Friendly's Restaurants’ Post

Interesting issue in #franchise... Many fast food franchisors are acknowledging a general trend moving away from dining rooms and convert to carry out, drive through, and delivery only. This trend started pre-pandemic, but really took off once the pandemic set in. Now post-pandemic, dining rooms still sit mostly empty. Yet, franchisors are still requiring franchise owners to renovate and upgrade dining rooms, typically every 10 years. Why? Franchisors argue that dine-in is still a significant part of business. And it's perceived that the franchise's brand and local reputation improves with the look and feel of updated dining areas, resulting in more sales. Franchisees though, support the move away from in-person dining due to cost savings and an enhanced ability to serve more customers. Translating into more profits and better service with improved processes. Costs to renovate (dining room furnishings, counters, bath rooms, art, lighting, flooring, etc.) can run into the hundreds of thousands of dollars, most or all of which the franchisees are expected to pay. And then there is the cost to have staff clean and maintain the dining area multiple times daily. It will be really interesting to see how this develops over the next few years. If you're considering a fast food franchise, this is certainly something to investigate and consider. Where are you on this debate? Dine-in rules? Or give me drive-through or give me death? Would love feedback in the comments! #franchisebusiness #leadership #business #fastfoodrestaurant

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

Burger King is about to see a royal makeover! In a ground-breaking $1 billion deal, Restaurant Brands is taking full charge of Carrols Restaurant Group, a major BK franhcisee, opening a new era for the king of burgers in the US! Intriguing, isn't it? But let me break it down for you. This master stroke decision comes as a part of the company's strategy to draw in the youthful crowd. They're saying goodbye to larger franchisees and welcoming local ones, sparking an interesting shift in the franchise model. Here's some perspective: Carrols controls over 1,000 Burger Kings across the US. And now, Restaurant Brands, owner of Tim Horton's, is about to have full control over this massive empire, serving up a promising transformation for the Burger King U.S. image. But get this. 600 outlets are about to receive a $500 million modernization upgrade, more than doubling the rapid pace of current remodels. These will be flipped back to single unit or smaller multi-unit operators to take on as franchisees. And what does this mean for the future? Restaurant Brand executives are eyeing an increase in U.S. franchisees from 300 to a stately 400-500 over the next five years! And all this while providing a premium of 13.4% to Carrols shareholders. Will Burger King U.S. see a renaissance, leading to stable sales and earnings growth? Northcoast Research analyst Jim Sanderson certainly thinks so. Open your eyes to a new dawn for the Burger King empire in the US, closing deals in the Q2, and brace yourselves for the regal transformation! Thoughts? I think this is a bold and innovative move by BK to double down and focus on their smaller unit operators as the key to local success for their brand. Kudos to BK! #BK #franchise #franchising

Continuing to expand its reach into new markets. The company recently announced a new multiunit development deal in Charlotte, NC. By year end we will have opened over 20 new shops for the year, growing the footprint into 12 total states and leading to another record year of new shop openings. See Q3 highlights attached! #franchisebusiness #franchiseopportunities #restaurantfinance #growthbusiness

SIDE STREET FANS & FRANCHISEES HAVE THEIR SAY... Side Street Burgers is preparing to open more stores, welcoming two new multi-unit franchisees and their teams to the network. In the meantime, this is what our existing multi-unit partners had to say about their experience as Side Street franchise owners: "It has been an absolute pleasure working with the owners of Side Street Burgers in opening a franchise store. The support and guidance received by both Idrees & Yasir, and by their team, and their willingness to take on feedback, has made this entire process so much easier. They have a refreshing outlook to franchising which is rare to see. Furthermore, what has been truly inspirational for me as a franchisee is seeing and understanding their vision for the brand and their excitement towards it." Suhail, Walthamstow, Reading and Green Street (Upton Park) "I was looking in the market to bring something exciting and fresh to Bonnyrigg. This is one of the many reasons why Side Street and Us fitted so well. They are a brand who have exceeded our expectations from the moment we declared interest in Franchising. We will be opening more branches following the success of Bonnyrigg. This wouldn’t have been possible without the support we receive on a daily basis. The team at Side Street have consistently given us guidance on how to improve in the branch, and where we can make the 1% difference everyday to become better. The rapid growth of the brand is exciting for us and anyone else associated with them". - Ali, Edinburgh, Scotland "I’ve been following Side Street since their birth in 2020, watching how they’ve differentiated themselves from others who were serving Smash Burgers. My experience has been amazing, I now have multiple franchises with them and with every branch I have seen the same consistent support. Side Street has put in a structure from the top down, to ensure no branch is on its own from the start. It’s been a pleasure working with everyone, especially the proactive and creative marketing team." - Mubeen, Rochdale & Fallowfield, Manchester If that's not all, with the roll out of new products, let's hear what the fans had to say about the new American BBQ menu. Side Street - The Burger Revolution | All Halal Menu | Big Food, Big Flavours Joshua Ryan Franchise Futures UK - A Food & Beverage Consultancy #franchise #hospitality #qsr #foodindustry #foodie #restaurants #foodandbeverage #retail

Jonathan Maze at Restaurant Business Online informs on new approaches advance new Papa Johns franchise openings. "Over the past three years, Papa Johns has increased its average unit volumes by a third, to nearly $1.2 million, according to Restaurant Business sister company Technomic, Inc.. That’s high for a pizza delivery chain. And yet unit count has remained relatively stagnant. The chain has added fewer than 40 restaurants in the U.S. over that time. This isn’t lost on Rob Lynch, the chain’s CEO. “Our unit economics warrant a lot more development than we’ve seen,” he said in an interview. The problem, however, is not the financial investment. Rather, Lynch said, it’s some of these other issues, such as permitting, construction, sourcing materials and finding general contractors. “We’re building restaurants as a company,” Lynch said. “We’re the largest developer in the system. We have the infrastructure and the support model. And if we’ve got it, and we continue to need help on these things, then we can leverage these assets.” Papa Johns is the fourth largest pizza chain in the U.S., behind Domino's’s, Pizza Hut and Little Caesars Pizza. But it has not had much in the way of unit growth for years. The chain, based concurrently in Louisville, Ky., and Atlanta, has about the same number of restaurants it operated 10 years ago...more" #Pizza #QSR #Restaurants #Franchise #Franchising #FranchiseChat Chainformation RAAMP Altir Industries, Inc. Franchise Pipeline Franchise Development Outsource Ned Lyerly Joe Caruso Michael (Mike) Webster PhD Anders Hall Landrum Randolph Jonathan Martin Michael Scherr https://lnkd.in/e2bwGaXA

Franchisees need four competencies to get the most ROI from their business. Two of these are soft skills, and two are hard skills. These four abilities lie outside of the #franchise system but are as critical to the restaurant as the #recipes. Let's look at each: https://lnkd.in/gMuPcN8k #Restaurants

Marston's PLC’s is launching a new agreement which, in time, will encompass all partner pubs. Marston’s was the pioneer of the retail agreement in 2008 and it has evolved from its early offering, through franchise agreements, to the new partnership agreement it offers today. The Marston’s Partnership division is led by directors of operations John Green and Matt Whiting. It will encompass all current agreements including the current retail ones and tenanted and leased pubs. Marston’s said with the cost of living and utility price rises forcing many pubs out of business, the need to create a model that is more transparent and reflective of today’s world “was there for all to see”. The company, which reported on Tuesday (23 January) Christmas trading has driven 8.1% like-for-like sales growth in its year to date, added the new style agreement “works across every community pub format we have”. It said: “Using shared systems, shared learning, award-winning training, the new partnership agreement has been developed by listening to our applicants, our partners and our colleagues to fine-tune the model, making it fit for the future where both partners share the success and the challenges experienced in recent years.” Green said: “We do partnerships (we have 900 of them), it’s in our DNA, and we do pubs. It is transparent, fair and, importantly, future-proof. We have tested the new model over 18 months, working closely with our partners and learning. We have carefully matched people and pubs, and the results are exciting. The direction of travel has been in place for some time, and we are evolving the model and the agreement to reflect the market needs.” Since the pandemic, Marston’s said it has experienced a significant increase in applicants, particularly from outside the sector – from retail and other food and beverage businesses – who are keen to start their own business and be in control of their lives. Green added: “Across the business, demand is outstripping supply, but we are committed to finding the right person for the right pub – because we know that with the right person, that is where the real magic of the great British pub happens.” Agreements are in place for five years, with a three-month notice period.