How Large Dunkin’ Franchisee Hari Group Is Powering Multi-Brand Growth
Hari Group leverages Dunkin’ success to fuel multi-brand franchise growth in Illinois.
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The Hari Group, a multi-unit franchisee, operates 132 locations across five brands, with plans to expand Mike's Red Tacos in Illinois. Dunkin’ remains a core part of their strategy, responsible for their initial growth. With a strong focus on unit-level execution, they aim to maintain steady expansion without compromising cash flow.
Why It Matters
This expansion into new concepts may signal a competitive trend among franchisees looking to diversify their portfolios, highlighting potential shifts in territory dynamics.
The Hari Group, based in Naperville, Illinois, continues its expansion in the franchise sector by committing to develop approximately 30 locations of Mike’s Red Tacos in the Chicago market. This commitment adds to the group's existing portfolio, which now includes 132 locations across five brands, primarily driven by Dunkin’, their foundational brand since 1988. President Raj Patel highlighted that Dunkin’ serves as the operational backbone of the company, stating, “Dunkin’s the engine.” The Hari Group transitioned from eight Dunkin’ stores in 2011 to over 100 units as of last fall.
The decision to add Mike’s Red Tacos, known for its birria tacos, comes after a developmental agreement was formalized. Patel anticipates that one or two locations could open by the end of this year. The taco franchise, which began as a food truck in San Diego, has recently attracted significant investment from Four Wall Partners, led by former Dave’s Hot Chicken CEO Bill Phelps. Patel, who also operates 22 locations of Dave’s, sees potential in Mike’s similar to the trajectory of Dave’s, which has grown from two to over 400 locations in about six years.
The expansion strategy reflects a careful approach to growth, emphasizing sustainable cash flow over rapid scaling. Patel remarked, “We’re looking for the right food and the right leadership,” indicating a disciplined philosophy regarding brand selection. This measured approach suggests a robustness in the company’s financial health and operational capacity.
