Maid-Rite is an American casual dining restaurant chain known for its loose meat sandwiches. The origins of Maid-Rite can be traced back to the 1920s in Muscatine, Iowa. Since then, Maid-Rite has grown to operate hundreds of locations across the Midwest. But who actually owns and operates the Maid-Rite restaurant chain today?
The History of Maid-Rite
Maid-Rite was founded in 1926 by Fred Angell in Muscatine, Iowa. Angell devised a method for steaming and grinding fresh ground beef into loose meat to be served on buns. The sandwiches became an instant hit, and Angell opened additional Maid-Rite locations throughout Iowa and Illinois. By the 1930s, Maid-Rite had expanded to 10 restaurants.
In the 1940s, Angell brought on partners to help franchise Maid-Rite. This allowed for rapid expansion, with Maid-Rite growing to 30 locations across the Midwest by the 1950s. Angell retained ownership over the core Maid-Rite restaurants in Muscatine and the surrounding area.
In the 1960s and 1970s, Maid-Rite continued to expand by franchising. With loose meat sandwiches rising in popularity, Maid-Rite reached over 100 locations. The chain developed into a Midwestern staple, becoming most concentrated in Illinois and Iowa.
By the 1980s, the Maid-Rite company was made up of three components: the original company-owned restaurants run by the Angell family, franchised restaurants run by entrepreneurs, and restaurants licensed to use the Maid-Rite name and food processes.
Maid-Rite Ownership Today
Today, the Angell family still owns and operates the core 10 Maid-Rite locations in Muscatine, Iowa and the surrounding region. These restaurants make up the original Maid-Rite company. The Angell family businesses have also maintained ownership over the Maid-Rite trademark.
The remaining Maid-Rite locations are a mix of franchised and licensed stores. There are over 100 independently owned and operated Maid-Rite franchise locations, predominately in Illinois and Iowa. Franchise owners pay an upfront fee and ongoing royalties to use the Maid-Rite name and food processes.
There are also around 50 Maid-Rite licensed locations in smaller communities throughout the Midwest. These licensees serve Maid-Rite’s signature loose meat sandwiches but do not pay ongoing royalties. However, the Angell family maintains tight control over the Maid-Rite food recipes and operational standards at these licensed locations.
Recent Company Leadership
While the Angell family has owned Maid-Rite for nearly 100 years, some recent developments have shaped the company’s current leadership structure:
- In the 2000s, Tom Angell took over as president of the Maid-Rite company from his father Gene Angell.
- In 2010, Tom Angell brought on his daughter Whitney Angell White to serve as vice president and help oversee franchise operations.
- In 2020, Tom Angell retired and passed on leadership of the Maid-Rite company to Whitney Angell White.
Therefore, Whitney Angell White currently serves as the president of the Maid-Rite company. She represents the 4th generation of Angell family ownership. The company headquarters remains in Muscatine, Iowa.
The Parent Company: Angell Enterprises
While the Angell family owns and operates the original 10 Maid-Rite restaurants in Muscatine, Iowa, these core company restaurants are part of a larger parent company. This parent company is known as Angell Enterprises.
Angell Enterprises is a family-owned holding company that oversees and supports all of the Angell family business operations. In addition to the original Maid-Rite restaurants, Angell Enterprises includes:
- The Maid-Rite company itself, which franchises the Maid-Rite brand.
- A number of commercial real estate properties.
- Other hospitality businesses in Muscatine, including a hotel and banquet facility.
Whitney Angell White serves as president of both Maid-Rite and the overarching Angell Enterprises. Keeping the company privately owned allows the Angell family to have full control over the strategy and direction of Maid-Rite as it continues evolving.
Maid-Rite Franchise Ownership
The 100+ franchised Maid-Rite restaurants are owned and operated by franchisees who buy into the Maid-Rite system. Here is a summary of how Maid-Rite franchise ownership works:
- Franchisees pay an upfront franchise fee to open a restaurant, typically between $25,000-$35,000.
- Maid-Rite franchisees sign a 20-year franchise agreement with the option to renew for 10 years.
- Franchisees pay a royalty fee equal to 3% of sales to Maid-Rite corporate.
- Maid-Rite provides training and support to franchisees but franchisees make their own hiring and purchasing decisions.
- The Maid-Rite company owns the food recipes and processes. Franchisees must follow these closely.
Maid-Rite is currently looking to expand its franchise business further, targeting growth across the Midwest. This model allows Maid-Rite to grow its footprint without taking on all the risk that would come with owning all the restaurant properties itself.
Financial Performance
As a privately owned company, the full financial performance of Maid-Rite is not publicly reported. However, some estimates of its annual revenue include:
- The 10 original company-owned Maid-Rite restaurants generate around $20 million per year in sales.
- With over 100 franchised locations averaging $1 million in sales each, total franchise revenue likely exceeds $100 million annually.
- Added together, the Maid-Rite system is estimated to generate more than $120 million in total annual sales.
Maid-Rite has been able to maintain steady growth over its 90+ year history. The loyal customer base drawn to its signature loose meat sandwiches provides a reliable source of revenue across both company-owned and franchised locations. Adjusting the ownership model has allowed Maid-Rite to scale while staying true to its small-town Midwest roots.
Conclusion
While the origins of Maid-Rite trace back to a single location in Iowa in the 1920s, the brand now consists of over 200 locations across multiple states. The Angell family maintains ownership and leadership over the core Maid-Rite business. At the same time, franchising has allowed Maid-Rite to achieve widespread growth and recognition throughout the Midwest.
Maid-Rite has stuck to its roots with loose meat sandwiches still at the heart of the menu. This gives the chain a clear brand identity that resonates with customers looking for some Midwestern comfort food nostalgia. As Maid-Rite moves into its second century, the ownership structure combining company stores, franchising, and licensing provides a balanced strategy for the brand to continue expanding its realm of loose meat sandwich lovers.