Back in 1990, three ambitious Egyptian men took to the streets of gritty New York City with a humble hot dog cart. However, they quickly shifted their focus to selling halal foods, specifically catering to the city’s many Muslim taxi drivers. This decision would ultimately lay the foundation for what would become one of the fastest-growing franchises in the country – Halal Guys. Fast forward to the present day, and Halal Guys boasts an impressive 114 global locations, with 100 of them based in the U.S. How did this small cart evolve into a global sensation?
The key to Halal Guys’ remarkable growth lies in its franchising prowess. Out of its 107 shops, an impressive 100 are franchise-owned, with only seven company-owned locations. In 2023 alone, Halal Guys opened 13 new locations, with 12 of them being franchised. And the growth doesn’t stop there; the company has plans to expand further in 2024, with around a dozen additional locations on the horizon.
At the heart of Halal Guys are its three founders: Ahmed Abouelenein, Abdelbaset Elsayed, and Ahmed Elsaka. Abouelenein leads as president, Elsayed serves as vice president, and Elsaka is the treasurer. These three visionaries have created an entirely new category in the food industry – halal food. Halal food refers to any food that adheres to Islamic principles, specifically the avoidance of pork products and alcoholic beverages.
When the trio opened their first brick-and-mortar store on East 14th Street, it was entirely self-funded. There were no SBA loans or angel investors involved – the owners capitalized the venture from their own savings. According to Margaret Carerra, Halal Guys’ chief development officer, the founders believed that if they could replicate the success of their cart, they could make their restaurant triumph. Carerra jokingly states, “Operating the cart was 10 times more difficult than the brick-and-mortar store.”
Halal Guys’ menu focuses on protein-rich options such as chicken, beef, and lamb. They also offer vegetarian items like falafels, as well as rice and fresh vegetable salad. Signature items include beef gyro platters, chicken platters with rice and hot sauce, and a range of sandwiches. The simplicity and streamlined selection of key items are what Abouelenein credits as a key factor in the franchise’s affordability and appeal.
One of the reasons the franchise model has been so effective for Halal Guys is the level of support provided to franchisees. According to Carerra, franchisees are seen as partners, and the company is dedicated to providing them with on-the-ground assistance, strategic guidance, and ongoing support throughout the development process. The ideal franchisee, she says, is someone passionate about the food and actively involved in the operations.
Keeping prices affordable while ensuring profitability is a delicate balancing act for Halal Guys. Abouelenein explains that their focus on a limited menu helps reduce waste costs and keeps the line moving, serving more customers. However, the rise in price inflation has challenged the company’s ability to keep prices down. Carerra emphasizes the importance of negotiation and partnership with vendors to maintain low prices.
When Halal Guys enters a new city, it employs an intensive approach to generating awareness and appealing to a diverse customer base. The company leverages social media platforms, such as Instagram, Facebook, and Twitter, to reach potential customers. It also partners with local influencers, organizes grand openings with discounts and promotions, and utilizes radio ads in select markets. Positive online reviews from satisfied customers contribute to the brand’s overall credibility.
The response from customers dining at Halal Guys has been overwhelmingly positive. Visitors from various parts of the country have commended the generous portions and delicious flavors of the food. While some individuals have found certain items to be slightly lacking in taste or moisture, the overall consensus is that Halal Guys consistently delivers fresh, hot, and satisfying meals.
According to Carerra, Halal Guys is in a league of its own when it comes to direct competitors. Most of the other rival establishments are small, mom-and-pop halal shops. Although there may be similar menus in certain neighborhoods, Halal Guys stands out due to its scale and accessibility. The franchise caters to a diverse range of ethnicities, much like the vibrant metropolis of New York City where it first began.
Looking towards the future, Halal Guys has plans to remodel some of its locations that have been in operation for five years or more. The company also intends to expand its menu by introducing new items, including chicken shawarma. Throughout its journey, Halal Guys has attributed its success to four key factors: the quality of its food, effective communication with franchisees, sustained marketing efforts, and an unwavering commitment to creating a friendly and welcoming atmosphere for all customers.
In just over three decades, Halal Guys has transformed from a modest New York City food cart into a global franchise sensation. With its dedication to providing delicious halal food, strong franchise support, and strategic growth initiatives, there’s no doubt that Halal Guys will continue to captivate taste buds and expand its reach for years to come.
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