Franchising
Kelly's Roast Beef set to add 50 New England stores in 5 years
January 28, 2021
Revere, Massachusetts-based Kelly's Roast Beef said in a news release that it is planning expansion to neighboring New Hampshire and across New England. The more than 70-year-old Boston staple brand expects to open three franchise stores in Concord and Manchester, New Hampshire, though no timetable or specifics were provided about the planned stores.
The brand began franchising last year under the guidance of Kelly's Roast Beef Franchising CEO Neiil Newcomb, who also founded McAlister's Deli. Newcomb said the company expects to grow Kelly's to up to 50 locations in the next five years.
"As we continue to grow, we have gotten a lot of interest in New Hampshire," Newcomb said in the release. "People want us to grow in areas like Concord and Manchester so they don't have to drive an hour to reach the nearest Kelly's. We are excited to grow in New England communities like these where we can reach long-time Kelly's fans while also introducing the brand to newcomers."
Newcomb launched Kelly's Roast Beef's franchise opportunity just before the pandemic, which he said has affected the pace of planned franchising of the brand.
"The timing of everything has slowed us down a little bit, but our plans to grow are still very solid," Newcomb said. "We have been in touch with a lot of great prospects who want to open up their own Kelly's, and we know that this growth will be well-received by the local community."
The company said some of its locations sell 20,000 roast beef sandwiches a month, with an estimated 1 million sandwiches sold annually. Rather than using a commissary, each Kelly's location roasts its beef in-house all through the day, allowing the brand to make good on its pledge to carve each sandwich fresh in-store. The QSR's menu also includes fried clams, lobster rolls, french fries, onion rings, hot dogs and chicken finger plates.
Today, there are five locations open in the Boston metropolitan area. Including a franchise fee of $40,000, the total initial investment to open a Kelly's franchise is $900,000 to $1.7 million. The company said the royalty is 3% in year one for the first 10 franchise agreements signed, followed by 4% in year two, and 5% for the remainder of the term.
