Case Study: Kareem's Nationwide Expansion of Naz Halal Through ScaleMates

Mar 7, 2025

Lilac Flower

Background

When Kareem Mohmend opened his first Naz Halal restaurant in Flushing, Queens in 2018, he had modest ambitions of creating a sustainable business that served authentic halal cuisine to his local community. A former teacher with a passion for his family's recipes, Kareem had invested his savings of $220,000 into that first location, which quickly became a neighborhood favorite.

"The first two years exceeded all my expectations," Kareem recalls. "We were profitable within six months, and by the end of year two, we had lines out the door during peak hours. I started thinking about a second location, but I was already working 70-hour weeks. I couldn't imagine splitting my time between two restaurants without sacrificing quality."

Despite growing demand and encouraging financials, Kareem found himself at an impasse that many successful single-unit operators face: how to scale without spreading himself too thin operationally.

"I had the capital for expansion and the proven concept, but I was the operational lynchpin. Everything from vendor relationships to staff training ran through me. I interviewed several potential general managers, but no one showed the commitment level the business required. I didn't want to be just another absentee owner watching quality decline."

The Turning Point

Kareem's breakthrough came when a fellow restaurant owner introduced him to ScaleMates in early 2023. The operating partner model immediately resonated with his growth dilemma.

"The concept was so obvious once I heard it, but it hadn't occurred to me before," says Kareem. "Instead of hiring managers who had limited skin in the game, I could partner with experienced operators who would invest alongside me and bring the same ownership mentality to new locations."

The ScaleMates Strategy

Working with ScaleMates, Kareem developed a systematic expansion strategy:

  1. Standardization: Documenting all operational systems and recipes to ensure consistency across locations

  2. Partner Profile: Creating a detailed profile of his ideal operating partners (5+ years in restaurant management, cultural fit with Naz Halal's values)

  3. Market Selection: Identifying high-potential markets with strong demographics for halal cuisine

  4. Partnership Structure: Developing a scalable model where operating partners would invest 15-20% for a corresponding ownership stake

"ScaleMates didn't just find partners – they helped me create a replicable system for evaluating and onboarding them," Kareem explains. "This wasn't about random expansion; it was about sustainable growth with the right people in the right markets."

Rapid Expansion Results

Within 24 months of implementing the operating partner model, the results were remarkable:

  • Expansion from 1 location to 7 locations across three states

  • New markets included Miami, Orlando, Los Angeles, and San Diego

  • Average time from partner matching to location opening: 4.5 months

  • Six of seven new locations profitable within 5 months

  • System-wide same-store sales growth of 18% year-over-year

The financial impact was equally impressive:

  • Revenue growth from $1.2M to $8.4M annually

  • Overall profitability increase of 380%

  • Corporate overhead kept below 8% of total revenue

  • Estimated business valuation increase from $900K to $12.6M

  • Kareem's role shifted from hands-on operator to strategic growth leader

The Operating Partner Advantage

The success of Kareem's expansion relied heavily on the quality of the operating partners ScaleMates helped him identify:

"These aren't just managers – they're co-owners who think and act like founders," Kareem emphasizes. "When Ahmed in Miami is ordering supplies, he's spending his own money. When Samira in Los Angeles is training staff, she's building her own business. That level of commitment simply isn't possible with traditional employment arrangements."

The operating partners have thrived as well. On average, they've seen annual compensation packages of $110,000-$140,000 (including salary and profit distributions), with equity values increasing 40-60% in their first two years.

Looking Forward

With the success of his initial expansion, Kareem has set ambitious goals for the Naz Halal brand:

"We're targeting 25 locations by 2025, all through the operating partner model," he says. "ScaleMates has helped us build a partner pipeline that makes this entirely achievable. The best part is that growth actually improves quality rather than diluting it, because we have committed owner-operators in each location."

For Kareem, the transformation has been personal as well as professional:

"I went from working 70-hour weeks in a single restaurant to leading a rapidly growing brand. I now spend my time on menu innovation, brand development, and supporting my operating partners. ScaleMates didn't just help me expand my business – they helped me reimagine what was possible."