McDonald’s is buying out Caspers Company, one of its oldest franchisees and the largest in Florida. Blake Casper and his family are planning to retire as a third-generation McDonald’s owners on October 1, 2022, and have agreed to sell their 60 locations in Tampa and Jacksonville to the franchisor.
In addition to being a large multi-unit franchisee, Casper also helped form the independent McDonald’s National Owners Association in 2018 and served as chairman of the advocacy group, which was the first franchisee association in McDonald’s history.
Neither the details of the deal nor future plans for the 60 stores were disclosed.
Casper and his sister, Allison Casper Adams, and her husband, Robby Adams, joined the family business in 1996 and served as restaurant shift and salary managers and area supervisors before being approved in the McDonald’s Registered Applicant Program in 1999. Robby Adams bought and built five restaurants, and in 2000, Casper bought all the restaurants in the Tallahassee market and built it to 27 locations, plus doubled sales before returning to Tampa, according to a message from a McDonald’s field office obtained by Franchise Times.
The Casper family began their McDonald’s journey 64 years ago when Ray Kroc and Fritz Casper bonded over their “love for great clothes, a winning optimism and a keen eye toward the customer,” according to the message. Casper opened the team’s first McDonald’s in Florida in 1958 and began expanding throughout Tampa. His son, Joe Casper, took over in 1970 and grew the organization from five to 44 McDonald’s restaurants.
Blake Casper regularly sent notes to the members of the NOA, and on August 11, 2019, sent one particularly heartfelt and inspirational note following the two mass shootings at a Walmart store in El Paso, Texas, and a bar in Dayton, Ohio.
"Our country continues to struggle with mass shootings that make no sense, that test our faith. We operate in an environment charged with division, anger, and despair. Where there is little common ground, where understanding and compassion are in short supply," Casper wrote, which also seems relevant in 2022.
“It’s a charged environment out there and we must keep our teams safe. Our people are our most precious asset. They can and do make a difference in a different world. We can’t shrink from that world, we can’t pull back. We must lean forward. We must find the courage to carry on."
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Majority of NOA members vote ‘no confidence’ on CEO
It is unclear if Casper’s retirement and concurrent sale of his family business can be attributed to the recent changes in McDonald’s ownership rules announced last month, which increased renewal standards for franchise agreements.
The NOA surveyed more than 600 McDonald’s operators and released the results on Monday, which found 87 percent of respondents supported calling a vote of “no confidence” on CEO Chris Kempczinski and the company’s U.S. president, Joe Erlinger.
In all, 95 percent of respondents also said the franchisor’s senior management does not have the best interest of owners in its approach to franchising, according to CNBC, and 83 percent said the new rules were a “veiled attempt to raise rents.”
The sale of Caspers Company comes as McDonald’s continues to buy up franchised stores and flips them over to new franchisees. A record 400 owners exited the system last year, which totaled about 1,750 restaurants changing hands—from retiring owners and operators wishing to cash in on high valuations to disgruntled franchisees who don’t see themselves aligning with the franchise giant’s future direction.
Many of Caspers Company’s restaurants earned some of the highest average sales, guest counts and cash flows in their business unit, according to the message obtained by Franchise Times.
“His work collaborating with the McDonald’s Government Relations Team over the past two decades has helped owner/operators systemwide build relationships with key government officials, tell the McDonald’s story and advocate for fair treatment of our business,” the message said. “We owe Blake much gratitude for his tireless efforts at the federal and Florida level for his work in helping shape public policy influenced by the voice of McDonald’s small-business owners.”
Same-store sales at McDonald’s restaurants in the U.S. increased 3.5 percent in the first quarter of 2022, fueled by price hikes. The company reported a net income of $1.1 billion in the first quarter at more than 40,000 locations in more than 100 countries.
As a seasoned expert in the field of business acquisitions, particularly in the fast-food industry, I've closely followed developments within major franchises such as McDonald's. My extensive knowledge and insights into franchise operations, ownership transitions, and industry trends allow me to shed light on the recent acquisition of Caspers Company by McDonald's.
Firstly, it's crucial to understand the context of this acquisition. McDonald's decision to buy out Caspers Company, its largest franchisee in Florida, marks a significant move in the company's strategic management of its franchises. This transaction involves the sale of 60 McDonald's locations in Tampa and Jacksonville, operated by Blake Casper and his family, who have been third-generation owners.
Blake Casper's legacy within the McDonald's franchise community goes beyond being a successful multi-unit operator. His involvement in the formation of the independent McDonald’s National Owners Association (NOA) in 2018 is noteworthy. Serving as the chairman of this advocacy group, Casper played a pivotal role in establishing the first franchisee association in McDonald’s history. This demonstrates his deep commitment to the franchise system and the interests of fellow McDonald's owners.
The Casper family's journey with McDonald's spans an impressive 64 years, starting when Ray Kroc and Fritz Casper opened the team’s first McDonald’s in Florida in 1958. The family's dedication to the brand is evident in their expansion from five to 44 McDonald's restaurants under Joe Casper's leadership.
One intriguing aspect is the timing of Blake Casper's retirement and the sale of the family business, which coincides with changes in McDonald's ownership rules. The recent modifications, including increased renewal standards for franchise agreements, might have influenced this decision. However, the article doesn't explicitly confirm if these changes played a role in Casper's retirement.
The NOA's survey results, indicating a lack of confidence in McDonald's CEO Chris Kempczinski and U.S. President Joe Erlinger, add a layer of complexity to the narrative. The survey, with responses from over 600 McDonald's operators, suggests discontent with senior management and skepticism about the franchisor's approach to franchising. This discontent could potentially be connected to the broader trend of franchise owners exiting the system, as mentioned in the article.
McDonald's aggressive strategy of buying up franchised stores and transferring them to new franchisees is a noteworthy trend. In the case of Caspers Company, it's emphasized that many of their restaurants had impressive sales and performance metrics, making them attractive assets within the franchise system.
Finally, the financial performance of McDonald's, as reported in the first quarter of 2022, reflects a positive trajectory with a 3.5 percent increase in same-store sales in the U.S. The company's net income of $1.1 billion underscores its continued success on a global scale.
In conclusion, the acquisition of Caspers Company by McDonald's is a multifaceted story involving family legacy, industry dynamics, and the strategic direction of one of the world's most iconic fast-food brands. The intricate interplay of franchisee associations, ownership rules, and industry sentiments adds depth to this business narrative, showcasing the complexities inherent in managing a global franchise network.
