DELI DELICIOUS Franchise Graveyard
Not long ago, Fresno-based Deli Delicious sandwich chain boasted that it had “more than 100 stores open or in development.” Today the Deli Delicious store count has dropped to around 45… with no announcements of any in development. Increasingly, independent restaurants – not burdened by Deli Delicious Franchising Inc.’s high fees and forced purchasing – seem to be thriving where Deli Delicious franchises failed.
(UnhappyFranchisee.Com) A growing number of franchisees of the once-promising chain are closing their doors for good; many others are desperate to sell their stores and exit the chain. Several have recently dropped their sales prices by tens of thousands of dollars but still can’t find a buyer.
Several franchise owners have reportedly handed their keys over to the franchisor, Deli Delicious Franchising Inc. (DDFI), and walked away from their investments with little to nothing.
The Bakersfield franchisee recently shuttered all three of his Deli Delicious locations, having reportedly lost upwards of $2M. The Stockton Deli Delicious closed soon after. (Read DELI DELICIOUS Bakersfield Locations Closed as Franchise Chain Declines)
Why Are Deli Delicious Franchise Locations Failing?
While the pandemic and wildfires have certainly made survival tougher for Deli Delicious franchise-owned restaurants, the factors leading to the chain’s decline came first.
- Franchisor DDFI created a bitter dispute with franchisees by forcing them to buy, store and serve frozen bread from their affiliate rather than the freshly baked bread Deli Delicious served for 20 years.
- Franchisees complain about the taste, texture, cost, freezer storage, labor, waste & negative public perception of the frozen bread
- DDFI is spending considerable time and money on lawsuits against those who opposed the frozen bread decision. They are suing former executives for defamation and award-winning franchisees who refused to stop serving fresh bread
- DDFI has directed its focus and resources on its misguided bakery scheme and not on product quality or franchisee support or programs for surviving the pandemic. Paying off the $2.3M bakery amidst Covid, franchisee resistance & a declining number of stores may be affecting franchisee support.
With all of the usual challenges restaurant chains face, DDFI decided to become the only sandwich chain in the nation competing against fresh bread competitors by serving frozen-and-thawed bread.
Deli Delicious Franchise Graveyard
In nearly every case, the locations of failed Deli Delicious franchises are now being operated as independent restaurants such as The Pickled Deli, The Roundhouse Deli, The Angry Chicken or independent ethnic food restaurants like Sushi Omakase, Tacos Ameca, Taqueria Santa Cruz or Pho Wagyu. So much for franchise ownership being the safer route than owning an independent restaurant…
(Why might independents have an advantage over Deli Delicious? See below.)
| Store Photo | Store Information | Franchisees |
 |
Bakersfield (Store #23) 9801 Hageman Road #200 Bakersfield, CA. 93312 (661) 829-2559
CLOSED Fall, 2020 |
Navdip Badhesha “Nav” & Tarnvir Dhaliwal “Lali”
Just recently closed |
 |
CA Bakersfield (Store #54) 9000 Ming Ave, #O5, Bakersfield, CA, 93311 (661) 858-0335
CLOSED November, 2020 |
(Franchise owners Navdip Badhesha “Nav” & Tarnvir Dhaliwal “Lali”)
Just recently closed |
 |
CA Bakersfield (Store #55) 515 Panama Lane, Bakersfield, CA 93307(661) 491-3134
CLOSED November, 2020 |
(Franchise owners Navdip Badhesha “Nav” & Tarnvir Dhaliwal “Lali”)
Just recently closed |
 |
Chowchilla (Store #56) 1435 E Robertson Blvd, Chowchilla, CA 93610
CLOSED Last Yelp Review 10/9/2019 |
Phil Cheatham & Elizabeth Cheatham
The independent “Orchard Bar & Grill” is operating in this space. |
 |
Citrus Heights (Store #20) 5550 Sunrise Blvd, Ste 200, Citrus Heights, CA 95610
CLOSED Last Yelp Review 4/7/2018 |
Arvm Panu & Jasdeep Randhawa (2015 FDD)
Hesam Hobab 2017, 2018 FDD Independent “The Angry Bird” now operating in this space |
 |
Elk Grove (Store #70) 8450 Elk Grove Blvd, Elk Grove, CA (916) 684-2167
CLOSED https://www.yelp.com/biz/deli-delicious-elk-grove?sort_by=date_desc |
Arvm Panu & Amarpreet Singh (“Amar”) (2016 FDD)
Harpinder Singh Khara (“Harry”) (2018 FDD) Independent “Roundhouse Deli” operating successfully in this space |
 |
Morgan Hill (Store #52 ) 15700 Monterey Rd, Ste 160, Morgan Hill, CA 95037
CLOSED |
(Narinder Thakur Singh _)
(resold then closed) Independent “Tacos Ameca #3” now operating in this spot |
 |
Roseville (Store #21) 9213 Sierra College Blvd Ste 160, Roseville, CA 95661
CLOSED Last Yelp Review 2/8/17 Note: Co-Brand with Colorado Grill |
Hamid Karimi (Relative of Ali Nekumanesh)
This store was a co-branded location with Ali Nekumanesh’s Colorado Grill concept. Both failed. Independent “Sushi Omakase” now operating in this location |
 |
San Jose (Store #46) 2762 Aborn Rd, San Jose, CA 95121 Evergreen
CLOSED Last Yelp Review 9/7/17 |
Sharayh Bhullar “Jimmy” & Amarjit Gill & Ravandeep Jhutty “Rammy”
Independent “Pho Wagyu” now operating in this spot |
 |
San Luis Obispo (Store #78) 862 E Foothill Blvd San Luis Obispo, CA 93405
CLOSED Last Yelp Review 3/10/2018 |
Hadi Hobab (2019 FDD)
Independent “Taqueria Santa Cruz Express” now operating in this location |
 |
Stockton (Store #51) 4426 E. Waterloo Rd. #C Stockton, CA 95215 https://www.yelp.com/biz/deli-delicious-stockton | Franchisees: Greg DeGrandis & Ali Iqbal & Victor Gutierrez (2019 FDD)
DELI DELICIOUS Stockton CA Franchise Closes |
 |
Tracy Store (Store #76) 2805 Naglee Rd, Ste 130, Tracy, CA 95304 #130CLOSED Last Yelp review 12/19 https://www.yelp.com/biz/deli-delicious-tracy-2 |
(Franchisee Miya S.)Eric Sha (2019 FDD)
Independent “Dosa Biryanizz Chaat Cafe” now operating in this location |
 |
Visalia (Store #13) 4130 S Mooney Blvd, Visalia, CA 93277-9144 559-627-3354CLOSED Last Yelp Review August 27, 2018 | Todd Esajian (2016 FDD)Jamie Huerta (2019 FDD) Nicholas Huerta
Independent “Pickled Deli,” now operated in this spot by former Deli Delicious franchisee Nicholas Huerta. |
Why Are Deli Delicious Franchisees Failing Where Independents Might Succeed?
The unsubstantiated “common wisdom” that franchises succeed at higher rates of independents is based on the fact that the best franchise systems, like McDonalds or Chic-Fil-A, provide powerful operational, buying, marketing advantages and name recognition that more than offsets the fees franchisee’s must pay.
However, small chains run by inexperienced and/or ill-intentioned management often charge the same onerous fees without any offsetting advantages.
While every other sandwich chain in America equips its franchisees to either bake fresh bread or receive it delivered, Deli Delicious Franchising Inc. executives Mohammad Hobab and Ali Nekumanesh made the fateful decision to pour their energy and resources into developing a commercial bakery that would require Deli Delicious franchisees to purchase and serve its frozen bread – whether they liked it or not.
(Read The BREAD That Froze Deli Delicious’ Growth.)
Franchisees argue that the switch to the arguably inferior bread increases their labor costs, creates operational and storage problems, and puts the chain at a competitive disadvantage.
For instance, the chain can no longer advertise that its sandwiches are made with only fresh ingredients.
DDFI responded to its franchisees’ discontent with bullying and lawsuits that are further draining company resources and prompting franchisees to leave the chain.
Why is DDFI forcing franchisees to purchase frozen bread they hate? Because the affiliate frozen bread factory is owned by Hobab and Nekumanesh.
The sad moral to this story seems to be: Not all franchises are created equal, because not all franchisors have the experience and/or good intentions one assumes they would have.
The Deli Delicious Franchise Graveyard will likely keep expanding even as the Deli Delicious franchise chain doesn’t.
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ALSO READ:
FRANCHISE DISCUSSIONS by Company
All Deli Delicious Posts on UnhappyFranchisee.Com
DELI DECEPTIVE: What Deli Delicious Won’t Tell Its Customers
Which Sandwich Chains Serve Fresh Baked Bread? Which Serve Bread That’s Frozen & Thawed?
DELI DELICIOUS Sues Franchisee For Serving Fresh Bread
DELI DELICIOUS Franchise Assessment and Discussion Part 1
DELI DELICIOUS, Ali Nekumanesh Defamation Lawsuits
Deli Delicious Franchise Assessment GoFundMe Campaign
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