Schuyler "Rocky" Reidel’s Post

It's one thing to have a great solo concept, it's quite another to scale up that concept into a franchise. A panel at the Restaurant Franchising and Innovation Summit looked at how restaurants can scale up from start up to full growth mode. https://lnkd.in/epRYmdfk

Freddy’s Frozen Custard and Steakburgers, a fast-casual burger chain, is reportedly exploring the possibility of a sale that could value the brand at $1 billion, as private-equity firms continue to acquire franchise businesses. Such a deal would contribute to the rising trend of franchised brands achieving high valuations in a market that is otherwise lukewarm about the restaurant industry. This week, private-equity firm Blackstone acquired a majority stake in Jersey Mike’s, a sandwich chain, at an $8 billion valuation. Earlier this year, the firm also purchased Tropical Smoothie for $2 billion. Since the focus has been on asset-light franchisors and businesses with very good growth metrics, Freddy’s seems like a perfect fit. System sales have grown an average of 14.3% the past five years, according to Technomic, including 14.5% last year. They neared $1 billion in system sales from more than 500 restaurants, while franchisees operate about 94% of the locations. Keeping ahead of trends in the economic underpinnings of national retail tenants helps buyers and sellers of net lease assets to maximizing their investment dollars. NNN Trends is an available resource for continually-updated cap rates, consumer traffic, and recent national comparable sales for dozens of top national tenants. Check it out: https://bit.ly/4f1SYV3 #CRE #commercialrealestate #netlease #restaurantnews

The Red Lobster Franchise, once a beacon of success and a staple in the casual dining industry, has faced significant challenges in recent years, leading to a decline in its fortunes, store closings and declining store sales. From its humble beginnings as a single seafood restaurant to its expansion as a global franchise powerhouse, Red Lobster’s journey is marked by triumphs, innovations, and a commitment to excellence. However, shifting consumer preferences, increased competition, and strategic missteps have contributed to the downfall of Red Lobster in recent years. In this overview, we’ll explore the rise and fall of Red Lobster, examining the factors that have led to its decline and its struggle to regain its former glory. #redlobster #redlobsterfranchise #fmsfranchise #franchise https://lnkd.in/efXPY4c4

What are the Top Franchise Restaurant Chains by Average Store Sales Volume? When evaluating the success of restaurant chains, average store sales volume is a critical metric. It reflects the efficiency, popularity, and profitability of individual locations within the chain. This article delves into the top restaurant chains by average store sales volume, examining their business strategies, menu offerings, and the factors driving their impressive per-store earnings. #FMSFranchise #Franchising #FranchiseAdvisors #FranchiseConsultant #Franchiseyourbusiness #restaurantfranchise

10 Interesting Facts About Taco Bell You Probably Didn’t Know Did you know that Taco Bell is the top-ranked franchise on Entrepreneur’s Franchise 500 rankings for 2024? With a staggering network of over 8,300 locations worldwide, Taco Bell has become synonymous with quick-service Mexican-inspired cuisine, generating nearly $16 billion in sales in 2023 alone. You may think you know everything there is to know about […] The post 10 Interesting Facts About Taco Bell You Probably Didn’t Know appeared first on GallantCEO. Source

It is with a heavy heart that I observe the ongoing plight of Rubio's Coastal Grill, a revered fixture in our fast-casual dining landscape. The company has navigated tough waters for years. With a second bankruptcy filing within four years, Rubio's is a crystal-clear illustration of the immense challenges restaurant brands (and especially franchises) are currently facing. The persistent rise in operational costs, especially within states such as California, where a $20 fast-food wage is implemented, combined with the downward trend of in-store traffic, is causing a strain beyond sustainability. The decision to shutter a third of restaurants has only magnified the problem, not alleviated it. Yes, bankruptcy can be a strategic move, as with Rubio's Chapter 11 filing, utilizing it as a springboard to seek a buyer amongst the tumultuous waves. Yet, the listing of assets valued between $10 million and $50 million against liabilities ranging from $100 million to $500 million clearly indicates the stormy seas Rubio's is navigating. This is not just about Rubio’s. For me, as a franchise attorney, this paints an alarming picture of the ever-increasing number of restaurant franchise bankruptcies. The year 2024, I predict, will be a watershed moment - a year where adaptation is not an option but a necessity for survival. Rising interest rates, shifts in consumer behaviors, and an increasingly anti-business environment are challenging the resilience of many brands in the franchising sector. The landscape is transforming, and the franchise brands that will sustain or even flourish are those prepared to pivot. Can they counter the rising tide of operational costs? Can they find innovative ways to entice consumers back through their doors? Will they be agile enough to navigate the legal and business labyrinth that is becoming ever more complex? Alas, Rubio's is not an isolated case, but a stark reminder of the profound challenges that lay ahead for franchised food service brands. It's a call to arms for strategic realignment, innovative thinking, and a relentless commitment to growth and adaptation. Will your favorite restaurant brand rise to the occasion or fold under the pressure? This, I believe, is the defining question of the year 2024 for franchised restaurant brands, and indeed for us all, who treasure the rich tapestry of dining options we have grown accustomed to. #restaurants #franchise #franchising

I've learned 5 golden rules from my experience with McDonald's and Burger King. Here's how they can help scale your restaurant franchise👇 1) Consistency is key 🔑 Just like McDonald's and Burger King, make sure your franchise maintains consistent quality across all outlets. This builds trust and loyalty among customers. 2) Invest in training 🎯 Both McDonald's and Burger King invest heavily in staff training. This ensures that every customer has a positive experience, regardless of the location. 3) Leverage the power of branding 🌐 McDonald's and Burger King have strong, recognizable brands. This helps them stand out in a crowded marketplace. Make sure your branding is clear, consistent, and communicates your unique selling proposition. 4) Innovate, but stay true to your roots 🌳 While McDonald's and Burger King regularly introduce new menu items, they never stray far from their core offerings. This balance between innovation and tradition is key to their success. 5) Build strong supplier relationships 🤝 McDonald's and Burger King have cultivated strong relationships with their suppliers. This ensures they can deliver consistent quality while keeping costs down. Remember, scaling a restaurant franchise isn't just about opening more outlets. It's about maintaining quality, investing in your team, leveraging your brand, balancing innovation with tradition, and building strong supplier relationships. Apply these lessons to your franchise, and watch it grow! 🚀

Ron Ruggless Nation's Restaurant News tells us TGI Fridays combining with Hostmore plc the brand’s largest global franchise owner and the US company would be a publicly traded listing on the London exchange "TGI Fridays has agreed to merge with its 89-unit United Kingdom-based franchisee, Hostmore plc, the companies announced Tuesday. Dallas-based Fridays said Hostmore was its largest global franchisee. Terms of the all-share merger were reported to be about $220 million U.S. The companies said the deal, which is expected to close in the third quarter 2024, would offer the casual-dining restaurant company operational and financial flexibility and increased scale and capital to deliver continued revenue. The combined company would be traded publicly on the London Stock Exchange as “TGIF.” TGI Fridays said it had $1.4 billion in systemwide sales in 2023. Upon completion of the transaction, the new combined entity would be named TGI Fridays plc. The brand’s U.S. and global operations would remain at the company's Dallas headquarters under the leadership of Weldon Spangler, the current CEO, the brand said. The combined entity would have 189 corporate-owned restaurants in the United States and the United Kingdom for nearly 600 restaurants across 44 countries. In January, TGI Fridays said it would be closing 36 underperforming U.S. locations and sell eight restaurants to its former CEO. "We have been laser focused on revitalizing the brand and driving growth through consumer-centric offerings, the optimization of our restaurant portfolio and the addition of senior team members,” Spangler said in a statement. “This transaction represents the next step in our journey as it increases our corporate-owned restaurant locations and provides capital to expand our presence globally.” Stephen Welker, chairman of Hostmore, said: “This acquisition would give us the scale and flexibility to accelerate our existing strategy and enhance the financial outlook for Hostmore and scope for shareholder returns.” TGI Fridays is controlled by TriArtisan Capital Advisors, a U.S.-based private-equity firm, with ownership stakes in several global consumer recognized dining concepts including P.F. Chang's China Bistro and Hooters of America, the sports bar, media, and entertainment company." https://lnkd.in/ep_PHsSx #QSR #Entrepreneur #Restaurants #Franchise #Franchising #FranchiseChat Chainformation Altir Industries, Inc. Franchise Pipeline Franchise Development Outsource Ned Lyerly Joe Caruso Michael (Mike) Webster PhD Anders Hall Jonathan Martin Michael Scherr John Neitzel Christer Jansson    

YouMeSushi, the restaurant and takeaway business, has told Propel it is aiming to reach the 35-site mark next year, with Birmingham and Manchester “key focus areas”. The franchise brand has previously said it aims to double its estate over the next three years, and it will finish the year on 26 stores. Much of the focus for its expansion will be taking the predominantly London-based business further out into the regions, having added locations this year in places such as Glasgow, Bristol, Rayleigh and Worthing. 👉 For the full version of this story and to read it first sign up to the Propel email newsletter for free: https://lnkd.in/eyy_THzR

BurgerFi has been sold to the owner of Savvy Sliders By Lisa Jennings Restaurant Business Online The fast-casual BurgerFi chain has a new owner. After being bought out of bankruptcy by lender TREW Capital Management in October, the better-burger concept on Friday was acquired by Happy Asker, CEO and co-founder of the Michigan-based parent company of Savvy Sliders, Fat Boy's Pizza - Size Matters and Happy's Pizza. Terms of the deal were not disclosed, and Asker declined to offer details, saying a more formal announcement will come next week. But he confirmed that BurgerFi would become a sister brand of the growing Savvy Sliders and other franchise brands within the group. BurgerFi and now-former sister brand Anthony's Coal Fired Pizza were owned by Fort Lauderdale, Florida-based BurgerFi International Inc., or BFI, which was a public company created through a reverse merger with a special purpose acquisition company, or SPAC, in 2020. It was a rocky few years for BFI, which saw sales plummet during that period, despite turnaround efforts. BFI defaulted on its credit agreement last year and filed for Chapter 11 bankruptcy in September. The company also shuttered a number of underperforming units, leaving BurgerFi with 93 locations when it was acquired by TREW in a bankruptcy auction for a $10 million credit bid. Of those, 17 are company-owned and 76 are franchised. TREW, which is led by former Famous Dave's of America Dave’s CEO Jeff Crivello, also made a credit bid of $44 million for the mostly company-owned Anthony’s, which was very quickly sold again earlier this month to Florida Burger Inc., whose principal is @Kuljeet Singh, a franchisee of Round Table Pizza and Burger King. Savvy Sliders was listed on this year’s Restaurant Business Future 50 list as an emerging brand, with systemwide sales of about $47 million in 2023. https://lnkd.in/ea9ns59P