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Long John Silver's, the nation's largest fast-food seafood chain, has outlets in 36 states, including every major market surrounding New Orleans. But the $830 million company has yet to open one of its restaurants here.
"We're not afraid of any market," insists a spokeswoman for the chain. So why isn't the company here? "I don't know."
Right.
The fact is, Long John Silver's is in good company. Not one of the major fast-food seafood chains -- including Arthur Treacher's and Captain D's -- has attempted to lay anchor in the local market. And for very good reason.
Observes Captain D's spokesman Jim Gilliland, "It's hard to compete in a quick-serve seafood market when you're that close to the coast and people can get fresh seafood at the drop of a hat."
So what do the local investors behind Crispy Catfish know that their better-capitalized competitors don't? "The key is using fresh fish," says Daniel Caire, co-owner of the four-store chain, which gets seafood deliveries three times a week. "Most of these big chains use frozen fish, but if you're from the South, are you going to eat that? I don't think so."
The Caires have one other secret weapon: second-hand stores. Instead of sinking $500,000 or so into opening a new location, they typically lease the premises of another fast-food chain, generally a Rax or Arby's, which didn't make it. That may be risky --since a poor location may have contributed to the previous restaurant's demise -- but so far it's kept start-up costs to around $70,000 per unit.
"Basically, this is the most economical way for us to grow right now," adds the 29-year-old entrepreneur, who hopes to open as many as 100 Crispy Catfish restaurants over the next five years. "Eventually, I'd like to see us with 300 to 400 stores."
Caire hardly started out trying to mimic the success of...