Southern Rock Star: McAlister’s Deli’s largest franchisee nears 100 units

Title: CEO

Company: Southern Rock Restaurants

No. of units: 97

Age: 58

Family: Married 37 years, 2 children

Years in franchising: 25

Years in current position: 10

David Blackburn is reaching for 100.

His Tennessee-based Southern Rock Restaurants operates 97 McAlister’s Deli shops in seven states, including Ohio, Indiana, Tennessee, and Georgia. That makes him the largest franchisee in the system. With more stores already in his pipeline and a 50-unit development agreement in his pocket, his quest for 100 is most likely to turn into 150. Last fall, Blackburn also had the honor of opening the 500th McAlister’s Deli. Pretty good for a kid who started as a busboy at a Bonanza Steakhouse restaurant in 9th grade.

At 58, Blackburn has spent more than four decades in the restaurant industry. He’s been everything from that Bonanza busboy to the CEO at a fine-dining establishment. He worked his way up the management ladder, becoming regional vice president of operations and vice president of business development of O’Charley’s before owning and operating a small upscale Italian restaurant for several years.

“I avoided franchising for 16 years,” he says. “I spent many years at several brands making other people lots of money.” That stopped when he invested in his first McAlister’s in fall 2011. He says he liked the food—and the fact that McAlister’s had a great reputation in his area and was looking to expand there. “McAlister’s sets itself apart from other fast-casual competitors with an expanded menu, table service, and emphasis on guest engagement,” he says.

Blackburn built his empire through a mixture of acquisitions and new store openings. Though he’s “forging the path” to 150 McAlister’s locations, Blackburn also is excited about the possibility of diversifying his portfolio. “We are exploring multiple pathways to growth if we can find something as compelling and strong as McAlister’s,” he says.

Today he is no longer routinely involved in day-to-day operations. However, he says, “I insert myself into calls and meetings when needed, and I make calls during my travel time.” Blackburn says he plans to organically grow about 10 locations a year and perhaps pick up some existing locations if they fit his geographic strategy. PERSONAL

First job: I started at Bonanza in 1979 as a busboy.

Formative influences/events: When I was in 9th grade, I had an older brother who was a football star. I played tennis instead, became a top-tier player in Nashville, and was being watched by colleges. I had a friend who was working at Bonanza and encouraged me to apply. The manager, Jimmy Conklin, interviewed me and I started working a couple of days a week, ultimately giving up tennis to work in the restaurant. The tennis coach from Belmont College helped me get a scholarship for academics, and I went to Belmont for a year before dropping out to work in restaurants full-time. I also worked in an accounting firm for 2 years during high school and during that college year. Today, I own my own restaurants and an accounting firm focused on franchise accounting.

Key accomplishments: I have a fantastic family. I have been married for 37 years. My wife and I actually worked at Bonanza together. We have two kids and two grandchildren, and both of our kids are part of the organization. My daughter is the director of HR, and my son is the integration manager for the accounting business. We have 97 successful McAlister’s locations and more coming online, including a 50-unit development agreement.

Biggest current challenge: The biggest current challenge is supply chain: shortages, late trucks, missing product, etc. This makes things hard for our teams to serve our guests. Additionally, manpower is, and always has been, a challenge. Our industry is a people business, and we happen to sell food. Inspiring people to do a great job is job #1. We can trace every problem and obstacle to the lack of the right person in the right spot. Today, this is the hardest it has ever been. We have been shifting since pre-Covid to accommodate a different workforce and maintain our economics with seemingly more success than many of our competitors with all our dining rooms open.

Next big goal: We are posturing to become a portfolio company and want to bring on other brands in the next couple of years.

First turning point in your career: My first big break was when my GM asked me to stop bussing tables and become the dishwasher. The bus tubs were heavy, and I wanted to […]

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