Huey Magoo’s Texas Expansion With 15-Unit Houston Deal

Huey Magoo’s is accelerating its Texas growth strategy after SMR Capital Group signed a 15-unit development agreement last month to expand across the Houston metro area. The deal represents another major milestone for the fast-growing chicken tender brand as it builds momentum in one of America’s most competitive restaurant markets.

Although this marks SMR Capital’s first move into restaurant operations, both Muhammad Ali, CEO of SMR Capital Group, and Andy Howard, CEO and President of Huey Magoo’s, expressed strong confidence in the brand’s future across Texas.

Franchise-Driven Growth Remains the Priority

For Howard, sustainable growth starts with choosing the right franchise partners. As Huey Magoo’s continues expanding through multi-unit agreements, leadership remains focused on franchisee success.

Howard emphasized that every strategic decision is measured against one key question: Will it help the franchise community? If the answer is yes, the company moves forward.

That franchise-first mindset has become a core part of the brand’s expansion model.

Texas Momentum Continues to Build

Huey Magoo’s officially entered Texas in February when franchisee Jha Rajput Patel Group signed a 12-unit development deal. Under that agreement:

• Eight locations are planned for the Dallas market
• Additional Texas development remains underway

Now, the Houston expansion gives the brand a second major foothold in the state through a five-year development timeline with SMR Capital Group.

Texas Connection Runs Deep

Texas holds personal significance for several members of the Huey Magoo’s leadership team, including Howard. A group of executives acquired the brand in 2016 after previously spending years with Texas-based chicken competitor Wingstop.

That background gives the company additional familiarity with the Texas consumer market as it expands statewide.

Why SMR Capital Chose Huey Magoo’s

Muhammad Ali said his first priority was identifying the right quick-service concept after deciding to enter the restaurant industry. He evaluated brands based on:

• Strong unit-level economics
• Appealing product offerings
• Growth potential in Houston
• Scalable restaurant models

Huey Magoo’s stood out immediately.

Ali noted he was impressed by the branding and the outlook for the standalone unit model. He added that execution now depends on strong staffing, service standards, and effective marketing.

Experienced Leadership Beyond Restaurants

While this is SMR Capital’s first restaurant venture, Ali brings extensive experience from multiple industries, including:

• IT services
• Medical distribution
• Commercial real estate
• General contracting services

Recognizing the need for restaurant operations expertise, Ali appointed Jason Gilbert as operating partner and vice president of operations.

Combined with Ali’s Houston market knowledge, operational scaling experience, and team-building background, the group believes it is well positioned to compete in what Ali described as a red ocean chicken market in Texas.

New Prototype Strengthens Expansion Opportunities

Howard said one of Huey Magoo’s strongest differentiators is its updated restaurant prototype.

The 88-unit brand launched a 1,500-square-foot model last year, significantly smaller than its previous 2,500-square-foot format.

Benefits of the new prototype include:

• Lower startup costs
• Greater site flexibility
• Inline store opportunities
• Drive-thru options
• Faster development potential

Howard added that incoming franchisees appreciate the ability to choose a format that best matches their market.

Some prefer drive-thru units, while others want smaller stores with lower opening costs. Often, the best decision depends on local land prices and rent levels.

Houston Openings Targeted for This Year

Ali said SMR Capital is currently evaluating both the smaller prototype and possible drive-thru locations as it searches for ideal real estate opportunities.

He expects the first Houston-area restaurant to open later this year.

For Ali, site selection remains simple: if the real estate makes sense, the group will move forward.

Community Marketing Already Underway

Before launch, SMR Capital is focused on building strong leadership and management teams while creating local awareness.

Marketing plans include:

• Building an engaging social media presence
• Connecting with schools
• Reaching churches and mosques
• Working with community organizations
• Becoming a familiar local brand

Texas Expansion Vision Becoming Reality

Howard said the company has long wanted to scale aggressively in Texas, and Houston is a major part of that plan.

He believes Huey Magoo’s has found the right development partners in Muhammad Ali and Jason Gilbert to grow in one of the state’s largest and most dynamic markets.