Chowing down with Cherba hut founder; Scott Jennings.

• Author: Peterson, Eric
• Position: DINING - Interview

Scott Jennings opened the first Cheba Hut, a marijuana-themed sandwich shop, in Tempe, Ariz., in 1998. Now there are 16 locations, including five in Colorado and several on the way for Madison, Wis., and San Diego. Each Cheba Hut shares commonalities--psychedelic rock posters, Kool-Aid on tap, local art works (Denver's is bookended by John Denver and John Elway), and the stock menu; although each shop has a unique "Secret Stash" of sandwiches only available at that particular location.

[ILLUSTRATION OMITTED]

Nebraska-born and Fort Collins-based, Jennings is now plotting to open 225 franchisee-owned stores by 2025. He's bringing in a new CEO to lead the charge because "sometimes it's best to get out of your own way."

CoBiz: Why has Colorado emerged as such fertile ground for Cheba Hut?

Jennings: I love Colorado. I've been here 10 years now. From Fort Collins, I can be in the sticks in an hour. I can be in the city in an hour. I can be in the mountains in an hour. I think it's the freest state in the Union.

Denver's probably ground-zero. It's [Cheba Hut's' first downtown location. Most of our others we've done around colleges. In Colorado, the weed theme is basically over because it's so common here.

CoBiz: What is the state of the U.S. sandwich market?

Jennings: They call it a free market. It's free entry, but it's really a monopolistic market. When you look at the big picture, Jimmy John's has 1,200 units. Subway, with 39,000 units and $5 subs, doesn't even count. Quizno's screwed up when they went after Subway. For us, it's getting these franchisees in place to grow. I'm such a customer guy and...