Dive Brief:
- Youtuber and boxer Jake Paul will join the board of directors at Dog Haus and become a 25-store franchisee with the brand, according to a press release emailed to Restaurant Dive.
- The collaboration between the brand and the controversial YouTuber will touch on “marketing leadership, in-store experience, culinary innovation, franchise ownership and the overall strategic vision of the brand,” the company said.
- Paul’s franchising commitment will start with four stores in Texas, before expanding to Florida and Puerto Rico. Fight promoter Nakisa Bidarian is also joining the board of directors.
Dive Insight:
Paul, 27, is scheduled to fight 58 year-old Mike Tyson, who was heavyweight champion of the world seven years before the Youtube star was born. Dog Haus is working with Paul to promote the match, which is scheduled for Nov. 15, per the release.
Paul’s large fanbase could provide some marketing power for Dog Haus, while his liquidity could also help the brand expand — USA Today reported that Paul said he will earn $40 million from the Tyson match alone. Paul’s boxing career includes a number of matches against older fighters and non-boxers including Nate Robinson, a basketball player who was 36 years old when he fought Paul, and Anderson Silva, a former mixed martial arts champion who was 47 at the time of his match against Paul.
Though Dog Haus’ CEO, Michael Montagano said the brand’s relationship with Paul had little to do with his celebrity status, the brand and the boxer will add menu collaborations and stage meet-and-greets with fans at some locations. Dog Haus will also host fight night events across its system, the release states.
“I’ve been a fan of Dog Haus for years and I’m fired up to push the limits and help take this amazing brand to a whole new level. I’m jumping in their corner and excited to introduce their food and experience to everyone across the country,” Paul said.
Given that the chain had 58 total units at the end of 2023, per its Franchise Disclosure Document, Paul’s commitment would make him the owner of a very large fraction of the brand.
Celebrity involvement in restaurant franchising is nothing new. Krystal’s brand turnaround has been supported by rapper 2Chainz and former NFL player Victor Cruz, while the International Franchise Association’s site lists several celebrities who are major franchisees. But naming Paul to the board is a deeper than usual partnership, more comparable to the relationship between Neat Burger and Formula 1 driver Lewis Hamilton — a major investor — than between a brand and a traditional franchisee.
Dog Haus franchises two concepts: A casual dining model it calls the biergarten, plus a smaller, fast casual restaurant, according to its FDD. Average gross sales at the brand’s fast casual concept, which is a smaller portion of its store fleet, grew modestly between 2022 and 2023 from $1.26 million to $1.37 million, according to the FDD. Its biergarten concept has struggled however, with unit volumes falling from $1.8 million in 2021 to $1.66 million in 2023.
