Wheat State Pizza expands to the Show-Me State

Business partners Keegan Jones and Shawn Herschend are bringing Lawrence, Kan.-based Wheat State Pizza to Springfield, with plans to open in May at 3821 S. Campbell Ave.

Jones, who worked for Wheat State at a store near Baker University in Kansas during his senior year, learned about the ins and outs of the business and got to know key management, including founder and president Ryan Murphy.

Herschend studied Wheat State on visits to Jones and was impressed.

“I had been looking for something to get into business with,” Herschend said. “We started talking to Ryan Murphy and things kind of fell into place.”

Murphy is confident that Jones and Herschend are the right team to take Wheat State out of Kansas given their community ties and the strength of their chosen location.

“That area is going to be really good,” Murphy said. “It has really high traffic. Springfield has room for a couple more locations as well as smaller communities to the south that could support another store.”

All told, the pair will have around $200,000 invested in the enterprise on opening day. Jones estimates the duo will come close to hitting Wheat State’s $125,000 average new store cost estimate. Pizza ovens cost about $15,000, Jones said, and the mixer will cost at least another $10,000. There’s also a $20,000 franchise fee, with the rest of the expenses covering operating costs and advertising.

Finding funding

Herschend has taken care of raising most of the needed startup capital, tapping his grandfather, Jack Herschend, co-owner and former CEO of Herschend Family Entertainment, which owns Silver Dollar City and 17 other properties nationwide, for some of it.

“Most of it has been coming through me or my family connection,” Shawn Herschend said. “I’m taking a loan out and then loaning it back to the business.”

While exact figures were not given, the elder Herschend said Shawn has far more invested in Wheat State than he does.

Jack Herschend said he’s thrilled with the opportunity to help his grandson, noting that it reminds him of when his own parents sunk $7,000 into the show cave business when he was 17.

“I’m so proud of Shawn for striking out on his own,” he said. “Whether he is successful or not he is going to learn more than ever in college.”

Going for growth

The Springfield store will be No. 12 for the Wheat State franchise, and one of four or five set to open this year, according to Murphy.

Until now, growth has built from the original Lawrence, Kan. store, which opened in 2004, to other locations in Kansas, including several near Kansas City.

While Murphy declined to provide revenue estimates for Jones’ and Herschend’s store, he said delivery revenues can make or break the venture.

“In your first year it is hard to make a dollar,” Murphy said. “The ideal situation is that they will. Most of our (stores) have shown a profit (in the) first year. The location is everything, and the product speaks for itself.”

Jones and Herschend hope to grow beyond a single store, and they hope to lock in the Springfield-Branson area for expansion.

“We have first right of refusal basically,” Jones said. “We have a verbal agreement with Ryan. It is contingent on this store doing well. The actual agreement costs $5,000. We have very little doubt that the store will succeed, but you have certain costs you don’t want to put down immediately.”

Jones, Herschend and Murphy all stressed the freshness of the food, which includes Wheat State’s own whole-wheat crust. Wheat State also mixes its own red sauce, chops fresh ingredients and grates its cheese in-house.

Jones and Herschend have tapped childhood friend Dustin Males for a management position at the new store. The duo estimates they’ll need a minimum of 15 employees to start, and to fill those jobs, they’ll hire people they know – some of whom already are working in the pizza business.

Males has several years of experience working in pizza restaurants, and he said he’s looking forward to helping his friends manage and grow Wheat State. He’s also looking forward to getting his own stake as a result of his efforts.

“We’ve been talking about profit-sharing or opening up another one in Branson or Springfield in the near future,” Males said. “I’d probably get a big stake. I’m hoping.”