CEO says the chain is set up for double-digit growth in comps and EBITDA this year.
Captain D’s expects to open 15 stores this year.
QSR | Ben Coley | March 3rd, 2021
CEO Philip Greifeld says the chain, which has more than 540 stores, ended 2020 with record sales growth, and has begun this year with double-digit increases in same-store sales and EBITDA. Captain D’s didn’t lose any market share as its 30 percent dine-in business transformed into 100 percent carryout, drive-thru, and delivery, with online sales doubling year-over-year. The brand handled the extra volume through its drive-thru by reducing wait times roughly 45 seconds.
Greifeld is a believer in “quality begets more quality.” So when operations and guest service improve, so do top-line sales and unit expansion.
“I think what we have successfully done is we have captured a unique market niche in the [quick-service restaurant] space,” Greifeld says. “Over the years, we’ve successfully democratized seafood. We’ve become a destination for quality seafood at everyday affordable prices. Simply put, there’s no one in America doing quite what we are doing.”
On top of those figures, the chain pushed the boundaries of its geographic territory. In 2020, Captain D’s opened in Michigan, its 23rd state. Greifeld says the nearest unit is probably 150 miles away, but the location is garnering 20 percent higher sales than the system average. It was one of 10 stores that opened across the Southeast and Midwest last year. To set itself up for the future, the brand also signed five franchise development agreements to bring 17 restaurants to markets like Dallas-Fort Worth and Atlanta.
In 2021, franchisees will develop around the greater Chicago area for the first time. In addition, the chain will enter Utah via a quick-service operator who wants to cross-pollinate with another franchise. These stores will be among 15 scheduled to open this year. Greifeld foresees Captain D’s approaching a double-digit rise in comps in 2021, as well as another record increase in EBITDA.
“What we certainly have found out, even pre-pandemic, is that our brand is very geographically portable,” Greifeld says. “There is a need for Captain D’s in the marketplace. It’s an underserved, under-penetrated category, and we’re clearly the leader in the [quick-service restaurant] seafood space.”
The new year also marked the introduction of Captain D’s Express model—a drive-thru only prototype designed to fit on .35-.5 acres of real estate in metro and highly populated markets. The store has an average footprint of 960 square feet and includes a walk-up window for ordering and pickup.
Though the model fits exactly with today’s pandemic-related trends, the idea was kick started before the COVID outbreak. The Captain D’s leadership team saw its mix shifting from dine-in toward the drive-thru channel. And with real estate and construction expenses escalating, it seemed like the ideal time to develop a smaller, more efficient model with lower costs of entry for operators.

The new prototype was revealed in November after almost two years of development. The first Captain D’s Express will be operated by existing multi-unit franchisee, Anil Dossani. The store is expected to open Q2 in Atlanta. The franchisee will follow that with two more Express models in the same market in the coming years.
“It substantially affords us the opportunity to situate ourselves on a smaller piece of real estate, reduce our construction costs, substantially reduce the labor that is required, and substantially re