Huey Magoo’s Lands 15 New Units in Houston as Texas Growth Surges
Texas expansion is gaining momentum for Huey Magoo’s after SMR Capital Group signed a 15-unit franchise development deal aimed at growing the brand throughout Houston.
The agreement, signed last month, adds another major chapter to the chicken tender company’s statewide growth strategy.
Houston Becomes the Next Major Target
The new development deal will roll out over the next five years, giving Huey Magoo’s another large metro market after previously announcing Dallas-area expansion.
Earlier this year, franchisee Jha Rajput Patel Group signed a 12-unit Texas agreement, with eight restaurants planned for Dallas.
Now Houston joins the expansion pipeline.
Why Franchise Selection Matters
According to CEO and President Andy Howard, growth begins with selecting quality franchisees.
Huey Magoo’s considers itself a franchise-focused and franchise-driven company. Howard says leadership only moves forward with decisions that positively impact franchise partners.
That strategy continues to guide market expansion.
Texas Means More Than Just Growth
Texas is personal for many members of the executive team. Several leaders acquired Huey Magoo’s in 2016 after years working at Texas-based competitor Wingstop.
That prior experience gives the brand additional insight into the local chicken category and consumer demand.
SMR Capital’s First Restaurant Venture
This partnership marks the first restaurant investment for SMR Capital Group, but CEO Muhammad Ali brings extensive business experience across multiple sectors.
His background includes:
- IT services
- Medical distribution
- Commercial real estate
- General contracting
Ali said he searched for a concept offering strong economics, appealing products, and the ability to scale in Houston, where he is based.
Huey Magoo’s checked every box.
He also praised the brand’s image and the outlook for standalone restaurant units.
Operations Team Already in Place
To strengthen execution, Ali brought in Jason Gilbert as:
- Operating Partner
- Vice President of Operations
The company believes this added restaurant leadership, combined with Ali’s market knowledge and team-building experience, creates a strong launch platform despite Texas being highly competitive for chicken brands.
Smaller Prototype Creates More Opportunity
Howard said the company’s newer prototype is helping drive franchise interest.
The 88-unit chain launched a 1,500-square-foot store model last year, replacing the previous 2,500-square-foot footprint used earlier.
Advantages include:
- Lower opening costs
- Flexible inline spaces
- Drive-thru opportunities
- Broader format choices
- Easier market entry
Howard noted some franchisees strongly prefer drive-thru locations, while others want smaller stores requiring less capital.
The best option often depends on land values and rent conditions in each market.
First Houston Store Planned This Year
Ali said SMR Capital is reviewing both prototype formats and drive-thru possibilities while searching for the right real estate.
If the numbers and location work, the company will proceed.
The first Houston restaurant is expected to open later this year.
Grassroots Marketing Strategy
Before opening, the team is investing time in leadership hiring and local awareness.
Plans include:
- Building a strong social media presence
- Visiting schools
- Engaging churches and mosques
- Connecting with community groups
- Becoming a recognizable neighborhood brand
A Major Texas Opportunity
Howard said the company has long wanted to expand aggressively in Texas, and Houston is a major milestone.
He added that Huey Magoo’s believes it has the right partners in Muhammad Ali and Jason Gilbert to build success in one of the largest and most dynamic markets in the state.
