Large multi-unit deals are a rarity for quick-service seafood concept Captain D’s.
When multi-brand franchisees Keith Johnson and Kevin Davis approached the company, though, Captain D’s was open to taking the road less traveled and signed its largest agreement to date. The 26-unit deal, signed in May, will have the duo opening locations in Indianapolis, St. Louis and North Carolina.
“We usually don’t do a lot of larger deals,” said Brad Reed, Captain D’s chief development officer. “But we ran across Kevin and Keith, and with their operational expertise and history, it seemed like a really good fit. It had a lot to do with the brands they’ve been involved with, from Qdoba to Epic Wings, and Kevin was a franchisee with Popeyes in the past, too.”
Captain D’s Chief Development Officer Brad Reed
For Johnson, Qdoba is where he spent the bulk of his restaurant career that spans more than 40 years. Starting as a dishwasher in a full-service restaurant, Johnson worked his way up on the corporate side of the business, eventually becoming a district manager and later a director of operations with Qdoba.
He became the brand’s regional vice president of operations in 2021, and around the same time he developed a connection with Davis. In 2023, Johnson partnered with Davis to buy 20 Qdoba stores.
The Captain D’s venture wasn’t far behind. Johnson said Davis started conversations with the seafood brand earlier and, once they had established themselves as Qdoba owners, they purchased 15 Captain D’s restaurants in the St. Louis market.
Johnson said Davis was already familiar with the brand, having grown up with it, while he learned of it more recently. After due diligence, though, Johnson said he was a fast fan of the food and the brand’s uniqueness.
“How many fish-based QSR concepts are out there? There’s not many,” Johnson said. “The two that rose to the top are Captain D’s and Long John Silver’s, and Captain D’s has been a brand with a long history, and they’ve figured out how to stay relevant in this competitive space.”
Founded in 1969, Captain D’s has more than 540 locations with a heavy presence in the Southeast. Reed said the deal is part of a backfill strategy for Captain D’s in existing markets outside of its region of origin.
Captain D’s franchisee Keith Johnson
“It was obvious to build out the St. Louis market, and when we looked geographically, Indianapolis was right across Interstate 70,” Reed said. “It’s another large metro area and it’s still underserved by Captain D’s. It was another opportunity to go in with six to eight restaurants. And for North Carolina, Kevin is familiar with the area, so we included that as well.”
The brand’s real estate team is working with the new franchisees on finding locations with a conversion-focused approach. Reed said converted stores are an opportunity to open quicker and are often more economical.
Operations have been smooth so far for Johnson at the 15 St. Louis locations, as he said labor needs are low and the food costs are in a good place.
Along with the three areas in this deal, Reed said Captain D’s is also backfilling markets in Kansas, Michigan and Texas. Additionally, the brand is pushing for expansion in the Northeast, with sites in development in Maryland, New Jersey, New York, and Pennsylvania.
Depending on the size of the restaurant, the initial investment for a Captain D’s is between $898,600 and $1.3 million.