Nearly 70 years ago, Harry J. Hoenselaar founded The Honey Baked Ham Company in Detroit, Michigan, and the retail concept now has more than 400 locations.
Today, his great-grandson is participating in that growth by helping to penetrate new markets in New England. In 2023, Tom McGwire acquired two existing locations in Connecticut and signed on to develop two more in Massachusetts and Rhode Island.
Earlier this month he expanded his agreement, signing up to open four more locations: another three in Massachusetts and an additional Rhode Island store. It marks the second time he’s followed in his family’s footsteps.
McGwire’s father came from a family in manufacturing, while his mother was on the Honey Baked Ham side of the family. For most of his career, McGwire went the manufacturing route, and now owns Connecticut-based Industrial Heater Corp.
Honey Baked Ham franchisee Tom McGwire
He said he was inspired to diversify his portfolio with his family’s food business at a shareholder meeting where he learned about the company’s recent growth efforts. Jim Hannan, Honey Baked Ham senior vice president of operations, said that effort includes bolstering the brand’s franchise system.
The company, franchising since 1998, has more than 440 locations open nationwide and just under 50 percent of them are franchised. Moving forward, Hannan said the brand will stay in that range, but is committed to opening franchise units along with its company-owned stores.
“We’re going to open 60 franchised locations over the next six years,” Hannan said. “We have opened seven so far and have four more under construction, as well as another three leased.”
McGwire is helping with that plan in the northeast, partnering with his father, Tad, as well as his brothers Charlie and Brett through their operating group, Red House Connecticut. Though McGwire said entering a new industry has been an adjustment, there are similarities between manufacturing and food service that has made the transition easier.
“There’s familiarity in the way we receive product. We manufacture it in the back of the house and then we get it ready for the customers,” McGwire said. “I think some of the challenges have been learning the different ins and outs of food safety and needs. But in manufacturing, we’re highly regulated and there’s a lot of standardization, and the food industry is the same way.”
Related: Honey Baked Ham Aims to Attract Franchisees With Incentive Program
The brand’s long-running franchise system has made the process easier, too.
“The Honey Baked Ham model is established and it works,” McGwire said. “I’ve learned over the years that any business needs to have a great product if it’s going to succeed, and there’s something tried and true here that we can replicate, cross-check and benchmark ourselves.”
Honey Baked Ham Senior Vice President of Operations Jim Hannan
Another factor giving McGwire confidence in the development is the market, which has been underserved by the brand until now.
“We worked together with the corporate team to examine the most attractive markets in New England,” McGwire said. “I think historically, the brand really grew down south and in the Midwest. But in my experience, having grown up and lived here, I know it’s a strong market with a lot of people who love food, especially their meats around the holidays.”
Hannan said along with the northeast, the brand is also targeting markets in California and Texas for its growth strategy.
Average net sales in 2023 were $951,245, the company reported in its franchise disclosure document. The initial investment to open a Honey Baked Ham location is between $448,600 and $858,900.