Wingstop: Antonio Swad. A Brilliant Idea — And a Nail-Biting Exit

[Music] The principal of this group contacts me and he said, "Hey, I'd like to have a meeting with you because I said, "What's it about?" He said, "Well, it's about paying you your money." I said, "Well, I've always got ears for that." And we go upstairs at the pizza patron office building, we sit at the conference room and he said, "I think I'd be able to buy your note from you." He said, "I think we can give you $2 million for it." Well, I said, "Wait a minute, you want to give me $2 million, but you owe me $12 million. Is that right?" He said, "Yeah, you could look at it like that." And I looked at him and I said, "Let me tell you something. I said, "I'll spend every dollar I have collecting every dollar I'm owed." And with that, the meeting adjourned. [Music] Welcome to How I Built This, a show about innovators, entrepreneurs, idealists, and the stories behind the movements they built. I'm Guy Ross and on the show today, how a pizza maker had a hunch that chicken wings would take off as a food concept and launch to restaurant that now has 3,000 locations around the world. Win stop! [Music] Franchising in restaurants is one of the most powerful business models ever invented. You create a simple menu, a tight operating system, and a brand people recognize. Then you make it really easy to replicate. And suddenly, other people are paying to build your business for you. What could go wrong, right? Well, a lot. Because the moment the quality slips, the moment one location disappoints its customers, the whole system can start to feel it. Look at massive brands like TGI Fridays that are struggling to stay alive, or even a chain like Quiznos, which once rivaled Subway with nearly 5,000 locations. Today, there are barely 200 stores left in the US. And that's part of why a lot of great restaurant concepts never franchise. But every once in a while, someone figures it out. Someone builds a system so simple, so focused, so repeatable, that it just explodes. And that someone, at least for the purposes of today's episode, is Antonio Swad. He believed he could crack the code on franchising not once, but twice. First, with an idea that almost everyone told him would never work. A restaurant built entirely around one thing. The chicken wing. Now, at the time, wings weren't dinner. They were maybe a side dish or a bar snack, something you had with a beer, but not a food you built a business around. But Antonio saw something different. He saw a product people would crave and share. In a menu so simple, it could be replicated almost anywhere. That business became Wingstop, and it started in a small city just outside Dallas in 1994. Today, Wingstop has more than 3,000 locations around the world. It's a publicly traded company with a market cap at this moment of around $5 billion. Antonio sold that business back in 2003. And then, after selling Wingstop, he went back to an earlier idea, another franchise concept, this time around pizza. But not just any pizza. A pizza brand built with a very specific customer in mind, Latinos. And that brand was called Pizza Petron. Now, pizza Petron is considerably smaller than Wingstop, just about 70 or 80 locations mainly in the Southwest. But like Wingstop, Antonio eventually sold Pizza Petron as well, back in 2016. And as you'll hear, he brought incredible intuition to building both of these businesses. But when he eventually decided to sell, those same instincts didn't help him. Especially with Wingstop. In fact, the story of how Antonio sold Wingstop, and what happened after, is one of the most surprising and cautionary tales we've ever told on this show. Antonio Swad grew up in the 1960s and 70s in Columbus, Ohio. His dad was a truck driver and his mom waited tables. And as Antonio made his way through high school, his family had no expectation that he would go to college. Not only was there no expectation, there was no money. There was no money for that. My parents, both born in the 20s, and there were products of the Depression. And no one ever went to college. We were more, you know, I consider we were worker bees, you know, we were the blue collar worker bees. And by that time, I was already pretty deep into working in restaurants. I was in the restaurant business since I was 15. And I remember graduating from high school. And I had my Pandora's a steakhouse uniform on under my cap and gown. And as soon as the ceremony was over, I went straight to work and pulled my shift. At that time, I was working at the steakhouse and I was there for a number of years. That's where I started, started washing dishes. And I eventually got promoted to the line. I got to come out and see actually the public. And then a broiler cook and every job. All right. So you work at Pandora's for for some time. And I guess you move on to another restaurant. So I guess a regional chain called the smugglers in. I read that through a connection there, you end up leaving Columbus and moving to Dallas. So what's the story there? Yes, defining moment. I had a he's a friend and a mentor of mine and a little bit older than me. And he was this guy named Gene Perkins. And he was the area supervisor of the smugglers in. We formed a friendship and he provided a mentorship for me. Well, he eventually left that job, moved to Dallas, Texas. And I left Columbus to come out and visit him. It was a time in the 80s and the late 80s and Dallas was pop and Dallas was really on fire. And while I was out here in Dallas, I learned of a new nightclub that was opening and decided I'm going to apply for the job. And it was a nightclub owned out of a by a group out of Houston that had some of the hottest, highest volume nightclubs gone in the country. It was called McFadden Ventures. And that was probably one of the best decisions of my life because Dallas has been, you know, with all the growth and all the opportunities. And I got the job and I was a service bartender because I was very fast. But one night they called me in the office and I thought, honestly, I thought they were calling me in to give me an award because every time I would set a new record pouring so many drinks, they kept track per hour. So manager said, hey, what you're done. Come in. I'm going to talk to you in the office. I'm like, it's good. Man, I knew I was busy tonight. He sat me down and he said, man, I'm going to let you go. You're fired. I said, you're kidding me, right? I'm set all the records. I'm possibly the best bartender here. And he said, yeah, that's no question about that. He said, but you're too intense. I've got too many complaints from the cocktail waitresses. You've made too many of the girls cry. And he said, and it's a lot easier for me to replace bartender than it is for me to keep replacing these cocktail waitresses. And I made him cry because I didn't mean to, but the cocktail waitress at the service bar was supposed to know what glass every drink went in. And their job was to pull the glass, ice it and get it set up. So the bartender just had to create the drink. And that's, you know, being kind of always competing with myself. When they didn't know what glass or how to get it set up, it would frustrate me and they would get their feelings hurt, I guess. So, you know, they say a lot of times things are, things are a blessing. You don't think they are at the time. But all of a sudden, I'm hearing Dallas and I found, I found myself without a job. And that allowed me to be kind of in the job market. And one of the people that I met over the bar was a young lady whose father owned a restaurant in a place called Watertown, New York. And I had no clue where that was. And he said to me, "Hey, my father is looking for a general manager. Would you like to talk to him?" I looked up Watertown, New York in my funk and whagonal in Cyclopedia. And it said, "Beautiful finger lakes region known for its dairy production." And I said, "Man, that sounds great." And once again, I got all my stuff loaded and drove and kept driving and driving and driving. It was in February. And I've never seen winter or cold like that in my life. This was channeled. to manage and run a restaurant in a hotel, right, in Wartown? - Yeah, it was called the village in it was actually not even in Wartown, it was in a suburb of Wartown called Black River, New York. And during that year, one of the things they offered was, they offered, they had a pizza, they made pizzas literally in the corner of the restaurant with a little four foot sandwich table, the guy used as a pizza make table and had a 30-cord hoe bar mixer, which is everybody will tell you, it's too small to make pizza dough. But they had a guy there that was studying to be a motorcycle mechanic, motorcycle mic, and he was the pizza guy. And I worked seven days a week, and man, I grew up a lot. I was there a year, and by that time, I used it as a laboratory for learning all about pizza and how to make pizza. And I was able to save $11,500 by saving all my money. And there's always a woman involved too. And I had met a woman that eventually became my first wife. - This is Bernadette. - Bernadette. Yeah, I met Bernadette like in the 10th month. - In Wartown. - In Wartown, she came in for lunch, and I met Bernadette and I had this newfound knowledge of how to make pizzas. And eventually I'm like, well, I think I'll move back to Dallas because I liked Dallas, and I didn't want to kind of go back to Columbus, Ohio with my tail tucked between my legs. But I always wanted to have my own business. I always did, and it was just a matter of how I would get the money. I had this $11,000, little bit more, and I thought I could come to Dallas and start a pizza business. - All right, so you go back to Dallas? Is it in 1985, ish around then? - Yeah, late '85, opened in '86. - And with $11,000, you had this idea to open a pizza place, and that was enough to do it. I mean, you could make that happen, like get a lease. - Back in those days, you know, it's a lot different. You could literally go into the city hall with a drawing you made yourself on a piece of notebook paper and walk out of there with a building permit. I mean, a lot has changed. My friend, Gene Perkins, introduced me to a guy that had a bunch of property around Dallas, and it was not the best real estate, believe me. And I didn't know anything about this particular part of town, but he introduced me to this guy, Victor Ballas, and he had a 750 square foot space in Southeast part of Dallas. And he agreed to rent me the space, but I was pretty nervous because I had a finite amount of money and not a great credit history. And he said, "I'm gonna need two things from you." And I'm like, "Oh, man, what could these two things be?" He said, "I'm gonna need a check for the first month's rent, $500, 750 square feet." He said, "And then a check for the security deposit, another $500." I said, "Those are the two things." He said, "Yeah, two checks." I gave him the two checks and he put a key in my hand and said, "I'll be back in 30 days. I collect the rent in person." Well, be sure you have your money ready. And this space was just an empty 750 square feet, or did it have a kitchen, did it have an oven, did it have equipment inside? It had a bathroom at the back. That was it. It was counter, there was no nothing. There was nothing. I couldn't hire anyone. But I bought a used blodgeon oven, just like the one that I was used to. I bought a used 30-court mixer, just like the one they said, it was way too small. And I didn't have money for a sign, but I did have enough money to buy a roll of red vinyl. And I cut the letters out of vinyl and stuck them on the front window because that's all I could really afford. And you originally call the pizza pizza, right? Yeah, yeah. When there'd be no mistake, what we sold there. All right, so you open this place. I think you finally get it open in 1986. April 16th. April 16th. It's called pizza pizza. It's very obvious what you're selling. And you open up and what happens? Do people show up as busy? Is there a line around the corner? No, no. No. There were days when I would sell just less than 10 pizzas, the whole shift. And this was a sliced shop or was it a whole pizza? No, it was whole pies, but I had a point of difference. Here's my point of difference. We get and deliver pizza. And everybody in their brother, pizza delivery was popping and people would say, you're never going to make it if you don't deliver. Right. But even Domino's wouldn't deliver in this immediate area because it was too dangerous. It was considered to be a rough neighborhood. Really rough. It was like order of robbery, you know? Yeah. So, but we had something different. I had five dollar pizzas. A large cheese and one topping pizza was $4.99. Wow. And even back then, that was a good value. Because pizzas were actually way more expensive than that, even in the mid '80s. And people would call that we had a phone. We took orders by telephone. And the first question is, do you deliver? And we would say, if we said no, they'd hang up immediately. So we trained my guy and myself to say, we sell a large pizza, cheese and one topping for $4.99. And a lot of the customers were made that way. But the thing that really turned it around was-- and I didn't know this when I leased the space-- was the propondence of Hispanic people. I didn't know that it was the second-densest Hispanic neighborhood in Dallas. And many times, I would take a pizza order from a child who was translating for their mother or dad. And you didn't speak Spanish. I spoke no Spanish, none. And I always worried, man, what if I'm not getting the exact pizza that they want? And so I kind of had this idea, what if I could get all the Hispanic business and didn't worry about anybody else, and made it easy for people to order in Spanish? And that's when I decided to change it to pizza patron. And I looked-- first thing I did was I looked in a Spanish language dictionary to the piece, because I wanted a P word, the double-literation kind of work. And one of the first words I came across was the word "patron." And it was about the same number of letters. But what it said, a patron was really stuck with me. It said, "The benevolent leader of the community." And I was in business. And a higher-to-guy that spoke mostly Spanish, a little English, and Juan Soliz, he became my first store manager. And we had this system when somebody walked in the door. If they were black or white, I would wait on them. And if they looked like they were Hispanic, he would greet them in Spanish. And we were never wrong. And they got comfortable. And that customer base kept building and building. And eventually, the store started to do very well. All right. How did it go from you selling a one or two pizzas a day to actually selling a lot of pizzas? Was it just because you changed the name? No. It was a concept based on respecting the customer, like, and showing them respect that they never got. Most of these people were laborers. And they would come in after work. And they were the people that were coming down off the roofs and a lot of construction people. A lot of-- they're working people. And they were able to order in Spanish. They got exactly the pizza that they wanted. It was an incredible value and high quality food. And they would-- they told their neighbor. And the business grew organically that way. We didn't have any money to advertise. But they told their neighbor. And then you go from 50, 60 pizzas a night to 80, 90, and eventually 200 on a Friday night or 300 on a Saturday night. Wow. And after being opened a little more than two years in that first location, I was able to open a store number two. And this time, instead of being the second Dense's Hispanic neighborhood, I looked for a location in the first most dense. Area of Dallas called Oak Cliff. And Bernadette eventually moved. She moved to Dallas and was a tremendous help. We rented a third floor, one bedroom apartment, and every penny that I made, I put aside to open a second store. And that store from the beginning got off to a great start and produced profit from the first day. With the cash flow from that second business, you are able to open another restaurant and another one. I mean, also Ian Prudama, Latino neighborhoods, or tell me to tell me a little bit about that. - Yeah, exactly. That's the old school way. Built bootstrapping, I guess they call it. Never borrowed a penny along this journey from anyone. And I can see why it's very difficult to get somebody to loan money on a restaurant. The failure rate's incredible. But I used my own money all the time, used equipment and did the work, the construction work myself. And then opened a third and then eventually a fourth store, pizza patrone. And by this time, it was kind of, at least in my head, it was a brand, it was the Hispanic pizza brand. But I got interested too in studying franchising. And people would say to me, why don't you franchise the pizza store? There were some million pizza franchises at the time. And very difficult, even with the Hispanic piece, which at that time, I didn't think that that was enough of a point of difference. I kind of wanted something else. And I had been studying franchising and I found what I thought with the reasons a lot of them fail. But I also studied and realized that if you want to build a company that's worth a lot of money, franchising is a way to build it. And it's primarily the growth of the company just funded by other people. It's funded by the franchisee. And as long as I can control all the intellectual property and control the brand, that's what I was building in intrinsic value in, in the brand. And that was kind of the genesis of getting in the chicken wing business. But I had a couple of things in my past that made me believe that I could make a living selling chicken wings when nobody believed that. But where did that come from? I mean, had you, did you have experience with wings before? I mean, buffalo wings have been around right there. I think reputedly maybe not invented in Buffalo. Or maybe it was Buffalo sauce, I don't know. But- - Ain't it bar, yeah, in Buffalo, New York. - And so had you, did you have experience with like chicken wings before? - You know what my first experience was? This is back when I was a waiter back at the smugglers in. - In Columbus. Columbus, I'll make this make sense in a moment. One of its side jobs of the waiters was keeping the free buffet in the bar side. They had free hors d'oeuvres every day from like four to six thirty. - So then people order a bunch of booze? - Yeah. Back in those days, there was a product made by pierced foods. It was called wing dings. And they were the tiniest darn chicken wings. They must have come off of pigeons. I mean, they were really small, but they were salty. And they had this kind of like a coating on them. And on Wednesdays, that was the free food. We gave wings and then a couple other things. And I could remember a time my manager, the general manager came to me and he said, "Man, these Wednesday happy hours, they're even bigger than Friday. People come in and load up on these wing dings on these pierced food. They're terrible." I mean, there was just a little bit of meat on each one. They were so tiny, but people absolutely loved him. And I kind of remembered how people would have these big plates of bones and stuff. So fast forward a couple of years later, I mean, the pizza business. And I go to visit my friend and mentor, Gene in Atlanta, Georgia. And he took me to a place with a funny and had a name. It's called Taco Mac, but the number one thing they were known for was chicken wings, with the name like Taco Mac, go figure. So he takes me there and I've never seen dining room full of people. And they're sitting there and there's chicken wings in front of every one of us. Buckets of chicken wings. Does everyone is killing it? Malling chicken wings. Killin it. But I'm trying to understand, you had four pizza restaurants in Dallas and you say, I want to open up a different kind of restaurant, another concept with just chicken wings. I'm just wondering why you would not have tested that idea with the pizza. Like, why would you just have introduced chicken wings to the pizza restaurants? You already had pizza restaurants. Why wouldn't you just done that there? Well, a couple of reasons. The pizza restaurants had type two hoods. Okay, it's a heat only hood. Right. And then you couldn't deep fat fry without a fire suppression system. It's called a type one hood. And that would have cost a lot of cash to retrofit. Yeah, just to add a menu item, I was kind of swinging for the whole concept to develop a frying concept. Okay, this is 1994, right? Yes. I'm just trying to think about the logistics of chicken wings at that point because one bird produces, I guess, four wings, right? It's like the drum at to the little drum at and then the wing tip on each side to four wings. And then and now it's different. Like now chicken producers are just making chickens for the wings. But in 1994, was it easy to get that many wings? Like just because you just need the wings. The chicken market, the price of chicken is set on what was called the earner berry market and it was all based on the breast meat. Yeah. And at that time, I'd never witnessed this, but they said a lot of the wings went to pet food manufacturers. Wow. And they boiled them and they would just get rid of them. They get rid of them. They weren't seen. Wow. They weren't the real driver and what chicken was worth was based on breast meat. Yes. I would, when I first got into the wing business, I was, I paid 55 cents a pound for whole wings. 55 cents a pound. That's like, I mean, the arbitrage on that is incredible, right? You convert that into what you're selling it for by the pound is probably like, you know, $70. Who knows? $5. But before you open this restaurant, right, you know you want to open it. You start experimenting with recipes and really the, if I'm not mistaken, the chicken, the frying part is pretty straightforward. It's salt pepper, maybe some baking powder to make it crispy and you just drop it in hot oil. You deep fry the chicken wings for a couple of minutes and then the magic is in the sauce that you dip it in. Totally. Right. Totally. I bought a used, propane-powered deep-fret fryer that we set out back of our house on the deck. And after we close the pizza stores, we had the employees come over and they were kind of my guinea pigs. At night. Midnight, one in the morning. I mean, we had so much energy back then, you know, we were all younger and full of energy. And I would make up different sauces and then we'd try them out on these people and say, what did you think? What'd you think? I didn't eat the chicken, but I looked at the sauce. You didn't eat them because you were a vegetarian. I didn't eat chicken. So you didn't even like you going to take bites to chew it or anything? Nothing. I looked at the sauce. I mean, I could remember what chicken tasted like. I mean, why were you a vegetarian? Oh, man. I was a vegetarian because of it was my way. And I remember the last time I hadn't meet in my mouth at this time. It was when I was working up in water town. I came to the conclusion that the industry of commercially raising these animals was so full of cruelty. And the only way that I could personally protest it was to not eat meat. It was all, it was quite honestly, it was all I can do. I was in the restaurant business. I had to sell meat. Yeah. But hopefully we'll get to that. I mean, I had to sell meat right up into the moment I decided I didn't have to sell meat. So you are, and you're convinced this is going to work? Yeah. So first of all, where's the location that you find to open this up? It's in Garland, Texas. And it was 1100 square feet. It had a hood. It had everything already there. It didn't have a type one hood. It had a heat only hood. I don't know, but it wasn't big enough and it wasn't the hood hood I needed. But it had two restrooms. And to put in a restroom, especially an ADA compliant restroom is pretty expensive. So it had two restrooms already. And the first manager, Rex, very important in this story, he had some construction skills. And he also had some good food training. And he worked for a cafeteria chain and we used, even used a couple of the recipes in the first wing stop, you know, that he knew from the cafeteria. Is Garland considered, I don't, Garland is not considered maybe an outer excerpt of Dallas, but it's not even considered a suburb of Dallas, is it? Yeah, it's a suburb. Yeah, and this shopping center, this is what it had gone for. It had a blockbuster video as the anchor. And to me, that was gold. Because did you think that, hey, this is the perfect place to be because people will get a bucket of chicken wings with their movie? Yeah, I thought that it was a great food to go with movies. And I had people coming on the lot already. And that's why we sampled to them. You know, and a lot of our customers were developed from that. and eventually, you know. blockbuster, you know, went out of business, but by that time, you know, Wingsstop was pretty well established, you know? And Wings eventually would become like, I mean, God, I can't imagine how many Wings are sold during the football season. It's just unbelievable. But but but you open this place in Garland and as expected, it's a hit right away. No, no, okay. No, it wasn't. It was like, you know, people couldn't believe that I had a place that sold only chicken wings. And we were building it. Rex helped me with the construction. We were building it, went into a home depot by some of this stuff. And a guy waited on me and we had our tape measures on our way. So he thought we were like the contractors. He didn't really know that we were the restaurant tours. And he said, what do you fellas build? And I said, oh, we're building this little place over there. And in Garland, he said, well, what's it going to be? I said, it's going to sell chicken wings. And he's like, and what else? I said, well, pretty much, pretty much just chicken wings. He said, come on. I said, no, it's true. He said, let me give you some advice. You'll be sure and get all your money from that man because there's nobody can make a living selling nothing but chicken wings. And man, you talk about a gin drop. I remember walking out of the home, Devilgon. Man, I was sure hope he's wrong. When we come back in just a moment and Tonyo launches the business, then totally rethink it after imagining a football stadium full of chickens. Stay with us. I'm Guy Ra's and you're listening to how I built this. Hey, welcome back to how I built this. I'm Guy Ra's. So it's 1994 and Antonio, along with Bernadette, his wife at the time, have opened the first Wingstop restaurant in Garland, Texas. It's right near a blockbuster video store, which is great. But aside from that, it's not a prime spot. The location wasn't the best. It was on the road takes a radical curve and this space in the shopping center, was kind of like where the curve was most extreme. The blockbuster was on one end and there was a Remco rent-owned furniture store on the other. But right in the middle where it kind of did this big bend. So it wasn't very visible. And again, I didn't have a lot of money to advertise. I ran these little tiny ads in the, we had a free paper called the Dallas Observer. And I would make up these catchy little ads and the observer was given away free all over the Metroplex. But you still had to convince people to drive from wherever to try it. You got to get trial. And once we got people, got the food in their mouth, you know, we had a real good shot of getting them back. Because again, it wasn't that I had to teach people to love chicken wings. I had to teach people that you can buy chicken wings from us. And also the challenges that it's not like a burger or a sandwich which people think of as lunch or of a meal. Right? At that time, certainly I would imagine most people didn't think of it as a meal. More like an appetizer or something. Yeah, an appetizer. It was not known to be a center of the plate item. It was not. So was it, was your business mostly take out? Yeah, it was, it had to be, only had 22 seats. And in order to achieve the sales that I really wanted to achieve, the majority of the business was, was take out. Takeout business is great business. You exchange the money for the product and they turn around and leave, you know. Yeah. The integrity of the food, I don't think is as good because as soon as you put a hot item, particularly a fried item, it starts to degrade but people didn't care. It was good enough and people loved it enough. The flavors were interesting enough that they came back. Okay, so you are experimenting with chicken wings. And so again, the frying part isn't what makes it special. Of course it's, it's basically, it's a vehicle. A chicken wing is a vehicle for sauce, right? It's a crispy vehicle for just tasting a bunch of different sauces. Super spicy to savory and sweet or whatever. You're correct. And that's good for growing a company because you can buy chicken at a certain spec pretty much anywhere in the world. It's the sauce that makes the difference. Because you could make the sauces and that would be the special, that's a secret sauce. A secret sauce is the sauce. And keep in mind too that these sauces that we developed were proprietary. They're none of them we could, a food salesman couldn't just open his notebook and say, "Oh, I'll tell you the same sauce that they're getting down the street." It was none of that. I mean, imagine, you know, you're sort of describing the sauces as like this really special proprietary thing, but like, I imagine you had buffalo sauce, you had ranch dressing, you had maybe a barbecue sauce, like what was so special about the sauces? We did have buffalo sauce, which is standard. And we had hot sauce and butter and cayenne pepper and vinegar based sauce. And we had a mild version of that, which was essentially half that and half butter. Yeah. This butter called whirl, it's not real butter, but it's the base, it's a butter base. So we had that for sure. So we had that covered, but then we used, we had a Hawaiian chicken, which was essentially a recipe that records the recipe. That recipe that Rex brought over from his days in the cafeteria. Like a teriyaki pineapple. Yeah, exactly. And then I developed the compound seasoning sauce. The lemon pepper was one, the garlic parmesan was another. Then we'd use the hot sauces of base and mixed cayenne seasoning with it. And then that was a cayenne. You'd have to, you'd sprinkle cayenne seasoning on top of the wings. And it just looked fantastic. You could just eat them with your eyes, you know. And then we developed using fresh habanero peppers, the sauce that became known as atomic. Oh, and the other thing about this concept that I think is interesting is, it's almost like make your own meal, right? Because you'd get the wings. There's nothing on them except salt and pepper. But then you decide like how to dip them. And like, right, you could order a bunch of different sauces. Is that right? And you dip them or were they like rolled in the sauce? No, they were rolled. They were sauce. And this is an important part of making wings. You have to sauce them as soon as they come up out of the fryer. Because I don't have any scientific evidence of this. But it seems like if you sauce the wings when they're at their hottest, the sauce is kind of drawn into the meat a little more. And the wing, the entire wing is more flavorful that way. If, and that was, that's, that was part of our program. We would sauce them to order. Then we had a couple of side items. We had this pearl potato salad and bourbon baked beans and fries. And, and that was it. And in the, in the early stores too, I sold beer. But it was like 3% of the sales. But I put beer in the store to position the concept as an adult concept and not fast food. Because I wanted people to think of it as a place where it's okay to spend more money than you would spend in a typical fast food restaurant. We had music. I had the lights down low. But the majority of the sales were to go sales. Okay, you opened the store in 1994 and, and it's a slow burn, but it's going to grow. Meantime, you have four pizza restaurants. So tell me how you were, because it seems like your attention all of a sudden is really shifting to wingstop. Because, because you see this is also a great franchise opportunity. So how are you dividing your attention between pizza patron and this wings concept? Anybody that achieves anything doesn't do it alone. And I certainly didn't do this alone. I had some key managers. They ran the stores. They ran the pizza stores. And I spent very little time in the pizza business. I was 100% focused working at the wingstop, listening to customers. And so the pizza business was kind of on, I don't want to say I don't pilot. But it was for me. Because I had these key people that knew the new the business. They both were bilingual. And only was only four stores, you know. So we had a pretty, pretty tight little operation. And it kind of took care of itself during the early years of wingstop. So did you in your mind, you knew that you've been exploring this idea of franchising and franchising is, can be a good way to expand a business because it doesn't require a whole lot of capital on the owner's part. Right. The money is put up by the franchisee. It's there are other challenges with it, we'll get to. But it could just be replicated turnkey. Yes. The logo, the menu, the sauces all there all you have to do is just fry the chicken. It was trainable and I'm selling a widely consumed protein with proprietary sauces that you could only get if you walk through the door of a wingstop. And the mark, I imagine if it works, the margins are pretty great. The margins were good. Now chicken wings didn't remain at 55 cents a day. pound as the popularity grew. You know, in a lot of ways, as wings stopped grew, you know, we contributed greatly into the popularity of wings. I got a lot of competitors, a lot of people opened wing concepts of their own and then eventually the price of wings, you know, certainly went up a lot. But when we opened the store, 10 piece wings were $2.99. Wow. Okay. So, so I believe after three years of proving this concept out, you decide that it's time to franchise this thing. And how much was it to buy it to buy in? What was it cost, do you remember? Twenty thousand dollars at first. It was twenty thousand and seventy five was divided into two fees. Seventy five hundred was called a development fee and you paid that up front. Then you started to look for a location and then after you found a location, you paid the balance of twelve five and twenty grand would get you. That's a franchise fee. And then but you would be responsible for finding the real estate or would you guys help them? Well, they would be responsible for finding it. This is a very important point. If you find the real estate for them, you pick up some contingent liability almost assuring their success. And this is something I learned early on. Almost assuring their success. By saying this is a good spot. You'll do great here. You will never say that in franchising because there's so many moving parts and at the end of the day, it comes down to human behavior and human performance. So they would say, I want to open a store and they'd pick an area and then you would define a development area and say, okay, you can look between here and here and here and here. And once you found the location, it was up to us to approve it or not approve it. But that's different than picking it out for you. And just to dig into this for a moment, I mean, it was twenty thousand dollars to open up a franchise location. And today is just back of the envelope map. That's like a little over forty thousand dollars. And I check this out to open a wingstop today. It's at least three hundred thousand. Some of them are up to a million. So that's low. I mean, presumably you're getting fifteen percent or maybe of sales and maybe like a percentage of profit. But I mean, that, even in 1997, that was like pretty cheap to go to buy in. A couple of things here. Twenty thousand was just for the fee. It was the franchise fee that included the development fee and the franchise fee together was twenty thousand dollars. You still had to fund the construction of the store and furniture fixtures and equipment. But even saying all that, all in, you could open a store at that time for about a hundred and twenty five thousand dollars. All right. So you've got this first franchise and where was that location? Lewisville, Texas. Just just north. Now that is a suburb and that is north of Dallas, maybe twenty minutes. And it was owned by two women and the one woman, it was a school teacher, a physed teacher. She cashed in her retirement as her down payment. That along with an SBA loan, she was able to fund the store. And like many of the original franchises, they went on to become own multiple stores and become multi millionaires in many cases. You have to, I mean, if you own one wingstop or one taco bell or one McDonald's, you can do pretty well, but you really just see serious money going on ten to start seeing like significant right dollars. That's right. That's what I've, from the time I've spent, you know, around these places. So okay. So this store opens and you are, again, like I think people think of, wow, franchise businesses like they basically can generate a ton of money for the owner or the mothership. And that is true in many cases, but I wonder, I mean, were you all of a sudden like seeing significant money come into your business and your life? The store that I owned, it quickly continued to grow, it clipped a million dollars in sales. By the time the franchising program was in full swing, the store was doing well over a million dollars a year. And eventually the store did over two million dollars a year. It's crazy. That's, it's kind of hard to believe because it's just wings and, but yeah, I mean, I, you look at like the average Chick-fil-A, I think they do like seven million a store or eight million, maybe more. But to do a million dollars for just chicken wings is kind of amazing. Yeah. And the money that I was seeing, most of the money was the profit from the stores, the company owned stores that I owned. But then started to see some royalty revenue and royalty was 5% of sales, 5%. I'm sure it's a lot higher than, yes, fair. It was fair. And the higher their sales, the higher the royalty that they paid. So, you know, I had a vested interest in having everyone of the stores do well, do extremely well. And nothing sells franchises better than successful franchisees. And eventually it got to that point where the number of franchise leads that we got was was darn near overwhelming because the stores did well. Okay. Let's get into this because there, there's a story you've told and I really want to dig into this because I'm skeptical of it and not because I don't think you're telling the truth. I really do. I just, I want to interrogate a little bit because it doesn't entirely make sense to me. Okay. But five years in, Wingstop has grown to 150 locations. I mean, clearly it's going up and up and up. And you decide that year that you want to get out and I'm just, I'm, I'm just, I'm trying to figure out why. Okay. I mean, you finally have this concept that is really working and you want to sell and, I mean, okay, okay, great. Money is one thing. Sure. And security, financial security. But like it's going up and up. So help me understand what was going through your head at that time. Well, give me a moment to tell you the story and I'll tell you the defining moment and it was, and you know, it was never about the money, which is funny usually when people say it's never about the money. It's usually always about the money. But in this case, it wasn't. I had a defining moment, a vision, if you will, at a football game, Dallas Cowboy football game, Bernadette and I went. And usually at the end of the third quarter, they came on the loudspeaker and they announced the attendance of the game. And this stadium held about 65,000 people. And so I'm sitting there and I started to imagine that in 65,000 people, and I'm looking around and you know, it's to sell out that there was a chicken on every seat instead of a person. I'm just trying to get my hat around 65,000 chickens. And I started doing the mental math and keep in mind at this time, you know, I was feeling more and more like a hypocrite growing this company that sold nothing but chicken, not eating chicken myself and knowing what the industry was like. You know, it was football Sunday. It was the busiest day. And that thought of killing all those chickens wouldn't, wouldn't, if we killed every chicken in the place, it wouldn't be enough to supply even half of the use of the time it took to watch the game. If you killed 65,000 chickens, like there were 65,000 fans, that would still not be enough to feed all those people who wanted chicken wings because each person's eating like 10, 15 chicken wings. Yeah, it would only give you 520 cases of wings. And that's not very many. And the vision to me was kind of horrifying and haunting and I kind of held it to myself because it was ridiculous, you know, it's ridiculous. And I had arguably one of the best restaurant concepts going with phenomenal growth. Tons of development agreement signed lots of stores under construction, but I was kind of haunted by that vision and I felt like a huge hypocrite as someone that didn't eat chicken. I just want to reflect on this moment. I'm sick. Like if the movie of your life, you're there in the stadium and then every person turns into a chicken, right? Yes. Like every, okay, so I can see that and I know that you had become a vegetarian earlier years before very much impacted by how animals were treated. Cruelty. And I would not ever want to debate that because I think there's such great arguments for not eating meat even though I do. But I would think that some other people might say, especially in the business say, listen, hang on, it's a business. And you're also providing, you know, livelihoods for people and you are, you know, this business is employing thousands of people and has created, you know, wealth for people who didn't and access for people who could not normally buy into a franchise. So, you know, there are other things to think about here. That's where I'm trying to figure out, like it doesn't make sense to me that it was just your conscience. Well, when I give you the rest, the rest of the story, I think it'll come into focus for you a little bit more. At that moment, I didn't decide, "Oh man, I gotta sell this company, I gotta get out." I mean, I wasn't necessarily thinking that. Yeah. And I was loving the growth, and I realized that I really had, finally had a concept that had legs. And I was fulfilling my dream of. And by the way, dude, you come from a working-class background, truck driver, dad, waitress mom, barely finish high school. Like, now you've built something really big. Like, there's a lot to be proud of. A ton, one of those only in America's stories, I'm sure. Right. So, about two weeks later, from that football game, I remember where I was, defining moment. I was on a ladder doing the interior decor at the Marsh Lane Wingstop. And my phone rang. And I looked at who it was. It was the lone packageer guy. Okay. He was a lone packageer for SBA loans. So, I broke for lunch and I called him back and I said, "Hey, yeah, what's up?" And he said, "Hey, I'm just gonna ask you, and this is kind of out of left field, but I want to ask you, would you ever consider selling the company?" And it's first time this ever came up. I said, "Man, I don't know. It seems like we're rolling pretty good. But inside of me, I had this little tick, you know, this thing bothering me." He said, "Well, listen, I got a guy, a friend of mine that's coming into town in a couple of days. And he's got a lot of experience. He's bought and sold a lot of businesses." And I remember the one thing he said about it, he's the guy that took Burger King to Saudi Arabia. He's an American guy, lives in Tennessee. And that gave him credibility, I guess, in my mind. He said, "Would you sit down or at least have a conversation with him?" I said, "I guess so, yeah, sure. I'll have a conversation with him. Sure enough, a couple days later, this guy comes into town. And he said, "Hey, listen, I think I could sell your business." And I said, "Oh, really? You think so?" And he said, "I think I could get you $20 million. I'm like, $20 million? You think it's worth $20 million?" He said, "I think it is. I just couldn't imagine numbers like that." Yeah. And you would know investors, right? 100% owned it, 100%. Yeah. But, you know, he said, "I said $20 million?" He said, "Yeah." I said, "Well, I don't know. Let me think about it." So I did think about it. And I eventually said, "Okay, if you could bring me that, you know, I would certainly look at that." And he brings a guy to meet me. And I like the guy right away, experienced restaurant guy. And he turns out he had been watching Wingstop for a number of months. And he was shocked at how much he knew about my company. You know, he drove an old Lexus and we walked me around to the trunk of his Lexus. And he popped the trunk open and he had files. He had a file on every store that I had opened. You know, he had built this file. And he was like, really, really into it. So this guy, his name is George. He said, "I'm going to line up the funding. I'm going to be able to raise the money for this. We're going to do this." I said, "All right, George, you know, if you can do it, if you could raise the money," he did. He brought in some guys from, I believe they were out of Boston. And they were at SBIC, you know, small business investment corporation. The division funded by the SBA. And I had had great success building this company with SBA money. Yeah. And I sat there and watched them and George sat there and watched them. And he's just hoping that they're going to say yes and fund the deal for him to buy the company. So the deal that we ended up with was this. 20 million turned into 22 million. The deal got sweeter. But it would only give me 10 million at closing. That was part of the reason that we bumped the price up by 10%. Then I would carry the note for 10 years on the 12 million dollars for 10 years. I never had that much money in one pilot together in my life. So you get 10 million up front and then 12 million basically over a 10-year period or after? Okay. That's a pretty fat payment. When you finance 12 million dollars over 120 months, I mean, it's still a nice check. And I'm thought, man, you talk about mailbox money. This is going to be great. And I was kind of a, I was a baby in the woods, you know. I didn't know about M&A attorneys and people that, you know, specialize on transactions like that. And there's a lot of money at stake here. The lawyer that I used was back to my franchise guy. The guy that did the franchise documents. It's only lawyer I knew at the time. Boy, you talk about, you know, what is that expression taken a knife to a gun fight? I mean, what I had was like my boy scout pocket knife. And these guys, they rolled in with big law firm out of Houston and all this stuff. And I didn't realize it at the time, but my lawyer is pretty overwhelmed. Well, wait, there's this, I learned this technique where the closer they get you to closing on a transaction like this. At this point, you're emotionally kind of already there. You're, you might even be spending the money, you know, in your mind. Oh, when I get that check, here's what I'm going to do first and all that. And pretty soon at the end, the deal is not exactly the same deal that you lived in. But by this time, you're kind of emotionally bought into it. You might have even mentally moved on. You're no longer own in the company. What are you going to do next kind of thing? And I knew what I wanted to do next. I wanted to. Now I'm armed with some money and franchising knowledge. And I was going to go back and get my pizza concept turned up. Get it ready for prime time. Got it. Okay, so this was your plan. That was my plan. All right. And so what happens when you get close to the closing? So the deal closes. Shortly after the deal close, they fire George, the guy sold the company to. They had in the documents that they had the ability to get rid of him. He wasn't in the seat two weeks. Right. They unload him and they bring in their own guys. They bring in some of these Boston guys. And the way I set them up, when they took control of the company, with the amount of revenue the company was doing based on only royalty revenue, if they didn't sell another franchise, they would have enough money to make my payment. So first payment comes to do nothing. Go to the mailbox mailbox is empty. So the second month comes nothing. And in this interim, I'm getting pizza Patron ready for the big stage. Reworking the logo, reworking all this stuff. I mean, I know what to do now. I'm a dangerous man. I got a little bit of money and a lot of knowledge. And I love the pizza business. I love the concept. I'm seeing the explosive growth of the Hispanic community. So my focus is over there. Third month comes no money. So I get another, I'm introduced to another lawyer who ended up becoming one of my dearest friends. He's a litigator. He's not a franchise specialist or anything like that, but he's just a general litigation lawyer. And we started to dig into the documents. And you have to understand the documents were so voluminous. Yeah. So buried in the documents was this little provision. This is a great lesson for people. The use of how a word is used. It came down to it said the payment would be made based on available cash flow. Available cash flow. So when we got into the documents, basically, well, it's based on available cash flow. And there's no cash flow available. There's not available. You're still guaranteed to get the rest of the payment before the end of the 120 months. Well, at this point, I was still a little optimistic, but it became clear as the months rolled on that they had no intention of paying me. They had no intention. Instead of using the money to make the payment to me for the company that I built, they took the money and they built corporate stores with it, which was adding to the intrinsic value of the company. They were bonicing themselves. If it ever looked like at the end of the month, there was money left over, they made sure there was never any money left over. And they were able to do this because of the way the contract was written. The way it was written. Okay. So I mean, I'm on the edge of my seat here. Did you get the rest of your money? Well, me and that one lawyer, we suit him. - Yeah. - And keep in mind, they owed me $12 million. - Yep. - Okay, that's a lot of money to a young man from Ohio who started off at the dish machine, you know. So, I suit him. I suit him for my money. When we come back in just a moment, how that lawsuit landed, and how a jalapeno-infused pizza got a ton of attention when people refused to call it by its name. Stay with us, I'm Guy Raaz, and you're listening to How I Built This. (soft music) Hey, welcome back to How I Built This. I'm Guy Raaz. So, it's around 2003, and Antonio decides it's time to do something that he's wanted to do for a while. Franchise, pizza, patron. But meanwhile, he's got some unfinished business with a wingstop. He's suing the investors that bought it for him. - The principal of this group contacts me, and he said, "Hey, I'd like to have a meeting with you because I said, what's it about?" He said, "Well, it's about paying you your money." I said, "Well, I've always got ears for that." So by this time, I had bought a building and had a corporate headquarters building for pizza, patron, and I'm getting ready to roll this amazing franchising program. - Yep. - And he comes in with his lawyers and all his minions, it's like a entourage of people. And we go upstairs at the pizza, patron office building. We sit at the conference room, and I said, "Okay, you said you were here to talk to me about paying me my money." He said, "I think I'd be able to buy your note from you. My notes for $12 million, they've paid nothing on it." He said, "I think we can give you $2 million for it." - Well. - And it took me a moment to comprehend what the guy's trying to do. I said, "Wait a minute, you wanna give me $2 million, but you owe me $12 million, is that right?" He said, "You know, one of these faces." He's like, "Yeah, you could look at it like that." He said, "But I wanna buy your note." And I'll tell you what, I said this, and I don't think I've ever said this before, and I don't think I've ever said this after, and I looked at it, and I said, "Let me tell you something." I said, "I'll spend every dollar I have collecting every dollar I'm owed." And with that, the meeting adjourned, and they got up, all these guys got up, they went downstairs, got in their car and drove off. My next call was to Marty. My lawyer, I said, "Listen, I just had this meeting, these guys have no intention of ever honoring the agreement in any form or fashion." And you have to understand, the idea with this SBIC money is by a company, they grow a company, and then they flip it. And the whole plan is to sell the company in four or five years, make it ungodly amount of profit, and move on to the next deal. We were able to keep the litigation wheel turning with me and one lawyer, one guy, that it was, they were starting to think, I think, that this is gonna be hard for us to work our plan and flip this company if it has all this litigation attached to it. - Did they, did you eventually get the money? You were promised? Or most of it or some of it? - We ended up settling, we never went to court. I eventually got every penny. - Oh wow. And how long did it take before you got that? I mean, did you get it within a few years? - Seven years. - Okay. So actually in the end, it worked out that you got it faster than what it would have originally been. - I did because it was the only way for them to sell the company. - Right, because there was litigation and this kind of investors would turn around and sell Wingstop to another group of investors. So they made some money off of it, and but that was it. You had to fight to get your money, which is, you're right, an important lesson, which is in something like this, you can't mess around. You gotta get very experienced lawyers who are going to look at every single word and line in a document because that's where the conflict begins when you don't agree on the language. - Absolutely, and use the meaning of one word in the document could change the entire spirit and intent of the document. And man, I learned the lesson the hard way. - Okay, so now finally, I mean, you're dealing with this litigation, but you finally get paid. And in the meantime, you're trying to turn pizza patron into a franchise, 'cause that was on hold for several years while you're focusing on Wingstop. But pizza patron, if I remember now from our earlier part of the conversation, it was inexpensive and it catered to people in Latino neighborhoods, but how are you gonna turn that into a franchise concept that was unique or different? - Well, it was unique or different because we focused through, we focused on that customer that has spaniac customer, majority of them foreign born and first generation. Many of the things we did, how we generated business were things that resonated with this particular customer base. I don't know if you can remember, we had three very successful promotions that made national news. The first one was the pizza for pesos program. - You accepted Mexican pesos? - Yeah, that. - Okay, yeah. - It's got you a lot of, a lot of, like, blowback too. A lot of people were not happy about that. - Yeah. - But you got a lot of attention for it. - Got a lot of attention, global attention. And it catapulted the brand and the franchising program into a light that couldn't have bought that much publicity at any price. And that's when we really started to go, but it galvanized that customer base to this brand better and faster than anything else we could have done. It basically said, we stand with you. We know that you travel back and forth and just like a lot of us, it come back from foreign travel. You always come back with a little bit of the currency leftover and what do you want to do with it? Well, you can turn that into a nice pizza. And were you when you were thinking about, like when you were looking for new locations to open this up, were you specifically looking again at predominantly Latino neighborhoods? - 100%. And by this time, you know, things have advanced with this demography has got to the point where you could just put in a, you could put in your parameters in any city in America and they would show you the best locations to achieve that that density of population that is foreign born, predominantly Hispanic, here's the income I'm looking for. So you develop a formula. And the stores generated a significant volume relative to their investment. And that's one of the, in any successful franchise program, I mean, there's a relationship there. There's a relationship between sales and investment, you know and both of these concepts were very favorable. - And part of like you mentioned briefly that there were promotions you guys did that got a lot of attention. One of them was you accepted pesos, Mexican pesos. Another one was you, I guess you would get a discount if you ordered in Spanish at one point. - Yeah. - And then the one that really got a lot of attention was you introduced a pizza. I'm gonna say it because, you know, we don't bleep things out. Like Chingona, I think, Chingona was the name of the pizza which you guys translated as badass, but some stations, like Spanish language, TV stations or radio stations would not mention it on air because it was considered to be quite offensive. - Yeah, I was interested in that became the story. The story was no longer the pizza. The story was why won't you let us say the name of this pizza? And we were able to convert that to mentions, you know, to build the brand. And again, it was the kind of thing that the customer resonated with. They say it commonly, it's a common thing. And it's not a derogatory thing. It's actually, when you use that expression, if something's Chingona, you know, that Chingona, she's a fine lady, you know. It's a term of endearment to be honest with you. And it was the perfect fit for this particular pizza that we had developed. So it was these kind of things, you know, in the pizza business, I was basically at war with some of the largest companies, the dominoes, the pop and jobs. We didn't have the funding to do that. We had to be inventive. We had to come up with things that didn't cost a lot of money, but got thousands and millions of brand impressions. And we were successful with that. And I attributed it all to the team that I had working with me. - Okay, so you are expanding. Pads of a throne and you have the finances to do it because you've got the you know You've got the capital and it's growing mainly I think in Texas and a couple of other states Mm-hmm and You get and again like you get it to a point I think what by 2015 how many do you know how many restaurants you had like more than 20? Oh, yeah 2015. Yeah, I think I think so. Yeah When we when I sold the company it was right out of 100 100 restaurants. Yeah, yeah, so let's get to this because you you grow it again and 2016 You sell it I presumably again Because it was it was an interesting offer or you were just tired. You want to just like move on you were done Well, let me point out one difference is with Wingstop I the look I had two company-owned stores one of each model the dinings model and With the pizza business I continued to open up my own stores and at the time I personally owned 11 stores And I had another franchisee in this system that also owned 11 stores He owned the stores in Phoenix he owned the stores in San Antonio So he came to me and said listen, um, this is Charles Loughlin Charles. Yeah, and I thought that again I'd been in the pizza business for 32 years This goes the pizza business. I was always in the pizza business back to 1986. Yes Yes, and at some point in your life You get to the point and it's hey, man. I love the pizza business, but man 32 years is long enough and I thought Charles would Charles would be a great fit and we came up with a number He immediately had 22 company-owned stores my 11 and his 11 and became the franchise or and that's kind of where it stands today and you sold your 11 stores as well as Packaged it up with the licensing company got it so and and did you I mean it's undisclosed The deal is undisclosed, but but it was I Have to assume it worked out well for you worked out great and and Charles unlike the first group Charles Was honorable and he paid me every penny every penny All right, so you are here you are right almost 70 and I mean amazing right you have built to you built to franchises that both went in slightly different directions before I asked you about that How do you feel about pizza patron today because I don't think it's got as many stores as it did when you sold it It doesn't and and this is It really comes down to franchising you know franchising isn't just about the food or the product in as much as it's about relationship management You're managing the relationship with the franchisee and the franchise or and the franchisee believes that they've invested all this money and You get your money first whether they're profitable or not. So inherently the relationship kind of has a Little bit of a feeling like you're getting over on me and and obviously That's the result of a lot of litigation and franchising I sold a very healthy company to a guy that really It's a great guy, but franchising isn't for him developing these relationships and actively selling franchises it's not for everybody. I think he's more suited to own company own stores, but you have to want to Develop these relationships with people you haven't met before you have to believe that you can trust them with your baby Which is your brand and it's and it's not for everybody quite honestly Yeah, and and pizza patron has a pretty small footprint today. I think about like 70 or 80 stores mostly in Texas and in Arizona But we stopped one other hand as a is a different story right? I mean we didn't we didn't get into this But it went public in 2015 and it is a massive multi-billion dollar business I think there are about 3000 locations around the world just a massive business right and and I wonder what you think of that like what you make of it I mean, it's it's kind of mind-blowing to just see how it grew I know I mean sit on my couch watching an NFL game and now they're buying national ads on Sunday football. I mean it's it's it's amazing and I'm happy for them and I People ask me all the time. Aren't you sorry you sold that company? No, not not completely because I tell you these guys some very smart people were involved They were able to grow it they continue to grow it and I'm happy for them But I'm not filled with regret in any way I really don't think of it that way I'm more living in the moment And you know I'm not when you live in the moment you kind of take responsibility for what are you doing at today? Not what I did Years ago. Yeah Yeah, I wonder I mean you think about like we touched on this a little bit but where you grew up how you grew up You know and I know there have been ups and downs in your life. You've had And I'm sure a lot of ups and you how many kids do you have two and You were you know you were married and those And did and you remarried I think you still have a decent relationship with at least one of your former wives maybe both yeah, but life is complicated right I mean that's not That's that we all have complicated lives and I and and so you've been through a lot and you have seen a lot and you came from A background that you know didn't set you up or to you up for financial success, right? Because it because you didn't know anybody You have a network of people like you grew up in Columbus not a rich kid um, and yet you built two really successful franchises How much of that do you attribute to the work you put in the grind and how much do you think had to do with being lucky? I attribute it to the ability to attract and maintain Real excellent people, you know, I read a book years ago by Victor Kaya I'm the guy that bought the remington shaver company. Oh, yeah, I remember him prior to that he was the sales manager for playtex Bros and Gertles this was years ago and in his book he said He had the best sales team because he would sit him down in a chair and he was able to paint the vista He'd make him look out a window and he'd call it painting the vista He could get people to believe in what he wanted him to believe in and and work towards it And in my life I look at I've built two amazing teams And I was able to convince them to look out the window look at the vista and help me row towards it And when people can see it and they they believe that you see it and I do see it um They're willing to play above the rim and and pull out of themselves Abilities and things that they didn't even think that they had inside of them And nobody achieves anything great alone and I certainly didn't I've been many many great people in my life Then I'm grateful for all of them That's Antonio Swad founder of Wingsstop and pizza Patron By the way, and this isn't exactly a side hustle, but Antonio has also dabbled in national politics in 2022 He actually ran for congress as a republican in Texas's 30-second district He didn't win and he says the experience was so unpleasant He's not interested in ever trying again Hey, thanks so much for listening to the show this week Please make sure to click the follow button on your podcast app so you never miss a new episode of the show And if you're interested in insights ideas and lessons from some of the world's greatest entrepreneurs Sign up for my newsletter at guyros.com Or on substack this episode was produced by Sam Paulson with music composed by rumpine arab blueie It was edited by niva grant with research help from Olivia rockman Our engineers were Patrick Murray and Jimmy Keely our production staff also includes Catherine cipher Chris Messini jones abella Alex Chung carry Thompson Casey Herman Ramell Wood Noregiel and Elaine Coates I'm guyra's and you've been listening to how I built this [BLANK_AUDIO]