There are several reasons why restaurants jump into the franchising space. The franchisees’ investment lowers their own while providing a steady income. Faster expansion translates to faster brand recognition as the network of restaurants grows. This approach maximizes your reach while enabling you to replicate a proven system.
And therein lies the keyword: a proven system.
One of the keys to a successful franchise model is uniform standards across the space, from products to processes. Your customers want to know that whatever restaurant they enter and wherever it may be, they’ll be greeted by the same food, experience, and aesthetics. Standardized procedures ensure the same quality level, regardless of its location.
To accomplish this, it’s important to demonstrate success in multiple locations before expanding through franchising. Is it scalable and easy to replicate?
Of course, as with most things in life, there are some downsides. Franchise agreements are long-term commitments, often up to 15 years. For this reason, it’s essential to get it right and take your time with the approval process.
Before jumping in, consider the alternatives. Many entrepreneurs have demonstrated extreme success by opening different concepts as a restaurant group and using the wealth of data available to determine their expansion strategies. Two of these groups include Flagship Restaurant Group and Lettuce Entertain You Enterprises.
So, which approach is right for you?
Here, we’ll explore some of the latest brands to enter the franchise model. According to Nation’s Restaurant News, these brands are early to mid-stage. Let’s explore their latest developments and see what they have to teach us about the plusses and pitfalls of franchising.
Cannoli Kitchen Pizza
This fast-causal pizza chain was not a quick entry into the franchise model. Established in 1996, it’s been serving fresh, fast Italian food in Florida for almost 30 years. Sauces are made from vine-ripened tomatoes, fresh herbs, and spices.
It had five locations before it began franchising in 2023. Today, it has eight franchise units in development with locations in Florida, Alabama, Georgia, and Michigan. The average size is 1,200 – 1,600 square feet.
The French Workshop
This gourmet French bakery began almost 10 years ago in Astoria, NY, inspired by the boulangeries of Paris. Today, it has three additional locations on Long Island. In 2024, it began franchising, with hopes to sell five over the next year.
According to NRN, their goal is to reach 45 locations in the next five years through corporate expansions and franchising. Some states they’re interested in expanding to include Connecticut, Delaware, the District of Columbia, Florida, New Jersey, New York, and Maryland. They align with the ideal franchisor model, telling NRN, “Every detail, from product quality to the atmosphere, is carefully considered, creating a refined and transparent artisan bakery experience.”
Gouldsburger’s
This fairly new brand started less than two years ago in Haddonfield, N.J. Its rapid expansion includes three corporate locations and one on the horizon at the University of Pennsylvania. The latter seems like the ideal location for a brand associated with Philly cheesesteaks, burgers, and hot dogs.
Their goal is to open 10 locations solely through franchises in the next few years. Their unique attributes include a proprietary blend of fresh ground USA Prime Beef and USDA Prime Brisket, and yellow cooper sharp cheese.
Konala
This healthy fast-casual concept offers high-protein, macro-friendly fast-food bowls with drive-thru convenience. Opening in 2023, it’s on a mission to make convenient, healthy food and spread it nationwide. They currently have two locations in Coeur d’Alene and Post Falls, Idaho. Their goal is to develop 20 franchise agreements over the next year and 100 in the next five years.
Two other new kids to enter the franchise block include Chicago-based Protein Bar & Kitchen and New York City-based Wolfnights.
Keeping a Watchful Eye on the Franchise Model
For restauranteurs looking to expand using the franchise model, it’s a good idea to keep an eye on these new arrivals and chart their course as they set sail. Depending on the source and study, the failure rate for franchises lies between 20% – 50%.
According to the Franchise Broker’s Association, regional trends favor Florida, Georgia, and Texas due to their expanding populations, favorable business climates, and diverse economies. Are you ready to set sail for parts unknown? Emerging Concepts is here to help lead the way, supporting top restaurants and social entertainment concepts in their quest to expand and do so in a manner that reduces risks and increases profitability. To learn more or to schedule a consultation, contact Emerging Concepts.
