Full Transcript for Why Dillas Primo Quesadillas Waited 10 Years to Franchise | Maggie Gordon

00:03:53,802 Um, we had met at UT. And so that opportunity presented itself, and he was 70 00:03:53,803 --> 00:03:58,852 like, "I think it's time to do Dyllas." So we decided to make the leap at that point 71 00:03:58,865 --> 00:04:00,935 and divert it into entrepreneurship. 72 00:04:01,331 --> 00:04:05,573 And again, , I had an entrepreneur flair the whole time doing my 73 00:04:05,573 --> 00:04:07,638 own design company, as you said. 74 00:04:07,638 --> 00:04:12,179 I had a lot of side gigs, and I'm a ongoing learner and, you know- 75 00:04:12,904 --> 00:04:16,845 Mm-hmm … for better or worse, maybe a jack of all trade, master of none. 76 00:04:16,865 --> 00:04:17,424 I don't know. 77 00:04:18,654 --> 00:04:22,373 But it has served me well along the years to have dabbled in so 78 00:04:22,374 --> 00:04:23,846 many different facets of business. 79 00:04:24,934 --> 00:04:27,581 Kathy: That is such an interesting career, and you even kept one 80 00:04:27,581 --> 00:04:29,640 foot as a laser technician- Mm-hmm 81 00:04:29,640 --> 00:04:31,086 as you and Kyle started Dyllas. 82 00:04:31,511 --> 00:04:33,177 And so you- Yeah … kept doing that as well. 83 00:04:33,517 --> 00:04:36,617 Um, and when you look back at all those different experiences, you know, 84 00:04:36,625 --> 00:04:40,328 marketing, design, customer service, managing an office, being a technician, 85 00:04:40,983 --> 00:04:44,702 what skills from that unconventional path turned out to be most valuable 86 00:04:44,787 --> 00:04:46,149 when you became an entrepreneur? 87 00:04:47,360 --> 00:04:51,768 I think it's really, , the nimbleness and flexibility of being able to jump 88 00:04:51,993 --> 00:04:54,070 into any situation, wear any hat. 89 00:04:54,428 --> 00:04:56,722 , as an entrepreneur, you're a very slim team. 90 00:04:56,729 --> 00:04:58,061 You wear all the hats at first. 91 00:04:58,334 --> 00:04:58,662 Kathy: Yes. 92 00:04:58,750 --> 00:05:03,342 And so, a part of what I, on top of my PR degree at the University 93 00:05:03,342 --> 00:05:06,549 of Texas, they had a program there, , called Business Foundation, 94 00:05:06,709 --> 00:05:08,230 and I went through that program. 95 00:05:08,231 --> 00:05:13,699 I think you alluded to earlier, just the process, procedure, people side of things- 96 00:05:13,735 --> 00:05:15,453 Right … that we've grown as a company. 97 00:05:15,875 --> 00:05:16,607 , Kathy: that's awesome. 98 00:05:17,186 --> 00:05:20,177 So Dyllos really started with Kyle's idea for a restaurant, and 99 00:05:20,177 --> 00:05:22,737 I understand restaurants get in your blood, and he wanted to build 100 00:05:22,738 --> 00:05:24,268 a restaurant around quesadillas. 101 00:05:24,688 --> 00:05:28,394 What was your first reaction when he told you he seriously wanted to pursue it? 102 00:05:29,370 --> 00:05:32,234 Well, I mean, he had the idea in college when we met. 103 00:05:32,250 --> 00:05:34,717 The idea came about kind of our senior year. 104 00:05:34,758 -->

00:05:37,177 And it was something that he, , talked about all the time. 105 00:05:37,185 --> 00:05:38,741 He was brainstorming it. 106 00:05:39,221 --> 00:05:42,976 Him and his fraternity brothers came up with the name watching Napoleon Dynamite. 107 00:05:43,151 --> 00:05:47,108 We had like a receipt … We went on a road trip to Houston and we, , wrote 108 00:05:47,168 --> 00:05:50,959 the menu on the back of a receipt, on a road trip, and stuff like that. 109 00:05:50,979 --> 00:05:56,252 So it was always there, and the intention was to … He wanted 110 00:05:56,283 --> 00:05:57,392 to do it right out of school. 111 00:05:57,787 --> 00:05:58,884 Which I was supportive of. 112 00:05:59,276 --> 00:06:04,960 But he talked to my uncle, who kind of had food service industry experience, and 113 00:06:04,983 --> 00:06:07,111 he was looking to do something different. 114 00:06:07,112 --> 00:06:09,226 And he was like, "I have this idea. 115 00:06:09,281 --> 00:06:11,220 Are you interested in supporting me in this? 116 00:06:11,222 --> 00:06:14,843 And let's do this restaurant thing." And he was like, "Love the idea, but 117 00:06:15,160 --> 00:06:18,004 I don't know if you know how to run a restaurant, so you should try that first." 118 00:06:18,651 --> 00:06:19,005 Kathy: Smart. 119 00:06:20,104 --> 00:06:23,430 So that's really how he got the, down the path of Raising Cane's. 120 00:06:23,430 --> 00:06:27,875 You know, I mean, he started as an hourly manager with a degree from UT. Mm-hmm. 121 00:06:27,875 --> 00:06:31,506 And just bit the bullet and was like, "I'm gonna get in the trenches 122 00:06:31,507 --> 00:06:33,158 and learn how to do this." Mm-hmm. 123 00:06:33,158 --> 00:06:38,399 And so the belief was always there in the idea, but I think once he had his 124 00:06:38,471 --> 00:06:41,734 time and tenure with Cane's, and when he came to me at that point and was 125 00:06:41,742 --> 00:06:43,455 like, "I really think it's time to, do. 126 00:06:43,512 --> 00:06:44,869 Like, let's actually do it. 127 00:06:44,874 --> 00:06:49,738 It's been sitting on the back burner for so long." Um, and I was excited. 128 00:06:49,738 --> 00:06:52,155 I mean, of course it's scary as a young couple- 129 00:06:52,320 --> 00:06:52,425 Maggie: Yeah 130 00:06:52,425 --> 00:06:56,442 … um, taking away a whole salary, and I wasn't working 131 00:06:56,444 --> 00:06:57,745 full-time at the time, you know? 132 00:06:57,745 --> 00:07:02,716 So there were a lot of, I would say, things that fell into place. 133 00:07:03,101 --> 00:07:03,400 Mm-hmm. 134 00:07:03,400 --> 00:07:06,799 Things that happened within the family and all sorts of things 135 00:07:06,850 --> 00:07:10,477 that made it the right moment, and we were like, "It's now or never." 136 00:07:10,800 --> 00:07:10,950 Kathy: Mm-hmm. 137 00:07:11,003 --> 00:07:14,128 We just pulled the trigger and, like, took the leap of faith. 138 00:07:15,017 --> 00:07:18,905 Kathy: But, also your uncle providing that advice

about getting operations 139 00:07:18,907 --> 00:07:21,852 experience in a restaurant, boy, was that great advice. 140 00:07:21,856 --> 00:07:25,590 Because I can imagine your current and potential franchisees really 141 00:07:25,590 --> 00:07:28,968 admire that, and know that you all know what you're doing. 142 00:07:28,973 --> 00:07:28,991 Yeah. 143 00:07:29,231 --> 00:07:32,882 Because Kyle's walked in those shoes, and you've done so much of the other. 144 00:07:33,512 --> 00:07:34,376 So I think that's great. 145 00:07:34,376 --> 00:07:35,580 And let's talk about your title. 146 00:07:35,915 --> 00:07:38,073 Your title is president and integrator. 147 00:07:38,295 --> 00:07:42,104 What does integrator mean at Delis, and how does your role complement Kyle's? 148 00:07:42,934 --> 00:07:43,188 Yeah. 149 00:07:43,189 --> 00:07:45,982 So Kyle and I are a true yin and yang. 150 00:07:46,035 --> 00:07:50,817 , I mean, we are opposite in the best way possible, , when it comes to our working 151 00:07:50,817 --> 00:07:55,239 relationship, and we run on a system called EOS, entrepreneur operating system. 152 00:07:55,413 --> 00:07:55,537 Kathy: Mm-hmm. 153 00:07:55,615 --> 00:07:59,479 We implemented that I'm sure you've heard of it before, but it, it's a 154 00:07:59,486 --> 00:08:05,121 great kind of foundational operating system for young companies that need 155 00:08:05,121 --> 00:08:09,409 the structure to create traction in the company for growth and movement, right? 156 00:08:09,938 --> 00:08:09,948 Mm-hmm. 157 00:08:09,948 --> 00:08:13,441 And we were… It was just the two of us for so long. 158 00:08:14,282 --> 00:08:18,508 And as we, , brought one more kind of leadership person to the table, you 159 00:08:18,508 --> 00:08:23,772 know, we started recognizing that we needed more of a cadence to make things 160 00:08:23,850 --> 00:08:26,011 meaningfully happen to grow the company. 161 00:08:26,354 --> 00:08:30,459 And so we implemented EOS and, , Kyle is the clear visionary, , like, 162 00:08:30,487 --> 00:08:32,174 there's a visionary and an integrator. 163 00:08:32,184 --> 00:08:32,730 Ah. 164 00:08:32,730 --> 00:08:39,299 So he's all big ideas, forward-thinking, future planning, big relationship. 165 00:08:39,937 --> 00:08:44,030 And it's just so suits him perfectly, and I am the complete integrator 166 00:08:44,030 --> 00:08:49,135 to a T, which is often very hard to find in a small company, to have a 167 00:08:49,316 --> 00:08:51,347 clear identification between the two. 168 00:08:51,642 --> 00:08:51,746 Maggie: Mm-hmm. 169 00:08:51,746 --> 00:08:51,756 Mm-hmm. 170 00:08:51,766 --> 00:08:54,687 Um, it just worked out for us that's my nature kind of I take 171 00:08:54,687 --> 00:08:59,787 his ideas, I process them, filter them, and put them into action. 172 00:09:00,248 --> 00:09:00,292 Ah. 173 00:09:00,292 --> 00:09:05,588 Sometimes it's a not now, we are gonna hold that idea for the future, or this 174 00:09:05,588 --> 00:09:08,674 is, totally agree, we need to make this happen, but here's how we have to do it. 175 00:09:08,681 --> 00:09:12,514 And I'm kind of the planner and integrator of making all those pieces come together. 176 00:09:12,556 --> 00:09:13,140 Kathy: That's great. 177 00:09:13,198 --> 00:09:14,219 Yes, that's awesome. 178 00:09:14,438 --> 00:09:15,725 So let's talk a little bit about Delis. 179 00:09:15,758 --> 00:09:17,625 So you all opened it in 2013. 180 00:09:17,980 --> 00:09:17,993 Mm-hmm. 181 00:09:17,993 --> 00:09:19,567 Tell us a little bit about the brand. 182 00:09:20,774 --> 00:09:23,259 We wanna be the brand for primo quesadilla meals. 183 00:09:23,448 --> 00:09:29,284 No one has really taken quesadillas, which are an amazing vehicle, right? 184 00:09:29,521 --> 00:09:32,229 I've never met someone that doesn't say, the first thing out of their 185 00:09:32,230 --> 00:09:33,443 mouth, "I love quesadillas." 186 00:09:33,758 --> 00:09:34,055 I do. 187 00:09:34,060 --> 00:09:34,085 Mm-hmm. 188 00:09:34,085 --> 00:09:35,093 Like, who doesn't love them? 189 00:09:35,537 --> 00:09:35,743 Yes. 190 00:09:35,743 --> 00:09:38,023 , they're always on the appetizer menu, you know? 191 00:09:38,023 --> 00:09:38,234 That's right. 192 00:09:38,259 --> 00:09:40,842 So we've really given it the center feature. 193 00:09:41,303 --> 00:09:44,203 And like I said, it's a vehicle that is so flexible. 194 00:09:44,415 --> 00:09:47,383 You can put anything inside of a quesadilla, which makes us super 195 00:09:47,383 --> 00:09:51,419 nimble to trends, menu innovation. 196 00:09:51,487 --> 00:09:54,747 We've made it where we've been able to streamline. 197 00:09:54,748 --> 00:09:54,778 Yeah. 198 00:09:54,813 --> 00:09:58,223 We don't have three different tortillas and different cheese blends. 199 00:09:58,265 --> 00:10:02,505 It's one tortilla, one cheese blend, and it's all about the fillings inside. 200 00:10:02,534 --> 00:10:08,225 And it is very high quality, all made cook to order, grilled fresh 201 00:10:08,440 --> 00:10:09,939 as soon as you place an order. 202 00:10:10,291 --> 00:10:11,761 All our sauces are made from scratch. 203 00:10:11,763 --> 00:10:13,024 We cut down our vegetables. 204 00:10:13,307 --> 00:10:17,178 But we also have a drive-through, so we're able to, by simplifying the 205 00:10:17,178 --> 00:10:20,837 menu, we're able to get those orders out in three and a half minutes. 206 00:10:21,378 --> 00:10:23,109 Kathy: Wow, that's amazing. 207 00:10:23,113 --> 00:10:24,615 So what's your favorite quesadilla? 208 00:10:25,474 --> 00:10:26,059 Oh my gosh. 209 00:10:26,078 --> 00:10:28,781 Well, that's the interesting thing is, like, you start with an idea of 210 00:10:28,783 --> 00:10:31,796 what the menu's gonna be, , or what you think your business is gonna be, right? 211 00:10:31,826 --> 00:10:32,900 I'm a spicy girl. 212 00:10:32,944 --> 00:10:38,610 So we, we really tried to take our American favorite flavors that 213 00:10:38,610 --> 00:10:42,440

are very recognizable, so we've got, , a barbecue brisket one, one 214 00:10:42,440 --> 00:10:44,151 that's like buffalo and chicken. 215 00:10:44,555 --> 00:10:47,134 , we've got a hatch green chili with bacon. 216 00:10:47,152 --> 00:10:49,164 We have one with french fries inside of it. 217 00:10:49,185 --> 00:10:51,469 So it's really not Tex-Mex. 218 00:10:51,541 --> 00:10:53,505 Kathy: So boy, that's, that sounds amazing. 219 00:10:53,732 --> 00:10:56,570 So you waited to franchise until 2018. 220 00:10:56,789 --> 00:10:57,972 Why did you all wait? 221 00:10:59,218 --> 00:11:01,703 So I will say that from the beginning, we didn't think we 222 00:11:01,708 --> 00:11:03,067 wanted to franchise at all. 223 00:11:03,388 --> 00:11:03,550 Kathy: Mm. 224 00:11:03,626 --> 00:11:07,531 Kyle's background with Raising Cane's really had him in a mindset of, 225 00:11:07,531 --> 00:11:08,642 , corporate stores are the way to go. 226 00:11:08,692 --> 00:11:13,940 As a new emerging brand, one that we created ourselves, were very hesitant to 227 00:11:13,944 --> 00:11:19,125 let go of control of that brand that could get eroded through franchising, right? 228 00:11:19,777 --> 00:11:24,403 And, , so it really wasn't on the docket or in the roadmap at all to franchise. 229 00:11:24,538 --> 00:11:28,156 And his district manager from Raising Cane had been his boss there. 230 00:11:28,622 --> 00:11:34,508 He had left the company and done some other, industry, different outside of 231 00:11:34,508 --> 00:11:39,451 the restaurant industry work, and he came back to Kyle and was like, "Listen, I've 232 00:11:39,451 --> 00:11:40,972 got to get back in the restaurant biz. 233 00:11:41,067 --> 00:11:44,072 It's what I do, it's what I love, and I love what you're doing, but I 234 00:11:44,078 --> 00:11:45,399 don't want to create my own brand. 235 00:11:45,795 --> 00:11:49,842 Is there any way we can do something together?" we, at that time, in 2018, we 236 00:11:49,842 --> 00:11:52,076 were certainly not ready to franchise. 237 00:11:52,246 --> 00:11:56,415 We, again, didn't think we wanted to, didn't have anything prepared to put 238 00:11:56,416 --> 00:12:00,209 that in action, so we started just with a joint venture with him and 239 00:12:00,266 --> 00:12:02,370 helped him get a few restaurants open. 240 00:12:02,398 --> 00:12:07,118 And then we started to realize that, okay, it worked in another state 241 00:12:07,155 --> 00:12:09,752 without us managing it number one. 242 00:12:10,024 --> 00:12:12,677 It, of course, had some hiccups along the way. 243 00:12:13,072 --> 00:12:17,440 Probably didn't have the best training system at the time, but 244 00:12:17,540 --> 00:12:20,112 it helped us identify all those things that we really needed- 245 00:12:20,175 --> 00:12:20,451 Kathy: Mm 246 00:12:20,767 --> 00:12:23,889 … whether it was for company stores or franchise, honestly, to be able 247 00:12:23,889 --> 00:12:26,503 to execute operations from afar. 248 00:12:27,023 --> 00:12:27,302 Kathy: Right. 249 00:12:27,384 --> 00:12:32,815 And so we worked on that for quite some time, and we really didn't actually get an 250 00:12:32,817 --> 00:12:36,652 FDD pulled together until, I think, 2023. 251 00:12:36,989 --> 00:12:37,094 Kathy: Mm. 252 00:12:37,122 --> 00:12:40,024 So we had that joint venture for quite a while, and it was training 253 00:12:40,024 --> 00:12:42,014 wheels, if you will, for franchising. 254 00:12:42,297 --> 00:12:44,118 , and then we converted him over to a franchise. 255 00:12:44,317 --> 00:12:44,561 Yeah. 256 00:12:45,203 --> 00:12:49,076 But it was all about, , making sure that we had the right tools in place to 257 00:12:49,076 --> 00:12:54,178 make sure it met our expectations and standards when we weren't in charge. 258 00:12:54,581 --> 00:12:57,070 Kathy: So now that you've been on this franchisor side for a few 259 00:12:57,070 --> 00:13:01,711 years, what turned out to be harder about franchising than you expected? 260 00:13:02,943 --> 00:13:05,947 I would say that, we converted him to a true franchisee. 261 00:13:05,951 --> 00:13:05,997 Mm-hmm. 262 00:13:06,013 --> 00:13:10,493 So that in itself changed the relationship a little bit, 263 00:13:10,512 --> 00:13:12,233 because it became more formal. 264 00:13:12,237 --> 00:13:15,150 We weren't just, like, joint venture partners anymore. 265 00:13:15,613 --> 00:13:15,649 Mm-hmm. 266 00:13:15,649 --> 00:13:19,518 And we had to take our role as franchisor much more seriously. 267 00:13:19,830 --> 00:13:23,937 And we have learned even so much in the last couple years 268 00:13:24,101 --> 00:13:26,116 after that relationship change. 269 00:13:26,399 --> 00:13:31,108 Um, and I think that it was good for us as well, because he had a higher 270 00:13:31,108 --> 00:13:35,024 expectation for us, because his royalty went up, and he's, like, now under 271 00:13:35,024 --> 00:13:37,105 this legal obligation with the royalty. 272 00:13:37,107 --> 00:13:41,008 And so it, put a little bit of healthy pressure on both 273 00:13:41,009 --> 00:13:42,448 sides of the table, I would say. 274 00:13:42,748 --> 00:13:42,838 Mm-hmm. 275 00:13:42,838 --> 00:13:46,657 And I think that we both feel like we have an expectation to live up to for the other 276 00:13:46,678 --> 00:13:51,514 party- Mm-hmm … um, which, is so healthy in a franchisor-franchisee relationship. 277 00:13:51,585 --> 00:13:55,638 It certainly can't be one-sided, and that's kind of how we're approaching any 278 00:13:55,638 --> 00:14:00,934 new franchisees , like, we're excited to have new people at the table, and 279 00:14:01,198 --> 00:14:05,097 you get the opportunity to work with the founders themselves at the size we're 280 00:14:05,097 --> 00:14:07,935 at, you know, which is super exciting, and you might have some influence. 281 00:14:08,493 --> 00:14:11,608 But understand that we are new, right? 282 00:14:11,631 --> 00:14:11,761 Mm-hmm. 283 00:14:11,761 --> 00:14:15,055 And

so there might be some gaps along the way, but we're gonna help you 284 00:14:15,056 --> 00:14:18,178 get past that in any way we have to. 285 00:14:18,513 --> 00:14:22,356 Like, knowing that there's mutual respect and responsibility there, 286 00:14:22,358 --> 00:14:25,144 that, like, we got you, and we're gonna do everything it takes. 287 00:14:26,353 --> 00:14:26,476 Kathy: Mm-hmm. 288 00:14:26,692 --> 00:14:28,092 If the system's not there, we'll make it. 289 00:14:28,092 --> 00:14:28,483 Don't worry. 290 00:14:29,730 --> 00:14:33,045 Kathy: So, um, talking about systems, you talk about Delis being built 291 00:14:33,045 --> 00:14:35,209 around people, process, and product. 292 00:14:35,778 --> 00:14:39,197 Why those three, and how do they show up in your franchise system? 293 00:14:39,247 --> 00:14:43,234 People you said first is the cornerstone of any hospitality business, right? 294 00:14:43,253 --> 00:14:46,885 Like, without people, it just doesn't happen, right? 295 00:14:47,074 --> 00:14:47,404 Maggie: Mm-hmm. 296 00:14:47,484 --> 00:14:49,378 And we are a servant leader company. 297 00:14:49,553 --> 00:14:53,431 Kyle and I serve our leadership team, and they do everything they can to 298 00:14:53,431 --> 00:14:57,415 serve the restaurant management team, and they're serving their hourly 299 00:14:57,415 --> 00:15:01,198 management team, who are serving the actual hourly team members, because 300 00:15:01,198 --> 00:15:02,567 they're the ones touching the customers. 301 00:15:03,034 --> 00:15:08,017 And Kyle, he will say the idea for the KCD and all of that was really important, 302 00:15:08,056 --> 00:15:13,760 but he sometimes glazes over part of his initiative in wanting to start his own 303 00:15:13,760 --> 00:15:18,351 restaurant company after his time with Cane was that he wanted to reward the 304 00:15:18,424 --> 00:15:20,522 hourly level team member in a way- Mm 305 00:15:20,522 --> 00:15:22,047 most restaurant companies don't. 306 00:15:22,677 --> 00:15:26,778 You know, management and up usually get bonuses and rewards and all of that, and 307 00:15:26,779 --> 00:15:31,609 he was like, "How do we make it exciting to show up every day for the hour- the 308 00:15:31,837 --> 00:15:32,933 cashier at the front counter?" Mm-hmm. 309 00:15:32,933 --> 00:15:33,239 Right? 310 00:15:33,254 --> 00:15:33,988 The cook in the back. 311 00:15:34,612 --> 00:15:34,645 Mm-hmm. 312 00:15:34,648 --> 00:15:38,883 Um, so people was really, like, a cornerstone of what he wanted to build. 313 00:15:39,228 --> 00:15:43,367 And people development, you know, we take our training processes very seriously. 314 00:15:43,461 --> 00:15:48,027 Every team member get a sit-down at least twice a year. 315 00:15:48,027 --> 00:15:50,965 So we're not just waiting for, like, a single annual review. 316 00:15:51,238 --> 00:15:55,937 They get multiple touch points along the way, so the feedback on performance 317 00:15:55,939 --> 00:15:59,316 is really important so that we can grow new leaders in the company. 318 00:15:59,332 --> 00:16:01,183 Pipeline is what helps us grow. 319 00:16:01,589 --> 00:16:01,961 Kathy: Mm-hmm. 320 00:16:02,051 --> 00:16:04,897 And that kinda dovetails into process, right? 321 00:16:05,060 --> 00:16:06,959 None of that happens without the process. 322 00:16:07,306 --> 00:16:10,548 We've gotta have great onboarding, training systems, performance 323 00:16:10,548 --> 00:16:14,905 review system- Mm … uh, SOPs, the, procedures, all of that. 324 00:16:14,905 --> 00:16:14,917 Mm-hmm. 325 00:16:14,953 --> 00:16:20,655 And, we opened the first location with an SOP, which is kind of unheard 326 00:16:20,676 --> 00:16:21,972 of for, , a brand new restaurant. 327 00:16:22,285 --> 00:16:22,484 Kathy: Yeah. 328 00:16:22,514 --> 00:16:24,412 It has changed a lot. 329 00:16:24,452 --> 00:16:26,355 It may not have been perfect, but we have one. 330 00:16:27,047 --> 00:16:27,687 Kathy: That's great. 331 00:16:28,072 --> 00:16:30,880 You know, , we didn't wanna sacrifice anything. 332 00:16:30,896 --> 00:16:30,906 Mm-hmm. 333 00:16:30,911 --> 00:16:32,876 So , we knew we wanted to scale the company. 334 00:16:33,492 --> 00:16:36,310 The intention was not for this to be a mom and pop shop. 335 00:16:36,354 --> 00:16:38,964 We knew we wanted hundreds of locations. 336 00:16:39,200 --> 00:16:39,338 Maggie: Mm-hmm 337 00:16:40,999 --> 00:16:43,772 So, with that, everything was built with scale in mind. 338 00:16:43,933 --> 00:16:46,033 So, we never sacrificed a system. 339 00:16:46,557 --> 00:16:51,041 It was not, we're gonna do paper written spreadsheets just 'cause that's what 340 00:16:51,041 --> 00:16:52,879 we've got to do to start schedules. 341 00:16:52,904 --> 00:16:56,100 We had an online scheduling tool from day one. 342 00:16:56,374 --> 00:16:56,744 You know- 343 00:16:57,143 --> 00:16:57,264 Kathy: Mm-hmm 344 00:16:57,264 --> 00:16:59,087 … top of the notch POS system. 345 00:16:59,177 --> 00:17:03,441 We set it up to grow- Mm-hmm … rather than fixing it along the way. 346 00:17:04,048 --> 00:17:06,092 Kathy: That is very deliberate, and that's, smart. 347 00:17:06,104 --> 00:17:09,681 And as you're bringing these new franchisees in, what makes you look at 348 00:17:09,682 --> 00:17:13,127 someone and say, "Hey, you know what? They get us. They could be a great 349 00:17:13,148 --> 00:17:15,386 Delis franchisee." What's that take? 350 00:17:16,302 --> 00:17:19,068 Operations is probably first and foremost. 351 00:17:19,708 --> 00:17:19,800 Kathy: Mm-hmm. 352 00:17:19,866 --> 00:17:23,327 Outside of, coupled with, core values alignment. 353 00:17:23,742 --> 00:17:27,459 How do we keep it simple so everybody really, like, gets it, lives and 354 00:17:27,460 --> 00:17:31,421 breathes the mission and the core values?" So, we overly simplified it. 355 00:17:31,437 --> 00:17:32,775 The mission is, deliver the good. 356 00:17:33,407 --> 00:17:33,638 Right. 357 00:17:33,826 --> 00:17:34,324

That's it. 358 00:17:34,678 --> 00:17:37,479 And the core values are good food, good people, good times while 359 00:17:37,483 --> 00:17:38,725 working hard and keeping it clean. 360 00:17:39,224 --> 00:17:42,456 It's like, if you can remember those things, that will be your North 361 00:17:42,466 --> 00:17:44,745 Star for success at Delis, you know? 362 00:17:45,274 --> 00:17:49,025 And so those things have to resonate with a potential franchisee. 363 00:17:49,053 --> 00:17:55,685 We- that's, the whole probably first 30 minutes to an hour of our discovery day 364 00:17:55,685 --> 00:17:59,735 with a potential franchisee is really talking about what that means to us 365 00:17:59,736 --> 00:18:04,032 as a company, how we live and breathe it, why we selected those core values, 366 00:18:04,052 --> 00:18:05,690 what it looks like in the restaurant. 367 00:18:06,067 --> 00:18:10,652 So that's what gets us excited when they get jazzed about what they're hearing. 368 00:18:10,657 --> 00:18:14,488 You know- Mm-hmm … community involvement is part of that, the people piece of 369 00:18:14,489 --> 00:18:18,359 it, and they've got to want to be, a member in their community that's 370 00:18:18,595 --> 00:18:22,668 completely giving back and having relationships through the business. 371 00:18:22,876 --> 00:18:28,475 It's definitely not a sit back and let someone run it investment for us. 372 00:18:29,097 --> 00:18:29,478 Kathy: Mm-hmm. 373 00:18:29,668 --> 00:18:30,024 Mm-hmm. 374 00:18:30,579 --> 00:18:31,547 Boy, that is simple. 375 00:18:31,554 --> 00:18:32,309 Kudos to you. 376 00:18:32,311 --> 00:18:35,975 That is one of the most difficult things, is to make your mission and values simple. 377 00:18:35,980 --> 00:18:35,992 Yeah. 378 00:18:36,332 --> 00:18:39,769 And so, when you think about your deliberate growth, I think I know 379 00:18:39,769 --> 00:18:42,795 the answer to this question b- based on what you've just said, 380 00:18:43,086 --> 00:18:46,804 but what are you unwilling to compromise on just to grow faster? 381 00:18:48,642 --> 00:18:52,389 Yeah, definitely not looking for someone that just is trying 382 00:18:52,389 --> 00:18:53,956 to place money somewhere. 383 00:18:54,012 --> 00:18:59,082 Um, you know, even someone that has other brands, we're certainly 384 00:18:59,483 --> 00:19:03,697 interested, but we don't want too much divided attention, right? 385 00:19:03,713 --> 00:19:04,112 Kathy: Gotcha. 386 00:19:04,743 --> 00:19:04,953 Mm-hmm. 387 00:19:05,054 --> 00:19:06,655 Especially at the size we're at, you know? 388 00:19:06,719 --> 00:19:06,901 Mm-hmm. 389 00:19:06,936 --> 00:19:10,572 Knowing that it's gonna be a very hands-on relationship between 390 00:19:10,573 --> 00:19:11,930 the franchisor franchisee. 391 00:19:12,179 --> 00:19:14,995 So I think that we want people actively involved in their business 392 00:19:14,998 --> 00:19:17,272 and that care about the people that are working with them. 393 00:19:17,697 --> 00:19:21,447

Um- Mm-hmm … it's, as you said, like, the, the people is such an 394 00:19:21,447 --> 00:19:22,793 important piece of our business. 395 00:19:22,841 --> 00:19:27,261 And so if you don't wanna be there and develop the people under you and your team 396 00:19:27,261 --> 00:19:31,326 that's working to build this brand with us that's really just not a good fit for us. 397 00:19:31,341 --> 00:19:33,716 Kathy: Let's talk a little bit more about your experience, Maggie, 398 00:19:34,073 --> 00:19:35,821 as a women, as a woman founder. 399 00:19:36,441 --> 00:19:36,572 Yeah. 400 00:19:36,572 --> 00:19:40,257 Has your, has your role or even your confidence in your role 401 00:19:40,272 --> 00:19:42,071 changed as Dillis has grown? 402 00:19:43,064 --> 00:19:44,203 It absolutely has. 403 00:19:44,250 --> 00:19:47,973 I mean, when we started the company, like I said, it was j- I didn't even think I 404 00:19:47,974 --> 00:19:49,717 was going to work in the business at all. 405 00:19:50,098 --> 00:19:53,612 I helped him, like, design the logo and I did all the graphic design up front 406 00:19:53,612 --> 00:19:55,418 just 'cause I had the experience in that. 407 00:19:55,858 --> 00:19:59,007 And then once the doors opened, I kind of was like, "Okay, go fly." 408 00:19:59,855 --> 00:20:00,132 And- 409 00:20:00,280 --> 00:20:00,696 Kathy: Good luck. 410 00:20:00,727 --> 00:20:03,959 Yeah … and then I, I saw him, you know, drowning, and he was trying 411 00:20:03,959 --> 00:20:07,003 to operate the restaurant and then coming home and trying to do 412 00:20:07,008 --> 00:20:10,271 accounting at night and doing HR stuff. 413 00:20:10,317 --> 00:20:11,956 And I was like, "I can help with that. 414 00:20:11,956 --> 00:20:14,706 I can help with that." I just kept kind of like- Yeah … being 415 00:20:14,706 --> 00:20:15,814 like, "Let me, let me help you. 416 00:20:15,815 --> 00:20:17,928 You go run the rest- I'll do this," you know? 417 00:20:17,928 --> 00:20:18,204 Mm-hmm. 418 00:20:18,204 --> 00:20:21,260 And so it naturally started with that. 419 00:20:21,661 --> 00:20:22,998 I was more the back of house. 420 00:20:22,998 --> 00:20:25,358 I, I would go help in the restaurant if I needed to. 421 00:20:25,648 --> 00:20:25,658 Mm-hmm. 422 00:20:25,658 --> 00:20:28,954 Uh, certainly, you know, someone called out and they needed someone to take 423 00:20:28,954 --> 00:20:30,411 orders up front, I was right there. 424 00:20:31,058 --> 00:20:31,068 Mm-hmm. 425 00:20:31,068 --> 00:20:34,892 But, but we kind of naturally evolved into that role of, him really 426 00:20:34,893 --> 00:20:37,537 being in operations and me kind of being the office side of things. 427 00:20:38,042 --> 00:20:42,033 And just being around, surrounding ourselves with other entrepreneurs, 428 00:20:42,112 --> 00:20:46,807 people in the right mindset I think naturally helped us continue to grow. 429 00:20:47,035 --> 00:20:49,454 He's evolved into an amazing CEO. 430 00:20:49,725 --> 00:20:51,852 And

I think that we both still have so much growth ahead of 431 00:20:51,852 --> 00:20:53,244 us in our leadership, you know? 432 00:20:53,264 --> 00:20:53,380 Mm-hmm. 433 00:20:53,403 --> 00:20:55,434 But we actively wanna pursue that. 434 00:20:55,463 --> 00:20:59,940 And but we also are humble enough to know that we know what we don't know. 435 00:21:00,283 --> 00:21:00,341 Mm-hmm. 436 00:21:00,355 --> 00:21:04,116 Um, and have brought in great mentors along the way that have helped us grow, 437 00:21:04,116 --> 00:21:08,545 but also just given us the foresight of what they've experienced in the 438 00:21:08,545 --> 00:21:12,149 past to kind of help us avoid some of the pitfalls and roadblocks that might 439 00:21:12,152 --> 00:21:15,975 come up as we go through this very difficult phase of restaurant growth. 440 00:21:16,071 --> 00:21:19,011 So we're continuing to educate ourselves and grow as leaders. 441 00:21:19,771 --> 00:21:21,869 Kathy: So when I think about you two as husband and wife and 442 00:21:21,869 --> 00:21:25,623 parents and building this together, what's the best part about it? 443 00:21:25,623 --> 00:21:26,906 And maybe what's the hardest? 444 00:21:28,452 --> 00:21:31,138 You know, I, I mean, probably the best part is that we get 445 00:21:31,138 --> 00:21:32,634 to spend so much time together. 446 00:21:32,635 --> 00:21:32,678 Yeah. 447 00:21:32,802 --> 00:21:35,320 Luckily we are just still head over heels in love. 448 00:21:35,336 --> 00:21:38,307 Uh- Ah … we're having our 20-year wedding anniversary next year. 449 00:21:38,390 --> 00:21:38,844 Kathy: Congrats. 450 00:21:38,898 --> 00:21:39,094 And, 451 00:21:39,431 --> 00:21:43,757 we enjoy all of our time together, and I think, again, we are very yin and yang, 452 00:21:43,763 --> 00:21:46,284 so we push each other, , in the workplace. 453 00:21:46,438 --> 00:21:50,189 It is, the hardest part is, that it's always on, right? 454 00:21:50,517 --> 00:21:53,301 It's hard to leave it at the office. 455 00:21:53,497 --> 00:21:58,250 It comes up in normal conversation- Yeah … all the time at home, and 456 00:21:58,250 --> 00:22:02,418 we'll have to, like, do a mental like, "Okay, no more Dillis. Like, let's 457 00:22:02,418 --> 00:22:04,979 not talk Dillis anymore today." Yeah. 458 00:22:04,989 --> 00:22:06,722 Um, yeah, 'cause it's just too easy. 459 00:22:06,722 --> 00:22:08,079 It's kind of always on our mind. 460 00:22:08,366 --> 00:22:08,487 Mm-hmm. 461 00:22:08,487 --> 00:22:12,580 But that is probably not a bad thing in all senses either. 462 00:22:12,903 --> 00:22:12,915 Mm-hmm. 463 00:22:12,917 --> 00:22:17,442 Um, just knowing that we're always considering it. 464 00:22:17,442 --> 00:22:18,326 It's in the forefront. 465 00:22:18,856 --> 00:22:18,870 Mm-hmm. 466 00:22:18,870 --> 00:22:22,128 Um, it's not something, again, even as a franchisor, it can't 467 00:22:22,128 --> 00:22:23,180 be passive income for us. 468 00:22:23,338 --> 00:22:23,747 Kathy: That's right. 469

00:22:23,797 --> 00:22:25,151 , you know, we are always involved. 470 00:22:25,301 --> 00:22:27,940 - And the fact that we have company stores and franchise stores it's 471 00:22:27,940 --> 00:22:29,594 really two separate businesses, mm-hmm. 472 00:22:29,594 --> 00:22:32,660 So we have, we still have the emergencies that pop up in a corporate 473 00:22:32,666 --> 00:22:35,903 store, like a manager quit or a piece of equipment went out or whatever- 474 00:22:35,903 --> 00:22:38,547 Right … um, that we're responsible for. 475 00:22:38,585 --> 00:22:42,212 And then supporting the franchisee side of it is much more guidance and 476 00:22:42,212 --> 00:22:47,079 leadership and influence versus the, the actual tactical putting out fires stuff. 477 00:22:47,663 --> 00:22:48,128 Kathy: Mm-hmm. 478 00:22:48,314 --> 00:22:48,810 That's true. 479 00:22:48,810 --> 00:22:51,092 You are running almost two different entities. 480 00:22:51,092 --> 00:22:52,201 That, that's for sure. 481 00:22:52,201 --> 00:22:52,217 Yeah. 482 00:22:52,989 --> 00:22:54,751 So , just a little bit about looking ahead. 483 00:22:54,753 --> 00:22:55,817 Thanks for answering all that. 484 00:22:55,818 --> 00:23:01,184 So Dillis has a really strong community mission around fighting hunger, education, 485 00:23:01,184 --> 00:23:02,882 and developing future entrepreneurs. 486 00:23:03,438 --> 00:23:03,472 Mm-hmm. 487 00:23:03,472 --> 00:23:07,897 Why was it important to you to make that part of the company, rather than waiting 488 00:23:07,909 --> 00:23:09,884 until you were even bigger to give back? 489 00:23:10,894 --> 00:23:16,735 Well, you know, Kyle and I have always loved giving back, just in general, 490 00:23:16,750 --> 00:23:18,887 like, as much charity as we can. 491 00:23:18,932 --> 00:23:23,904 But when we were a young couple and, he's a restaurant manager and I've got a 492 00:23:23,904 --> 00:23:29,447 lowly advertising gig, w- you don't have the, , disposable income to give back. 493 00:23:29,515 --> 00:23:29,536 Right. 494 00:23:29,536 --> 00:23:32,570 And that was a big piece of starting our own company, was 495 00:23:32,896 --> 00:23:37,002 multiplying that factor of what we are able to do through the company. 496 00:23:37,431 --> 00:23:39,703 , so even though it's not coming out of our personal pockets, 497 00:23:39,703 --> 00:23:41,143 we're able to make impact. 498 00:23:41,188 --> 00:23:45,708 And, you know, the areas that we focus on are super important, , the future 499 00:23:46,010 --> 00:23:50,290 of the business world out there, the education and developing entrepreneurs. 500 00:23:50,399 --> 00:23:53,885 We have been a part, I mean, we speak at high schools all the time 501 00:23:53,885 --> 00:23:57,764 and entrepreneurship classes, and we'll do sessions with kids that 502 00:23:57,766 --> 00:24:01,439 are doing an internship and wanna have, , a mentor for the summer. 503 00:24:01,458 --> 00:24:06,229 Or, you know, we judged the National DECA Competition,

um, and took our whole team. 504 00:24:06,258 --> 00:24:08,215 Our whole leadership team went- Oh … to go judge that. 505 00:24:08,245 --> 00:24:09,937 And so, I think that- 506 00:24:11,958 --> 00:24:16,454 Grooming future entrepreneurs and leaders, m- maybe not entrepreneurs, 507 00:24:16,471 --> 00:24:18,553 but just business leadership, right? 508 00:24:18,554 --> 00:24:18,584 Mm-hmm. 509 00:24:18,588 --> 00:24:21,289 I think is so important for this next generation coming up. 510 00:24:21,365 --> 00:24:24,260 Kathy: And, , I do think it's incumbent upon those of us who've 511 00:24:24,260 --> 00:24:28,064 had successful careers to help develop the future leaders. 512 00:24:28,121 --> 00:24:31,723 So as you look ahead, what do you want Dilas to become without losing what 513 00:24:31,723 --> 00:24:33,531 made it special in the first place? 514 00:24:34,579 --> 00:24:36,856 Well, again, our mission is to be the brand for primo queso 515 00:24:36,856 --> 00:24:39,218 quesadillas, so our vision. 516 00:24:39,274 --> 00:24:42,599 Um, but that can be at any scale, right? 517 00:24:42,633 --> 00:24:47,209 Like, right now we're focusing on we're gonna be the brand in Texas and Louisiana, 518 00:24:47,276 --> 00:24:48,437 because that's where our footing is. 519 00:24:48,937 --> 00:24:50,205 We want to expand that. 520 00:24:50,253 --> 00:24:54,353 Um, we're really interested in growing into the southeast section of the country. 521 00:24:54,355 --> 00:24:54,505 Mm-hmm. 522 00:24:54,505 --> 00:24:57,061 That is, like, flavors they're used to with some french fries. 523 00:24:57,618 --> 00:25:01,654 I think the franchising side is very exciting, but we're also wanting 524 00:25:01,656 --> 00:25:03,490 to continue company growth as well. 525 00:25:03,490 --> 00:25:05,512 So we're looking at a blended approach. 526 00:25:05,715 --> 00:25:05,957 Maggie: Mm. 527 00:25:06,018 --> 00:25:09,519 Um, company stores are still, , the heart and blood of what we do. 528 00:25:09,569 --> 00:25:15,279 They're also very profitable as far as EBITDA goes versus franchise stores. 529 00:25:15,288 --> 00:25:17,734 So I think a healthy- Mm … mix is gonna be important. 530 00:25:17,748 --> 00:25:22,143 The franchise side really gives us the opportunity to hit market at a faster 531 00:25:22,143 --> 00:25:25,806 pace than what we can do because of the capital restraints of corporate stores. 532 00:25:26,315 --> 00:25:26,390 Maggie: Mm-hmm. 533 00:25:26,408 --> 00:25:30,615 Um, so we're excited about both parts of it and continuing to grow 534 00:25:30,615 --> 00:25:32,953 our team and work on the business. 535 00:25:32,978 --> 00:25:35,948 You know, we'll never stop working on the business, and we've got a whole 536 00:25:35,959 --> 00:25:41,409 mission right now to get to primo, which is like we've got all these components 537 00:25:41,412 --> 00:25:45,334 that we want to hit in the next 12 months, and that's where we start. 538 00:25:45,334 --> 00:25:50,705 And when we're, our stores are primo, then it's easy to roll out and stamp 'em out. 539 00:25:51,114 --> 00:25:51,687 Kathy: That's true. 540 00:25:51,734 --> 00:25:52,114 That's true. 541 00:25:52,125 --> 00:25:52,990 Ah, well said. 542 00:25:52,997 --> 00:25:55,988 So let's talk a little bit about some reflection and advice. 543 00:25:55,990 --> 00:25:58,607 And so what advice would you give to a woman who wants to 544 00:25:58,607 --> 00:26:02,180 start a business but doesn't yet see herself as an entrepreneur? 545 00:26:03,551 --> 00:26:07,301 I'd say you're probably more prepared than you think. 546 00:26:07,369 --> 00:26:09,683 You learn a lot along the way, honestly, and you just 547 00:26:09,683 --> 00:26:11,045 have to be willing to do that. 548 00:26:11,481 --> 00:26:11,506 Mm-hmm. 549 00:26:11,506 --> 00:26:15,779 I think that the first leap is the hardest part, and getting past that. 550 00:26:16,145 --> 00:26:19,772 There's so many mentors available out there. 551 00:26:19,817 --> 00:26:23,241 I mean, you know, I'm in a large metro in Dallas, but we've got 552 00:26:23,495 --> 00:26:25,485 tons of women in leadership groups. 553 00:26:25,628 --> 00:26:26,941 Definitely use those. 554 00:26:27,008 --> 00:26:31,600 Get around women who are doing it day to day, and they will be someone 555 00:26:31,601 --> 00:26:32,830 that you can lean on, you know? 556 00:26:32,887 --> 00:26:34,447 … Kathy: Maggie, you're so right about that. 557 00:26:34,809 --> 00:26:38,784 So when you think about that young couple, Maggie and Kyle, the first 558 00:26:38,785 --> 00:26:42,643 open, the first illest in 2013, what are you most proud about today? 559 00:26:44,808 --> 00:26:48,772 , I guess just the persistence, like the perseverance of any 560 00:26:48,773 --> 00:26:52,587 time it got hard, we've certainly had hard times along the way. 561 00:26:52,631 --> 00:26:56,162 As you said, we were raising a family and we've, now we've got two teenagers, 562 00:26:56,177 --> 00:26:57,657 but they were little at the time. 563 00:26:57,670 --> 00:27:01,287 You know, we opened the first location on our daughter's second birthday. 564 00:27:01,309 --> 00:27:04,334 It was like, "Sorry, no birthday for you today." Oh, my gosh. 565 00:27:04,341 --> 00:27:08,393 "We're opening the restaurant." , and, but I think the awesome thing about that 566 00:27:08,393 --> 00:27:12,469 is our kids, we schlepped them around with us to all the community events, 567 00:27:12,469 --> 00:27:15,988 and growing the business, they've seen the hard work and dedication. 568 00:27:16,096 --> 00:27:16,374 Kathy: Mm-hmm. 569 00:27:16,437 --> 00:27:19,970 Um, so I, I'm very proud that they're both interested in the business now. 570 00:27:19,970 --> 00:27:24,122 , I think that they have seen what it means to dedicate yourself to 571 00:27:24,122 --> 00:27:28,212 it and put the work and energy into it, and , I'm really proud that 572 00:27:28,212 --> 00:27:30,443 they get to see the fruits of that. 573 00:27:30,476 --> 00:27:33,943 Even though we're not at the end of the line yet, we've still got a long way to 574 00:27:33,944 --> 00:27:39,550 go, but they've seen what growth means a- along the time they've been a part of it. 575 00:27:39,961 --> 00:27:40,922 Kathy: Ah, that's wonderful. 576 00:27:40,933 --> 00:27:41,500 That's great. 577 00:27:41,510 --> 00:27:44,507 And my last question for you is what do you wish that you 578 00:27:44,516 --> 00:27:48,388 had known about franchising before you became a franchisor? 579 00:27:50,372 --> 00:27:54,266 Probably just that it is, like I mentioned earlier, it is a 580 00:27:54,471 --> 00:27:56,072 completely separate business. 581 00:27:56,533 --> 00:27:56,636 Kathy: Mm-hmm. 582 00:27:56,820 --> 00:27:59,652 I wear a completely different hat on that side of the business. 583 00:27:59,698 --> 00:28:03,870 It h- requires its own people team, its own funding. 584 00:28:03,922 --> 00:28:04,201 Mm-hmm. 585 00:28:04,201 --> 00:28:08,433 It is, I mean, with Company Source, we are now a two-headed monster, right? 586 00:28:08,488 --> 00:28:12,555 And we've got to split time between the two and give energy 587 00:28:12,556 --> 00:28:13,882 in completely different ways. 588 00:28:14,425 --> 00:28:17,963 Um- Mm-hmm … and really change our mindset because we grew up 589 00:28:17,966 --> 00:28:21,079 those, like you said, like 10 years of operating restaurant. 590 00:28:21,502 --> 00:28:30,208 And so now to go from, I can't tell this person what to do, to an extent- Mm-hmm 591 00:28:30,208 --> 00:28:35,402 … I need to guide them and influence them on how they will be successful. 592 00:28:35,663 --> 00:28:39,742 And that mindset shift was really like the, the biggest thing that 593 00:28:39,742 --> 00:28:41,121 we had to wrap our heads around. 594 00:28:41,338 --> 00:28:43,010 Kathy: That's a big mindset shift. 595 00:28:43,011 --> 00:28:44,134 I'm glad that you mentioned that. 596 00:28:44,460 --> 00:28:47,110 Well, Maggie, what a delight it was to have you, and I have to say, 597 00:28:47,298 --> 00:28:50,094 I can't quit thinking about the name came from Napoleon Dynamite. 598 00:28:50,110 --> 00:28:51,521 My husband loved that movie as well. 599 00:28:51,634 --> 00:28:51,654 Yeah. 600 00:28:51,654 --> 00:28:53,455 That is just a fun tidbit. 601 00:28:53,541 --> 00:28:55,325 But thank you so much for your time today. 602 00:28:55,326 --> 00:28:56,512 We really appreciate it. 603 00:28:56,966 --> 00:28:57,880 Maggie: Well, thanks for having me. 604 00:28:57,881 --> 00:28:58,678 It was a pleasure.