Chris Dharod of SSCP Management on Generational Leadership, Real Estate Expansion, and Preserving Family Legacy

As a part of our series about 5 Things You Need To Run A Highly Successful Family Business, I had the pleasure of interviewing Chris Dharod.

Chris Dharod is President at SSCP Management Inc., an award-winning, family-owned and operated company with a portfolio of high-profile restaurant brands and real estate holdings. The Dallas-based company is a leader in the restaurant industry featuring successful brands such as Cici’s, Sonic Drive-In, Applebee’s, and Roy’s. SSCP Management’s real estate practice focuses on portfolio acquisitions, individual property purchases, multi-family investments and retail assets.

Chris oversees day-to-day operations at the company’s more than 400 franchise restaurant locations. He also leads SSCP’s implementation of strategy, organizational changes, investment opportunities, execution of contracts, and ensures overall excellence at each restaurant location.

Dharod has led SSCP’s recent foray into expanding its real estate holdings, with several new acquisitions of highly successful restaurant brands, medical and office buildings, retail stores, shopping centers and multi-family housing properties. Under his direction, the company has gained an extensive amount of retail, multifamily and industrial square footage in several major and emerging markets including Atlanta, Austin, Dallas-Fort Worth, Houston, Kansas City, Oklahoma City and San Antonio.

Prior to taking on the role of president in 2019, Dharod served as Vice President and Chief Operating Officer for SSCP focusing on operations, strategy, and development. He has been engaged with the family-owned business since he was 15 years old.

Dharod began his career as an associate for CIT where he assisted with refinancing and recapitalizations. He quickly gained notoriety for his work in financial modeling, credit and valuation analysis, and legal document reviews to become a key figure in investment recommendations to the credit committee.

While completing his undergraduate degree from Southern Methodist University’s Cox School of Business, Dharod gained valuable experience working at JP Morgan Chase and ValueScope, Inc. He also spent time studying at the London School of Economics. He is a proud SMU alumnus, often working to support his alma mater and promote its programs and the importance of higher education.

Dharod takes an active approach to community outreach, staying involved with SSCP’s non-profit arm, the Puja Foundation, and the company’s other philanthropic efforts to assist employees and the communities it serves. He is a member of the North Texas Food Bank Young Professionals Committee and stays active in the Lone Star Young Presidents Organization Chapter of Dallas.

Thank you so much for joining us in this interview series! Before we dive in, our readers would love to learn a bit more about you. Can you tell us a story about what brought you to this specific career path?

I have been engaged with my family business since I was 15 years old. Prior to taking on the role of President in 2019, I served as Vice President and Chief Operating Officer, where I focused on strategy and development. While continuing to be involved with SSCP, I attended Southern Methodist University and graduated from the Cox School of Business in 2011. During my time at SMU, I interned at JPMorgan Chase & Co., studied at London School of Economics and after graduation was an associate at CIT all before entering my family business full time. While I knew all along that I wanted to work with my family at SSCP, I felt it was important to gain a wide range of experience before entering the family business.

Can you share the most interesting story that happened to you since you began this career?

As we’ve amassed many concepts, we’ve also accumulated many interesting stories over the years. One story that sticks out to me is when my father acquired the DFW Applebee’s locations just days before a test of a Veterans Day Offer was scheduled to occur at one location and the offer went viral. Seeing an opportunity to expand our reach and serve Veterans across the metroplex, my father decided to roll out the “Veterans Eat Free” offer at all his newly acquired DFW Applebee’s locations in just a matter of days after acquisition. This tradition was quickly adopted by all 1600+ Applebee’s nationally and then we had several our competitors also join. It is incredibly special all of the good our restaurants and teams have created, not just in our stores, not just in Applebee’s, but in the entire restaurant industry.

What do you think makes your company stand out? Can you share a story?

Our company is unique in that it is a family business in the truest sense. Our team members are all family, and we take pride in the loyalty seen throughout our company. Team members are promoted time and time again, and many who began in entry level positions, now lead large parts of our organization.

Are you working on any exciting new projects now? How do you think that will help people?

We have a few exciting projects in the works and are looking forward to sharing them with the Dallas community in the coming months. Our team has helped us bring these projects to life and we are thankful for the hard work and dedication that has gone into these new ventures. We will be looking to add some acquisitions that will broaden our portfolio and open up additional employment opportunities to work for our rapidly-growing company. With the opportunities we have on the horizon, I hope to showcase the fruitful feeling of owning a successful family business and the impact it can have on generations to come.

None of us can achieve success without some help along the way. Is there a particular person who you are grateful towards who helped get you to where you are? Can you share a story about that?

My father is the most intelligent and incredible person I know. He helped me build the foundation of knowledge that led me where I am today. Over the years he has shared with me all he knows about business leadership, and it never ceases to amaze me how he’s redefined the path to success as a graduate from the school of hard knocks, as opposed to an Ivy League MBA program.

How have you used your success to bring goodness to the world? (We can answer this based on Chris’s bio unless there is something specific, he would like to talk about here)

Over the years, we worked with our affiliates to donate over $500,000 to charitable organizations that provide aide to hunger, education, and child welfare causes. We also work closely with the North Texas Food Bank to help feed those who may be facing food insecurity in our own backyard by hosting annual events and ongoing fundraisers. As mentioned above, our family gives back to Veterans every year with our annual systemwide Veteran’s Day offer. We also are proud to be involved with the Puja foundation, which strives to assist employees of Apple Texas and Apple Houston Restaurants who are struck by disaster, catastrophe, and the unexpected loss of loved ones.

How do you define a family business? How is a family business different from a regular business?

We consider an organization a family business when there are multiple family members influenced by generational leadership. We are dedicated to each other in a unique way because we are all in this business to carry on our family’s legacy. We have not sold a restaurant in over 10 years, which is a testament to the strength and fortitude of our family brand.

In your opinion or experience, what are the unique advantages that family-owned businesses have? (We can use information we already have to answer this question unless Chris has something specific in mind.)

Family-owned businesses are unique in that everyone is aligned on the common goal in a deeper way than other organizations. With the best interest of SSCP in the forefront of every team member’s mind, we can quickly align on goals and execute tasks. Having the comfort of working with family allows for a certain level of trust to openly share new ideas for change and innovation. Although we must be disciplined in separating work from family life, having deeply rooted connections and generational leadership truly aids us in expanding our footprint and reaching new heights together.

What are the unique drawbacks or blind spots that family-owned businesses have? (We can use information we already have to answer this question unless Chris has something specific in mind.)

Being unable to separate family from work can set back progress in a family-owned business. It is crucial to separate family issues from work and work issues from family time. Generational gaps can be blind spots within family-owned businesses as well. At SSCP, we ensure innovation and openness to change are a forefront of everyone conversation to ensure our business never remains stagnant and continues to grow year-after-year.

What are some of the common mistakes you have seen family businesses make? What would you recommend to avoid those errors? (We can use information we already have to answer this question unless Chris has something specific in mind.)

I think a common mistake within many family businesses is not keeping certain aspects of the family and business compartmentalized. I have seen families torn apart because of a business error or disagreement, which is why we place great importance on ensuring family matters and work matters are kept separate. There is no reason to cancel Thanksgiving dinner or not show up to someone’s birthday for a work-related disagreement — work is work but family is forever.

What advice would you give to other CEOs or founders of family businesses to help their employees to thrive?

(Haven’t I answered this in the 5 things about a leader?)

Listening and empathy are the most important skills a CEO or founder can have. It is important to listen to how your team is feeling and what they are thinking. Being diligent about quickly aligning all team members on goals is essential as well. I’ve found that taking time to ensure everyone is aligned on the goal or task at hand prior to start is incredibly beneficial to the overall success of our organization, but more importantly to the happiness of our employees.

How do you define “Leadership”? Can you explain what you mean with a story or example?

Leadership is the ability to empathize and listen to your team while maintaining a steady forward climb. Having a leader with the ability to reassure the team, while keeping the organizations best interest at heart, is crucial.

Here is our main question. What are the “5 Things You Need To Run A Highly Successful Family Business”? (We already have this portion but are needing examples for each of the 5 things) Please share a story or example for each.

1.Empathy: It’s important for families to empathize with one another because it provides a way for every member to understand each other’s positions and allows for differences of opinion. This creates a sense of unity, sets boundaries for each family member, and keeps the working environment safe and prosperous.

Example: From an early age, I could tell that my father had to work very hard to balance the needs of numerous departments of people. I understood that he had to make decisions that may not always be popular but were in the best interest of the company. He always responded with respect and understanding to my family members and other company members. By observing this, it is something that I try to emulate every day.

2.Compartmentalizing: Use compartmentalization to separate what happens at work from your family relationships when communication has broken down. Never let work carry over to home.

Example: I’ve seen other families fall apart because the businesses fall apart or segregate. It is important if something gets rocky at the company one day it doesn’t lead to canceling Thanksgiving dinner or not showing up to someone’s birthday. Work is work, but family is forever.

3.Boundaries: It is important to respect each other’s boundaries and space when dealing with all types of issues. In a family business this is even more important for the sake of the company. Having healthy boundaries gives each person a voice while building in guidance for interactions to keep the working environment safe and prosperous.

Example: From a young age, I have watched my father handle stressful situations and conversations within the family business. I have learned the importance of approaching conversations based on the person’s personality and preferences. There have been times when business has been brought up at family events, such as Thanksgiving, and my father and I both kindly remind everyone that family time is family time, and work can wait.

4.Communication: Establishing a culture where you can communicate openly instead of letting emotions fester and snowball into more is paramount. Communication is imperative to the success of the business and strength of the family.

Example: In the board room everyone will not always agree on everything, but it’s important to not let a disagreement in the board room spill over to the dinner table. Any disagreement at work should stay there and not be something brought into other aspects of everyday life. Good communication, along with trust and respect, all help prevent this from happening.

5.Planning: Planning empowers family members to participate in the business in a valuable way and helps establish clear responsibilities, processes, and contingencies to keep the family aligned. This allows for better empathy, communication, and boundaries to keep both the company and family running smoothly.

Example: It is important to make un-interrupted time to step back and have discussions about everything going on. I am fortunate to have family members I get to work with where we regularly spend the time to discuss and align. When we all know where we want to go and how we want to get there, the ride is much smoother and more enjoyable.

We are very blessed that some of the biggest names in Business, VC funding, Sports, and Entertainment read this column. Is there a person in the world, or in the US with whom you would love to have a private breakfast or lunch with, and why? He or she might just see this if we tag them :-)

I would love to sit down with so many leaders but if I could pick just one, I would pick Indira Nooyi. She is a fellow Indian-American business executive who has inspired me in many ways. I’ll fly to her to meet her and pick up the bill!

You are a person of great influence. If you could inspire a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. :-)

I believe we need better education for more people. For a long time, I have felt that the playing field is not equal for school-aged children. I believe all children need equal access to quality education thorough their early years of development to set them up for future success and to avoid their suppression from social and economic mobility. Something I believe could help with this issue is subject experts and adults volunteering to work within the schools to assist in teaching the children valuable life skills and eye-opening career options can greatly help to develop schools.

How can our readers further follow your work online?

https://www.linkedin.com/company/sscpmanagement/

Thank you so much for joining us. This was very inspirational.