaders+to+make+their+own+processes+without+weighing+them+down+with+busy+work.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EHow+close+are+you+to+operations%3F%3C%2Fstrong%3E+Very+close.+I+try+to+visit+restaurants+at+least+once+or+twice+a+week.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EWhat+are+the+two+most+important+things+you+rely+on+from+your+franchisor%3F%3C%2Fstrong%3E+Transparency%2C+trust%2C+and+independence.+Communication+with+the+brand+is+always+the+key+while+they+also+need+to+allow+us+to+operate+with+our+expertise.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EWhat+you+need+from+vendors%3A%3C%2Fstrong%3E+Timeliness+and+service.+Some+of+our+best+vendors+are+small+companies+that+provide+excellent+service+and+communication.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EHave+you+changed+your+marketing+strategy+in+response+to+the+economy%3F+How%3F%3C%2Fstrong%3E+Being+malleable+in+marketing+is+extremely+important.+We+went+from+the+toughest+supply+chain+environment+where+we+took+a+lot+of+price+increases+to+a+big+value+moment+where+people+don%27t+have+money+to+spend+on+eating+out.+Our+brands+are+adjusting+very+well.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EHow+is+social+media+affecting+your+business%3F%3C%2Fstrong%3E+Social+media+has+been+an+amazing+tool+in+recruitment+and+marketing.+But+it+can+also+be+dangerous%2C+and+restaurant+teams+need+to+be+aware+of+this.+These+days%2C+you+cannot+stop+team+members+from+posting+on+social+media+about+their+jobs%2C+so+it+is+important+to+educate+them+on+the+correct+protocols.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EHow+do+you+hire+and+fire%3F%3C%2Fstrong%3E+Now+that+California+has+a+%2420+minimum+wage%2C+we+can+hire+from+a+much+larger+pool.+We%27re+still+adapting+to+this+change%2C+but+it+has+a+silver+lining.+Having+a+strong+HR+support+team+is+extremely+important%2C+and+I%27m+proud+of+the+service+they+provide+our+restaurant+teams.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EHow+do+you+train+and+retain%3F%3C%2Fstrong%3E+Everyone+is+responsible+for+training%2C+but+our+HR%2C+safety%2C+and+finance+teams+are+great+at+providing+the+support+to+train+the+field+in+their+respective+matters.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EHow+do+you+deal+with+problem+employees%3F%3C%2Fstrong%3E+It+is+important+to+dig+deeper+into+problems+with+employees.+There%27s+usually+a+root+cause+that+can+be+solved+by+discovering+the+underlying+issues.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EFastest+way+into+your+doghouse%3A%3C%2Fstrong%3E+Not+following+directions.%3C%2Fp%3E%0D%0A%3Ch2%3EBOTTOM+LINE%3C%2Fh2%3E%0D%0A%3Cp%3E%3Cstrong%3EAnnual+revenue%3A%3C%2Fstrong%3E+%24410%2C000%2C000.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3E2024+goals%3A%3C%2Fstrong%3E+Maintaining+our+2023+EBIDTA.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EGrowth+meter%3A+How+do+you+measure+your+growth%3F%3C%2Fstrong%3E+Growth+is+measured+through+sales+and+EBIDTA+but+also+through+the+growth+of+your+leadership.+We+also+grow+our+unit+count+by+10+to+20+units+per+year.+Developing+new+restaurants+and+our+real+estate+portfolio+is+integral+to+our+growth.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EVision+meter%3A+Where+do+you+want+to+be+in+five+years%3F+10+years%3F%3C%2Fstrong%3E+%24600+million+in+top-line+revenue+in+five+years+and+approaching+%241+billion+in+10+years.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EDo+you+have+brands+in+different+segments%3F+Why%2Fwhy+not%3F%3C%2Fstrong%3E+They+are+all+in+the+restaurant+industry.+We+have+burgers%2C+tacos%2C+and+chicken.+Always+looking+at+pizza+and+coffee+next%21%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EHow+is+the+economy+in+your+region%28s%29+affecting+you%2C+your+employees%2C+your+customers%3F%3C%2Fstrong%3E+With+the+changes+in+wages+across+all+of+California%2C+we+are+still+learning.+We+are+now+paying+the+same+wages+in+Bakersfield+and+Redding+as+we+are+in+San+Francisco.+It+is+a+very+tough+environment.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EAre+you+experiencing+economic+growth+in+your+market%3F%3C%2Fstrong%3E+Many+of+our+nonurban+markets+are+experiencing+growth.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EHow+do+changes+in+the+economy+affect+the+way+you+do+business%3F%3C%2Fstrong%3E+We+have+to+be+able+to+shift+our+menu%2C+prices%2C+and+deals+as+people+have+less+money+to+spend+on+eating+out.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EHow+do+you+forecast+for+your+business%3F%3C%2Fstrong%3E+Our+finance+team+does+an+incredible+job+of+working+with+the+field+and+anticipating+next-growth+levers+for+us.+They+work+with+our+operations+team+on+minute+deals+and+figure+all+avenues+for+growth.+I+work+with+the+finance+team+on+a+macro+level+regarding+growth+and+adding+new+restaurants.+There+are+a+lot+of+opportunities+with+new+acquisitions%2C+many+of+which+are+underperforming+units%2C+and+we+turn+them+around.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EWhat+are+the+best+sources+for+capital+expansion%3F%3C%2Fstrong%3E+Our+lenders+are+incredible.+Lending+is+based+very+heavily+on+relationships.+We+have+worked+with+our+lead+lender+for+seven+years.+We%27ve+seen+him+grow+with+the+bank+during+the+course+of+our+tenure+with+him.+Personal+relationships+are+very+important+to+us.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EExperience+with+private+equity%2C+local+banks%2C+national+banks%2C+other+institutions%3F+Why%2Fwhy+not%3F%3C%2Fstrong%3E+We+have+great+experiences+with+national+banks+like+Fifth+Third+Bank%2C+which+is+our+lead+arranger+in+all+deals.+We+do+work+with+some+regional+banks+on+smaller+projects.+While+we+have+no+private+equity+partners+today%2C+it+is+something+we+are+exploring+should+there+be+a+need+with+large+growth.+Right+now%2C+we+enjoy+being+a+family+business.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EWhat+are+you+doing+to+take+care+of+your+employees%3F%3C%2Fstrong%3E+Money+talks.+You+have+to+make+sure+they+have+financial+security+and+a+good+work-life+balance.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EHow+are+you+handling+rising+employee+costs+%28payroll%2C+minimum+wage%2C+healthcare%2C+etc.%29%3F%3C%2Fstrong%3E+It%27s+a+difficult+time+for+this%2C+but+we+are+navigating+it.+Intelligent+pricing+and+technology%2C+like+AI+order+taking%2C+are+going+to+be+the+key+for+us.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EWhat+laws+and+regulations+are+affecting+your+business%2C+and+how+are+you+dealing+with+them%3F%3C%2Fstrong%3E+The+California+fast+food+legislation+is+our+biggest+focus+not+just+at+the+state+level%2C+but+also+in+local+cities.+We+are+also+working+on+PAGA+reform+in+California.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EHow+do+you+reward%2Frecognize+top-performing+employees%3F%3C%2Fstrong%3E+Growth+is+the+biggest+lever+for+recognition.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EWhat+kind+of+exit+strategy+do+you+have+in+place%3F%3C%2Fstrong%3E+No+exit+strategy+yet%21+I+have+plenty+of+gas+left%2C+so+it+is+full+steam+ahead.%3C%2Fp%3E

Published: September 13th, 2024