A family that built its franchise business with La-Z-Boy is entering the restaurant space via Zaxby’s, signing a 10-unit agreement for Phoenix.
Tom DeGoey became a franchisee with the furniture brand in 2004 and today has 11 stores in Atlanta, Jacksonville, Florida, and Knoxville, Tennessee. As he grew his business in the southeast, he met and became friends with Zach McLeroy, the founder of Zaxby’s.
“We had always prodded him, knowing my sons didn’t want to necessarily follow my footsteps with La-Z-Boy,” DeGoey said. “Both had an appetite to do their own venture, which I understand and applaud. I told Zach, if there’s an opportunity to move out west, we’d be interested.”
That time arrived as Zaxby’s turned its attention to Arizona, where DeGoey’s wife, Amy, grew up and has family. To develop the 10 restaurants, DeGoey will assist sons Travis and Thomas on the real estate side while they handle operations. Their first location is expected to open in November 2024.
To prepare for their coming operational duties, Travis and Thomas are participating in a sort of makeshift apprenticeship.
Travis DeGoey plans to work with a Zaxby’s franchisee in Buford, Georgia, while Thomas is working with a franchisee with 13 units in Jacksonville.
“There is of course the formal Zaxby’s training that we’ll be going through,” Travis DeGoey said. “But the primary goal right now is to learn and understand the operation as best we can so that we can attack it from the frontlines in Phoenix and make those locations successful.”
The DeGoey family, owners of La-Z-Boy stores and new Zaxby’s franchisees. Tom, far left, standing with his daughter Tatum and wife Amy, will be handling the real estate for the Zaxby’s locations in Phoenix. His sons Travis and Thomas on the right will be in charge of operations.
In addition to having some experience going in, Travis DeGoey said another advantage they’ll bring is their knowledge of the food.
“I grew up in Georgia, where there’s still a law where it’s illegal to eat fried chicken with a fork,” he said. “We’re well educated on fried chicken and Zaxby’s has been a favorite of ours growing up. It became a family favorite very easily and it’s a brand I’m still passionate about.”
Founded in 1990, Zaxby’s is up to 940 locations in 17 states. McLeroy stepped down as CEO and became chairman in 2022 following the sale to the Goldman Sachs Merchant Banking Division. Mike Mettler, chief development officer, said they plan to make it to 1,000 units in 2025 through entry to new markets with growing populations. It’s what made Phoenix a great choice.
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“I’ve been in franchising 17 years with four major brands,” Mettler said. “Phoenix and Maricopa County have been a target market for every brand I’ve been with because its size and growth rate. I’ve seen areas I targeted a decade ago that are now completely built out, and it’s exciting.”
“To me, to win as a national brand, we need to win in these large market opportunities, like Phoenix,” he continued. “We’re also looking strategically at the Midwest, such as Michigan, Ohio or Indiana. I think those are natural extensions for contiguous growth from Zaxby’s current footprint today.”
Zaxby’s Chief Development Officer Mike Mettler
To stand out in that sizable market, Travis DeGoey said on top of the menu, the company’s support and operations provide an advantage.
“In any operation that I’ve worked in, we’re always striving for efficiency,” he said. “When you’re in the QSR space, it really comes down to the second, and that excites us. Zaxby’s provides opportunities to help us close gaps and be more efficient. It’s a fast environment, and we know there will be error. But the fun part is overcoming that and nailing down the standards.”
“I think because of their proven capability and their knowledge of the brand is a difference maker,” Mettler said. “Zaxby’s has some of the best operators in quick service, which is what made the brand successful. It’s why we’ve partnered with groups like the DeGoeys. They not only have a background with Zaxby’s, but the ability to execute as operators in new markets.”
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To attract more franchisees like the DeGoey family, Mettler said the brand established its Select Market Incentives program. The program provides new franchisees benefits such as reduced royalty rates and a full refund of the $35,000 franchise fee upon the store opening.
“When I joined the company, coming up with lucrative incentives that help our franchisees make money and reinvest in the business was a really important initiative for me and Zaxby’s,” Mettler said. “We’ve had eight large operators sign up for that, and we’re also able to write that incentive into the development agreement. We’ve had a lot of operators take advantage of that and certainly have more in the pipeline that we plan to close deals on this year.”