Angry Crab Shack Navigates Tariffs Without Raising Prices

Strategic Purchasing and Operations Support Franchisee Profitability

Tariffs on imported goods are roiling the economy, affecting the price of everything from computers to cars to apparel. 

According to the Budget Lab at Yale, the average U.S. import tax is now at its highest level since the 1930s.

Andy Diamond, president and CFO of Angry Crab Shack, says when it comes to restaurants and other food-related businesses that rely on imported goods, tariffs have many scrambling to keep menus stable and margins intact.

For some, the solution is to pass the cost onto consumers, but that’s not Angry Crab Shack’s strategy.

Instead, Diamond says the brand’s broad purchasing ability, which includes multi-vendor bidding, labor-efficient portioning changes and operational savings, helps hold the line on prices and protects both guests and franchisee profitability.

“Our guests are hard-working families and value-minded consumers. If we respond to every cost increase with a price increase, we might protect this week’s margin, but we’d erode long-term trust and volume,” Diamond says. 

That mindset is helping the brand continue its expansion, both nationally and internationally, despite market turbulence. 

Fun, Messy, Memorable

Founded in 2013 by former professional football player Ron Lou, Angry Crab Shack, which specializes in unique seafood boils and Asian-Cajun fusion cuisine, has grown to more than two dozen locations – including in the United Kingdom – with the goal of reaching 100 locations by 2030.

“Growth in this environment isn’t an accident; it’s the result of discipline plus a clear value proposition,” Diamond says. “We’ve kept our financial fundamentals strong, stayed true to who we are as a brand, and continually improved our processes and product instead of chasing quick fixes.

“Guests come to Angry Crab Shack for a fun, messy, memorable experience they can afford to share with family and friends — and we protect that experience fiercely.”

Navigating Tariffs

Angry Crab Shack has become a standout because of its festive New Orleans-style atmosphere and unique seafood boils, so navigating tariffs is particularly onerous because so much seafood is imported. 

And while Diamond says the method of sourcing seafood has not changed, the new trade policies have added other variables to the process. “Shrimp has gone from one of the simplest items on our menu to source to a product with the most volatility,” Diamond says.  

To mitigate market changes, particularly when it comes to sourcing those critical items, Angry Crab Shack purposely avoids dependence on a single source.

Instead, the brand works closely with long-term distributors to buy ahead when it makes sense. “Rather than chasing the lowest spot price, we’re prioritizing partners who can give us consistent quality and more predictable pricing,” says Diamond.

This multi-vendor purchasing strategy benefits franchisees. 

Achieving Franchisee Profitability

Unlike independent operators that can struggle with shrinking margins, Angry Crab Shack franchisees benefit from the brand’s scale, vendor leverage and predictable procurement.

“Franchise partners face the same storm as independent operators — but they’re in a better boat,” says Diamond. “Because of our scale and established relationships, we can negotiate more favorable pricing, lock in programs, and get vendors to prioritize us when supply gets tight. We also do the heavy lifting on vendor vetting, food safety, quality control, and tariff impact analysis at the brand level.”

Owners can also tap into a purchasing system that’s already diversified, with negotiated programs and vetted suppliers. “They’re not waking up one day to a surprise 30% spike because their only vendor ran into a tariff or supply issue,” Diamond says. “We’ve usually got alternatives ready.”

Diamond says more franchise operators are looking for concepts that understand how to navigate volatility. 

“Our willingness to tackle tariffs, supply chain challenges and pricing strategy head-on, and to share those solutions with franchise partners, makes the model more attractive in uncertain times.”

Angry Crab Shack Franchise Model

Uncertain times, or not, the Angry Crab Shack franchise model is attractive for other reasons: The concept provides four revenue streams – dine-in, delivery, takeout and catering – and the company is also seeing much success opening in second-generation spaces which cuts down opening costs. 

New owners are provided with marketing and operations support, training and access to vendor relationships.

Bottom line? There will always be volatility in the restaurant business, but Angry Crab Shack is proving that strategic plans can help take the guesswork out of success for its franchise partners.

“Instead of each franchise trying to solve tariff and supply chain issues on their own, they plug into our contracts, our intel, and our playbooks,” Diamond says. “That stabilizes their costs and lets them stay focused on running great restaurants and taking care of their teams and guests.” 

Visit the Angry Crab Shack franchise website for more information.