Category : Encore Restaurants

From the Desk of Dr. Sangani

From the Desk of Dr. Sangani

Dr. Bharat SanganiAs I reflect on the past year, I’m struck by how even the smallest decisions can profoundly shape our future. The forces driving change today—AI, elections, geopolitics, medical advancements, inflation, and even wildfires—affect how we work, lead, and live our daily lives. For a CEO, every big decision is built on countless micro-decisions, each one laying the foundation for what comes next. In my roles as a business owner, physician, real estate developer, and mentor, I’ve seen how these choices come together—often in surprising ways.

What I want to share isn’t a polished success story. It’s a candid look at the realities of staying adaptable and seizing opportunities in a world where the goalposts are always shifting. Whether you’re an investor, entrepreneur, or simply curious about how big decisions take shape, this is a glimpse into the mindset it takes to keep moving forward.

Let me tell you—it’s a mix of opportunity, risk, and a constant flow of decisions, from tactical to transformational. Here are the weightiest topics that have been on my mind these past few months, in no particular order:

How Rising Rates are Shaping Commercial Real Estate
The commercial real estate sector has been pressed on multiple fronts. Interest rates remain elevated, limiting both the availability and affordability of credit. As a result, transaction volume has slowed across the board, with buyers and sellers often struggling to see eye-to-eye on asset valuations. Despite the reduced deal flow, underlying property values have held relatively steady—which speaks to the continued long-term appeal of quality assets. Still, these values are undermined by an increasingly illiquid market. Simply put, fewer transactions are taking place, and the ones that do make it over the finish line are often characterized by lengthy negotiations and conservative financing terms.

As a commercial real estate developer, navigating these conditions requires deliberate choices—choices about which assets to hold, how to structure financing, and where to direct resources. This year has served as a powerful reminder that when the waters get rough, your balance sheet becomes your lifeboat, and cash flow is your guiding compass. We may not be able to control whether interest rates rise or fall, but we can control our internal financial posture and the way we direct resources.

Cash Flow: Our Financial North Star
In an environment where credit is constrained and operating costs are on the rise, having healthy cash flow is more than just a financial metric—it’s the bedrock of adaptability and choice. One of the lessons I’ve learned through the last 25 years of navigating market cycles is that it’s not enough to simply track what comes in and goes out. I need to think strategically about vendor relationships, negotiate when possible, and maintain the right mix of debt so as not to hamper long-term growth.

I’m reminded of Warren Buffett’s insight: “Only when the tide goes out do you discover who’s been swimming naked.” In other words, when credit becomes expensive, those without a careful grip on their cash flow can find themselves exposed. I have no intention of being caught off-guard.

Building a Defensive Balance Sheet
If cash flow is the compass, then a defensive balance sheet is the sturdy hull of the ship. At my firm, Encore, we’ve spent years cultivating a stable foundation—one built on prudent leverage ratios, diversified revenue streams, and a careful eye on maturities. While we pride ourselves on making bold moves when opportunities arise, we do so with an eye toward defending what we’ve already built.

In practical terms in 2024 and through 2025, this means reevaluating debt maturities and ensuring we’re not caught by surprise if financing options tighten further. It’s no secret that rising rates translate into higher interest expenses for those with floating-rate debt, so we’ve been exploring opportunities to lock in fixed rates or refinance on favorable terms. The objective is simple: to stay several steps ahead of any potential storm, and to preserve the flexibility to act quickly if (and when) those strategic opportunities present themselves.

A Word on Healthcare Costs
Resilience doesn’t just apply to balance sheet; it applies to the well-being of employees, too. As a leader, one of my most pressing concerns is the rise in healthcare costs—a challenge that extends well beyond our own industry. Providing quality healthcare to my companies isn’t just an ethical imperative; it’s integral to sustaining a motivated, productive workforce, and deeply personal to me as a physician.

The question, then, is how to keep premiums and out-of-pocket expenses in check during a period of inflation. This challenge required a series of deliberate decisions. First, we focused on negotiating better terms with insurance providers wherever possible. Next, we accepted that, in some cases, the company would need to absorb a portion of the costs to shield employees from the full impact. Finally, we encouraged the use of generic medications, which offer the same efficacy as brand-name drugs but at a fraction of the price. Each of these choices played a role in managing rising expenses while maintaining a commitment to robust, accessible healthcare for our team.

Emerging Healthcare Solutions: GLP-1
The healthcare landscape is also on the cusp of significant transformation. One particularly exciting development is the rise of GLP-1 medications—drugs that have shown remarkable promise in treating diabetes, assisting with weight loss, and potentially reducing various metabolic risk factors. I believe we’re just beginning to grasp the broader implications these treatments may have across the healthcare ecosystem. From lowering long-term costs associated with chronic conditions to improving overall employee wellness, the opportunities are vast. It’s too early to predict all the downstream benefits, but I see a future where GLP-1s could revolutionize how we treat (and even prevent) some of the most common health challenges we face. The individual and business decisions that stem for this potential overhaul remain to be seen. But I am open, curious, and closely watching this space.

Looking Ahead
As I look toward 2025, I see a world that still holds a fair share of unpredictability—capital can suddenly become scarce and market sentiment can flip on a dime. No one can promise a smooth ride in this business, but I’ve also been at this for more than 25 years, so I know the key is carefully considered incremental decisions. For my business that means focusing on maintaining a strong cash position, a defensive balance sheet, and healthy happy employees.

The thoughts I’ve shared here aren’t about perfection or a guaranteed path to success. It’s about embracing adaptability, remaining open to innovation, and recognizing that progress often comes one decision at a time. Thank you for joining me in this reflection—and for being part of a shared pursuit of progress, resilience, and success.

Wishing you and your families a prosperous new year.
With gratitude,
Dr. Bharat Sangani

Encore Restaurants, LLC Brings 7 Brew Drive-Thru Beverage Stands to Salt Lake City and Phoenix Markets

7 Brew CoffeeNewly formed subsidiary Encore 7 BREW, LLC holds exclusive franchise rights to build and operate
7 Brew drive-thru beverage stands throughout Utah and Arizona 

7 brew Building Drop

DALLAS – Dec. 9, 2024 – Encore Restaurants, LLC today announced the launch of Encore 7 BREW, LLC, a wholly owned subsidiary of Encore Enterprises, Inc., which owns the exclusive rights to build and operate franchise locations of 7 Brew drive-thru beverage stands throughout the Salt Lake City, Utah and Phoenix, Ariz. markets. In Utah, the new 7 Brew modular construction stands will create more than 3,000 jobs, of which approximately 60% will be full-time positions. In Arizona, the new 7 Brew franchise locations will create more than 4,700 jobs, of which approximately 60% will be full-time positions. To date, two Encore 7 BREW stands have been installed in Utah at 2298 N. University Parkway in Provo and 877 E. 4500 South in Millcreek.

“Encore 7 BREW is a highly skilled, experienced franchisee with a proven track record of building and operating storefronts that outperform the competition; we’ve strategically selected them to helm 7 Brew’s expansion into Utah and Arizona” said John Davidson, CEO of 7 Brew. “7 Brew is on a strong growth trajectory, and we have every confidence entrusting Encore 7 BREW ’s seasoned leadership to advance our mission of redefining the drive-thru beverage experience through personalized, human-centric customer service, premium products and exceptional efficiency.”

Recognized as QSR Magazine’s “Breakout Brand of 2023,” no restaurant chain in America is growing faster than 7 Brew[1], which started in Rogers, Ark. in 2017. Today, the brand has more than 295 locations operating across 31 states serving over 20,000 different combinations of custom drinks, while ‘cultivating kindness and joy with every drink.’ In February 2024, Blackstone announced[2] a growth equity investment in 7 Brew to help enable the next-generation drive-thru beverage business to accelerate its already-rapid expansion across the U.S., in collaboration with its premier franchise partners.

“Demand for drive-thru coffee and energy drinks has surged an astounding 5380% in five years, and 7 Brew is a dominant force of momentum in the category,” said Dale Doerhoff, president of Encore Restaurants. “Encore 7 BREW is uniquely positioned to drive the brand’s Utah and Arizona expansion, applying our experience as the largest, most successful Five Guys franchisee in the country from 2014-2022. Our stores consistently ranked at the top for guest satisfaction, food safety, employee retention and financial performance, ultimately attracting the parent company to buy back all 110 locations.”

Coffee is the second-largest sector in the U.S. restaurant industry, with an annual spend of over $31 billion. The U.S. coffee market is projected to grow at a CAGR of 5.1% leading up to the next decade. By 2025, 89% and 21% of U.S. coffee sales and coffee consumption, respectively, are expected to take place outside of the home, with consumers preferring drive-thru establishments. The Specialty Coffee Association reports that curbside and pick-up orders have grown by a staggering 5380% since 2019, with drive-through and app sales increasing by 30% since the pandemic alone[3].

About Encore Restaurants, LLC

Established in 2014, Encore Restaurants, LLC, a wholly owned subsidiary of Encore Enterprises, Inc., develops, owns and manages specific territories of various full dining, fast casual and quick-serve concepts across the United States. Between 2014 and 2022, Encore Restaurants acquired, developed and operated 110 locations of the “Five Guys” franchise in Texas, Oklahoma, Colorado, Massachusetts and California, becoming the largest Five Guys franchisee in the country. The portfolio was sold to the franchisor in 2022. For more information, visit https://encorebz.wp.brainvire.dev/.

About 7 Brew
7 Brew is a rapidly growing coffee brand that is revolutionizing how customers experience drive-thru coffee service and think about their morning energy boost. 7 Brew serves espresso-based coffee, chillers, teas, infused energy, sodas and more, all with an extra boost of kindness from their team. The dream of 7 Brew came alive with the first “stand” in Rogers, Arkansas and its seven original coffees. Now, more than 295 7 Brew stands operate across the country. For more information, visit www.7brew.com and follow 7 Brew on Instagram (@7brewcoffee), TikTok (@7brewcoffee), Facebook (facebook.com/7brewcoffee) and Twitter (@7BrewCoffee).

[1] Klein, D. (2024, May 21). No restaurant chain in America is growing faster than 7 BREW. QSR Magazine. https://www.qsrmagazine.com/story/no-restaurant-chain-in-america-is-growing-faster-than-7-brew/; Datassential. (2024). 2024 Top 500 Restaurant Chain Report. Retrieved from https://datassential.com/resource/2024-top-500-restaurant-chain-report/

[2] https://www.blackstone.com/news/press/blackstone-announces-growth-investment-in-7-brew/

[3] https://sca.coffee/

Encore Restaurants Opens First 7 Brew Stand in Utah

7 Brew Coffee

Encore Restaurants Opens First 7 Brew Stand in Utah

Donates $2,000 to Primary Children’s Hospital

PROVO, UT – October 17, 2024 – Encore Restaurants (Encore), a 7 Brew franchisee, held a ribbon-cutting ceremony today, celebrating the 7 Brew brand’s first Utah location at 2342 North University Pkwy. 7 Brew Provo, the drive-thru beverage concept offers over 20,000 unique drink combinations revolutionizing the service industry. As a dedicated community advocate, Encore made a $2,000 donation to Primary Children’s Hospital, a member of the Children’s Miracle Network.

As part of its growing presence in Utah, Encore also announced an opening in Millcreek this year and in Riverton early next year.

“We are thrilled to bring the first 7 Brew to the state of Utah and spread the brand’s mission of cultivating kindness and joy with every drink,” said Aaron Hall, director of operations for Encore Restaurants. “This celebration in Provo is extra special because it kick off our plans to open 11 locations in Utah by the end of next year.”

In July, 7 Brew announced an ongoing partnership with Children’s Miracle Network Hospitals to celebrate the first official 7 Brew Day. To build on the partnership, Encore selected Primary Children’s Hospital as a charitable partner to celebrate the opening.

Primary Children’s Hospital members attended the ribbon-cutting to receive Encore’s donation and share about the hospital’s mission of providing personalized, evidence-based medical care.

7 Brew Provo’s next step will be to host a Swag Day on Friday, Oct. 18, from 5:30 a.m. to 11 p.m., where customers who purchase a large drink will get a free 7 Brew t-shirt.

More than your standard beverage stand, 7 Brew offers over 20,000 unique drink combinations. From the 7 Fizz, a sparkling water infused with flavor and cream, to the 7 Original coffee drinks, 7 Energy, smoothies, shakes and teas, there is something for everyone at 7 Brew. The brand boasts more than 250 stands across the country.

The 7 Brew stand will add 50 jobs to the Provo area. Those interested in joining the 7 Brew Provo team should apply at encore.7brewcareers.com.

About 7 Brew 7 Brew is a rapidly growing drink brand that is revolutionizing how customers experience drive-thru service and think about their daily beverage treat. 7 Brew serves espresso-based coffee, chillers, teas, 7 Energy, sodas and more, all with an extra boost of kindness from their team. The dream of 7 Brew came alive with the first “stand” in Rogers, Ark., and its seven original drinks. Now, 7 Brew boasts more than 250 stands across the country. For more information, visit www.7brew.com and follow 7 Brew on Instagram (@7brewcoffee), TikTok (@7brewcoffee), Facebook (facebook.com/7brewcoffee) and Twitter (@7BrewCoffee).

About Encore Restaurants, LLC Encore Restaurants, LLC. develops, owns and manages specific territories of various full dining, fast casual, and quick-serve concepts across the United States. For more information about Encore Restaurants, LLC., visit encorebz.wp.brainvire.dev, or call (214) 259-7000

Five Guys Opens First Digital Ghost Kitchen in North America

Encore Restaurants, LLC Brings New Delivery-Only Location to Garland, Texas Encore Restaurants Five Guys Acquisition

(Garland, TX) May 5, 2021 – Encore Restaurants, LLC (Encore) is proud to announce the recent opening of a new, 100%-digital Five Guys location in Garland, Texas, on May 1, 2021. The new delivery-only location, developed by Encore, is located in the Revolving Kitchen facility, bringing Encore’s total U.S. store count to 109, with 50 locations across Texas.

“We are not only honored to be the first in North America to open this brand-new Five Guys delivery-only Ghost Kitchen concept, but it also debuts in our home market,” said Dale Doerhoff, President of Encore. “And with the proven operational strategies we have used for all of our current markets, and with our local Texas experience and contacts, we are confident this location will be a success.”

According to QSR Magazine, restaurant delivery has grown 300% faster than dine-in traffic since 2014. As a result, customers have grown accustomed to ordering from restaurants sight-unseen, and even more so since the beginning of the COVID-19 pandemic.

“We were able to thrive and gain 28 new stores during COVID-19, and much of that was because of our ability to adapt stores to a delivery-only approach,” said Matt Reid, Divisional Vice President of Operations for Encore. “We are taking that experience and knowledge and putting it into our new state-of-the art ‘smart’ kitchen, which is optimized for delivery with all the technology needed to keep food and labor costs down, maximize profit and ensure high-quality delivery orders.”

Area customers can order online at FiveGuys.com, on the Five Guys app, or on third-party apps such as DoorDash, Grubhub and Uber Eats.

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Five Guys Sells 27 Locations Across Texas to Largest Franchisee

Five Guys Carrollton

(San Antonio, TX) November 2, 2020 – Five Guys Burgers and Fries sold more than two dozen restaurants across Texas, including six in the Houston area, to its largest franchisee, the buyer announced.

Dallas-based Encore Restaurants LLC acquired 27 locations from a division of the Virginia-based fast food chain. The franchisee, which took over operations Nov. 1, now owns 49 locations in Texas and 109 nationwide.

“With our company headquarters located in Dallas, we are excited to be growing a fast and strong presence in Texas, our home state market,” Dale Doerhoff, president of Encore Restaurants, said in a news release. “And with the proven operations strategies we have used for all of our current markets and with our local Texas experience and contacts, we are confident we will be able to further their success.”

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Encore Commercial, LLC Announces New Multi-Tenant Center in Ardmore, Oklahoma

Ardmore Commons Elevation

(Dallas, TX) September 5, 2017 – Encore Commercial, LLC, a subsidiary of Dallas-based commercial real estate firm, Encore Enterprises Inc., has broken ground on a multi-tenant retail center, located in Ardmore, Oklahoma. Acquired in July 2017, the site is favorably located in close proximity to Interstate 35, and is anchored by Stage, Ross, and Petco. A space of 1,860 square feet with an option for a drive-thru is currently available, lending itself to many possibilities.

“Our goal is to usher in a new development that will be beneficial to the area,” stated Bharat Sangani, Chairman of Encore Enterprises.

Owned by Encore Restaurants, LLC, another division of Encore Enterprises, a Five Guys Burgers and Fries® restaurant will adjoin the available space, occupying 2,400 SF. This location will be Encore Restaurants’ 12th Five Guys in the state of Oklahoma and its 42nd location in the U.S, with other locations existing in California and Colorado.

“We project the Ardmore Five Guys will open in mid-December 2017 and will create approximately 40 to 50 new jobs in the area, something we are quite excited about.” said Dale Doerhoff, President of Encore Restaurants.

Located in south-central Oklahoma, Ardmore is considered to be a gateway city, greeting numerous vacationers and traveling businesspeople alike with its textbook small-town charm. Ardmore is a lively community of about 25,000 people and is also one of the primary centers for business and trade in the region.

“We are pleased with this new development,” said Nicholas Barber, President of Encore Commercial, LLC. “We expect that Ardmore Commons will be a valuable addition for both nearby residents and travelers passing through.”

About Encore Commercial, LLC.
Encore Commercial, LLC focuses on the acquisition, ownership, redevelopment and asset management of retail shopping centers, single tenant retailers, and Class A commercial office buildings across the United States. For more information visit encorebz.wp.brainvire.dev/commercial.

About Encore Enterprises, Inc.
Encore Enterprises, Inc. is a national real estate company with corporate headquarters in Dallas, Texas. Encore develops, acquires, and manages hotels, multi-family communities, retail shopping centers, commercial offices, and restaurants. For more information about Encore Enterprises, visit encorebz.wp.brainvire.dev.

Encore Restaurants, LLC Acquires Denver Area Five Guys Restaurants

Five Guys, Denver

Denver, Colorado (June 26, 2017) — Encore Restaurants, LLC, a subsidiary of Encore Enterprises, Inc. is pleased to announce it has purchased a portfolio of Five Guys Burgers and Fries restaurants in Denver, Colorado. The group has purchased a total of 10 existing stores as well as the development rights to the area.

“We are pleased to be expanding our portfolio into Colorado,” said Dale Doerhoff, President of Encore Restaurants. “The acquisition of the Denver portfolio is part of a larger franchise development strategy and we look forward to expanding into new markets across the country soon.”

Open every day from 11 a.m. to 10 p.m., Five Guys serves award-winning burgers, hot dogs, and fries that are fresh, never frozen, and customizable for any taste with over 250,000 burger options to be ordered. In 2012, Forbes Magazine named Five Guys the fastest-growing restaurant chain in the U.S. Five Guys and has been ZAGAT survey rated every year since 2001. The restaurant beat out two-time leader, In-N-Out Burger for the 2017 Harris Poll EquiTrend Restaurant Brand of the Year award and was also included in PEOPLE’s “100 Reasons to Love America”.

“Since opening the brand to franchising in 2003, the Five Guys brand has grown exponentially” said Bharat Sangani, Chairman of Encore Enterprises. “We hope to grow our portfolio alongside the Five Guys brand and become one of the leading Five Guys franchisees in the nation”

Encore Restaurant now holds a portfolio of 35 stores across California, Oklahoma, and Colorado and development rights to 45 additional stores, for a total portfolio of 80 stores across the three states.

About Encore Enterprises, Inc. – Encore Enterprises, Inc. is a privately owned national real estate company founded in 1999 with corporate headquarters in Dallas, Texas. Encore develops, acquires, and manages hotels, multi-family communities, retail shopping centers, commercial offices, and public-private mixed use developments. For more information about Encore Enterprises, Inc., visit encore.bz or call (214) 259-7000.

About Encore Restaurants, LLC – Encore Restaurants, LLC. develops, owns and manages specific territories of various Full Dining, Fast Casual, and Quick Serve concepts across the United States. For information regarding future development locations, contact Stacey Barber at 228-547-0293.

Encore Restaurants Opens Newest Five Guys in Fresno, CA

Five Guys, Fresno

(Fresno, CA) February 1, 2016 – Encore Restaurants, LLC, a subsidiary of the Dallas-based Encore Enterprises, Inc., opened its newest Five Guys Burgers and Fries restaurant today. The restaurant located at 6623 N. Riverside Drive, Suite 105 in Fresno, CA and is the ninth Five Guys restaurant to be owned and managed by Encore Restaurants, LLC.

“We are proud to open yet another Five Guys in Fresno, California,” said Chairman of Encore Enterprises, Inc. Dr. Bharat Sangani. “We are proud to be a part of such an award-winning franchise.”

Open every day from 11 a.m. to 10 p.m. Five Guys serves award-winning burgers, hot dogs, and fries that are fresh, never frozen, and customizable for any taste with over 250,000 burger options to be ordered. Five Guy’s has been ZAGAT survey rated every year since 2001 and has been voted the Washingtonian Magazine’s “Readers’ Choice” #1 Burger every year since 1999.

“All of our openings have been a success and we’re excited to share this newest restaurant with the people of Fresno. We appreciate all the support and excitement the citizens of Fresno have shown,” said Dale Doerhoff, president of Encore Restaurants. “In addition to this newest location, the restaurants division of Encore plans to continue to grow the Five Guys brand across the state of California with new restaurants coming soon.”

 

About Encore Enterprises, Inc. – Encore Enterprises, Inc. is a privately owned national real estate company founded in 1999 with corporate headquarters in Dallas, Texas. Encore develops, acquires, and manages hotels, multi-family communities, retail shopping centers, commercial offices, and public-private mixed use developments.

About Encore Restaurants, LLC – Encore Restaurants, LLC. develops, owns and manages specific territories of various Full Dining, Fast Casual, and Quick Serve concepts across the United States. For information regarding future development locations, contact Stacey Barber at 228-547-0293.

Encore Restaurants Celebrates Grand Opening of Five Guys in Merced, CA

Five Guys, Merced

(Merced, CA) June 8, 2016 – Encore Restaurants, LLC, a subsidiary of the Dallas-based Encore Enterprises, Inc., is excited to announce the opening of its newest Five Guys Burgers and Fries restaurant today. The restaurant is located at 3572 G Street in Merced, CA, and is the thirteenth Five Guys restaurant to be owned and managed by Encore Restaurants, LLC in a continued brand expansion across California.

“We are always excited to have the opportunity to continue expanding,” said Chairman of Encore Enterprises, Inc. Dr. Bharat Sangani. “Every new restaurant we open is different and every grand opening is unique.”

Open every day from 11 a.m. to 10 p.m., Five Guys serves award-winning burgers, hot dogs, and fries that are fresh, never frozen, and customizable for any taste with over 250,000 burger options to be ordered. Five Guy’s has been ZAGAT survey rated every year since 2001 and has been voted the Washingtonian Magazine’s “Readers’ Choice” #1 Burger every year since 1999.

“The Five Guy’s award-winning menu will provide Merced residents with many different and delicious options,” said Dale Doerhoff, President of Encore Restaurants. “We are excited to share this renowned brand with the residents of Merced.”

About Encore Enterprises, Inc. – Encore Enterprises, Inc. is a privately owned national real estate company founded in 1999 with corporate headquarters in Dallas, Texas. Encore develops, acquires, and manages hotels, multi-family communities, retail shopping centers, commercial offices, and public-private mixed use developments.

About Encore Restaurants, LLC – Encore Restaurants, LLC. develops, owns and manages specific territories of various Full Dining, Fast Casual, and Quick Serve concepts across the United States. For information regarding future development locations, please contact Stacey Barber at 228-547-0293.

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