Tropical Gyros is eyeing franchising opportunities in the Dominican Republic.
Chef Kevin Culmer, owner of Tropical Gyros, told Guardian Business yesterday that he has been in discussions with a group in the Dominican Republic, for them to open at least five new franchises in the Spanish-speaking Caribbean country.
“We are looking to franchise. We’re shifting the focus from having a corporate-owned location in the Dominican Republic, but rather a franchise location, with us setting up a small production department to support the expansion within the Dominican Republic. The Dominican Republic is so large and the population is so big, that we see where this group is talking about a possible five locations within the Dominican Republic at a minimum,” he said.
Culmer has met with the group two times already, and is headed back at the end of April to finalize plans for the franchise opportunity.
“I was supposed to go at the end of March, but my mother passed away unexpectedly on March 29. As such, I had to postpone my trip, so I’m going to go this month to further the discussions with this group. Once we have a firm commitment and we’ve signed and gone through that process, then I could be more open to share what it is. But we’re progressing in that manner, and it will be definitely through franchising. That is the model moving forward for Tropical Gyros, no more corporate operational store expansions, rather just developing a production component to support logistically all franchises in different countries.”
Tropical Gyros is undertaking this Dominican Republic initiative after having lost $500,000 after its Freeport operation closed down. The Freeport franchise first opened in May, 2024.
Culmer had endured a Bahamas Industrial Tribunal matter which saw him have to terminate his former manager for departing from the restaurant’s recipe that he was mandated to abide by. Culmer said the change in practice affected the way the food tasted and turned customers off from the brand. Culmer also told the tribunal that there was a theft ring at the Freeport location.
Culmer, in evidence submitted to the industrial tribunal, said: “In September 2024, it was discovered that there was a massive theft ring within the restaurant to the tune of $63,000 in inventory over expenditures. It was pointed out that during the months of July and August, our cost of goods far exceeded the normal business model costing upwards of 91 percent of our revenue.
“As an example, in August 2024 we achieved revenues of $73,000, but spent on inventory alone $66,430, representing 91 percent of our revenue. Once I was able to certify this I met with management… and expressed that I would be conducting a full audit to determine who was responsible and, if they were caught, I would prosecute to the full extent of the law.
“At the end of September we achieved sales of $69,250 but only spent $44,187 – [$22,243] less on inventory, but yet only doing $4,000 less in sales. This proved to me that the theft has now been curtailed,” Culmer said.
