A well-known BBQ chain is bringing potential competition in-house at its Highland Park location in order to stay in the black while meeting takeout demand.
Famous Dave’s on West Seventh Street is partnering with take-and-bake pizzeria Papa Murphy’s to better utilize its real estate footprint and offer more to customers, said Al Hank, the chief operating officer of Famous Dave’s.
The co-branded restaurant, located at 1930 W. Seventh St., opens Thursday with official grand opening festivities to follow next week.
The catalyst for the dual-restaurant initiative was a significant increase in off-premise revenue, which includes takeout and catering.
Prior to the onset of the COVID-19 pandemic, off-premise sales made up about 30% of the restaurant’s revenue. “Today that sits at roughly 50%,” Hank said.
“When we’re doing half of our revenue out the side door, that leaves white space in the dining room,” he said. For the Highland park location, 1,000-square-feet of that white space is now a Papa Murphy’s.
The dual-concept restaurant is part of a new co-branded initiative from BBQ Holdings, the parent company of Minnetonka-based Famous Dave’s.
BBQ Holdings was acquired by Papa Murphy’s parent company, MTY Food Group, for about $200 million in 2022, according to Nation’s Restaurant News.
The Highland Park location, which was chosen in part due to its size, will be the first to launch the new format, Hank said. “That location in particular stood out to us as a high opportunity for Papa Murphy’s,” he said.
Additional co-branded locations are in development, including a Famous Dave’s in Tennessee that will soon offer ice cream from Cold Stone Creamery, Hank Said.
Founded in Hayward, Wis., in 1994 by Hall of Fame Pitmaster Dave Anderson, Famous Dave’s now has 107 locations in 30 states, Canada and the United Arab Emirates.
As many as 20% of Famous Dave’s locations could be co-branded, Hank said. “This provides an opportunity for our franchisees to increase revenue at the store and bring in additional customers,” he said.
Future pairings could include other MTY brands like Wetzel’s Pretzels, Planet Smoothie and frozen yogurt brand Pinkberry, Hank said.
Based in Vancouver, Wash., and founded in 1995, Papa Murphy’s has more than 1,000 locations across 35 states, Canada and the United Arab Emirates. Minnesota is home to more than 70 Papa Murphy’s pizzerias including east metro locations in Eagan, Roseville, Woodbury, Apple Valley, West St. Paul and Cottage Grove.
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