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Counterculture appeal sparks Cheba Hut’s high hopes for growth

Counterculture appeal sparks Cheba Hut’s high hopes for growth

FORT COLLINS Colo. —Placing an order for a Humbolt in a blunt-size would raise eyebrows in any other setting, but at Cheba Hut “Toasted” Subs locations, it’s part of the sandwich chain’s tongue-firmly-planted-in-cheek customer experience.

The 11-year-old concept has built a following by appealing directly to university students and, more humorously, the marijuana-inspired counterculture. Even the website plays to its audience, declaring: “Cheba Hut. Where the only thing fried is the occasional customer!” —Placing an order for a Humbolt in a blunt-size would raise eyebrows in any other setting, but at Cheba Hut “Toasted” Subs locations, it’s part of the sandwich chain’s tongue-firmly-planted-in-cheek customer experience.

The seeds of the idea for the 10-unit chain, which opened its first location in 1998, were planted when president and chief executive Scott Jennings was a communications student at Arizona State University and working part-time in food delivery. —Placing an order for a Humbolt in a blunt-size would raise eyebrows in any other setting, but at Cheba Hut “Toasted” Subs locations, it’s part of the sandwich chain’s tongue-firmly-planted-in-cheek customer experience.

“Nobody really had a concept,” Jennings said. “It was all about getting food there as quick as you can. I wanted to start something that had a little more with the interaction and transaction.” —Placing an order for a Humbolt in a blunt-size would raise eyebrows in any other setting, but at Cheba Hut “Toasted” Subs locations, it’s part of the sandwich chain’s tongue-firmly-planted-in-cheek customer experience.

So rather than go for a cookie-cutter theme or generic photos of cityscapes or product shots, Jennings decided to add a little fun to the food-buying experience with inspiration from “Cheech and Chong” movies and the college town customer base he knew well. After coming up with a name inspired by the Tone Loc song “Cheeba Cheeba,” he opened the first Cheba Hut location in Tempe, Ariz., in 1998. —Placing an order for a Humbolt in a blunt-size would raise eyebrows in any other setting, but at Cheba Hut “Toasted” Subs locations, it’s part of the sandwich chain’s tongue-firmly-planted-in-cheek customer experience.

Chief operating officer Matt Tretheway said: “It’s really more about freedom of speech, counterculture and being able to express ourselves, and we’re not making apologies for that. The theme in the menu, the marijuana references, are all in fun. That’s how we express that.” —Placing an order for a Humbolt in a blunt-size would raise eyebrows in any other setting, but at Cheba Hut “Toasted” Subs locations, it’s part of the sandwich chain’s tongue-firmly-planted-in-cheek customer experience.

“We really don’t get any negative feedback,” Tretheway added. “It’s because people who don’t get it or who don’t like it stay away. We’re embraced by a very diverse customer base, and it’s refreshing. I think people understand we’re just trying to sell a good product.” —Placing an order for a Humbolt in a blunt-size would raise eyebrows in any other setting, but at Cheba Hut “Toasted” Subs locations, it’s part of the sandwich chain’s tongue-firmly-planted-in-cheek customer experience.

The original menu that Jennings first developed featured 10 subs, but now that has grown to 30 different sandwiches with suggestions from customers as well as employees. —Placing an order for a Humbolt in a blunt-size would raise eyebrows in any other setting, but at Cheba Hut “Toasted” Subs locations, it’s part of the sandwich chain’s tongue-firmly-planted-in-cheek customer experience.

Cheba Hut’s menu winks at those in the know. The Pakalolo, a sandwich made with ham, Swiss cheese and Hawaiian pineapples, gets its name from a Hawaiian strain of marijuana as well as the Hawaiian word for the substance. A teriyaki grilled chicken sandwich topped with green bell peppers, pineapple and pepper-Jack cheese is called the Thai Stick after a variety of marijuana that hails from Thailand. Other sandwiches have names like Endo, Dank and Chronic. Guests can order their sandwiches in three sizes: nugs, 4 inches; pinners, 8 inches; and blunts, 12 inches—all slang names for types of joints or marijuana cigarettes. —Placing an order for a Humbolt in a blunt-size would raise eyebrows in any other setting, but at Cheba Hut “Toasted” Subs locations, it’s part of the sandwich chain’s tongue-firmly-planted-in-cheek customer experience.

Each franchise location also features a “Secret Stash” section, with localized sandwiches. For example, a location in Albuquerque, N.M., offers the “Alberchronic,” a turkey sub that features a New Mexico staple, green chile. The location’s Secret Stash also features the Sandia, a guacamole variation on the Alberchronic, named for the surrounding mountains. —Placing an order for a Humbolt in a blunt-size would raise eyebrows in any other setting, but at Cheba Hut “Toasted” Subs locations, it’s part of the sandwich chain’s tongue-firmly-planted-in-cheek customer experience.

The chain’s franchising and advertising style stem from Jennings’ initial attitude of creating a fun, laid-back and ultimately personal experience. Even with the chain opening its ninth and tenth locations this month, Tretheway and Jennings say they still do a lot of the corporate heavy lifting. —Placing an order for a Humbolt in a blunt-size would raise eyebrows in any other setting, but at Cheba Hut “Toasted” Subs locations, it’s part of the sandwich chain’s tongue-firmly-planted-in-cheek customer experience.

“We really try to use our stores as sales models,” Tretheway said. “We get a lot of attention from our customer base and word-of-mouth from ‘a friend of a friend.’” —Placing an order for a Humbolt in a blunt-size would raise eyebrows in any other setting, but at Cheba Hut “Toasted” Subs locations, it’s part of the sandwich chain’s tongue-firmly-planted-in-cheek customer experience.

The chain focuses on universities for development models, but it’s not just college students and stoners who come by the store. —Placing an order for a Humbolt in a blunt-size would raise eyebrows in any other setting, but at Cheba Hut “Toasted” Subs locations, it’s part of the sandwich chain’s tongue-firmly-planted-in-cheek customer experience.

“It’s surprising when you look at our customer base, it really is everyone,” Tretheway said. “The college student we got figured out; no question about it. But when you visit our stores, you do see families and professionals, it’s really a great cross section of America really.” —Placing an order for a Humbolt in a blunt-size would raise eyebrows in any other setting, but at Cheba Hut “Toasted” Subs locations, it’s part of the sandwich chain’s tongue-firmly-planted-in-cheek customer experience.

Every franchise group comes in for 10 days of initial training to the chain’s headquarters in Fort Collins, Colo., although they can choose to stay several days longer. Quarterly market meetings are held to bring all franchisees together to discuss new procedures and marketing initiatives. The head offices also frequently conduct mystery shopping and frequent store visits to provide feedback. —Placing an order for a Humbolt in a blunt-size would raise eyebrows in any other setting, but at Cheba Hut “Toasted” Subs locations, it’s part of the sandwich chain’s tongue-firmly-planted-in-cheek customer experience.

But even with these support systems in place, franchisees operate “fairly independently,” Tretheway said. “None of our stores look the same. All are designed differently. Our franchisees get a huge say in how the store gets laid out.” —Placing an order for a Humbolt in a blunt-size would raise eyebrows in any other setting, but at Cheba Hut “Toasted” Subs locations, it’s part of the sandwich chain’s tongue-firmly-planted-in-cheek customer experience.

That sort of freedom is exactly why Todd Tabet and his business partner Gino Chavez decided to open a Cheba Hut unit in Albuquerque. —Placing an order for a Humbolt in a blunt-size would raise eyebrows in any other setting, but at Cheba Hut “Toasted” Subs locations, it’s part of the sandwich chain’s tongue-firmly-planted-in-cheek customer experience.

CHAIN FACTS

NAME: Cheba Hut “Toasted” SubsHEADQUARTERS: Ft. Collins, Colo.MARKET SEGMENT: SandwichAVERAGE UNIT VOLUME: $569,192TOTAL NO. OF UNITS: 10, with 4 more in developmentSYSTEMWIDE SALES: $3,995,375MOST POPULAR SUB: White Widow —Placing an order for a Humbolt in a blunt-size would raise eyebrows in any other setting, but at Cheba Hut “Toasted” Subs locations, it’s part of the sandwich chain’s tongue-firmly-planted-in-cheek customer experience.

“They’re not sterile or robots,” Tabet said. “They have a lot of personality. When they come down from corporate, and they don’t like to be called corporate, they’re real nice guys.” —Placing an order for a Humbolt in a blunt-size would raise eyebrows in any other setting, but at Cheba Hut “Toasted” Subs locations, it’s part of the sandwich chain’s tongue-firmly-planted-in-cheek customer experience.

Like a plot out of a Seth Rogen film, Chavez and Tabet are lifelong friends who grew up together and decided to go into business together. —Placing an order for a Humbolt in a blunt-size would raise eyebrows in any other setting, but at Cheba Hut “Toasted” Subs locations, it’s part of the sandwich chain’s tongue-firmly-planted-in-cheek customer experience.

“I just thought if you’re going to go into the restaurant business, nowadays you need to have a real niche,” Tabet said. —Placing an order for a Humbolt in a blunt-size would raise eyebrows in any other setting, but at Cheba Hut “Toasted” Subs locations, it’s part of the sandwich chain’s tongue-firmly-planted-in-cheek customer experience.

Cheba Hut’s philosophy to open around universities made sense to him, since there’s always customer traffic. —Placing an order for a Humbolt in a blunt-size would raise eyebrows in any other setting, but at Cheba Hut “Toasted” Subs locations, it’s part of the sandwich chain’s tongue-firmly-planted-in-cheek customer experience.

Tabet said the store appeals to newcomers with its unique design and theme, but people familiar with the concept also were excited when the Albuquerque unit opened, since the chain has a bit of a cult following. Cheba Hut thrives on grass-roots, word-of-mouth marketing. —Placing an order for a Humbolt in a blunt-size would raise eyebrows in any other setting, but at Cheba Hut “Toasted” Subs locations, it’s part of the sandwich chain’s tongue-firmly-planted-in-cheek customer experience.

For instance, in the early days of the concept, Jennings handed out five-dollar bills to get people talking about the restaurant. He reasoned that a half-page newspaper ad would’ve cost him $500, so he decided, “I’d rather give it to you guys and have you go tell a couple of people.” —Placing an order for a Humbolt in a blunt-size would raise eyebrows in any other setting, but at Cheba Hut “Toasted” Subs locations, it’s part of the sandwich chain’s tongue-firmly-planted-in-cheek customer experience.

“I don’t do that as much anymore,” he said. “My accountant would flip out. But there are still people who talk about that.” —Placing an order for a Humbolt in a blunt-size would raise eyebrows in any other setting, but at Cheba Hut “Toasted” Subs locations, it’s part of the sandwich chain’s tongue-firmly-planted-in-cheek customer experience.

The annual “420” celebration naturally is the biggest promotional event for the chain, with April 20 being an important counterculture day for marijuana enthusiasts. The chain hands out commemorative Frisbees and guests can get a nug-sized sandwich with chips and soda for $4.20. —Placing an order for a Humbolt in a blunt-size would raise eyebrows in any other setting, but at Cheba Hut “Toasted” Subs locations, it’s part of the sandwich chain’s tongue-firmly-planted-in-cheek customer experience.

Tabet said that for this year, his Cheba Hut location planned for a three-day celebration with live music and flame jugglers. —Placing an order for a Humbolt in a blunt-size would raise eyebrows in any other setting, but at Cheba Hut “Toasted” Subs locations, it’s part of the sandwich chain’s tongue-firmly-planted-in-cheek customer experience.

Some franchisees also hold “Welcome Back to School” parties and promotions in January and August of each year to get the word to current as well as new college students to get them coming for four years. —Placing an order for a Humbolt in a blunt-size would raise eyebrows in any other setting, but at Cheba Hut “Toasted” Subs locations, it’s part of the sandwich chain’s tongue-firmly-planted-in-cheek customer experience.

Other marketing opportunities are more guerrilla-style, targeting concert events, Volkswagen bus rallies and other outdoor events. Tretheway said anything that ties into counterculture works, so some chains also do cross promotions with local head shops and radio stations. —Placing an order for a Humbolt in a blunt-size would raise eyebrows in any other setting, but at Cheba Hut “Toasted” Subs locations, it’s part of the sandwich chain’s tongue-firmly-planted-in-cheek customer experience.

While one might assume the concept to be loose and laid-back, franchising is serious business, Jennings said, adding: “We want to keep things unique, and that’s hard. We don’t want one on every corner. I was getting tons and of tons of e-mails saying, ‘I wanna open this.’ But a lot of times that was the stoner guy on the couch with 100 bucks, which is great and flattering, but we need to back up that enthusiasm with money.” —Placing an order for a Humbolt in a blunt-size would raise eyebrows in any other setting, but at Cheba Hut “Toasted” Subs locations, it’s part of the sandwich chain’s tongue-firmly-planted-in-cheek customer experience.

“I get calls from all around the country,” Tretheway said. “My first question always is, ‘Have you visited our store?’ If the answer is ‘I haven’t been in yet,’ my conversation ends quickly after that. Check out our sandwiches and call me back. If you’re just trying to buy into a marketing hook and theme, I gotta be honest, I don’t want that guy. I want that guy that loves our concept and that loves our product.”— [email protected] —Placing an order for a Humbolt in a blunt-size would raise eyebrows in any other setting, but at Cheba Hut “Toasted” Subs locations, it’s part of the sandwich chain’s tongue-firmly-planted-in-cheek customer experience.

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