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It\u2019s the Curious Case of Voodoo Brewing in Texas, the rapidly expanding franchise extensions of the established Pennsylvania brewery. Some locations opened and closed before local craft beer fans were even aware of their existence. Admittedly, times are tight for the craft brewing industry but such dramatic pops of businesses are very unusual, especially for a franchise model.<\/p>\n
Voodoo Brewing<\/a> opened in Meadville, Pennsylvania, in 2005 between Pittsburgh and Lake Erie. They were successful enough to open a second location nearby in addition to a larger production facility in 2017. Since then they have been on an upward growth curve, opening franchised locations in 14 states\u2014including five stores in the North Texas area and one each in Katy and College Station.<\/p>\n But all has not been well in the Lone Star chapter of Voodoo Nation. Here\u2019s an abbreviated timeline for North Texas, with approximate dates:<\/p>\n * The Katy location lasted 20 months, and the College Station location closed after 1 year. Similar outcomes are found among some recent franchises in other states.<\/em><\/p>\n Granted, the craft brewing industry has seen a slowdown in retail sales nationally over the past few years but these data points are extraordinary, especially considering the narrow focus of brand and region. The average failure rate<\/a> for restaurants is 17% during the first year, and at least 50% of small businesses across the board survive long enough<\/a> to reach the five-year mark. When related businesses close only months after opening, the implication is that some other forces are likely in play.<\/p>\n The numbers are down.<\/em><\/strong><\/p>\n True, sales numbers<\/a> are plateauing and expenses are rising but such is true for most all businesses today, especially in the hospitality industry. It would not be odd for a single brewery to fail, but so many of the same franchise failing almost simultaneously\u2014and with such short commercial lives\u2014may indicate other factors. The fact that these businesses contracted with the support of a parent franchise should have worked in their favor, helping them build off of an established (or at least growing) national brand.<\/p>\n Of course, all these establishments closed publicly citing the same reasons, something similar to \u201cunable to maintain cash flow\u201d or \u201cdeclining revenue made continued operations untenable.\u201d It should also be noted that none of these locations actually brewed on-site, with Voodoo Brewing products shipped in from Meadville (making them technically branded beer bars<\/em>, not local breweries). However, that fact should have worked in their favor, as none had the typical heavy craft brewery expenses of startup capital, equipment, ingredients and staffing.<\/p>\n The local franchise owners had little or no business experience.<\/em><\/strong><\/p>\n Many seemingly successful national franchises can fail due to eager investor\/owners getting in over their heads. Running a brewpub is slightly different than running a bar, which is also different than running a successful restaurant, which is very different than running a commercial garage or home garden center. But many of these owners were not novices: Roland Rios<\/a> owned his own small local manufacturing company before opening the Grand Prairie location, and ran that Voodoo Brewing for almost two years before striking out on his own as an independent brewpub. Fahad and Manal Keen<\/a>, owners of the Castle Hills site in Lewisville, both have professional experience in finance and data analytics, new to this particular craft beer industry but not to the operations of the corporate world.<\/p>\n A poor location can kill an otherwise healthy business.<\/em><\/strong><\/p>\n Again, very true. \u201cLocation, location, location\u201d is not just a mantra for prospective homeowners. Probably even more so for the hospitality industry, a good location is one of those abstract assets for any commercial venture, and the characteristics of \u201cgood\u201d or \u201cbad\u201d can sometimes vary block by block. Other factors can play into a commercial site, such as temporary or permanent structures blocking views, municipal works, construction, signage or even public perception.<\/p>\n However, David Goldblatt<\/a> opened the Fort Worth Voodoo Brewing in the thriving South Main neighborhood, with a front-facing Main Street location, not too far from the original Rahr Brewing<\/a> facilities. The Castle Hills store was on the busy State Highway 121, only a couple of exits away from the Grandscape<\/a> entertainment development and three<\/a> other<\/a> successful<\/a> local brewpubs. The Plano franchise<\/a> was located in desirable downtown Plano, an area filled with nightlife and foot traffic. The Grand Prairie location had Ikea<\/a> and Bass Pro Shops<\/a> as neighbors in a growing commercial area.<\/p>\n Problems with the franchise model<\/em><\/strong><\/p>\n What attracted many franchisees to Voodoo Brewing is their \u201cunfranchise franchise\u201d model, allowing local stores to customize the business while still using the Voodoo Brewing brand. Logos and food menus were varied from store to store: Plano featured more southern, Cajun-style food, whereas Castle Hills leaned more Mediterranean in their offerings. The Prosper location hired a professional chef to design a more international menu, featuring Indian and Korean-inspired dishes. Almost all included decor that played off skeletons and voodoo imagery<\/a>, but none carried the typical franchise trappings that ensured a uniform look and feel across all stores.<\/p>\n Does this model work? Difficult to say, as commercial franchises usually bank on being an extension of the brand, and end consumers expect conformity, not individuality. The fact that Voodoo Brewing does not have a strong presence in Texas may help that methodology, as many local patrons were not even aware of a parent company. However, the one common thread with all these Texas pubs is the parent franchise, and factors may exist that do not support or possibly put undue pressure on signed franchisees. Such factors are unknowable without proprietary corporate information but rapid, repeated failures so soon after opening are not normal, and off-record comments from a few franchise principals do not imply a healthy business relationship.<\/p>\n Craft beer is a hyper-regional specialty, with consumers drawn to something unique that is produced and reflective of their specific locale. Many travel the US and the world seeking out beers that are unavailable outside a small geographic area, limited by national or state borders or by the tiny capacity of a neighborhood brewpub. Even including products from nearby North Texas breweries, supplying only Pennsylvania Voodoo beers (with nothing brewed on-site) may be a net negative for a branded \u201cbrewpub.\u201d No one vacations in Rome to eat at yet another mundane McDonalds.<\/p>\n The Prosper store<\/a> is the 30th franchise in the Voodoo Brewing empire, and the only one still operating in Texas. It is situated adjacent to Frontier Park<\/a>, a community sports complex and growing municipal\/commercial area in the thriving Prosper-Celina area. It is active on social media and proactively trying to cultivate a local customer base with theme nights and popular entertainment events. Expansion of the national brewery continues with more Texas locations actively planned, according to the manager of the Prosper address. Only time will tell how long any can survive here. \t\t\t<\/div>\n\n","protected":false},"excerpt":{"rendered":" It\u2019s the Curious Case of Voodoo Brewing in Texas, the rapidly expanding franchise extensions of the established Pennsylvania brewery. Some locations opened and closed before local craft beer fans were even aware of their existence. Admittedly, times are tight for the craft brewing industry but such dramatic pops of businesses are very unusual, especially for […]<\/p>\n","protected":false},"author":1,"featured_media":324210,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[137],"tags":[3171,3767,13220,21703,843,12700,9311],"dealstore":[],"offerexpiration":[],"class_list":["post-324209","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-beer","tag-beer","tag-blog","tag-brewing","tag-happened","tag-north","tag-texas","tag-voodoo"],"yoast_head":"\n\n
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