QSR September 2022

ACQU I S I T IONS

The brand’s history wasn’t pitted by setbacks and leadership shakeups over the decades; it was merely ready for its next act. And RBI franchisees were eager to add a chain that’s domestic same-store sales rocketed 21 percent in 2021 and 20.6 percent across two years. Firehouse’s record-high $900,000 average unit volumes drove systemwide sales north of $1.1 billion, which sailed 2020’s $872 million. Twenty-seven percent of the busi ness f lowed through digital channels. AUVs in Q1 2022 inched even higher to $920,000 on a trailing 12-month basis. But Cil’s message was clear. While Firehouse’s runway is undeniable, there’s more opportunity than a f irst look-over might uncover. “We’re spending time doing the measuring and making sure we have the right place so we only have to cut once,” Cil says. The deal between RBI and Firehouse began on common ground. Firehouse CEODon Fox spent 23 years at Burger King, from 1980–2003. Three of those—2000–2003—overlapped with Cil. Although they didn’t cross paths ( Fox was in field ops and Cil in legal ) their shared history offered a starting point. About six weeks before the deal was announced, Fox and Cil met. Fox says there was “instant chemistry and energy” that, frankly, wouldn’t have been possible with anybody else. Cil, to that point, knew Firehouse best as a consumer. In the years he traveled Florida visiting Burger King pads, and the 10 months he worked as a regional general manager for Walmart, he often found himself eating at the inline locations that sparked Firehouse’s growth. “And that’s how I got to know the brand and fall in love with

it,” Cil says, “because the product was great and the service was great, and it resonated with me.” Cil and Fox simply had a lot to talk about.

BUT BACK TO THAT WHITESPACE One of RBI’s defining traits since forming in the wake of a 2014, $11 billion takeover of Tim Hortons, has been net-unit expan sion. Burger King was growing by roughly 170 units per year when 3G Capital spent $1.56 billion and grabbed control 11 years ago. Ahead of COVID, Burger King pushed about 1,000 locations each calendar turn. Popeyes opened 216 restaurants the year before RBI jumped in and there were 2,725 stores on December 31, 2016. Today, there are about 3,851 globally and Popeyes, in 2021, experienced the highest number of openings since RBI bought it in 2017—unit growth of 7.4 percent, or a net of 254 stores. The chain, which RBI forked up $1.8 billion for, expects to eclipse the 200 figure again this year. Firehouse presently operates in three countries and territo ries. Burger King is in more than 120, Tim Hortons over 10, and Popeyes clear of 30. There are 47 Firehouse Subs in Canada—the first opened 2015 in Ontario—and AUVs, generally, perform above the company’s system average. Just for context, Subway boasts close to 3,000 stores in that market. RBI? More than 4,500 across its three brands. Cil says 80 percent of Canadians visit Tim Hortons’ 3,900 or so ven ues every month.

FIREHOUSE SUBS IS COMING OFF RECORD RESULTS, BOTH IN TERMS OF SYSTEMWIDE SALES AND AVERAGE-UNIT VOLUMES.

FIREHOUSE SUBS (3)

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SEPTEMBER 2022 | QSR | www.qsrmagazine.com