17 BEST FRANCHISE DEALS
These chains are a cut above the rest.
With Smalls Sliders, former NFL player Drew Brees scores again.
These chains are a cut above the rest.
With Smalls Sliders, former NFL player Drew Brees scores again.
A
For
Franchisees have such great stories to share about how they landed in the restaurant space.
For example, married couple Judd and Erica Wishnow own about 180 Taco Bell and Dunkin’ locations, and it all began with a meetup between the two during the Great Recession. Both entered the encounter feeling aimless about their lives. But as they conversed, a spark was lit, and an adventure toward franchising would come soon after. The duo named the business Southpaw in honor of the movie “Rocky,” which tells the tale of a left-handed boxer who doesn’t have much direction until he meets Adrian—the love of his life.
Another one is Nick Crouch, cofounder of DYNE Hospitality Group, which is Tropical Smoothie Cafe’s largest operator. His franchising journey started years ago when he entered a location in St. Johns, Florida, and fell in love with the brand. His experience was so great that he borrowed funds from his family and bought the store from the existing franchisees. Crouch joined forces with fellow Tropical Smoothie operator Glen Johnson in 2017 to form DYNE, which now has more than 100 shops.
Franchising is a business that brings people together from all paths. Former NFL quarterback Drew Brees spent 20 seasons playing football and now sees himself as an investor and franchisee of key food and beverage concepts. That includes Smalls Sliders, an emerging chain looking to expand across the South.
Crouch, the Wishnows, and Brees may work with different brands and food segments, but the entrepreneurial spirit remains the same. An unprecedented global pandemic did little to quench
that passion—that’s the story across the entire franchise industry. The International Franchise Association reported earlier this year that franchising will add approximately 254,000 jobs in 2023. Growing at 3 percent, total employment is projected to reach 8.7 million. Also, Oxford Economics found that franchises pay nearly 3 percent higher wages than similar independent companies, offer better benefits, and provide more generous leave.
For the 13th straight year, QSR published “Best Franchise Deals,” which highlights quick-service chains that have differentiated themselves in terms of costs, incentives, and other factors. The 2023 edition features 17 fast-food and fast-casual brands that are attracting new and existing operators alike.
Two new editions are part of the special report this year. First, we have “15 Franchisors to Watch,” honoring a group of brands that fell shy of “Best Franchise Deals,” but are knocking on the door. Additionally, we decided to establish a “Best Franchise Deals Hall of Fame” to celebrate concepts that have made several appearances on the list throughout the years.
There’s a reason why eight out of the top 10 quick-service brands in America (in terms of U.S. systemwide sales) are majority franchised. There are challenges (i.e. California’s proposed statewide fast-food council and talks around what defines a joint employer), but a major truth stands above all—franchising is a proven method of business that’s worked for decades, and it will continue to do so in the future.
Ben Coley, EditorThere are headwinds to face, but the industry has ‘growth’ written all over it.
Red Gold® is here to make your customers’ saucing experience easy and enjoyable with a variety of dunk cup options such as: ketchup, marinara, BBQ, and seafood cocktail sauces. The dunk cups are a convenient way to enjoy on-the-go, delicious sauces with menu items such as fries, burgers, chicken tenders, shrimp, and so much more!
Scan to request a free sample kit!
SHAKE SHACK ENDED NATIONAL PICNIC MONTH in July with an opportunity to reconnect guests with its Madison Square Park, New York, origins. To mark the debut of its plant-based menu items, the brand invited customers to embrace the outdoors and "veg out" with a specially curated picnic kit.
The "Veg Out" picnic kit was designed for two people and included the Veggie Shack, crafted from fresh, seasonal vegetables and grains. Accompanying this innovation was the Non-Dairy Chocolate Frozen Custard, a dessert made with NotMilk. The picnic kit came with an assortment of beverages, cutlery, dishware, napkins, and fun extras like a frisbee and playing cards. Guests were also supplied with picnic essentials such as the Dock & Bay Picnic Blanket, Supergoop! Play Sunscreen, S’well Ice Cream Chiller, and a Bluetooth speaker.
Customers were able to reserve a picnic kit ($60/kit, a $250+ value) via a microsite and pick it up at select locations across the U.S.
The fast casual found a clever way to release new plant-based items.
SevenRooms, a guest experience and retention platform, released its “2023 Dining Discovery Report” in June, which explored how customers are finding new restaurants and booking reservations.
THE COMPANY SEPARATED DINERS INTO FIVE SPECIFIC CATEGORIES:
Spontaneous Diner
25 PERCENT OF SURVEYED RESULTS
A person who visits restaurants frequently, but opts to walk in as opposed to scheduling reservations.
21 PERCENT
A person who prefers to order online instead of dining inside a restaurant.
19 PERCENT
A person who goes out to restaurants for special occasions and takes time to pick the right place and menu.
16 PERCENT
A person who has a list of restaurants he or she chooses from, and rarely strays from it.
8 PERCENT
A person who values new experiences and dines at numerous restaurants to try different menus and cuisines.
CONSUMERS AREN’T FINDING VALUE IN THIRD PARTIES:
Only a small percentage of customers reported using third-party platforms like OpenTable (9 PERCENT) and Resy (3 PERCENT) to discover new restaurants.
HOW CUSTOMERS ARE FINDING RESTAURANTS:
61% 22%
33% 14%
29% 13%
61+33+29+22+14+13
Friends, family, and coworkers
Google Social media Social media influencer Yelp Restaurant publications
GUESTS PREFER BOOKING DIRECTLY:
29 % say they receive better experiences at the venue when they book direct.
27 % say they feel restaurants prioritize their reservation when they book directly.
MAIN TAKEAWAY:
45 % will call the restaurant directly to book a reservation.
35 % will book through a restaurant’s website.
61% believe making a reservation directly rather than a third-party reservation platform is better for the restaurant.
29% want to do all they can to directly support restaurants.
17 % say third-party platforms are too expensive for restaurants, and customers don’t want them to incur that cost.
Restaurants must use each guest experience as an opportunity to build loyalty, with personalized touches from start to finish. Operators must control their own data and nurture relationships with guests based on preferences, past visits, and upcoming special occasions.
There comes a time for many young limited-service restaurant entities to choose whether—and when—to grow their businesses beyond one, two, or even a handful of units.
At about the same time, another important determination must be made: Whether to expand via company-owned stores or by taking the franchising route.
“It’s one of the fundamental decisions you have to make as a brand,” says Clay Dover, chief executive of Dallas-based Mexican chain Velvet Taco, which has about 40 company-owned units. “It reverberates throughout” the enterprise and is critical to the way the business operates.
Both growth directions have their advocates.
For some operators, the beauty of owning their stores is that it provides a stronger means of control—in everything from real estate to hiring to the supply chain.
“It allows you to create a guest experience that can be hard when you have franchisees,” states Matt Copenhaver, chief development officer at Salad and Go. As a farm-to-fork entity, having that control is key to vertical integration that creates leverage and pricing power over time.
Others, however, see faster growth possibilities and other benefits in franchising, which has “a proven playbook,” explains Chris
Concepts differ on whether to choose franchising or solely corporate development.
Ives, chief financial officer at Bubbakoo’s Burritos, based in Wall, New Jersey. “The overhead is much less, and you don’t take on all the liability.”
“At a very high level, there is no doubt that control is much higher by a company” that owns its stores, notes Michael Keller, chief executive of Jeremiah’s Italian Ice, which operated its own units for the first two decades in business before deciding to begin franchising.
“In franchising, you are adding a third party and that makes it more challenging,” he adds. “But that’s why a good franchising agreement needs to be in place.” Making sure the franchisees have strong controls gives great command over the product quality.
At Velvet Taco, company officials had a meeting about its growth potential and decided to expand by owning its restaurants.
As an upscale, chef-driven chain, the steps Velvet Taco can take and the flexibility it has—with the menu, food quality, technology, real estate, hiring, and equipment—means “we control all those elements and keep our hands around the brand,” Dover says.
“Obviously, the biggest benefit is we are getting 20 percent vs. 6 percent” royalty a restaurant franchising company receives on average, he adds.
Currently, the company operates in six states and is growing its restaurant count at a 25 percent annual clip. “We have a lot of unique items with specific ingredients,” including components for just one menu item, Dover says. “We think that is important for the brand. It doesn’t allow us to open 100 restaurants a year, but that is what makes Velvet Taco unique.”
At Phoenix, Arizona-based Salad and Go, which has soared to more than 105 units in four Southwest states, “franchising has never been part of the strategy,” says Copenhaver. He points out that the private company is nearly doubling its number of eateries every year.
Overseeing all phases of restaurant operations and growth— from forming relationships with a variety of farmers to choosing ideal real estate locations—“gives us the most flexibility” for the best guest experience and profitability, the chief development officer states.
In terms of logistics, for instance, “we know where every piece of lettuce came from, who touched it and how many times it was touched,” from fields to Salad and Go’s production facilities to the stores where it’s served, he explains. “We own that end-toend supply chain.”
As a drive-thru and grab-and-go operation—stores are small with no seating—real estate is important to the company’s vertical integration strategy. The company gains a mass presence in existing markets before moving on to the next one.
Of course, most restaurant entities that have chosen to franchise began as company-only businesses. That’s what happened at Bubbakoo’s Burritos, which was launched on the Jersey Shore in 2008 by two Johnny Rockets veterans.
The beach-themed chain had grown to nine units when its first franchised store opened in 2016 by established, locallybased restaurant owners. It’s a strategy that continues, as Bubbakoo’s has expanded to over 100 eateries in 16 states.
“They chose to do that for growth and financing,” says Ives, who joined the company last year. In addition to having a revenue stream from franchise fees and royalties, and letting franchisees make all the capital outlays, “the big benefit is we have stores in areas where those franchisees have much better knowledge of their markets. “
The challenge is finding the right operators, “It is critical. Forget about the money,” he states, “It is more the operational background,” ranging from knowing how to run a business to hiring good people. The parent maintains control through precise franchisee pacts and strenuous monitoring.
Many companies begin franchising after a few years, but Orlando, Florida-based Jeremiah’s Italian Ice went more than two decades before selecting that expansion route, teaming up in 2018 with growth and development consultant Pivotal Growth Partners.
As Jeremiah’s “closed in on a quarter-century, there were increased discussions on how to accelerate growth” beyond the company’s then 20 or so stores, mostly in Central Florida, Keller says. In the past four years, the chain has grown to six times that number in 11 states.
Unlike Bubbakoo’s, which has an extensive menu, Jeremiah’s offerings are simple—over 40 flavors of Italian ice, three ice creams, and a gelati layering of ice and ice cream. That lessens the need for franchisees to have an operational background if training and oversight are good.
“We put great care in quality training,” benchmarking, and providing feedback, Keller says. “Franchisors need to be protectors of the brand,” but issues like product development will remain inhouse to maintain brand control.
While franchised chains typically have corporate restaurants, company-owned ones usually don’t have franchises, although there are ways for company-owned enterprises to branch out a bit.
Velvet Taco, for example, has licensed units in two food halls owned by the chain’s founders and is adding a spot inside Houston’s Hobby Airport with a concessionaire. “These are one-offs,” Dover states. “They’re more of a hybrid at this point.”
was a full-service restaurant with long wait times,” Gemignani says. “It wasn’t convenient, it wasn’t fast, and it didn’t sell by the slice, so I listened to my customers and opened a fast casual right next to it.”
Slice House gradually expanded over the next decade. A second restaurant opened in 2016 in Walnut Creek, California. It now serves as the brand’s corporate headquarters.
Gemignani licensed three additional brick-and-mortar spots in the state and opened several licensed units in casinos. He also launched a concessions business, selling pizza by the slice in major league sports stadiums in San Francisco and Las Vegas.
Gemignani didn’t consider franchising until 2020 after the concept proved to be “almost COVID-proof.” Like many pizza brands, a longstanding focus on takeout and delivery carried it through pandemicrelated disruptions.
FOUNDERS: Tony Gemignani, George Karpaty, Trevor Hewitt, and Bill Ginsburg
HEADQUARTERS: San Francisco
YEAR STARTED: 2021 as franchisor entity
ANNUAL SALES: NA
TOTAL UNITS: 43 as a franchise company, 60 including licensed units at stadiums and casinos
FRANCHISED UNITS: 42 (8 open and 34 in development)
TONY GEMIGNANI CLOSED HIS ESTEEMED INTERnational Pizza School last summer, but he hasn’t given up on teaching the craft of pizza making. He now focuses on training the restaurant operators who are helping
expand his fast-casual pizza concept Slice House nationwide.
Owning 30 restaurants, including Tony’s Pizza Napoletana, Capo’s, and Toscano Brothers in San Francisco, as well as Pizza Rock in Las Vegas, Gemignani has been operating multiple pizzerias in California and Nevada for years. He also is a four-time Guinness Book of World Records holder and winner of “Food Network Challenge.” Franchising at this level is a relatively new venture.
The 13-time World Pizza Champion first opened Slice House by Tony Gemignani in 2010 next to his flagship restaurant, Tony’s Pizza Napoletana, in San Francisco’s North Beach district.
“You could say Slice House was everything people didn’t like about Tony’s, which
Slice House also benefited from an extensive menu that showcases multiple regional pizza styles, including New York, Detroit, California, Sicilian, and Grandma-style, which takes inspiration from home-cooked pies and features a distinctly thin crust.
“There’s been a renaissance of pizza styles over the past few years,” he says. “When you were bored with the same thing you always ordered during the pandemic, you could come to us and try something new, and it probably became your favorite pizza.”
Preparing the brand for expansion required some adjustments. The three licensed restaurants lacked a standardized design and equipment package. That meant Gemignani had to devise a franchise model that would preserve the brand’s scratchmade ethos while enabling consistent and easy execution.
“We have a variety of
“It wasn’t just an overnight decision,” CEO Jay Rushin says. “[ Franchising ] was always a long-term plan, but it took years of effort to get the brand to a place where we could expand nationwide.”
The chain streamlined its service model and franchise support systems before going public with the decision.
However, it did not take long for H&H Bagels to attract potential franchisees. According to Rushin, the labor model is attractive, with lower operating and rent costs. From the minute leases are signed, opening day is typically four to six months afterward, with assistance every step of the way.
“It’s a category which has been underinvested for years now,” Rushin says. “We think there’s a huge opportunity in the category itself … and it’s attracting new potential franchisees every day.”
These potential franchisees, Rushin says, are from a “wide spectrum,” including current and past operators of other brands or those who are new to franchising in general.
The world of franchising is a complex process, yet brand after brand has made the plunge to accelerate growth and explore new markets. The International Franchise Association cites the number of franchise establishments will grow by 1.9 percent in 2023, or almost 15,000 units.
For young companies, the strategy might have been planned from the get-go, but what of legacy chains, that after decades in the business, have decided to finally add a franchise program to the menu?
H&H Bagels has been a beacon of breakfast in New York since the 1970s, using the same recipe and artisanal water bagel method for over 50 years. The well-known brand has been featured in media hits such as “Seinfeld,” “Sex and the City,” and “The Office.”
Recently, H&H Bagels released its franchise program, providing turnkey operations and support procedures on everything from site selection to customized technology systems.
Already, the company has inked expansion deals in Florida, California, and Virginia, to name a few. This is all part of an aggressive growth spurt unlike any other in H&H Bagels’ history.
Restaurant franchising experience is a plus, but not mandatory with the right management team. If requirements are met, Rushin is open to those who “want to own and build something for themselves and their family.”
H&H Bagels is not the only legacy brand to reveal a franchise program during the pandemic. The Original Rainbow Cone, a Chicago staple, is headed in the same direction.
The company got its start in 1926 when “Grandpa Joe” Sapp combined slices of chocolate, strawberry, Palmer House ( New York vanilla with cherries and walnuts), pistachio, and orange sherbet ice cream on one cone. Since then, Rainbow Cone has become a fundamental part of Chicagoland.
When Joe Buonavolanto III joined the Rainbow Cone team as vice president of franchise operations, his vision was to expand the ice cream shop into as many markets as possible in a tasteful manner.
He serves in the same role for The Buona Companies. Buona, another Chicagoan icon, is the original Italian beef restaurant with four decades of operation under its belt.
Buona’s partnership with Rainbow Cone allowed the shop to grow, such as an ice cream truck concept in 2020 H&H
With NFL legend Drew Brees at the forefront as an investor and franchisee, the disruptive Smalls Sliders is grilling up plans for explosive growth.
Twelve years ago, Drew Brees was sitting in a Jimmy John’s near Purdue University, enjoying his favorite order (a No. 9, no cheese, add hot peppers) for what felt like the first time in ages.
He’d been a devoted fan for a decade, starting with his early days at the school’s freshman dorm, when he relied on the sandwich to fuel late-night study sessions. But neither San Diego, where he started his pro-football career with the Chargers, nor
New Orleans, where he cemented his legacy with the Saints, had any stores.
“I was ordering that sandwich three times a week during my college days,” Brees says. “After I left, I could only get my Jimmy John’s when I was visiting Purdue, which was only a couple times a year. Ten years after leaving college, I was back in the shop at Purdue, taking a bite out of a No. 9, and I finally said, ‘That’s it. I have to bring this to New Orleans.’”
He called a former teammate who worked in the corporate office and asked what he needed to do to get the sandwich chain down in The Big Easy. As luck would have it, the company had just opened up the territory for franchising.
That call was the first step in a journey that would see Brees become a franchisee, co-owner, or investor in a growing number of franchises, including Jimmy John’s, Dunkin’, and Everbowl, to name a few. It also set him on the path toward Smalls Sliders, an emerging quick-service chain on the precipice of explosive growth.
The brand serves a hyper-focused menu of cheeseburger sliders from a roughly 800-squarefoot shipping container affectionately dubbed “the can.” Brees is gearing up to open his first franchised location later this year, but he’s been at the forefront since day one. The former NFL quarterback and future Hall of Famer is an initial investor and co-owner alongside Brandon Landry, the founder of Walk-On’s Sports Bistreaux.
This isn’t the first time they’ve teamed up to drive the rapid expansion of a restaurant born in the Bayou State. Brees has been Landry’s partner at Walk-On’s since 2015. The sports bar had three corporate locations and was looking to grow through franchising when the pair first linked up eight years ago. Brees bought into the business on the franchisor side, taking a 25 percent stake and leveraging his perspective as a Jimmy John’s operator to support the brand’s rapid franchise expansion. Since then, the footprint has grown to more than 75 locations nationwide.
Brees says all of his business ventures begin with a genuine affinity for the brand. With WalkOn’s, it was the elevated menu, stellar customer service, and “incredible vibe” within the restaurant that caught his attention. He first encountered the brand after Landry opened a location in downtown New Orleans.
“I’d always wanted to open up a sports bar concept with a focus on great food,” he says. “The first time I walked into that Walk-On’s, I looked around and said, ‘I don’t think I could build it any better than it’s been built right here. I need to figure out who did this.’”
Brees reached out to Landry to find out more about the busi-
ness. He learned that the name stemmed from the founder’s time as a walk-on basketball player at LSU. Unlike star players on scholarship, Landry was an unrecruited and unsigned athlete. That meant he had to work hard and hustle to keep his spot.
Landry used that walk-on mentality–putting the team above everything else and persevering no matter what hand you’re dealt–as a theme to run his sports bar. The result was a people-first culture that feeds the organization from the top down and starts with humble leadership.
“That was something I learned through my time as an athlete, too,” Brees says. “It’s all about having the right people in the right places, and making sure everybody embraces their role and understands that they’re part of something much greater than themselves.”
Five years ago, Brees and Landry were on an airplane heading to the grand opening of a new Walk-On’s location. That’s when Landry laid out his vision for a sliders-themed restaurant.
“The idea started with the fact that sliders were one of the best selling items on the menu,” Brees says. “Brandon told me, ‘I think we’ve got something there. We could open up a sliders concept that has a really simple menu, but let’s take it to the next level with these repurposed shipping containers as the look and feel of the brand.’”
Brees jumped on the opportunity to help build something from the ground up. He came on board as an initial investor and put up the capital for the proof-of-concept restaurant, rounding out a team of entrepreneurs that also included Landry’s nephew, Jacob Dugas, and LSU professor Scott Fargason.
The team built Smalls with franchisees in mind. It’s all about keeping things simple and focused, starting with the limited menu centered around the namesake product. Customers choose from four combos, including one, two, three, or four sliders–made with premium beef and proprietary sauces–paired with fries, drinks, and milkshakes.
“We have less than 10 food ingredients in the restaurant, where a lot of quick-service restaurants have several hundred ingredients that they have to manage,” says chief development officer Richard Leveille. “Operators are really excited about that.”
Operators also are excited about the brand’s modular design. The shipping containers are equipped with walk-up windows, drive-thru lanes, and outdoor patios in lieu of indoor dining rooms. They operate with around half of the labor typically required in an average quick-service restaurant, and routine expenses like utilities and dumpster requirements are lower.
One of the biggest advantages of housing a brand in a shipping container is real estate flexibility since the footprint only requires around half an acre of land.
“There are companies out there that are well-capitalized and have great concepts, but they’ve been slow to grow in certain markets because they’re picky on real estate,” Leveille says. “We have to be picky, too, but most concepts can’t fit on half an acre, so our competition for real estate isn’t the traditional
quick-service segment.”
The cans also enable faster speed to market. They’re manufactured, permitted, and pre-inspected in Florida before being shipped across the country and dropped on an outparcel. Leveille says the process shaves anywhere from three to eight weeks off the typical construction schedule.
Smalls opened its first can in September 2019 in Baton Rouge, not far from the original Walk-On’s restaurant. Since then, it’s grown to nine units throughout the state as of early September. Brees says the units are consistently outperforming expectations, opening “anywhere from $65,000 to $85,000 a week,” with the latest debuts trending over $100,000. The system is tracking a solid AUV of over $2 million.
“When we started, we were thinking that if we could just do around $1.3 million in sales, we’d have a really good business,” he says. “All of the sudden, our average units are doing over $2 million. We’re really honing in on the unit economics piece. Could we push that to $2.5 million? Could we push that to $3 million?”
Smalls was built with a certain level of transactions in mind, but the first few cans quickly blew past those projections. And while the brand isn’t dealing with the same overhead expenses as its peer set, it’s still taking steps to make the four-wall economic model as strong as possible. The team is continually looking for opportunities to improve operations and unlock efficiencies with an eye toward increasing throughput and further reducing costs.
The first unit had one grill and one drive-thru lane, but subsequent locations have multiple stations and two lanes to better meet demand. Smalls experimented with the placement of its drive-thru menu board and how it communicates with employees inside the can. It landed on a model where workers take orders outside face-to-face instead of through a speaker. The company also has worked to decouple its supply chain from Walk-On’s and procure products further out in advance.
“We’re hyper-focused on operations, on systems, and on getting the build-out costs as low as we can,” Brees says. “We’re developing extremely strong vendor relationships and making these units and the business model as profitable as possible. We’re looking at all of those things on a daily basis and continuing to refine even more as the days go by.”
A big learning moment came last spring when the first franchised unit opened in Thibodaux, Louisiana. It was another debut that exceeded expectations, but the restaurant faced some product shortages and traffic problems that the company didn’t quite have the answers to.
“That unit just completely blew us away with the sales that it did, to the point where we said, ‘Whoa, this is even bigger than we ever thought it could be,” Leveille says. “We took a step back to really work on our foundation and make sure we’re offering franchisees world-class support.”
More pieces have come into place since then. Last summer, the brand secured an equity investment from 10 Point Capital,
a firm with an established track record of helping founders create thriving franchise brands. It was a natural extension of an existing relationship between 10 Point, Landry, and Brees. They joined forces four years ago to accelerate growth across WalkOn’s franchise system.
The company relocated its headquarters from Baton Rouge to Atlanta to gain access to a deeper talent pool. It also tapped Maria Rivera as its new CEO. The former Krispy Kreme executive joined late last year and quickly got to work assembling a team of leaders that will drive the brand into the future. Since taking the helm in November, she’s rapidly bolstered the support center staff and filled a slew of key positions across finance, IT, real estate, operations, marketing, technology, and more.
Smalls also finalized a growth plan that will see it head east toward the new headquarters and franchise support center. The expansion pipeline for 2023 targets markets throughout Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina, and Tennessee. The goal is to sell a sizable portion of those territories in the Southeast by the end of the year. That shouldn’t be a challenge, given the surge of demand Smalls is generating from potential franchisees.
“We can’t field the calls and the level of interest fast enough,” Brees says.
Those calls are coming from seasoned, multi-unit operators. Smalls currently has more than 60 units in the development pipeline, but that number is expected to reach triple digits by the time the calendar flips over to 2024. That will likely mean 10-20 franchisees that come in and commit to a territory.
“I’ve been involved with four or five franchise concepts in my life and consulted with others, and I’ve never seen this type of momentum,” Leveille says. “Our ability to meet the numbers we’re looking for—which are potentially several hundred units in our pipeline by the end of the year—I’m completely confident with.”
In June, Smalls signed the lease for a new location at Clearview City Center in Metairie, Louisiana, part of the greater New Orleans metropolitan area. The can will drop in Q4 and is part of a four-unit agreement with Brees. Jason Loerzel and Ben Smith, his franchise partners and former college football teammates, will join as co-owners. Their second can is expected to drop in the first half of 2024.
“Things are definitely moving,” Brees says. “Just like with Jimmy John’s and all the other businesses I’ve been involved in, I want to bring them to New Orleans. I always want to bring the brands that I love to the city that I love.”
The Metairie location is one of a dozen or so new cans expected to drop in 2023. Expansion also is slated for several markets in Louisiana as well as Flowood, Mississippi, which will be the brand’s first can outside of its home state. That should push the footprint to around 20 units. From there, the pace of growth could accelerate to 20-30 new openings annually as the company works toward its long-term goal of reaching over 400 locations via franchising.
With a high-quality craveable product, a community-driven culture, and strong unit-level economics, Brees believes that level of organic growth is within reach.
“We started from scratch in building this business and putting it in a position where we have the support structure in place to guide franchisees and really scale the brand,” he says. “What that takes is great leadership. We’ve found the absolute perfect person with Maria Rivera as our CEO. She’s put together an incredible team that’s going to help grow this brand to be a national presence and the best-in-class in our segment. We want to be the best-in-class not just with the sliders we serve and the customer experience we provide, but also with the work environment, both in the corporate office and in the can, and in everything else that we do.”
Sam Danley is the associate editor of QSR. He can be reached at sdanley@wthwmedia.comThis group of chains is striking agreements and growing meticulously, no matter the headwind.
Economic headwinds seem to be doing little to stop the growth of franchising.
This year, the number of U.S. franchise locations is expected to increase by almost 15,000, or 1.9 percent, to 805,000, according to the International Franchise Association’s 2023 Franchising Economic Outlook report. Also, the business is projected to grow by 4.2 percent to $860.1 billion, up from $825.4 billion last year. The IFA reported that the top 10 states for franchise growth are Texas, Illinois, Florida, Georgia, Tennessee, North Carolina, South Carolina, Arizona, Colorado, and Indiana.
But here’s the fact to circle—quick-service restaurants are predicted to witness higher growth than other industries.
Corey Nicholson, founding partner and CEO of Cadence Franchising, agrees with IFA’s thoughts on the size of the franchise economy exceeding pre-pandemic levels. His company experienced a drastic decline in franchise inquiries and application volumes in 2020 and 2021, but that was followed by a sharp increase throughout 2022. And that’s continued into 2023.
“Not only are we witnessing faster growth; it’s better growth,” Nicholson says. “Technology-driven sales processes led to deeper engagement from prospects, leading to advancement from more qualified buyers, setting the stage for more successful franchisees. Those successful franchisees led to a better brand story to tell all of the others and more referrals. It’s a chain reaction sparked by ambitious development teams, and made possible by powerful (and affordable) technology in the form of cloud-based franchise development software.”
Quick-service chains are appropriately positioned to thrive in the post-pandemic world, says Graham Chapman, president of 919 Marketing. He adds that customers are gravitating toward four quick-service experiences (drive-thru, kiosks, mobile pickup, and delivery) and that concepts offering all—or most—of these avenues can operate with fewer staff members and provide better convenience for customers.
Additionally, Chapman highlights that private equity investment and multi-unit operations have continued
GRAHAM CHAPMAN PRESIDENT 919 MARKETING
LORNE FISHER
CEO/MANAGING PARTNER FISH CONSULTING
STAN FRIEDMAN
PRINCIPAL CONSULTANT SENSIBLE FRANCHISING
MIKE DRUMM
BEER AND FRANCHISE ATTORNEY/FOUNDER DRUMM LAW, LLC
COREY NICHOLSON FOUNDING PARTNER AND CEO
CADENCE FRANCHISING
LIANE CARUSO FRANCHISE MARKETING CONSULTANT AND OWNER HELLOCMO
MICHELLE ROWAN
PRESIDENT AND COO FRANCHISE BUSINESS REVIEW
ALEX OSWIECINSKI CEO AND FOUNDER PROSPECT DIRECT
to dominate the conversation. To his latter point, look no further than Subway, the largest franchisor in the U.S. As part of a multi-year transformation, the sandwich chain is moving away from single-unit franchisees to partners who already have experience running other brands. In some cases, it happens on a pretty big scale—two years ago, Papa Johns made noise by striking a deal with Sun Holdings to open 100 restaurants across Texas through 2029.
“As labor costs rise and supply chain/real estate challenges persist, it becomes more and more challenging to achieve the financial freedom most franchisees/entrepreneurs desire owning and operating just one restaurant (or even just a few),” Chapman says.
The franchise model is still proving fruitful. For more than a decade, QSR has highlighted fast-food and fast-casual concepts offering the best opportunities for entrepreneurs to thrive in the restaurant business. The most recent edition features 17 companies fitting that exact mold.
This is the 13th Best Franchise Deals in QSR ’s history. Once again, we tapped our Franchise Council of experts to share their choices. These brands are in no particular order. ➜
0 to 8 percent of total net sales
TOTAL START-UP COSTS: $366,693 to $820,026
FEE: $1,000 for each renewal
MARKETING FEE: Up to 2 percent of total net sales
FRANCHISEE INCENTIVES: 50 percent off initial franchise fee ($12,500 instead of standard $25,000); 0 percent royalty for initial six months (standard royalty rate thereafter)
THE SKINNY: Penn Station’s growth plan has proven itself successful over the past couple of decades. The Ohio-based brand uses a 350-mile radius from its headquarters in Cincinnati, and currently, that leads to more than 1,000 whitespace opportunities. COO Craig Dunaway told QSR in October that the chain is faring well in markets such as Nashville, Detroit, and Charlotte because of its off-premises availability and the growing number of cold handheld options—a menu category that’s grown three-fold since 2020, Dunaway said. As of April, the chain had more than 100 restaurants in its pipeline, with hopes of one day becoming a 500-unit company. Some of its targets for growth are Detroit, Chicago, Atlanta, Charlotte, and Raleigh, among several others. It’s also important to note that Penn Station doesn’t shy away from single-unit operators either. The brand has nurtured these growth opportunities by making key hires and promotions in the past couple of years. For instance, Dunaway, who joined Penn Station in 1999, was promoted from president to COO in early 2022 while Lance Vaught was bumped from senior vice president of operations to president. A few months later, Russ Smith—with nearly 30 years of experience with brands like The Athlete’s Foot, Planet Beach, REGUS Business Center, and Quiznos—was hired as director of franchise sales.
ALEX PORTER CEO LOCATION3
DANIELLE WRIGHT
CHIEF DEVELOPMENT OFFICER
PREMIUM SERVICE BRANDS
QSR magazine’s Best Franchise Deals for 2023 were selected from a nomination process that ran from mid-May to mid-June. Finalists were reviewed by the Franchise Council, which selected their top choices from shared information and FDD data. Their top choices comprise the final list. Brands cannot appear for back-to-back years, but can return after a year off.
New to this year’s edition, we recognized 15 rising franchisors that are on the outside looking in and created a Hall-ofFame for concepts that have graced the Best Franchise Deals list several times.
“Penn Station is in our Hall of Fame, meaning they have achieved high satisfaction from their franchisees for 10-plus years. In the most recent survey done in October 2022, 93 percent of the franchisees participated in the survey. Here are some areas that stood out: 97 percent of franchisees rated the overall opportunity as excellent, very good and good—19 percent higher than the food and beverage segment benchmark of data; 74 percent of franchisees agree/ strongly agree that the total investment into the business, including both time and money, is consistent with expectations set when they came into the brand—18 percent above the food and beverage benchmark; 95 percent of franchisees would ‘do it again’ when asked about investing in the brand, knowing what they know today—21 percent above the food and beverage benchmark.”
“To be honest, I previously had no clue who they were. After some review and conversation with colleagues, this sandwich franchise is taking that sector by storm. Their owners are a fast-growing multi-unit group of investors and are a diversifying bunch. Excited to see what comes for them in the next 18 months.”
pany history. She brings more than 20 years of experience, and has worked across quick service, fast casual, casual, and fine dining. Along with hiring Somerman, Bubbakoo’s modernized its app and loyalty program in partnership with Thanx. Customers have the ability to earn rewards that can be exchanged for discounts and free items and have access to exclusive offers and promotions, three new levels of loyalty membership, and a hidden Backstage Menu. Back in June, the fast casual launched a scavenger hunt via its app, giving 15 consumers a chance to win free burritos for a year. The promotion, titled “Surfin’ for Burritos” tasked fans to uncover facts and share findings on social media. However, don’t expect technological innovation to extend to AI anytime soon. CEO Bill Hart told QSR that he doesn’t envision a robotic make line, but he is interested in what phone AI ordering and Chat GPT could turn into.
(this includes franchised and company owned locations)
RENEWAL FEE:
The greater of $10,000 or 25 percent of the thencurrent initial franchise fee
TOTAL START-UP COSTS: $794,000 to $1,341,500
MARKETING FEE: 2 percent of net sales
to $700,000
THE SKINNY: Bubbakoo’s Burritos is enjoying plenty of momentum as it moves through the year of its 15th anniversary. After falling just shy of triple digits in 2022, the fast casual quickly surpassed 100 early this year with the help of multi-unit operators Gerry Miguel and Perry and Fenil Patel. With that opening, the chain entered Connecticut for the first time. The fast casual also enhanced its marketing capabilities by hiring Mimi Somerman as the first CMO in com-
THE SKINNY: Equipped with a drive-thru-only model for franchisees, speed and efficiency is the name of the game for Scooter’s Coffee. Craig Bowman, who was promoted to vice president of learning and process in February 2021, said it’s his mission to determine how cars can move through the drive-thru at a swifter pace. It starts with focusing on each transaction. Through research, Scooter’s discovered that interactions between customers and employees can add eight seconds to the order process. The brand figures if that can be eliminated, with 120 customers in an hour, that could lead to another 10 cars over 60 minutes. As Bowman explained, the key to doing this is simplifying the menu—offering a better presentation and layout, reducing LTOs, and remaining aware of how complicated an order is. On that last point, Scooter’s has a complexity rating of 1-6 based on a variety of factors, and the chain’s goal is for every item to be between one and three. If a recipe ranks too high, it won’t be added to the menu, for the sake of speed of service and accuracy. The strategy seems to be working quite well. In 2022, same-store sales grew almost 6 percent, and the chain averaged an 18.01 percent net profit margin across all locations. The brand recently opened its Scooter’s Coffee Innovation Lab where it can refine how it prepares signature drinks.
“Scooter’s has been on a tear for five-plus years, establishing themselves as the ‘it’ brand in the $48 billion coffee industry. Their unique and compact business model, both the kiosk and drivethru coffeehouse, allows franchise owners to sell high-quality, high-margin products via a fast and efficient drive-thru that’s per-
fect for the modern-day customer. Moreover, after initially focusing on building out the Midwest, Scooter’s still has plenty of territory available on both coasts which other notable competitors can’t offer—something that is, and should be, quite appetizing to savvy multi-unit candidates.”
“Scooter’s Coffee, with robust AUVs in the fast-growing $48 billion coffee industry, has an attractive model to enter the coffee and beverage space. Scooter’s is known for their high-quality, handcrafted drinks, and fast drive-thru service. Real estate and creative store design is a strength, allowing the brand to tap into prominent highvisibility, small-footprint standalone sites that keep the drive-thru lines turning all morning. Backed by a robust franchise support system and community involvement, they emerge as a noteworthy franchise opportunity.”
“As a non-essential service that involves people leaving the house, coffee shops were hit hard by COVID-19, but coffee is back, stronger than ever. And, among my favorites in our ever-growing ‘frictionless’ world, is Scooter’s, a drive-thru coffeehouse chain committed to high-quality coffee drinks and customer-focused, speedy service as captured in the company motto: Amazing People, Amazing Drinks … Amazingly Fast! Each and every coffee drink can be served up hot, iced, or blended, and the menu also includes tea and smoothies along with a selection of pastries, sandwiches, and burritos. Founded in 1998 and franchising since 2001, the number of locations has more than quadrupled in the past decade from 100 in 2012 to the current total of 467, of which 25 are companyowned and all are located in the U.S.”
percent of Mountain Mike’s then current initial franchise fee
percent Advertising Cooperative, if applicable
$417,850 to $798,500
FRANCHISEE INCENTIVES:
DISCOUNT: 50 percent off the franchise fee for existing franchisees investing in additional units
DISCOUNT: 50 percent off the initial franchise fee for qualified U.S. veterans
Includes 50 percent off second franchise fee and another 50 percent off the third franchise fee
THE SKINNY: This year marks Mountain Mike’s 45th year of business, and it couldn’t have gotten off to a better start. The first quarter featured the chain’s highest sales day in company history and increases in system sales and same-store sales year-over-year. The brand also opened three new restaurants and settled deals for 10 locations, including a five-store agreement in Las Vegas. Mountain Mike’s attributed its fast beginning to promotional efforts that led to a 518 percent increase in wing sales and a 130 percent jump in buffet sales compared to the year-ago period. Additionally, the company implemented a Valentine’s Day campaign around its heart-shaped pizza that led to a 33 percent rise in sales throughout February versus 2022 and 23.1 percent growth in same-store sales on Valentine’s Day against last year. The company is continuing to show digital strength as well. In March, Mountain Mike’s passed 300,000 loyalty members, which equated to an 83 percent increase in year-overyear membership. In the past five years, the chain has expanded by almost 100 units. Last year specifically, the chain opened 20 locations, reached 250 outlets systemwide, and signed more than 25 franchise agreements for 38 locations, including five multi-unit deals. Among those openings was Mountain Mike’s debut in Texas, which is projected to become the brand’s largest market behind California. It plans to open 30 restaurants by the end of 2023 and have more than 400 locations by the end of 2025.
“Just look at the numbers—Mountain Mike’s AUV is $1,608,631, putting it within the top 25 percent of franchised restaurants. Although not as well-known as other pizza franchise giants, Mountain Mike’s has been around for over 40 years and is poised to grow its system into a household name. With its tasty ingredients and operational experience, you can’t go wrong with a pizza from Mountain Mike’s.”
“Mountain Mike’s Pizza boasts excellent AUVs over $1.6 million, leading to a strong ROI potential. Quietly building their brand and following patiently over 40 years, they are a bit of hidden gem in the $46 billion pizza space. Controlled growth, seasoned leadership
NEXEO takes communication beyond the drive-thru and into key areas of your restaurant, increases efficiency with voice commands and group conversations, and seamlessly supports voice AI ordering. And that’s just the beginning.
team, and a solid economic model puts Mountain Mike’s as a top contender for the best franchise deal.”
“Delicious product, love their wings. They are a premium product, but well worth it, and shows up in the margins for their franchisees, growing quickly from west to east, good opportunity to get in still early[ish]. Consistently great quality.”
7 percent of gross monthly sales
MARKETING FEE:
50 percent of the then current initial franchise fee
2 percent of gross monthly sales OTHER
technology fee, $745 per month
“Crisp & Green is most definitely onto something—doubling its units in 2022 and on pace to do the same in 2023. What’s their secret? For one—quality. More than ever, customers want fast-casual health food, and no one is doing it better at the moment than Crisp & Green. By solving the challenge of doing fast casual health food right [where so many others have failed], coupled with the fact that the healthy lifestyle trend does not seem to be fading anytime soon, be on the lookout for continued growth from Crisp & Green.”
“Crisp & Green is making impressive strides in the burgeoning $1 trillion healthy fast-casual market. For over a decade, they’ve been catering to the health-conscious consumer with their chef-curated, made-from-scratch menu. Their comprehensive support system also sets them apart; covering everything from real estate to marketing, with a driven founder that has a passion for health and wellness. Consequently, Crisp & Green emerges as a compelling franchise opportunity blending growth, performance, and innovation.”
“Fast, quality, healthy is a great market and the produce delivers on the promise of fresh/good [delicious]. The corporate brand is focused on health holistically and this brand fits into their portfolio brilliantly.”
TOTAL START-UP COSTS:
$860,400 to $1,393,000
THE SKINNY: Crisp & Green had 29 restaurants at the end of 2022, but that total is expected to reach 65 restaurants before 2023 finishes and 130 outlets by the conclusion of 2024. An impressive feat, considering the chain didn’t start expanding beyond the Midwest until late November 2021. Crisp & Green’s mission is to help smaller towns lacking healthy options and larger cities that want another option. The fast casual’s real estate team recently identified more than 1,7000 additional markets that fit its site criteria, giving the brand room to open more than 1,000 shops systemwide. All existing franchisees have multi-unit agreements, and many have expanded their initial deals. Chief among them is Salads & Smoothies LLC, an operator that agreed to a company record 40-unit development contract. It includes several territories in Minnesota, as well as Phoenix, Milwaukee, Indianapolis, Cincinnati, Cleveland, and more. That’s an addition to a preexisting 11-store agreement. The franchisee currently operates a handful of locations in Minnesota, but is expected to have 50-plus restaurants open by 2028. In November 2022, Crisp & Green announced the hiring of CEO Kelly Baltes, who succeeded founder Steele Smiley. The industry veteran brings more than 28 years of experience, including stops at Maggiano’s, Good Smoke Restaurant Group, Cheddar’s Scratch Kitchen, Olive Garden, and Red Lobster.
These brands are officially retired from Best Franchise Deals, but will be highlighted in future editions. As chains reach four appearances, they will be added to the list.
ROYALTY: 4.5 percent of all gross receipts
RENEWAL FEE: $10,000
TOTAL START-UP COSTS: $794,254 to $2,523,239
$30,000
MARKETING FEE: 1.5 to 3 percent of gross receipts
FRANCHISEE
Industry-low combined royalty and marketing fees, along with exclusive regional territories
THE SKINNY: Freddy’s development took a big leap in 2022 when it nailed down more than 140 new restaurant commitments and opened 37 locations, including debuts in North and South Dakota. Thanks to the franchise agreements with new and existing operators, the fast casual will build its presence in Illinois, Nebraska, South Carolina, and Texas, among other key markets. Amid this growth,
Freddy’s is diversifying its footprint. In 2022 the chain opened its second casino location inside Table Mountain Casino in Friant, California. Then in April, the brand unveiled its latest traditional restaurant design in Belleville, Illinois. The format, now available to prospective franchisees, comprises 2,400 or 2,800 square feet, an improved kitchen, and drive-thru lanes for standard and mobile orders. CEO Chris Dull noted that with 70 percent of business being off-premises, the company has been focused on developing restaurant prototypes that increase convenience and ease. Freddy’s anticipates 60-plus openings this year in more than 15 states, like Louisiana, Virginia, California, and Wyoming. The long-term goal is to surpass 800 locations by 2026, and Freddy’s has the necessary commitments in its pipeline to reach it. The company said U.S. franchising opportunities remain in the Northeast, Upper Midwest, California, Florida, Oregon, Washington, and large metropolitan areas such as Pittsburgh. Freddy’s first and second franchisees opened their first restaurant in 2004 and 2006 respectively, and both are still developing stores today.
“Years ago, Freddy’s was this quiet success story from the Midwest. For the past several years and with Thompson Street Capital’s acquisition, the brand has opened dozens of stores a year, added 140 new units into its development pipeline, and is approaching its 500th location. The secret sauce for the brand seems to be its highquality product offering that [in some markets has a cult following], tight operations, and extraordinary service and genuine hospitality. Under Chris Dull’s leadership, the brand’s potential seems to be endless.”
“Investing in a Freddy’s is investing in the almost lost art of service and hospitality. Freddy’s is growing rapidly [140 new units in development over the past year] because it marries nostalgic culture, which offers a customer experience similar to old soda shop hamburger counters, with legitimate financial upside—industry low royalty/marketing fees and $1.8 million AUV. This is a brand to monitor as existing franchisees and multi-unit operators continue to sign on with Freddy’s, an excellent indicator of a healthy franchise system.”
“Freddy’s was named the No. 1 high-investment franchise by Forbes magazine in both 2018 and 2019 [high-investment means an overall initial investment that exceeds $500,000]. Freddy’s may be better known to some for its frozen custard, but it has a growing fan base that comes for their mouth-watering, smash-style burgers
served up in a fun classic 40s–50s diner style atmosphere. Their menu is diverse with eight different signature burgers on the menu along with a patty melt, three different chicken sandwiches, and three styles of hot dogs. Culturally, Freddy’s has a lot in common with Jersey Mike’s. It too, boasts a people-first culture that runs through every channel of the business, from HQ to vendors and suppliers and of course, the franchisees and their families. Under the leadership of president and CEO Chris Dull, a highly skilled restaurant and franchise leader, Freddy’s is one to watch, as their dominance in this space seems destined to continue.”
ROYALTY:
only)
6 percent of net sales for all stores, except: (i) 7 percent of net sales for robotic kiosks and (ii) 6 percent of net sales for Auntie Anne’s co-branded stores, which we may increase in our sole discretion up to 7 percent of net sales
MARKETING FEE:
3 percent of net sales, except 1 percent of net sales for robotic kiosks
FRANCHISE FEE: $35,500, traditional store
RENEWAL FEE:
20 percent of the then-current initial franchise fee, except for food trucks and robotic kiosks. For food trucks: 20 percent of the then-current initial franchise fee for food trucks. For robotic kiosks: 50 percent of the then-current initial franchise fee for robotic kiosks
TOTAL START-UP COSTS: $367,150 to $830,600, traditional store without a drive-thru
THE SKINNY: As customers demand convenience, restaurants have dived deeper into automation, and Jamba is squarely among that group. The beverage chain has launched several Blended by Jamba robotic smoothie kiosks across the country in nontraditional locales, such as universities and colleges, travel stops, and malls. Last year, Jamba worked with Gestalt Brand Lab to create a new persona for the robot, resulting in kiosks that feature a mural and bright colors reminiscent of fresh fruit. In addition to the robot, Jamba offers a lineup of prototypes for franchisees—traditional, drive-thru, nontraditional, in-line, and co-brand. The company found room for menu
innovation last year with the limited-time rollout of boba tea, with Strawberry Bursting Boba and Sweet Tapioca Boba Pearls. Jamba even added an in-app menu category, called Boba Favorites, where customers could view ways to add boba to smoothies, bowls, and iced beverages. The launch was part of the chain’s brand marketing campaign, “Just Gotta Jamba,” a promotion created to celebrate employees and guests and capture the attention of Gen Z consumers. And to better reach customers, Jamba began testing CLTV, or customer lifetime value. It involves using artificial intelligence to send tailored offers to individuals instead of sending generic messages to several customers.
signed three new agreements that awarded territory rights for Louisiana, Colorado, and Michigan. There are plans to open 60-plus locations across those three states. Gong cha is looking to expand growth opportunities even further by adding direct franchising to its arsenal. Henry noted in June that the brand has sold about 60 percent of the U.S., so there’s a lot of untapped markets for operators, such as Arizona, Nevada, New Mexico, Utah, Illinois, Indiana, Hawaii, and a couple of spots in the Northeast. Yearly U.S. expansion nearly tripled between 2018 and 2021, and the concept is aiming for 500 units by 2025. And as Gong cha continues this domestic journey, there’s plenty of international footprints with demonstrated success, like the 900-plus South Korea, where it can learn best practices about entering a new market or trying menu innovation. The ultimate goal is to become the clear leader of the bubble tea category in the U.S., and Henry believes the chain is well on its way.
ROYALTY:
6 percent reported and paid monthly
RENEWAL FEE: (50 percent) of the then-current standard initial franchise fee for a Gong cha unit franchise, or fifty percent (50 percent) of the initial franchise fee if franchisor or any subsequent franchisor is not offering Gong cha unit franchises at the time of renewal
“While bubble tea as a menu item is not completely new, the growth of bubble tea-only businesses in the U.S. is strong. Gong cha seems to be leading this growth as they’ve reported opening more than 190 stores domestically since 2014. Internationally consumers know bubble tea well and Gong cha seems to be educating the U.S. consumer on its appeal. Their relatively simple buildout, inventory shelf life and ease of operations seem to be driving the brand’s growth. Its potential seems to only be growing as well with reports that the industry will hit $5.5 billion by 2031.”
MARKETING FEE:
1 percent of the gross sales of the store for the prior month, will be contributed to the National Marketing Fund and up to 2 percent for a Regional Marketing Fund
OTHER REGULAR FEES:
GRAND OPENING PROGRAM: Franchisee shall spend at least $2,000 to conduct a grand opening of the store.
TRANSFER FEE: $5,000, payable only if you seek to sell or transfer your business or a majority interest in it
TOTAL START-UP COSTS: $159,200 to $566,000
THE SKINNY: Franchisees are attracted to Gong cha’s bubble tea framework because of lower investment costs and simple operations, said Geoff Henry, president of the chain’s Americas segment.
ANY NOTES ABOUT FEES:
MULTI-UNIT DEVELOPMENT OPPORTUNITY FOR EXPERIENCED OPERATORS
•$35,000 franchisee fee for the first unit (total due at signing)
•$25,000 for the second unit ($10,000 deposit due at signing)
•$15,000 for each additional ($5,000 deposit due at signing)
The executive added that the brand is “highly effective” in both 250-square-foot kiosk locations and 900-square-foot streetside units. In the kitchen, most ingredients are ambient, meaning they don’t require refrigeration, and typically there’s induction cooking without stoves and hoods. Since Gong cha has been in the U.S., growth has been run by master franchisees. Last year the chain
$325,567 to $696,000
FRANCHISEE INCENTIVES: The Veterans Discount (20 percent discount for active duty service members, first responders and qualified U.S. military veterans) and Multi-Unit Development Opportunity
THE SKINNY: Jeremiah’s entered a new era in 2023, and not just because it surpassed 100 locations in the U.S. In June, the brand announced Michael Keller as CEO and president, replacing Jeremy Litwack, who founded the company 27 years ago. Keller has extensive snack and dessert experience, including roles as CEO of Pearson Candy Company, CMO of Dairy Queen, vice president of marketing for Jamba, and senior vice president of Baskin-Robbins. Jeremiah’s also brought on Erin Buono as its first director of research and development, promoted Julianna Voyles to senior director of franchise operations, and added Adam Hing as supply chain direc-
We have opportunities in select, prime markets and non-traditional venues for qualified restaurant operators and developers with varied incentives for development.*
• Widely recognized and loved brand in family dining where guests feel welcomed and can enjoy classic favorites and craveable menu innovations any time of day
• A powerhouse brand that is a part of Dine Brands Global, a publicly traded company and one of the largest restaurant groups in the U.S.
• A dynamic brand that aims to deliver on popularity, relevancy, adaptability, and support
• An established franchise system with a business model and flexible design from conversions to freestanding, endcap, in-line and non-traditional—adaptable across varied venues
tor. Since the brand launched franchising in 2019, it’s awarded more than 280 franchise shops across 120-plus groups. It’s witnessed a more than 500 percent increase in new units in fewer than four years, including the opening of 38 stores and entry into four states (Colorado, Nevada, Tennessee, and Alabama) in 2022. The objective is to open a record 45 locations in 2023. Jeremiah’s prides itself on equipping franchisees with proper technological tools. The brand uses PUNCHH, a subscription-based, app-centric loyalty platform. Using this company’s resources, the company launched J-List Rewards and saw 100,000 guests sign up in the first year. Now there’s more than 350,000 customers on the app, with 27 percent using the app during their visit on average. The menu features 40 rotating flavors, such as mango, red raspberry, strawberry-lemon, pumpkin pie, and Scoop Froggy Frog (mint chocolate chip).
“Jeremiah’s reports strong AUVs, approaching $600,000, at a much lower investment cost than most in the quick-service restaurant sector [$325K at the low end]. The brand has awarded more than 280 locations since it started franchising in 2019 and is supported by a savvy and experienced leadership team. Jeremiah’s has been on the forefront of key technology innovations, such as their Revel POS system and World Manager communications/training program, that streamline operations and enhance the guest experience. Jeremiah’s is certainly the hottest franchise in the frozen dessert category and definitely one to watch.”
1 percent
TOTAL START-UP COSTS: $887,000 to $1,800,00
THE SKINNY: 7 Brew is one of the fastest-growing emerging chains in the quick-service industry. After being co-founded six years ago in Rogers, Arkansas, by Ron Crume, the company reached 40 shops by the end of 2022 and skyrocketed to 100 units by this summer. Drew Ritger, COO and director of franchising, told Arkansas Business in February that the chain hoped to have 200 to 250 locations before 2023 is over. Additionally, the publication quoted CEO John Davidson as saying the brand was approaching 3,000 units sold. The concept uses a roughly 500-square-foot building with two drive-thrus and no dining room. Similar to Chick-fil-A, workers come up to drivers to take their order for the sake of speed and building relationships. 7 Brews’ first franchise store opened in 2021, the
same year that Drink House Holdings—controlled by Jimmy John’s founder Jimmy John Liautaud and Lonestar Steakhouse founder Jamie Coulter—took over majority ownership. In 2022, a net of 23 franchise locations debuted. The beverage chain is plotting growth throughout the Southern, Midwest, and Northeast regions of the U.S., with recent examples like San Antonio; Springdale, Arkansas; and Traverse City, Michigan. There are more than 20,000 flavor combinations, including these menu highlights—Blondie (vanilla and caramel), Nightshade Energy (blue raspberry, pomegranate, and lavender), Georgia Peach Green Tea, and Key Lime Pie Lemon Freeze.
“With over 70 locations in 17 states and no signs of stopping, 7 Brew is certainly a franchise system on the rise. 7 Brew’s robust menu of hot and cold drinks is sure to suit customers of all types and customers love the convenience of the drive-thru model along with 7 Brew’s easy customization options. Big things on the horizon as brand recognition continues to increase.”
ROYALTY: 5.5 percent
TOTAL START-UP COSTS: $286,852 to $805,927
$6,250
7 percent
THE SKINNY: Marco’s Pizza is the fifth-largest chain in its food segment based on U.S. systemwide sales and locations. Future growth will be led by franchisees, who have more than 200 locations in various stages of development and signed more than 350 agreements. In the past six years, the pizza chain has doubled its footprint, and there’s more room to expand. Marco’s leadership identified white space for 4,200 domestic stores. To entice new and existing oper-
ators, the fast-food chain enhanced its franchise development program regarding financing, growth incentives, real estate, and design and construction. For instance, director of franchise finance Brad Fletcher and his workers established partnerships with eight preferred banks and lending institutions. Through quarterly meetings with banks, the finance team provides updates on the state of business, growth, and performance. Additionally, Marco’s partnered with a single architect to streamline the build-out process by roughly two weeks. The firm moves through permitting on behalf of the franchisee so there’s no additional responsibilities with local municipalities. The company has also brought forth several general contracting experts who provide franchisees with assistance in reviewing the bid, aligning pricing, conducting a pre-construction meeting, and reviewing schedules for project completion. When it comes to menu options, Marco’s kept things fresh with the limited-time rollout of pizza featuring Old World Sausage and boneless wings in buffalo, garlic parmesan, and barbecue sauces.
“In the pizza category, Marco’s Pizza was recently named ‘Pizza Chain of the Year’ in a Harris Poll EquiTrend survey of more than 77,000 people. The company was founded by Italian immigrant Pasquale ‘Pat’ Giammarco and is the only major American pizza chain that I know of actually started by a native Italian. Founded in 1978 and franchising since 1979, the number of locations has expanded rapidly in recent years to the current total of 1,103—up
from the previous total of 1,038—of which 45 are company-owned and 60 are located outside the U.S.”
“I have been a loyal Marco’s consumer since 2015. The quality of the product, the exceptional service, the support they provide owners, stands out for me. The investment level is in a good sweet spot for pizza and the profit margins are strong for single operators. They hold true to their quality standards and support. They are really pushing for a strong market share in this category and are truly pulling die hard pizza lovers to their fantastic options.”
2 percent (national advertising), 2 percent (local advertising)
chise Group (Round Table Pizza, Great American Cookies, Marble Slab Creamery, Hot Dog on a Stick, and Pretzelmaker) for $442.5 million. Pretzelmaker is run by brand president Allison Lauenstein, who previously worked as executive vice president of brand operations and marketing at Global Franchise Group. Prior to that role, she spent 13 years at Dunkin’ and Baskin-Robbins in various leadership positions.
ROYALTY: 6 percent
40 percent of current initial fee
MARKETING FEE: 2 percent (national advertising), 2 percent (local advertising)
$108,750 to $512,135
THE SKINNY: In an increasingly competitive snack space, Pretzelmaker stands out with an attractive bottom line. Growing same-store sales and low start-up/operating costs are combined with 20.8 percent cost of goods sold. Additionally, the chain offers multiple formats for operators, including its first drive-thru restaurant that opened in Mason City, Iowa, earlier this year. The prototype was made with the Fresh Twist branding that debuted in 2018. The reimagined restaurant style involves breakfast and late-night menu options and operations in as little as 250 square feet. Fresh Twist products, such as Pretzel Bites, breakfast sandwiches on pretzel rolls, pretzel flatbread pizzas, and specialty coffee beverages, are available all day. More drive-thru restaurants are on the way in 2023. Pretzelmaker was founded in 1991 by Jeffery Tripp. Over the years, it’s been owned by multiple companies, including Mrs. Fields. FAT Brands purchased the concept in 2021 when it bought Global Fran-
TOTAL START-UP COSTS:
$385,185 to $512,135
THE SKINNY: The cookie category has grown significantly in the past couple of years with up-and-coming chains, but Great American Cookies has been at it since 1977. CMO Jenn Johnston owed the upward trend to customers’ turning to indulgent treats amid the COVID pandemic. Great American Cookies aims to fill this demand and cater to individuals, families, and groups by offering scoopand-bake varieties, cookie cakes, and its co-branding proposition with Marble Slab Creamery. Similar to Great American Cookies, Marble Slab Creamery has been around for decades, getting its start in 1983. Parent company FAT Brands announced during its firstquarter earnings call that it signed a 10-unit agreement to open 10 co-branded Great American Cookies and Marble Slab Creamery locations in Puerto Rico. The stores are scheduled to open over the next five years, with the first couple coming in 2024. It also signed a
deal that will bring 10 co-branded outlets to Iraq. As for Marble Slab Creamery, it signed a development agreement to open franchised locations in Egypt. Those units will debut over the next decade. In 2022, FAT Brands announced that it was acquiring Nestlé Toll House Café by Chip for the purpose of converting stores to Great American Cookies. By May, the company had switched approximately 50 stores. Twenty additional conversions should be completed by late 2023.
7 percent of net sales which we may increase in our sole discretion to 8 percent of net sales, or all shops except: 6 percent of net sales for Jamba cobranded shops, which we may increase in our sole discretion to 7 percent of net sales
MARKETING FEE:
20 percent of then-current initial franchise fee.
1 percent of net sales for shops located in other locations; 3 percent of net sales for shops located in streetside locations; 3 percent of net sales for Cinnabon co-branded shops; 3 percent of net sales for Jamba co-branded shops, which we may increase in our sole discretion to 4 percent TOTAL START-UP COSTS:
$146,050 to $523,500
JAMBA CO-BRANDED SHOP: $395,050 to $804,500
$103,050 to $332,000
SHOP: $280,050 to $647,500
FRANCHISEE INCENTIVES: We participate in the International Franchise Association’s VetFran program. For qualifying veterans or members of the armed forces, the initial franchise fee for a full shop is $20,000.
THE SKINNY: To keep growing, Auntie Anne’s is exploring nontraditional locations like airports, train stations, travel centers, military bases, and universities as society moves on from the COVID pandemic. Additionally, the legacy chain is focused on streetside locations in the right markets. In 2021, the snack chain opened its first drive-thru location in Wylie, Texas, in partnership with sister concept Jamba. Auntie Anne’s told QSR in July 2022 that it would open another 12 drive-thru locations over the next year, bringing the total to 15 outlets. Those stores are scheduled to come in Texas, Idaho, Utah, Oregon, Georgia, and Michigan. Last year the brand announced on its TikTok account that more drive-thru shops were coming, and the video received more than 5 million views. Food trucks, which were launched about a decade ago, are serving as a viable option for franchisees, as well. And thanks to parent company Focus Brands, Auntie Anne’s can dual-brand and even tri-brand with Carvel, Cinnabon, and Jamba. In late 2021, Fresh Dining Concepts— Focus Brands’ largest franchisee—inked a deal to open 10 Auntie
Anne’s and Cinnabon co-branded units throughout New York City. A few months later, the operator announced that it bought 73 Auntie Anne’s locations from Double P Corporation.
FRANCHISEE INCENTIVES: Multi-unit franchise fee discount, 10 percent off franchise fees for veterans, active U.S. military members and first responders
THE SKINNY: This spring, Duck Donuts released a new prototype with the hopes of delivering better experiences for franchisees and customers. The box is 1,000 to 4,000 square feet, cuts build-out costs up to $75,000, and the inside will feature localized artwork, including an accent wall. Other modernized designs: 3D graphics, digital menu boards, and high-top barstools with a good enough
14.9%
IN NORTH AMERICA (TOP 75% OF SUBWAY LOCATIONS, ABOUT 17,000 RESTAURANTS)* * COMPARED TO SAME PERIOD IN 2022
view to watch the doughnut-making process. When customers walk in, there’ll be three ordering options—at the front counter, self-order kiosks, or pickup area for mobile orders and third-party delivery drivers. Duck Donuts said in April that Collierville, Tennessee, and Wyomissing, Pennsylvania, will be the first franchised locations to open. The updated prototype is paired with high-level growth. In the first quarter, Duck Donuts signed 10 franchise agreements for 25 shops and one food trailer. Among those deals, three were in global markets—five in Sydney, Australia; three in the Bahamas, and 10 in Iraq. In the U.S., operators inked deals in Greater West Palm Beach, Florida; Huntington and Babylon, New York; Queens, New York; South Manhattan, New York; Greenville, South Carolina; and Centerville, Virginia. Overall, the chain expects to open 35 locations in 2023. Duck Donuts is proving to be diverse in its franchise offerings, too. In March, the brand announced the opening of its first food hall location in partnership with Kitchen United. The location, operated by multi-unit franchisee Gary Kopel, opened in Santa Monica, California.
“Awesome founding story, and transition to the CEO is a great lesson in transition from founder/family to CEO. Delicious product, and I love Duck, North Carolina, so I’m a bit biased.”
“Duck Donuts, for me, has been the most interesting of the groups [on the list]. The donut sector has a dominant player—not players—for years. It is refreshing to see the trend that cookies is playing in the dessert space roll into the breakfast/donut category. Their numbers are strong, the market is huge, and the demand is something that stands out for consumers and franchise owners. From a franchise salesperson perspective, it is a niche that is taking a deeper dive into custom options and LTOs. Hard to make that work sometimes, but they are pulling it off.”
partnered with Qu, a cloud commerce platform, to improve order and operational efficiency. The pizza chain said the system helps with accuracy and kitchen fulfillment, thereby reducing labor costs and food waste. And from a customer perspective, the company underwent its largest first-party research project in history, which led to a new loyalty app and increased regular visits, more digital sales, and a 4.9-star rating. During Pi Day, the chain’s app downloads increased 660 percent from February to March thanks to its $3.14 pizza promotion, according to Apptopia. Blaze is now under the leadership of CEO Beto Guajardo, who entered the brand in 2023 with 20 years of experience in franchise development after overseeing international business at Focus Brands.
“As the longtime leader in the fast-fired pizza space, Blaze has shown that this segment is alive and well. Known for its high-quality ingredients and customizable pizzas, Blaze continues to invest in its processes—especially its technology—to help its locations grow. The brand’s rollout of Qu the cloud-commerce platform
ROYALTY: 5 percent of gross sales
MARKETING FEE:
2 percent of gross sales
50 percent of initial franchise fee, or $15,000 if Blaze is not offering franchises for sale
TOTAL START-UP COSTS: $605,400 to $1,086,500
THE SKINNY: Blaze Pizza is feeling momentum as it heads into the post-COVID era. Last year, the fast casual opened 13 restaurants and inked seven multi-store area development agreements that will bring 27 restaurants across markets like Maryland, Georgia, Tennessee, and Texas. Multi-unit operator Baryalay Razi—with 20 years of restaurant operations and management experience—is leading expansion in the Lone Star State. As part of his deal, he acquired four locations in Houston and agreed to develop five new locations. Razi is an example of most Blaze operators—71 percent of the franchise system are multi-unit franchisees. Opportunities remain across the U.S. including in Texas, Colorado, Virginia, and markets in the Northeast. To enhance the franchisee experience, Blaze recently
should help franchisees streamline their operations and its new app has received rave reviews. With new leadership—CEO, CDO, and COO—the brand should see another banner year in 2023 with domestic and international growth.”
“Blaze Pizza is another award-winner in the pizza category. It recently nabbed the No. 1 spot in Market Force’s survey of best quick-service brands as chosen by consumers. Although still a relative newcomer, Blaze was started by Rick Wetzel, a cofounder of Wetzel’s Pretzels, and features a thin crust from dough that ferments for a full 24 hours before getting shaped into a crust. This gives Blaze pies a distinctive ‘lighter-than-air’ crispness. Some too would say that the brand has benefitted from the backing of NBA megastar, LeBron James. I’ll leave that for others to determine. Founded and franchising since 2012, their number of locations has grown rapidly to the current total of 336, with seven companyowned and 28 out of country.”
6.5 percent
None
IT FEE: $395 per month MONTHLY SOFTWARE LICENSE FEE AND SUPPORT:
• Package for point of sales system, including all currently provided software programs, licensing fees, software upgrades, and support services (“Help Desk”), $31.85 per month
• Secure network fee for processing of credit cards and transferring of sales data $9.50/ month gift card program
TOTAL START-UP COSTS: $214,449 to $1,352,580
ANY NOTES ABOUT FEES:
THE TECHNOLOGY FEE IS A LOT OF VALUE. IT PROVIDES:
• Help Desk—24/7 In House Support
• POS Software—Hard & Software, Proprietary & Private System
• Reporting Software—Real Time Reporting
• Online Ordering—Support through App
• Shore Points—Loyalty Program Updates
• E-mail Club—National & Local Direction
• Texting Program—National & Local Direction
• Third Party Integration—Eliminating Extra Fees
• LMS—Learning Management Program: from new employee to mgr.
• Crunchtime—Direct Ordering & Food Cost Analysis
• Behind the Counter—Private Website for Franchisees
FRANCHISEE INCENTIVES:
Existing owners qualify for the Experienced Franchisee Program, or EFP. The EFP has a discounted franchise fee of $8,500 and the $5,000 construction fee is waived. All-in, franchisees save $15,000 from the capitalization plan.
THE SKINNY: Jersey Mike’s provides franchisees with solid unit economics, low cost of entry, and runway for growth, but the company
said there’s more to the story than just its FDD. Like when founder Peter Cancro placed $20 million in the marketing budget for Q4 2022, or how he spent $200 million to pay for every owner’s remodel. Cancro also put a caucus together involving the meeting of contractors, architects, real estate brokers, and area directors. The group gathered for the purpose of learning how to drive down build-out costs for franchisees. Additionally, Jersey Mike’s calls itself a training company. The brand held 8,300 training sessions, 112 culture classes, 12 elite operator events, 74 market rallies, and 56 virtual sessions between 2019 and 2022. Beyond sales, the company appeals to operators who engage with their community. During the Day of Giving held annually, franchisees give 100 percent of all sales back to more than 200 local charities nationwide. This year, $21 million was raised. As of this year, Jersey Mike’s is in all 50 states after opening in Wasilla, Alaska, a city about 40 miles north of Anchorage. California is the state with the most Jersey Mike’s restaurants (342), followed by Florida (206), Texas (203), North Carolina (184), and home state, New Jersey (130). The busiest store in the country belongs to a unit in Williston, Vermont; the restaurant opened in 2022 and was the first location in the state.
“Jersey Mike’s Subs is a standout in the $23 billion sandwich market. Even with over 2,000 locations there is still room for growth as 93 percent of consumers eat at least one sandwich per week. As Subway tries to find their way with new branding, Jersey Mike’s continues to take market share. They offer an attractive potential ROI for franchisees, with AUVs in excess of $1 million within a relatively small footprint. Their fresh, premium subs and comprehensive franchisee support underpin their success. Jersey Mike’s commitment to community service and customer satisfaction make it a top franchise contender.”
“On the sandwich front, in the U.S., the sandwich franchise segment saw 2.6 percent annualized growth in its market size in the years leading up to 2020, reaching a value of $25 billion. Because they are usually sit-in or carryout restaurants, not drive-thrus or delivery businesses, sandwich shops were hit harder than some others during COVID. But here again, sandwich shops are back and my fave is Jersey Mike’s. Jersey Mike’s has been getting a lot of buzz of late and for all the right reasons. Not only are they moving the needle big time, with new store openings nationwide, this chain is also as culture conscious as they are fanatic, about the quality of their food. Founder and CEO Peter Cancro leads the charge and their people-first culture, which always begins with a mentality of doing what’s best for the franchisees. Founded in 1956 and franchising since 1987, the number of locations has rocketed up over the past 10 years from 584 in 2012 to the current total of 2,253, with 24 that are company-owned and three located outside the U.S.”
“Jersey Mike’s is on my radar. I personally know a multi-unit operator in [quick-service] burger and fast-casual Mexican that have set their family up in the Jersey Mike’s franchise and they have opened five stores in the past three years! They are killing it. The philanthropic reach and give back program are taking Jersey Mike’s to the next level. Its attention to detail and honestly, its passion behind doing what they do brilliantly, is refreshing. The trying to not be everything to everyone is what consumers and franchise owners are seeking in uncertain economic times.”
The category giant is continually revamping its menu and domestic growth strategy.
/ BY BEN COLEYis in the habit of conducting listening tours, spending about a day and a half in different markets every two to three weeks.
Leadership visits restaurants, sees what’s happening, and then has an afternoon meeting with 15-20 franchisees, from small single-unit operators to larger multi-store restaurateurs. There’s a reception afterward, which draws upwards of 50 visitors. Trevor Haynes, president of the chain’s North America segment, estimates that Subway has reached 1,000-plus stakeholders this way in the past two years.
Two years being the operative words. That’s when the brand officially kicked off its multi-year turnaround strategy, beginning with the most ambitious menu launch in company history. Since 2021, franchisee sentiment has moved from “I’m not sure,” to “I’m feeling more optimistic,” to “Just bring it on. We’re so excited about where it’s at,” Haynes recalls.
The executive admits that if Subway is doing 10 things, operators may not agree with two of them. But at the same time, they’re encouraging the corporate team to keep going and carry forth innovation.
“When we’ve got 10,000 franchises in the system, we’ll never get everyone to agree,” Haynes says. “But they do agree on the things that matter.”
With a potential sale and $10 billion valuation in the background for the past few months, Haynes describes Subway’s recent journey as nothing short of transformational. The brand
has looked at all touchpoints around the guest experience, and at the center of it all has been food. Year one, taking place in July 2021, was about improving ingredients, bread, proteins, cheese sauce, and more. The release, called “Eat Fresh Refresh,” involved 20-plus upgrades—11 new and enhanced ingredients, six new or returning sandwiches, and four reimagined signature sandwiches. The bread alone took 18-24 months of work, with the assistance of a panel that included Nancy Silverton, a James Beard Award winner.
The next year, Subway sought to outdo itself with the rollout of Subway Series, a lineup of 12 signature sandwiches that can be ordered by name or number—a way to streamline the
Join us for two days of informative sessions, expert speakers, and networking opportunities. Discover the latest industry trends, gain insights into customer behavior, and learn about cutting-edge technology that can help take your business to the next level.
KEYNOTE SPEAKERS:
Don't miss out on this exciting opportunity to connect with fellow industry professionals and gain a competitive edge in the ever-changing world of quick-service restaurants. Register now and secure your spot at the QSR Evolution Conference—the must-attend event of the year!
ordering experience for guests, as opposed to going ingredient by ingredient. It expanded to 18 products in May with the addition of Sweet Onion Teriyaki, Italian B.M.T., Chicken & Bacon Ranch, Spicy Italian, Pickleball Club, and Teriyaki Blitz.
“Summer is where you can have a lot more fun I think in regards to a launch or just being active,” says Haynes, describing why Subway chose July for its big reveals. “No one wants to go and line up at a restaurant in the Northeast in February. Whereas in summer you’ll get people out and about doing things a lot more. So I think the first year was when everything came together. Everything came together and we were able to hit the summer target. And that said, every year, we’ve got to hit this because you got to roll over what you’ve done the year before.”
This July was no different, with the launch of Deli Heroes as an extension of the Subway Series menu. The product features freshly sliced meats, something “a sub shop should be all about,” Haynes says. The lineup has four highlights—Titan Turkey, Grand Slam Ham, Garlic Roast Beef, and The Beast. The first two comprise 33 percent more meat and The Beast,
franchisees who assisted with testing, the chain’s independent purchasing co-op, and vendors.
“It was all around the fresh-sliced product in restaurants. We’ve had a history of doing things from a fresh perspective— fresh bread, baked bread, fresh sliced veg, and now freshly sliced meat,” Haynes says. “ … The implementation of it was certainly like an orchestra. There were many minds and many hands working on that for many, many months to source the slicers, test everything out, actually bring the slicers into the system.”
The plan was initially met with skepticism as franchisees thought this meant sliced to order. But the corporate team was quick to correct this and let operators know it would be batchslicing throughout the day. Sliced to order was tested, but it was too slow and labor intensive, Haynes says. Once franchisees understood how the slicer would be used and the fact that they wouldn’t have to pay for the equipment, they were sold. All employees have to do is press a button and the slicing begins. Other than that, it’s changing the dial for various proteins.
Prior to the official unveiling of Deli Heroes, Subway held a training session in Dallas. Attendees took what they learned back to their respective markets and held training rallies. One in Los Angeles brought in 500 people.
“The franchisees understood how this was going to work,” Haynes says. “They understood the supply chain, how that was going to be delivered, and how the proteins were coming to life in the testing. There’s no additional labor needed. We’re already fresh, sliced vegetables every day. There are times throughout the day when staff are not as productive. They’re around to complete this task. So it didn’t add that level of complexity or expense to their business.”
true to its name, has a half-pound of meat ( pepperoni, salami, turkey, ham, and roast beef ). They all have double cheese and are served on artisan Italian bread.
“You can just taste it and you can see the difference,” says Paul Fabre, senior vice president of culinary and innovation. “And for us, it was really about building these sandwiches the way that a great deli sandwich should. There was a lot of science actually [around ] the right ratio of the amount of turkey with cheese and bread.”
It took the chain more than two years to prepare for this change, including reorganization of the supply chain and installation of deli meat slicers in roughly 20,000 restaurants nationwide. The equipment—added to one store every five minutes in nine months—was completely free for U.S. franchisees. Subway spent over $80 million to cover the costs. The slicer came from Germany-based Bizerba, which added another line in its factory dedicated to Subway.
The launch required effort from several groups, including
Haynes recalls visiting Ohio where he met with a franchisee that had around 19 restaurants. He placed the slicer in about eight or nine of his stores to see how managers would react. One week went by and nobody commented. When he finally asked how they felt, the response was “Yeah, it’s great. It’s fine. We like it, it’s really easy.” The managers in the other locations began to ask when they were going to get their hands on the equipment.
Among all three menu launches in the past three years, Fabre says the first introduction was the most difficult, just because of the time it took to sort through all the ingredients and moving parts. Once that was established, the Subway Series was a matter of putting together the right pieces. The Deli Heroes are a continuation of that exploratory process.
“I think this one, we already had a lot of the components, like the meat,” Fabre says. “It was really about finding the right combinations and then really about implementation of the slicers and diversification of the supply chain.”
Subway’s comeback plan also hinges on renewed growth, which hasn’t been the chain’s strong suit in the past half-decade.
Between the start of 2020 and 2023, the sandwich chain lost a net of 3,200 U.S. restaurants. Although the damage does seem to be softening. Subway closed a net of 1,609 stores in 2020, and that improved to a loss of 1,043 in 2021 and then 571 in 2022.
Haynes attributes the downsizing to shifts in trade areas, like nonviable strip centers or malls. The strategy now is to remove Subway from those situations and relocate them with the right format. Endcap drive-thru and freestanding drive-thru were prototypes that came to Haynes’ mind.
“We’re very much looking at that type of real estate and [drive-thru] format for the future,” Haynes says. “Because it just allows a franchisee to trade 24/7. You can close the lobby and just keep the drive-thru going. In some areas, you find it’s dangerous to keep the restaurants open, whereas, drive-thru, you can trade 24/7.”
Another significant difference is a focus on multi-unit operators as opposed to ones with one or two stores. In February, Subway held a multi-store development seminar in Hollywood, Florida, where it recalibrated how franchisees should think about growing in terms of timing, human capital, and financing. The company is finding that a majority of restaurants that sell internally are moving from retirees to new owners. In April, the brand announced five multi-store agreements across Texas, Florida, Arizona, and the Mid-Atlantic that led to the transfer of more than 230 stores. The transactions included two new operators and one existing franchisee that acquired 100-plus locations to expand their footprint to over 140 outlets.
Under these purchase agreements, franchisees—new and existing—are signing on to build new restaurants over the next few years.
“There was a lot of interest in our system, we just had closed it off,” says Haynes, regarding Subway’s new plan to attract multi-unit operators. “We felt that it was the right time to do this because franchisees coming in from other brands will have access to capital, they have sophisticated operating systems. It’s going to help to evolve the system.”
That’s not to say Subway will do away completely with momand-pop franchisees.
“We will always have restaurant owners that have one or two restaurants,” Haynes says. “The U.S. is too big. There are so many little towns that we operate in with like 1,000 people and [a franchisee] has been there for 20 years and she’s got her one restaurant. She does a great job and we love and we want her to be there and she will do a better job than someone from 100 miles away.”
Haynes says there’s no hard and fast rule around the size of these multi-location agreements. It’s more of a common-sense approach. If an operator is in Kansas, the most they could scale within a reasonable driving time might be 10 restaurants. In Atlanta, there could be 200 stores because of the population density. In any case, Subways wants to ensure the operator can properly service these locations. It doesn’t want a franchisee owning units in Maine and San Diego, for example.
There are exceptions, however. Nontraditional partners like Pilot Flying J or Love’s Travel Shop have hundreds of locations scattered in the U.S., but they come with the infrastructure to
handle it. Toward the end of last year, Subway had roughly 5,900 nontraditional shops in the U.S. and Canada, which is about 25 percent of the company’s North American footprint. The brand is not only opening stores in airports, college campuses, and hospitals, but it’s also offering extensions for franchisees, like its fully unattended smart fridges.
The first iteration debuted at the University of CaliforniaSan Diego in September 2022. Now there are 25 fridges, all stocked daily by the franchisee’s nearby restaurant. AI allows customers to talk directly to the smart fridge and ask about any products inside, and guests are charged via weight sensor shelves. UV-C light sanitizes the fridge after every purchase.
“The experience is completely contactless and cashless,” Haynes says. “Guest feedback has been overwhelmingly positive, which has also generated strong interest among Subway franchisees who are eager to expand their portfolios and generate incremental revenue. As we continue to expand our flexible nontraditional concepts, our guests can expect to find smart fridges in more convenient places like airports, college campuses, and hospitals.”
Amid this change in growth strategy is a years-long remodel program featuring Subway’s “Fresh Forward” design, which includes LED lighting, new floor coverings, containers, tables, colors, and chairs. Around 10,000 restaurants in North America have undergone the reimage—that’s a larger footprint than Jersey Mike’s, Firehouse Subs, and Jimmy John’s combined.
“Franchisees will say, once they remodel their restaurant, they know their staff feels like that’s where I want to work,” Haynes says. “The staff feels proud of where they’re working. The franchisee goes, ‘Why didn’t I do this five years ago?’ Some of them will push, but once they start doing it, they feel very positive about it.”
Worldwide, Subway has nearly 37,000 restaurants in more than 100 countries, making it the second-largest restaurant chain in the world behind McDonald’s. Internationally, the chain has signed 15 master franchise agreements in the past two years—good for more than 9,000 restaurant commitments across Europe, the Middle East, Africa, Asia Pacific, Latin America, and the Caribbean. In June, the brand announced an almost 4,000-unit deal in China, which would grow the chain’s footprint in the country by 7x.
Subway’s goal is to increase new openings in North America by 35 percent compared to 2022. The chain debuted almost 750 restaurants globally last year and added 145 stores in Q1.
Despite Subway’s recent transformational journey, Haynes says the pitch to prospective franchisees remains the same as it’s always been.
“We’re a low-cost model,” Haynes says. “We’re easy to set up and operate. We don’t have fries or grease traps. And it’s easy to staff and get a Subway set up so you can get up and open. Whereas if you think about a burger concept, it’s multiple levels of staffing and it’s much harder production. The elements of Subway that have been core DNA type—low cost, easy to operate—that’s certainly true today.”
Sbarro CEO David Karam knows how to capture an impulse occasion. It starts with igniting the senses and creating a craving, then satisfying it with a slice of New York-style pizza. That’s how the chain became the quintessential food court operator synonymous with mall culture back in the early 2000s.
“The best way to think about it is that we’re equal parts retailer and restaurant company,” he says. “We have big, abundant displays that stimulate customers’ pizza cravings when they walk by.”
The company’s nearly exclusive reliance on malls was a vulnerability by the time Karam joined the business a decade ago. The growth potential was limited and Sbarro needed to think beyond those confines. It started pushing into new nontraditional channels without completely cutting its ties to malls.
The expansion has only accelerated since then, with unit growth increasing from the mid-30s in 2018 and 2019 to 103 new units last year, the most in Sbarro’s history thus far. It expects to reach 120 debuts this year. Convenience stores and travel centers are among the primary growth drivers, but the brand also sees immense potential to expand its footprint in universities, hospitals, casinos, theme parks, military bases, and more.
“I’d challenge any other brand to describe venue expansion like we’ve experienced within four years,” Karam says. “We can go into sites as small as 400 square feet or as large as 3,000 square feet.”
That level of flexibility extends to the menu, too. Sbarro relies on its presence in high foot traffic locations as its primary marketing tool, so it doesn’t feel constrained to have the same menu at every location. It encourages operators to curate a customized product mix that fits the specific needs of their unit. With an expanded total accessible market and dedicated franchise sales teams for each of its target venue categories, site selection hasn’t been much of a challenge for the quick-serve pizza chain. The real wildcard when it comes to growing in new categories is operational execution.
“We’re constantly working to develop more efficient procedures, but at the same time, we want to make sure that the brand is properly represented,” Karam says. “That’s the biggest challenge we have relative to the traditional freestanding quick-service sector.”
Sbarro is tackling that challenge with heavy investments in field visits and training as well as a focus on monitoring operational performance, food quality, and those all-important displays designed to spark an impulse occasion. The company also has resisted an industry-wide trend to move toward an asset-light model. Roughly 20 percent of its 700 units are company-owned, something Karam believes is crucial for providing impactful support.Some channels are generating more interest from traditional quick-service restaurant brands than others. Karam points to travel stations as an example of the former and malls as an example of the latter. Overall, he believes competition across nontraditional venues is heating up.
“Everybody is looking at return on invested capital,” he says. “As land costs go up and as building costs go up, they’re looking at more convenient ways to adjust their concept and deliver new points of distribution to the consumer.”
With 1,200 units located primarily in convenience stores and truck stops, Chester’s Chicken has seen a growing number of brands enter its primary domain over the years. The
Nontraditional venues offer promising avenues for growth, but competition across channels is heating up.
mounting pressure sparked a brand refresh in 2021 that included elevated menu items and new prototypes designed to emphasize the freshness of its namesake product. From flour-dusted aprons and the sound of sizzling oil to upgraded menu boards and a modernized visual identity, the redesign leaned into the fact that the chicken is hand-breaded and fried fresh each day, something the brand views as a key differentiator.
“The brand refresh was around the consumer-facing aspect with the demand for quality products and the evolution of food service in convenience stores,” says VP of marketing William Culpepper. “One thing we’re continuing to look at is evolving the kitchen and making things easier for the operator.”
Chester’s works directly with convenience store and truck stop owners to customize its footprint in each location. It can go as small as a 6-foot counter with a 4-foot warmer or as large as a full dining room model for an immersive guest experience.
“Being in nontraditional spaces means you have to be highly adaptable because no two stores are created equal,” Culpepper says. “We have requirements in the kitchen in terms of your refrigeration and freezer space to make sure you can support the product and do the volume, but there’s a lot of flexibility in terms of how the store is laid out.”
Chester’s has a goal of putting in 100 or more partners every year. It’s well on its way to adding 125 units in 2023. Business devel-
opment director Levi Heimer attributes the growth to low startup costs, minimal labor requirements, and a return on investment “that is measured in months instead of years.” Along with inside sales, monthly gallons pumped, and the number of rooftops within a given radius, the level of commitment and engagement from operators is a key piece of the site selection equation.
“We’re really focused on finding locations with strong operator and manager buy-in,” Heimer says. “Operating through a convenience store model, you may not have as direct of a point of contact between Chester’s as an organization and the consumer, so we have to depend on our operators to make sure those relationships and the brand representation is strong.”
With an updated approach that puts its key strengths at the forefront—and a positive response from consumers and operators— additional venues like airports, college campuses, and stadiums could be on the horizon. But for now, Chester’s is focused on expanding its reach in existing channels.
“We’re starting to see this as a growth channel for a lot of major quick-service restaurants, so it was imperative for us to do this brand refresh,” Culpepper says. “We’ve been stepping up our game because we’re competing with a different level of competitor. You’ve got to stay sharp and keep evolving to keep winning.”
The first patented espresso machine originated in Italy in 1901 from Luigi Bezzera, where it became a staple in the region. Decades later, Carlo Di Ruocco apprenticed with coffee-roasting masters in his hometown of Salerno, Italy. He would learn to speak the language of espresso and the art of roasting by oakwood fire.
In the 1970s, Carlo immigrated to San Francisco and noticed the lack of authenticity. He founded Mr. Espresso in 1978 with the hopes of bringing the tradition of wood-fired coffee roasting into the U.S.
He started importing espresso machines and building a clientele among cafes in California. It was not long before he began roasting coffee and wholesaling to those same clients.
“He was the first coffee roaster in the U.S. to use wood commercially,” says Luigi Di Ruocco, son of Carlo and vice president of Mr. Espresso. “We established our DNA as a company early on, which was to be a wholesaler and service the hospitality industry.”
With smoky blends such as the medium-dark Chiaroscuro and the sweeter butterscotchmarked Organic Golden Gate House Blend, Mr. Espresso became a favorite of Californian chefs like Alice Waters and Paul Bertolli.
Moreover, Mr. Espresso coffees have been finalists in competitions, including the 2022 Roaster of the Year Awards and the Good Food Awards.
Because of its success, Luigi always knew it would be advantageous to have a retail location, but he felt as though the timing was never quite right.
Things changed in 2019 when the company acquired a promising location in downtown Oakland. Luigi describes this as the moment when they decided to finally “take the plunge” on a storefront.
The onset of COVID-19 slowed things for the concept, called “The Caffè.” Construction did not start until 2022, and the doors did not open until this May.
While the pandemic brought its own onslaught of issues, including stretched construction times and supply chain shortages, Luigi was most concerned about executing the concept correctly.
Previously, he opened Coffee Bar in San Francisco with multiple
locations and partners, but those did not compare to the pressure he felt with The Caffè. He wanted it to be perfect.
“The uniquely challenging part of [opening The Caffè] is that it is Mr. Espresso’s first café,” Luigi says. “We wanted to make sure we got all of the details just right and not rush through any decisions out of convenience.”
The Caffè’s layout is inspired by a typical Italian coffee shop— when guests walk in, they are greeted by a 17-foot square bar fashioned from oak slabs. There is no line for customers to wait in. Instead, they are encouraged to walk up to the bar.
Orders are taken faster and at higher volumes versus typical coffee shops.
“The intention was to be Italian-inspired in that regard,” Luigi comments. “We do feel like people are familiar and understand how to order at a bar, and that’s the most unique aspect of our design.”
Additionally, every countertop in the space is made of copper, and hundreds of pieces of wood adorn the ceiling, creating a distinctive appearance.
The Caffè’s menu represents the delicate
ingredients that are pretty unusual for a pizza chain,” he says. “You don’t see stuffed squash blossoms and purple potatoes from the typical franchise, so the question was, ‘How can I make this a little more franchise friendly, but at the same time, keep it where it’s housemade and using quality ingredients?’”
Slice House still offers the same selection of regional pizza variations, but the menu is easier to navigate from a customer’s perspective, he adds.
Instead of having a set number of recipes listed under each style of pizza, every recipe is available in every style. Gemignani also expanded the menu with plant-based and gluten-free options as well as chef-inspired recipes that would help the brand stand out as an artisan pizzeria helmed by a culinary expert.
Slice House became a franchise entity in early 2021 and quickly got to work selling territories in target markets across California, Nevada, Arizona, Utah, Colorado, and Texas. The first franchised unit was slated to open this summer in Thousand Oaks, California.
With one dough recipe and a single triple-stack electric oven for all of the various pizza styles, the store serves as a prototype for future restaurants. It also has an upgraded POS system, improved online ordering capabilities, and a larger footprint than the corporate store in Walnut Creek.
“That store in Walnut Creek does over $3 million in volume a year, and it’s 900 square feet,” Gemignani says. “That’s insane business for such a small space, so we made the footprint a bit bigger and the line longer and wider for franchisees.”
Slice House offers two franchise models. There’s a fast-casual model with limited seating, like the Thousand Oaks location. Those stores will range from 1,200 square feet up to 2,200 square feet. There’s also a roughly 500-square-foot kiosk model designed for stadiums and other high-foottraffic locations. The initial investment ranges from a little over $400,000 to upward of $1.5 million depending on the model and location.
As of mid-July, Slice House had eight restaurants open—excluding its 17 licensed
outlets in casinos and stadiums—plus 34 units in development and an additional four locations under contract. Gemignani puts the franchise’s total number of existing and planned units at just under 50 but expects that number could be closer to 75 by the end of the year.
The brand has seen a steady stream of interest from qualified operators. Several groups have bought multiple units in large territories, bringing experience with companies like Subway and Wingstop.
Gemignani says Slice House will continue growing the pipeline at a rapid pace. He’s confident it will successfully tap into that demand without getting ahead of itself.
“It’s like lightning in a bottle,” he says. “We don’t want to grow too quickly and the infrastructure is really important to us. At the same time, we’ve been lucky enough to get some really experienced franchisees, and that makes everything a bit easier.”
Initial conversations with prospective operators always begin with the fact that they won’t pull ingredients out of the freezer and drop them into the fryer. They’ll make the dough in-house from scratch along with other items, like fresh pasta, dressings, sauces, and croutons.
That’s where Gemignani’s roots with the International School of Pizza come in handy. He closed the school last year to stop teaching potential competitors and ensure franchisees are given extensive hands-on training.
They spend three weeks working at the Walnut Creek store and three weeks using their own equipment in their own restaurants. If more support is needed, one of the world’s leading pizza experts is just a phone call away.
“Even though it’s Slice House by Tony Gemignani, they’re running it, they’re owning their stores, and they have to believe in it,” he says. “I always bring them to North Beach so they can see the original location and understand the brand’s history.”
“It’s a fast casual, so you try to make everything as tight as you can, but you also want to have that friendly service that you feel from a mom and pop,” he adds. “That’s something I really want our franchisees to understand.”
that was “insane,” describes Buonavolanto. Its infrastructure helped Rainbow Cone begin the journey of franchising, which was always the vision.
“This really encouraged us to start franchising,” Buonavolanto says. “People were gravitating towards it in an exciting way … it [has always been] a very franchiseable model.”
He defines the product as “Instagrammable” and portable across major markets. This quality is attractive to future franchisees as “everybody eats ice cream,” says Buonavolanto.
From an economic standpoint, it has a substantial value proposition, with high margins and a proven model that’s lasted over 95 years. The technology stacks and menus have been optimized for success too.
Buonavolanto says the number one thing he searches for in a franchisee is passion. He’s not looking to sell a certain number of operators, but is instead looking for partnerships with dedicated people who have “an appetite for multi-unit development.”
There is an additional opportunity here for potential franchisees: Buona and Rainbow Cone have opened a dual-brand concept, which currently has six locations across the nation. The double drive-thru prototype comes with about 4,900 square feet and up to 40 menu items.
“We wanted to create two different experiences in one for the customer,” Buonavolanto says. “I would be lying if I said there wasn’t a huge financial gain by doing this.”
Sales jumped 20-30 percent at the Valparaiso, Indiana-based location. It earned an average daily revenue of $30,000 during the first two weeks of operation. For the dual concept, the target is to grow by around six units in the Nashville and Fort Lauderdale markets.
Rainbow Cone’s franchise program is set to expand by more than 100 units in the next five years, in metro areas all over the U.S., including Texas, Florida, Arizona, and the Carolinas.
“Our goal is to partner with good operators,” Buonavolanto says. “We’re going to partner with people who share our values.”
fusion between the Di Ruocco’s Italian heritage and contemporary American flair. In Italy, it is customary for guests to stand at the bar and enjoy their espresso with a glass of water. This tradition is replicated in The Caffè, where water is served on the side of a single or double espresso. Luigi, however, makes it known that even though the company is rooted in its European heritage, it is still a Northern Californian brand.
The beverage menu extends to American favorites—cold brews and drinks like the seasonal butterscotch and golden latte with turmeric and ginger spice. Matcha is also offered in partnership with local company Asha Tea House.
“We have a rounded menu to offer people a wide variety of drinks, depending on their walk of life or what experience they’re looking for,” Luigi says.
Light lunch fare is served, as well as grab-and-go breakfast items. Pastries are provided in consociation with The French Spot, another regional brand. The food program was designed with the help of Jon Smulewitz, owner of Pollara Pizzeria.
Soups, sandwiches, and other menu offerings all have an Italian edge to them, such as the prosciutto cotto with stracchino cheese on pizza bianco Acme bread.
Most menu items, in fact, are made by the shop itself. Ricotta, butterscotch, and horchata syrups are crafted in The Caffè’s kitchen.
After 45 years in the business, the Di Ruocco family wanted to be sure their first dive into a retail storefront went smoothly.
“Customers are enthusiastic about [ The Caffè],” Luigi says. “They are noticing when they walk into this beautiful space. We are trying not to feel pretentious, but rather friendly and welcoming.”
The flagship of the beloved old-school coffee roastery is starting on a high note, but Luigi is careful not to outpace himself.
He has already been approached with development deals, but he says it’s too early to look at additional locations.
“We want to get this first place dialed in and successful first before going on to the next one,” Luigi says. “We are going to allow opportunities to present themselves to us, but for now, we will just see how [the concept] cooks.”
What was your first job?
My first job was working as a transportation orderly at a hospital where I helped take patients from room to room for operations and other appointments. Working there as a teenager shaped my outlook on how I wanted to live life. I realized how much I enjoyed helping people and decided being of service to others was the direction that I was bound to take.
Afterward, I served as a search and rescue swimmer for the Navy. It was a really great time for me—especially as an adrenaline-seeking young man—and it still allowed me to help others. My first “adult job” after the Navy was actually as a salesperson at a health club, and 28 years later, I still work with the same man who first hired me.
What’s your favorite menu item at Salata?
Even now as a franchisee, I still like to consider myself first and foremost a customer because I really do love the food at Salata. My go-to meal is the Tomato Basil Soup and Mixed Greens Salad with shrimp and the fresh herb vinaigrette.
Aside from Salata, what is your favorite cuisine?
I wouldn’t say that I have a specific cuisine that is my favorite. However, I am a huge fan of pizza.
What are some of your interests outside of work?
There are three main ways that I spend my time: with my faith, my family, and in fitness, whether it’s hiking outside or working out at a health club. Those three things are definitely what you’d find me doing.
Salata Salad Kitchen is a Houston-based fast casual concept that offers guests salads and wraps made with fresh veggies, high quality proteins and house-made dressings. I was incredibly lucky to discover Salata when I was working at my former job as a co-founder and CEO for a health club concept called Fitness Connection, where I would often go to Salata for a quick lunch or dinner while working at the office. I always enjoyed working for companies that help better people’s lives, and was looking to find new opportunities outside of the corporate world.
When my partners and I started looking at business opportunities, we wanted to work with great operating partners and a brand that shared the same values as us. When we discovered Salata, we felt we had found a brand that was not only relevant when we signed on, but also offered the ability to grow and develop the concept further. We loved the concept and the food as customers, but in the end, it was really our confidence in the leadership team that made us
positive Salata was the right move.
We opened our first location with Salata in Mansfield, Texas, in December of 2018, and soon after opened a second location in Grand Prairie, Texas, in September 2019. Now, we have four restaurants open with our fifth in development. A little over two-and-a-half years ago I stepped down from my position as CEO of Fitness Connection and have been able to use some of that free time to spend at our Salata locations to regularly check in and make sure that our employees and customers are getting everything they need. It’s been a really great opportunity for me to foster good relationships with the people I work with, and the people we work for.
As someone who first started out as a kid working in hospitals, to serving in the Navy and then co-founding a health club brand, partnering with a brand like Salata that provides fresh, healthier food options seemed like a no-brainer. I value Salata’s dedication to providing fast and fresh options for guests.
THE LAST FEW YEARS HAVE BEEN A ROLLER COASTER FOR THE FRANCHISING INDUSTRY AS A WHOLE, but restaurants have bounced back from supply chain issues and labor shortages. Now, franchise brands of all types are demonstrating massive successes and are looking for enterprising new owners and operators to help them expand their national footprints. Learn more about a few of these growing brands here.
started to scoop, it had to be just right. “My mother always said, ‘you eat with your eyes,’ so, it had to look as beautiful as it was delicious,” she says. That signature “Abbott’s” scoop remains critical to Abbott’s success today. “Abbott’s kept my family together,” Drew says. “We spent every night talking about the business, how the day went, and what we would do tomorrow.” This made her decision to take over the family business that much easier. “I knew it was my responsibility to continue the Abbott’s legacy,” Drew continued.
LOCATIONS: 37
FUTURE LOCATIONS SIGNED:
More than 100
FRANCHISE FEE: $37,000
TOTAL START-UP C OSTS: $450,000–$1,200,000
Family is also why franchisees choose Abbott’s. “Most of them have families, and they want to build a family legacy. They also want to build something that connects their family to the community,” Drew says.
After more than a decade of advising clients at one of the world’s largest consulting firms, Gail’s only son Brenden Drew, now vice president of business development, rejoined the family business to lead Abbott’s expansion. It seemed to be the perfect fit—a family member working with franchisee families across the country.
WHEN ARTHUR ABBOTT, WHO FOUNDED ABBOTT’S FROZEN Custard in 1902, wanted to retire, he looked for someone who would feel passionate about the business the way he did—someone who loved Rochester, New York, who worked hard, and would appreciate the customers and the quality of Abbott’s Frozen Custard.
At the same time, Leonard and Thelma Schreiber, born and raised in Rochester, were looking for a business. They understood how much Abbott’s meant to the community and realized what a fantastic opportunity they had. In 1957, the Schreiber’s took the reins at Abbott’s when their daughter, now second-generation owner, Gail Drew, was just 10 years old.
Drew’s first job was counting pennies every evening before moving up the ladder to clean the counters inside and out. When she finally
Since the start of the franchise initiative, Abbott’s has treated their franchisees as if they were part of the family. Gail Drew actually calls new franchisees and welcomes them to the family. “We call them owners not franchisees,” Brenden Drew says. “Franchisees is a term used in corporate America. Nothing against that, but at Abbott’s, you’re part of the family, and that’s how we treat you.”
Abbott’s goal is to be the place where people go to celebrate after a special occasion or event. After the school concert, after the game, after the picnic, after a first date. It’s the foundation for the brand’s newly launched tagline, “Happily Ever After.”
“Happily Ever After” works on several levels. It usually signals the end of a fairy tale or the next chapter in a story. Abbott’s has a wonderful story to tell: its storied history, the family legacy it fosters, and the traditions it preserves. That’s what Abbott’s is all about, and that’s the promise to current and future Abbott’s owners. RF
To learn more, visit abbottsfranchise.com.
Since 1902, Abbott’s Frozen Custard has held its custard recipe a secret. What’s no longer a secret is the success enjoyed by Abbott’s franchise owners across the country.
Success begins with an exceptional, delicious frozen custard made fresh daily to create a diverse offering of flavors served in cones, sundaes, cakes, novelty items and more. It continues with a franchise system dedicated to operational excellence and the intensive training and marketing support needed to ensure it. It culminates in a Happily Ever AfterR experience for our owners and their guests.
Nintey-nine percent of bb.q Chicken’s system is franchise owned, and bb.q Chicken refers to franchisees as a “bb.q family.” Bb.q values each and every franchisee, which is why it has strategically developed a strong support system for new and current franchisees, including an extensive three-week New Store Opening (NSO) training program implemented upon signing with the growing brand.
Before every grand opening, bb.q sends out its marketing team to ensure the soft opening and grand opening go smoothly. Bb.q Chicken even sends corporate chefs to help train the employees to properly prepare the Korean fried chicken and other K-Food recipes.
POPULAR KOREAN FRIED CHICKEN FRANCHISE, bb.q CHICKEN, has been bringing mouth-watering light and crispy Korean fried chicken across the U.S. with its rapid national expansion. Over the last three years, bb.q (pronounced bee-bee-que) has seen 400 percent growth in unit count, and it continues expanding.
Known for its commitment to quality and consistency, bb.q Chicken boasts lighter, crispier, and more flavorful options than traditional American fried chicken, due to its distinct frying method of cooking chicken at a lower temperature. Each team member individually coats and hand brushes the brand’s signature sauces on each piece of chicken, creating the perfect combination of crispy texture and distinctive flavor in every bite.
Authenticity and consistency are core values at bb.q, and the franchise takes pride in ensuring that its fried chicken in Seoul tastes exactly the same as it does at any other location in the world. Many international food brands have “Americanized” their food selections, but that is not the case for bb.q, which strives to offer an authentic Korean culinary experience at all of its more than 160 U.S. locations.
“I feel fully supported by the bb.q corporate team in my own growth plan, starting with my first bb.q venture in Chino Hills, CA, and as I’ve grown to now be a multi-unit operator with five other locations in California,” said John Kim, Chino Hills franchisee. “Bb.q is an expert at franchising, and I definitely see room to grow with the company. The lengths the brand takes to set its franchisees up for success is unmatched, and I am grateful for its continued support.”
Bb.q Chicken also has three different restaurant concepts it offers franchisees, as different concepts might thrive better than others in different markets. The three restaurant formats include: bb.q Chicken Express, bb.q Chicken Café, and bb.q Chicken and Beer.
The franchise is constantly working with its franchisees to better understand how to learn and grow as a bb.q family, and it recently launched a new franchise development campaign to recruit more potential franchisees in several new states as the brand grows its footprint across the country. RF
For more information, please visit bbqchicken.com.
Nontraditional growth is also at the forefront, with the highly anticipated opening at the Phoenix Sky Harbor International Airport in August of 2023 marking the seventh location. Through its Caesars Entertainment partnership, guests can enjoy Bobby’s Burgers by Bobby Flay dining throughout Las Vegas, Atlantic City, and the new location at Harrah’s New Orleans that opened in early 2023. Among the highly-populated locations, Yankee Stadium is another venue where fans can enjoy craveable menu items while catching a baseball game.
“As we continue growing our footprint, we look forward to building out our nontraditional footprint in airports, casinos, military bases, as well as traditional neighborhood restaurants so that Bobby’s Burgers will be wherever our guests are seeking a unique dining experience,” says Michael McGill, president of Intelligration Captial. “At the end of the day, what makes our concept stand out against competitors is the hand-crafted menu that was conceptualized and executed by world-class chef Bobby Flay. Guests will have the chance to enjoy exceptional, high-quality dining, but in a fast-casual format.”
THE ULTIMATE BURGER EXPERIENCE IS HEATING UP 2023 after a multitude of milestones to expand its Flayvorful footprint. With a chef developed, innovative menu, efficient layouts, and established proof of concept, Bobby’s Burgers by Bobby Flay is where craveability and approachability intersect, and restaurant operators are ready to add a taste to their portfolio.
Bobby’s Burgers recently announced two monumental multi-unit deals, which will deliver exceptional dining to burger lovers in the greater Chicago area and throughout the state of Colorado. Each new market will introduce guests to a chef-driven concept that creates a unique Bobby Flay dining experience for all.
NET WORTH: $1 million
LIQUID: $500,000
TOTAL INVESTMENT: $500,000–$2.8 million
Bobby’s Burgers leverages a flexible restaurant design to fit multiple real estate options in any neighborhood. Build-out options include inline, endcap, and free-standing with drive thru.
Inspired by Flay’s love of Americana and his travels throughout the U.S., the Ultimate Burger Experience infuses a unique flavor profile in every bite. With every menu item handcrafted by Bobby Flay, each elevated burger, breakfast favorite, tasty side, and spoon-bending milkshake offers culinary creativity using only the highest-quality ingredients. Designed for restaurant operators by restaurant operators, the concept cuts no corners with its operational efficiency. From flexible footprints to streamlined operations, guests enjoy a fresh, quality experience every time with a model that franchisees can replicate at any scale.
Bobby’s Burgers by Bobby Flay is on the brink of a nationwide culinary expansion, marked by imminent new openings and brand enhancements. With an unwavering dedication to culinary excellence and an unmatched dining experience, the unique concept is redefining the burger segment, one bite at a time. RF
• Instant Bobby Flay Brand Recognition
• World-Class Leadership Team
• A True Chef Driven Concept
• Non-Trad, In-Line, and Free Standing
IN A WORLD WHERE UNHEALTHY CHOICES SEEM endless, CRISP & GREEN is on a mission to challenge the status quo for a better future. Founded just six years ago by fitness and wellness entrepreneur Steele Smiley, CRISP & GREEN is rooted in helping people live a better life through more positive choices.
“I created CRISP & GREEN because healthy, scratchmade and convenient food can be the greatest mover in someone’s wellness journey,” says Smiley, who now serves as Crisp & Green’s founder and executive chairman. “I’m looking for like-minded individuals to help spread this mission throughout the country.”
Today, the brand has become the fastest growing healthy fast-casual franchise in the country with over 200 locations open or in development—and it’s not stopping there.
5 YEAR GROWTH RATE: 100%
AVG. EBITDA**: $253,507
“Now more than ever, people are seeking options that benefit their health, and finding convenient options that are also nutritious and craveable can be a challenge,” Smiley says. “Our in-house culinary team has created an innovative and made-from-scratch menu featuring chefcrafted salads, grain bowls, smoothies, and acai bowls. These are quickly becoming an everyday favorite for tens of thousands of guests in over 14 states and counting.”
FIRST TO MARKET OPPORTUNITIES: Available
SUPPORT OFFERED: Real estate, buildout, marketing, and operations
In addition to serving sustainable, affordable, and deliciously uncompromising food, CRISP & GREEN provides healthy living beyond the kitchen through its unique “Live Crisp” wellness events. By partnering locally with the best-in-class fitness experts, CRISP & GREEN hosts complimentary fitness events on a frequent basis, fostering a priceless connection with each community.
Executing on Smiley’s vision for a healthier world means having the top talent to do so. Led by CEO Kelly C. Baltes, a restaurant industry veteran with almost 30 years of leadership experience in both founder-led
and private-equity brands, CRISP & GREEN has assembled a worldclass team of restaurant and franchise experts. From real estate and buildout to marketing and operations, this sophisticated team is dedicated to delivering superior results through supporting the company’s franchise partners both in their open locations and units under development.
On a quest to continue its track record of doubling in size year-over-year, the franchise team is preparing for its busiest quarter yet, opening up in both small towns and major metropolitan cities throughout the U.S. With plenty of additional opportunities for growth including existing and first-to-market options, CRISP & GREEN is seeking experienced multi-unit operators to join this revolutionary movement that’s changing communities for the better. RF
To learn more, visit crispandgreen.com/franchise
With over 200 locations open or in development, the brand is changing the way consumers relate to food.
WHAT DO A MEXICAN CONCEPT, A SANDWICH chain and a classic American deli have in common? All under the Focus Brands portfolio, Moe’s Southwest Grill, McAlister’s Deli, and Schlotzsky’s are successful fast-casual brands that have stood the test of time, reaping benefits for franchisees while growing in favor among diners. Although significantly different, these brands use similar recipes for success to help franchisees thrive, fulfill consumer demands, and adapt to an ever-changing world.
For Moe’s Southwest Grill, Schlotzsky’s, and McAlister’s Deli, menu innovation is always top of mind. Constantly evolving ingredients and offerings to stay ahead of industry trends and keep guests coming back is critical. Following the pandemic, Moe’s revitalized its menu options and introduced a “Greatest Hits” menu featuring more fan-favorite burritos, such as the Moe
Meat Moe Cheese burrito and the Edgy Veggie, as well as a new line of sauces that explore a variety of flavors outside of the brand’s previous wheelhouse. This massive menu overhaul is just one of the ways these brands have created competitive menus with something for everyone, ultimately benefiting franchisees.
Additionally, the adaptability of these brands’ menus enables catering to serve as a valuable additional revenue stream for franchise owners. The loveable, well-known traditions of Moe’s, Schlotszky’s, and McAlister’s can flex to provide the perfect offerings for work lunches, graduations, birthday parties, and other special events while simultaneously opening areas for growth and expansion beyond the traditional store. For McAlister’s, reintroducing breakfast catering in 2022 allowed the brand to capitalize on readily available ingredients and products in-store to expand its menu architecture, while establishing a unique competitive edge that grows its catering business in all dayparts.
With a shared commitment to fueling growth, Moe’s, Schlotzsky’s, and McAlister’s each offer stores that are designed to fit almost anywhere, complete with advanced digital structures that help to simplify restaurant operations and increase guest satisfaction. Schlotzsky’s two most recent prototype developments, the Design 1000 and Design 1800, provide flexibility and accessibility for a variety of retail spaces in both new and established markets, further expanding its footprint across the country.
As consumer expectations rapidly evolve, so must processes and deliverables that measure up to digital trends and enhance the customer experience. Within all three brands, recent technological advancements, such as enhanced mobile apps and drive-thru pick up windows, prioritize efficiency for franchise owners and fulfill the fast, dependable service customers expect.
All these things make these iconic restaurant brands ripe for franchise growth—Moe’s Southwest Grill, Schlotzsky’s, and McAlister’s Deli are offering exciting incentives for new franchise deals signed through December 20, 2023. For qualified franchisees, incentives for all three brands include discounted initial franchise fees and lowered advertising and royalty fees for new units in the first year of operation. RF For
GLORIA JEAN’S COFFEES IS AN ESTEEMED BRAND of Retail Food Group (RFG), a leading, full-service, global food and beverage company headquartered on the Gold Coast, Australia, with a regional presence in Chicago. After entering the Australian market in 1996, Gloria Jean’s Coffees has become a global success story.
Great coffee has been the driving passion for Gloria Jean’s Coffees since 1979. From the first store that was opened by Gloria Jean Kvetko in Chicago to the more than 600 stores across the world today, the brand has been on a mission to bring flavor to the world of coffee.
Gloria Jean’s believes that bringing flavor to the world starts with finding the best flavor in the world. The brand sources coffee beans from the world’s best coffee growing regions: Africa, Asia, and the Americas. From robust roasts to lighter delicate blends, the company believes that every cup of coffee served should begin with unmistakable flavor.
The brand’s commitment to flavor flows through everything it makes, from cozy hot drinks to handcrafted Chillers and over-iced beverages. Flavor is baked into delicious food offerings, and, perhaps most importantly, into who the brand is. Flavor has always meant more than how things taste to Gloria Jean’s. Its kind of flavor means character, personality, and flair. The brand’s leaders know that when they bring their own diverse flavors to the table, they can create something bigger than just coffee; they create moments where everyone can be themselves.
The brand’s tagline “Cup by Cup, Chiller by Chiller, Smile by Smile and Store by Store” is in everything the team does—it’s who they are. They believe in flavor or nothing.
Gloria Jean’s Support Office Team will engage new partners in a world-class training program at its corporate office in Chicago and covers theoretical and practical aspects of coffee making, guest service,
operational standards, and strategic marketing initiatives.
A combination of effective business tools and methodologies refined over many years of operation are the key to the training program’s success. The brand has put in place leading-edge platforms, such as 24/7 online learning, communications tools, and practical in-store training to help strengthen teams. Gloria Jean’s strong vision, quality products, strategic business format, proven operating system, creative marketing approach, and consistent support will ensure success and longevity in store.
Gloria Jean’s franchise network comes from all walks of life, with various backgrounds and experiences. It provides a business model and support teams to help build and establish a coffee house with ease. RF
FOUNDED IN 1958, IHOP IS AN ICONIC brand that has continued to provide quality food and innovative menu items to its guests for 65 years. From new prototypes, core menu items, and LTOs that go viral to a new loyalty program and digital experiences for guests, the brand prides itself on proactively adapting to industry changes and always listening to its guests’ needs.
“We are a heritage brand, but we focus on menu innovation and different avenues of development to stay relevant to guests—and to drive brand awareness by capturing new guests,” says Jacob Barden, vice president of development at IHOP. “We are always looking at new ways to evolve our business and bring more smiles to our guests’ plates.”
At the end of March 2023, IHOP introduced its largest menu evolution to date, bringing back a selection of classic guest favorites like the Cinn-AStack pancakes. The re-engineered menu also features new options that focus on quality and lean into all dayparts. Meanwhile, IHOP is focusing on the development of not only its traditional, fullservice restaurants, but also “a smaller expression, counter-service-type model for non-traditional venues,” Barden says.
U.S. LOCATIONS: More than 1,600
MINIMUM LIQUIDITY: $500,000
The International Bank of Pancakes loyalty program launched in 2022, and its growth has exceeded the company’s wildest ambitions. “Not only have we seen our IHOP app downloads triple and lead in the category, but we added over four million members in the first nine months, which also accounted for five percent of sales by the end of 2022,” says Barden.
MINIMUM NET WORTH: $1.5 million
At the same time, the brand rolled out a new IHOP app and a new online ordering experience. Now guests can pay their checks from their phone by scanning a QR code on their receipt. The app and website were also designed to remove common friction points some may have experienced when ordering in the past, allowing guests to better customize to their tastes.
Amid these successes, IHOP is offering a range of development incentives for new and existing franchisees, as well as strategic growth plans
for traditional and non-traditional development—while also emphasizing speed to market and cost-effectiveness.
“When you become an IHOP franchisee, you gain strong experience from a nationally known brand, as well as a sense of community and belonging within our franchise community,” Barden says. “We have an experienced base of existing franchisees that participate in various committees and provide feedback on programs and initiatives in real time.”
IHOP franchisees have the support of an experienced leadership team as well as the experience of IHOP’s parent company, Dine Brands Global, one of the largest full-service restaurant groups in the U.S. Franchisees receive ongoing field marketing support; local and national advertising; consultations for on-site selection and process, architecture, design, and development; and ongoing operations consultation.
“We have opportunities available in select domestic prime markets and internationally for both traditional and non-traditional development,” Barden says. “A widely recognized and loved family dining brand, we are looking for experienced operators to continue our brand consistency, adaptability, and growth.” RF
To learn more, visit franchise.ihop.com/en/us/request-more-info.
We have opportunities in select, prime markets and non-traditional venues for qualified restaurant operators and developers with varied incentives for development.*
• Widely recognized and loved brand in family dining where guests feel welcomed and can enjoy classic favorites and craveable menu innovations any time of day
• A powerhouse brand that is a part of Dine Brands Global, a publicly traded company and one of the largest restaurant groups in the U.S.
• A dynamic brand that aims to deliver on popularity, relevancy, adaptability, and support
• An established franchise system with a business model and flexible design from conversions to freestanding, endcap, in-line and non-traditional—adaptable across varied venues
The menu features both hot and cold sandwiches, and guests enjoy the complimentary mouthwatering chocolate chip cookie that comes free with every sandwich. Mr. Pickle’s also specializes in salads and has an impressive catering program.
“Mr. Pickle’s is also a leader in online ordering technology, partnering with both DoorDash and Paytronix Systems, Inc., one of the most advanced digital guest experience platforms in the world. Through the partnership, Mr. Pickle’s uses the full Paytronix Platform for its loyalty, order, delivery, mobile, and gift system,” Nelson says.
Through this mechanism, guests are able to get brick-and-mortar pricing directly from the Mr. Pickle’s website.
“We’ve also invested heavily in expanding our loyalty program—Pickle Points—based on customer feedback and evolving technologies,” Nelson says.
UNTIL THIS YEAR, MR. PICKLE’S SANDWICH SHOP was one of the best-kept secrets in the country. A beloved northern California “cult” brand, it grew by word of mouth from one to 56 locations over the course of almost 30 years. Now, under the leadership of veteran franchise gurus who successfully expanded the brand into Arizona in recent months, the secret is out, and Mr. Pickle’s is offering franchise opportunities nationwide.
“We are built differently on purpose and with purpose,” says CEO Michael Nelson, a veteran of Carl’s Jr., Subway, and Wing Stop brands.
According to Nelson, Mr. Pickle’s core ingredients are unique by design.
AUV: Over $1 million AWARDS: NRN Top 500, Top 100 Under 100 CONSECUTIVE GROWTH: 36 months of same store sales and transactions
29 years of Craveable sandwiches
“Our specialty bread isn’t bound by the sizing scrutiny seen for decades in the sandwich segment. Rather than the bland uniformity, Mr. Pickle’s prides itself on premium quality,” Nelson says, noting that Mr. Pickle’s offers Santa Maria Tri-Tip free from liquid smoke and has the fluffiest, most satisfying take on Dutch Crunch bread on the market.
Mr. Pickle’s is well-positioned for explosive growth. In recent months, it has already garnered commitments for 25 additional locations in California and Arizona.
“We are looking for experienced multi-unit restaurant franchisees across the country to join us as we expand Mr. Pickle’s nationwide,” Nelson says, adding that all franchisees receive strong, consistent support. “We stand with and behind our franchisees, using our long-term relationships with regional commercial brokers to assist with site selection. We also provide construction support, lease negotiation support, in-store training, mentorship, and more.”
The store design is adaptable to nontraditional construction and centers—it isn’t limited to a standard rectangular space, and very little buildout is required. Mr. Pickle’s also does not use traffic counts for site selection—instead, it refers to state-of-the-art artificial intelligence technology that is free for the franchisee. RF
To learn more, visit www.mrpickles.com/franchising.
FOR NEARLY THREE DECADES, PEPPER LUNCH HAS been making waves in the global dining scene, with an impressive portfolio of over 500 locations worldwide. Renowned for transforming the teppanyaki dining experience, Pepper Lunch is now set to revolutionize the fastcasual sector in the U.S. With proof-of-concept stores established in three states since 2018, the brand is now primed for rapid expansion, extending franchise opportunities to ambitious, multi-unit operators nationwide.
Pepper Lunch’s immersive DIY teppanyaki concept appeals across generational lines, striking a particular chord with millennial and Gen Z consumers who crave authentic,
STORES: 508 total, 126 corporate LOCATIONS: In 15 countries
labor or cooks simplifies training, enabling franchisees to focus on efficient business operation.
With Asian cuisine experiencing growing popularity among U.S. consumers, Pepper Lunch is poised to become a highly sought-after dining destination in every new market it enters. The strong brand recog-
engaging dining experiences. Each Pepper Lunch visit offers guests the opportunity to tailor their meals using premium ingredients and tantalizing sauces on sizzling hot plates, crafting a dining adventure that keeps them coming back for more.
The brand’s impressive average gross sales, peaking at $2,883,192*, reflect the captivating appeal of Pepper Lunch’s flavorful offerings. The lean operations model and lower labor requirements present franchisees with exceptional revenue potential. The absence of need for skilled
nition, worldwide presence, and loyal customer base provide a robust foundation for franchisees to succeed. Committed to quality ingredients and a truly interactive guest experience, Pepper Lunch equips franchisees to bring a distinct and in-demand dining concept to untapped U.S. markets.
Becoming a Pepper Lunch franchisee means aligning with a globally recognized brand boasting a proven business model. The company champions a collaborative partnership environment, fostering franchisee success. With a strategic focus on U.S. expansion, Pepper Lunch offers an irresistible opportunity for franchisees to partake in the brand’s global success and to write their own sizzling success story in the fast-casual dining world. We warmly invite talented, multi-unit operators to explore this dynamic dining concept and tap into the thriving experiential dining market. RF
To learn more, visit pepperlunchrestaurants.com.
types of people typically work hard and outperform their peers. Pickleman’s is currently targeting opportunities throughout the Midwest and Southern Belt, from Texas to Georgia.
The brand leads the class by serving No Antibiotics Ever chicken and pulled pork— staking its claim as the first national quickservice sandwich brand to commit to sourcing chicken and pulled pork with this USDA-enforced label. Pickleman’s prides itself on the rigorously high quality of its ingredients and continuously works toward creating healthier and safer food choices.
WHEN ASKING FOUNDER AND CEO, DOUG STRITZEL, why he started Pickleman’s, he said “In the beginning, I started Pickleman’s to provide a pathway for people into entrepreneurship that could allow them to have their ideal lifestyle by supporting their family and controlling their own destiny.”
This fast-casual sandwich brand applies a system of operational procedures and techniques that have proven effective at serving its patrons a consistent and quality product efficiently. The brand operates on a belief that it has a responsibility to its customers by providing higher quality and healthier food. “It’s an artisan approach that allows us to eliminate a lot of the unnecessary chemicals and processed foods commonly found within the industry,” Stritzel says.
As of July 2023, the Midwestern franchise has 29 franchised locations, boasting a same store sales growth of 14.57 percent in 2022 over 2021, resulting in an average unit volume of $1.44 million in 2022. Pickleman’s Franchising has three multi-unit deals with existing franchisees in Oklahoma, Arkansas, Indiana, and Texas.
The brand is in search of entrepreneurs with a history of success, and not necessarily only in the restaurant industry. Stritzel says he looks for a history of “excellence and leadership” in a potential franchisee, as these
Pickleman’s has a simple process for operating, yet a robust menu offering that allows plenty of options for all lifestyles. “Our artisan approach is apparent as most of the products we serve are unique to our brand,” Stritzel says. “Daily, we make our salad dressings, chicken salad, and cookies from scratch in-house. Our bread and tomato basil bisque are our own proprietary recipes. Our meats, cheeses, and produce are sliced daily at each location to provide the freshest and highest quality products.”
In April 2023, Pickleman’s also announced the opening of its fourth drivethru location, located in the Kansas City metro area. With an assembly line process and throughput and more drive-thru locations, Pickleman’s is positioned to become a powerhouse brand. “We make everything to order; the flow and the timeliness of the process is exceptional,” Stritzel says. “Everything that we make is on a production line that flows to the point of purchase.”
As Pickleman’s continues to grow, the values remain the same, treating everything with respect—including employees, customers, and its business partners. Stritzel says “We look for win-win, sustainable agreements and relationships for all parties involved.” RF
SIP FRESH, THE NEXTGEN SPECIALTY BEVERAGE RETAIL concept, renowned for its unique, vivid displays of fresh-fruitbased juices, teas, and specialty drinks, is taking the beverage industry by storm and has positioned itself as an attractive franchise opportunity for those looking to diversify their portfolio and seeking non-traditional growth in a competitive market.
Built to prioritize franchisees, its simple operating model is designed to maximize return on investment. With a low labor model, back-of-house operations are minimized, while front-of-house sales and customer service take center stage. This streamlined approach allows franchisees to focus on what truly matters—building their business, delivering exceptional guest experiences, and fostering
meaningful connections within their community.
Anchored near upscale department and specialty stores, Sip Fresh joins desired retail destinations, capitalizing off of a steady flow of foot traffic in all day parts. Since the brand’s inception in 2017, it has drawn in onthe-go shoppers seeking spontaneity and excitement on their buyer’s journey. As an innovative franchise concept, Sip Fresh is becoming a beacon for Class A malls across the country. Currently, the brand has four locations in California and Arizona, with three additional stores projected to open in current states and across the Sunbelt.
Sip Fresh has drawn a loyal following through its visually stunning beverage offerings and the warm welcome provided by its friendly Sipistas, who delight guests with refreshing samples.
Under the direction of an experienced leadership team, Sip Fresh is continuing to draw in restaurant operators seeking to diversify their portfolio with a non-traditional franchise opportunity. With the focus on simple operations, ideal labor model, winning locations and strong support for franchisees, Sip Fresh is poised for 35 signed agreements by year end. The growth initiative is reflective of the increasing development of top-tier malls, lifestyle centers, universities, transportation hubs, and other high-traffic venues, as well as the demand for health and wellness-based concepts in the beverage sector. RF
Simple operating model providing strong margins
Desirable low labor model minimized BOH operations, focus on FOH sales
Strong franchisor support to optimize operations
High return on investmentand tremendous scalability
LOCATIONS: More than 235 total, 40 international IN DEVELOPMENT: More than 1,150 units
AUV: $3.8M* SYSTEMWIDE Y.O.Y GROWTH: 35 percent
Now more than ever, operators are seeking flexibility, and Slim Chickens is ahead of the curve. The brand has developed a new store format that reduces costs while maintaining the distinctive Slim Chickens atmosphere, which allows the brand to accommodate smaller footprints without compromising on quality or customer experience.
WITH ITS SOARING SUCCESS AND RAPID GROWTH, Slim Chickens is a revolutionary player in the fastcasual restaurant industry. The better-chicken brand, known for its southern comfort food and handbreaded chicken tenders, is making major strides across the U.S. and internationally as it heads into 2024. The widespread interest is attributed to the brand’s unique loyal following, adaptability to externalities, and high-touch executive team that is in tune with franchisees’ bottom line.
Opening 70 locations a year and on track to increase store openings by 50 percent into 2025, Slim Chickens is a powerhouse. Evident through its remarkable $3,864,513* AUV, it boasts a striking 13.6 percent yearover-year increase, making it an irresistible franchising option.
As the restaurant scene continues to evolve, Slim Chickens continues to evolve with it, constantly innovating to stay in tune with the latest technology and real estate trends and expectations of established multi-unit operators.
Within the past six months, Slim Chickens has inked more than 50 new development deals, with over 34 new openings and 10 new territories, including Turkey, Nevada, and Wisconsin. Celebrating recent non-traditional openings at the Istanbul Airport and the University of Arkansas Fort Smith, Slim Chickens showcases the robust systems it has in place, which consistently yield attractive returns for investors and garner a loyal following, solidifying its name in the industry.
Contributing to Slim Chickens’ allure is its reputation for brand consistency. Customers are satisfied around the globe for the anticipated mouthwatering food and welcoming Southern contemporary ambiance that anchors the brand. Whether on the go or dining in, it’s a compelling force and an asset to multi-unit operators in the ambitious chicken segment.
Bringing its presence to over 235 locations and 1,150 signed agreements in the pipeline, Slim Chickens projects to sign an additional 60 development deals this year, expanding its Southern hospitality into key markets through both traditional and non-traditional formats, including Ohio, Pennsylvania, New York, Virginia, West Virginia, Canada, Germany, Malaysia, and the GCC.
As it continues its upward trajectory, the brand remains committed to providing franchisees and customers alike with an exceptional and unforgettable dining experience. With expansion plans reaching even greater heights, Slim Chickens invites talented, multi-unit operators to join its journey of growth and redefine the fast-casual dining experience. RF
Learn more at slimchickensfranchise.com.
$3.8M AUV
1,150+ UNITS IN DEVELOPMENT
Three Year Comp. Store Sales Increase of 48.7%
Ground-Up & Conversion Options
Simplicity of Operations
Passionate Executive Team
Excellent Branding
240+ LOCATIONS WORLDWIDE
35% SYSTEMWIDE Y.O.Y GROWTH
and existing multi-unit owners to grow with the brand.
This year, Subway is working towards its goal to increase new openings across North America and recently celebrated the completion of over 10,000 remodels. The brand is also continuing to consolidate and transfer restaurant packages to new and existing multi-unit franchisees and has announced several new multi-unit owner agreements.
AS PART OF SUBWAY’S TRANSFORMATION JOURNEY TO improve across all aspects of its business, the brand has spent the past two years optimizing its footprint, using a strategic, data-driven approach to ensure restaurants across the system are in the right location, image, and format, and are operated by growing franchisees who have the resources and passion to be part of the brand’s transformation journey.
In 2023, Subway launched its smart growth development strategy to boost franchisee profitability and reaffirm the brand’s position in the market. This involves strategically opening new locations, continuing to modernize its image through remodels and relocations, and attracting new
SERVES: 1.5 billion global guests annually
SMART GROWTH: Boost franchisee profitability and open new restaurants
MODERNIZED REMODELS: More than 10,000
As a results of the brand’s efforts, during the first half of 2023, Subway broke brand records as it achieved its highest average unit volume (AUV) in North America for three consecutive months and, within that time, its highest weekly AUV in the company’s recorded history. For the first half of 2023, Subway saw positive traffic across North America and significant growth in global restaurant same-store sales. Positive sales momentum continues to be driven by menu innovation, modernization of restaurants and ongoing improvements to the overall guest experience, including digital.
Internationally, the brand continues to partner with strong, well-established operators with specific expertise in a market to strategically expand its footprint around the world. Between August 2021 and August 2023, Subway has signed 15 master franchise agreements or country development agreements across Europe, Middle East and Africa, Latin America and the Caribbean, and Asia Pacific, totaling more than 9,000 future restaurant commitments. RF
14.9%
IN NORTH AMERICA (TOP 75% OF SUBWAY LOCATIONS, ABOUT 17,000 RESTAURANTS)* * COMPARED TO SAME PERIOD IN 2022
LEGACY AND EMERGING BRANDS!
REACH OUT TO OUR DEVELOPMENT TEAM