X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

EDMONDS, WA-Skipper’s is on the hunt for existing fast food locations it can lease and convert to fast seafood locations. Using money from sale-leasebacks, the locally based company has opened eight new locations in Washington, Oregon and Utah this year and plans 10 a year for the near future.

Skipper’s will be handling the growth with a new CEO. Paul Baird resigned on July 10 and was replaced by Brad Barnett, the company’s chief financial officer. Barnett tells GlobeSt.com the company is steering toward profitability and recently cut 40% from its general and administrative expenses.

“We have flirted with profitability but we are not quite there,” says Barnett. “We’re just trying to get lean and mean, and we now feel like the company is in a position where it can be profitable.”

Part of that plan is not to spend too much on new locations, which is why the company is seeking existing fast food locations to take over rather than building new stores. “There’s enough opportunity to take over from existing fast feeders to be able to meet our mild growth needs,” says Barnett. “We owned a lot in the beginning, but since have executed sale-leasebacks that have allowed us to pay off all our debt and use cash to expand.”

Barnett says four of the company’s eight recently opened stores were former Boston Market locations, and another was a former Kentucky Fried Chicken. Including the cost of equipment and the leasehold, Barnett says locations can typically be had for around $150,000.

“It’s very inexpensive and it’s what we have to do,” says Barnett. “We’re not going to generate the kinds of volume as Burger King and McDonalds and therefore we have to be more modest with our real estate needs.”

Barnett says he has had some requests to locate Skipper’s in other states, but he’s hoping to iron out the kinks here first, before looking to franchise and move outside the region. Skipper’s is majority owned by Olympic Capital Partners, a Seattle-based venture capital firm.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt. NET LEASE Awards 2020Event

These awards honor the industry's most influential and knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.