Cold Heat

From the Lone Star State to the Sunshine State, Eskimo Hut is spreading its wings

When Convenience Store News featured Eskimo Hut in its June 14, 2010 issue, the drive-thru convenience store with a twist — twist of lime perhaps — was unique to Texas. But even then, CEO Kevin Morgan and Vice President of Business Development Brian Dobbins were setting their sights on something bigger. That is, if there is something bigger than Texas.

And now, one year later, they are in talks with two different groups of potential franchisees to bring Eskimo Hut to Florida.

Eskimo Hut started as a drive-thru store where customers could purchase frozen wine-based daiquiris, known as Eskimo Snow, without ever leaving their cars. That was then; this is now. As the business has evolved, so has the concept. It now bills itself as a drive-thru convenience store with frozen daiquiris and has expanded past its birthplace of Amarillo, Texas.

The plan, which has been on the drawing board for at least a year, is to bring Eskimo Hut to more communities — not just in Texas but beyond its borders as well, Dobbins explained. On the Texas front, Eskimo Hut purchased two pieces of property, one in Bryan and the other in Victoria, to help move its growth plans forward. However, as the company began redevelopment of the Bryan site, it realized the property would not work because of the existing egress and regress. Eskimo Hut still holds title to the property, but has decided to lease it, he said.

Plans are still "a go" to open a company-owned store in Victoria, with the redevelopment work currently underway. There was some thought given to branching out into foodservice at the Victoria store, possibly something on a small scale like burritos or hamburgers. Check-cashing was another option for the store. But in the end, the space was not sufficient, Dobbins said.

However, a new franchise location in Houston does have food-service — pizza and chicken — because Eskimo Hut built out in an existing Valero site. "It is the first one we did like that and we may do more if there is interest," he added.

Expanding to other states has been a recurring goal of the Morgan-Dobbins team. A couple of months ago, the two traveled to Florida to meet with a group interested in opening Eskimo Hut stores in Orlando. Morgan and Dobbins are also looking into bringing the company's c-store concept to Fort Lauderdale. Before either of those plans can get the green light, the company is reworking its franchise agreement to be applicable anywhere in the United States, Dobbins explained.

"We are in the process of redoing our franchise agreement so we can franchise out of state, and it looks like Florida will be the next state we go into," he said, adding the move may not happen until 2012.

"I always tell Kevin that if we're not growing, we're dying," Dobbins said, but growing in its home state is still a focal point for Eskimo Hut. "Texas is just so big. There are so many places that we aren't in yet and so many other places where we can add a second or third store.

"Kevin concentrates on Texas and I concentrate on out of state," he said. "We are taking the company in two different directions but at the same speed."

And to that end, the team plans to attend franchising expos across the country to promote Eskimo Hut's name and concept. The duo has also expressed a desire to place its Eskimo Hut one-liter bottled wine margaritas, Rocks and Ocean Margarita, on shelves in grocery and other convenience stores. They have yet to seal a pact with a grocery retailer; however, a deal with a distributor in Amarillo brought the beverages to other c-stores in that area.

The retail industry's interest was piqued, he added, after CSNews named Rocks Margarita the best new product in the liquor/wine category in its 14th annual Convenience Store News Best New Product Awards competition last fall.

With sales up this year, Eskimo Hut is introducing winter cocktails and summer cocktails to its beverage lineup. For example, in the winter months, customers can sip coffee or tea with a kick; in the summer months, sweet tea.

Eskimo Hut also added a marketing/advertising manager to its mix who has built up a new clothing line for the company. "We have seen our clothing line increase tenfold," he added.

Who knows, this time next year, customers could be enjoying their very own Eskimo Snow in your town.

For comments, please contact Melissa Kress, Associate Editor, at [email protected].