Doner Shack, a quick-service restaurant chain, is moving its headquarters from Glasgow to Miami.
- The decision follows setbacks in the UK, spurred by favourable US business conditions.
- The founders cite a supportive franchise environment in the US as a major factor.
- High operational costs and taxation in the UK contributed to this strategic choice.
- The relocation aims to expand their customer base globally, leveraging Miami’s resources.
Doner Shack, a restaurant chain drawing inspiration from Berlin, has decided to relocate its headquarters from Glasgow to Miami. This move comes in the wake of ‘constant setbacks’ faced in the UK, prompting the brand to seek a more favourable business environment in the United States.
Founders Sanj Sanghera and Laura Bruce described the transition to Miami as an obvious decision. Sanghera explained that the US, particularly Florida, offers a thriving franchising community, which holds promise for emerging brands like Doner Shack. He remarked, ‘There’s a lot of confidence in the US – it’s the most established franchise market in the world, particularly for the QSR sector.’ Bruce added that they are enthused by the potential for growth and success the US market offers, contrasting sharply with the challenges experienced in the UK since March 2020.
Crucial to their strategy is the membership in the International Franchise Association, a move set to heighten Doner Shack’s profile in the global franchising arena. This membership connects the brand with a wide network of industry experts, franchise professionals, and potential franchisees.
Sanj Sanghera highlighted insights from US franchisees managing over 1,000 restaurants, a scale surpassing typical UK brands. He found the US business climate to be dynamic, with many opportunities to secure prime locations and expand. ‘It’s a much better environment for us as a business,’ he stated.
By establishing their headquarters in Miami, Doner Shack aims to serve the vast influx of tourists visiting Florida annually while positioning itself to appeal to a global market. The strategic location will also support discovery days, allowing potential franchisees to visit multiple operational outlets nearby.
In response to the UK’s recent budget announcement for 2025, Laura Bruce pointed out that rising costs could hinder business expansion within the hospitality sector. Sanghera noted the disparity in tax regimes, where VAT rates in Europe benefit businesses compared to the 20% rate in the UK. Combined with increasing operational costs, the UK environment has made business continuation challenging. Conversely, the US presents an optimistic business outlook, offering a conducive environment for growth.
Doner Shack’s move to Miami reflects an adaptive strategy to thrive within a supportive global franchise community.
