QSR September 2022

BEST FRANCHI SE DEALS

embraced digital technology to improve the customer experi ence with nine different ways that customers can engage with the brand in person or digitally. The brand is on track to be the first bil lion-dollar brand in the Focus Brands’ portfolio and just opened its 500th restaurant. With strong unit sales and costs to build an endcap at $1.3 million, this brand will pay off as one of the Best Franchise Deals for 2022.” “Recently underwent its most significant evolution of the brand since its birth in the late 1980s. Significant and steady growth through the years … Thirty-three of the 505 units are company owned and all are located in the U.S. Recent accelerated growth also fueled by the prioritization of investment on of enhanced customer expe rience. This evidenced by major improvements to its mobile app, loyalty program, and tableside ordering. Average EBITDA of at least $100,000 on average revenues of at least $1 million.” THESKINNY: Founded in 1989, the Focus Brands chain has enjoyed a modern evolution of late. The main target: prioritization of the dining expe rience across multiple touchpoints. For instance, McAlister’s poured resources into its mobile app and loyalty offerings, and also launched tableside ordering in early 2021. Now, guests can sit down at a table, pull out their mobile device, and skip the line. True to its clas sic model, employees still run the food out to the table. McAlister’s currently boasts nine different ways for customers to engage with the brand, whether in-person or digitally. And its loyalty program eclipsed a million users last year. On the development front, McAlister’s announced the grand open ing of its 500th sore in October 2021 (Dickson, Tennessee). Across the year, it opened 30 new locations, signed 67 agreements, and, to the Council’s proclamation, is on track to become Focus’ first billion-dollar brand by 2024. WingZone

“A brand that has authentic appeal—founder story, southern recipes, niche offering, etc. Feels like a good fit for a large demographic of health conscious and on-the-go professionals and parents. Strong AUV’s and consistent growth, with room for more potential open ings nationwide.”

THESKINNY: The Council’s note about differentiation remains core to Chicken Salad Chick’s poten tial. While the chicken category might be packed to the edges in quick service, the chicken salad one is a different story. In 2021, the brand opened 30 new stores, resulting in a 17 percent bump in unit count, year-over-year. This included market debuts with multiple stores in Indianapolis, Western Virginia, and South Florida. It also inked franchise agreements with new and existing operators to develop 32 additional

locations over the next several years. This will be part of Chicken Salad Chick’s plan to open more than 50 restaurants in 2022. Mean while, systemwide sales soared to $255 million, which is 46 percent higher than 2020. In the second half of the year alone, the company says, it outpaced the industry’s average monthly sales growth by more than 14 percentage points. And innovation has run alongside growth. The company rolled out third-party delivery this past year through Uber Eats and DoorDash integrated with its online order ing partner (Olo/Rails), which grew to more than 7 percent of total monthly system sales by the end of December 2021. Chicken Salad Chick introduced branded box lunch catering options, or individu alized portions of chicken salad meals, and they comprised over 75 percent of the chain’s catering product mix, resulting a double-digit catering bump over 2019. The brand reported its highest sales days yet on Mother’s Day, Veteran’s Day, and Guest Appreciation Day. Also, Chicken Salad Chicken grew its Annual Giving Card program, which raises money for the CSC Foundation to support childhood cancer and feeding the hungry. The donation amount for 2021 was 50 percent higher than the previous year. M c Alister’sDeli NUMBER OF U.S. FRANCHISE UNITS: 472 NUMBER OF U.S. TOTAL UNITS: 505 TOTAL SYSTEM-WIDE SALES: $869,957,198 FRANCHISE AVERAGE-UNIT VOLUME: $1,865,861 TOTAL AVERAGE-UNIT VOLUME: $1,865,861 FRANCHISE FEE: Traditional restaurant, $35,500; Express restaurant, $15,500. ROYALTY: 5 percent of net sales RENEWAL FEE: 20 percent of the then-current initial franchise fee. MARKETING FEE: 2 percent of net sales for restaurants that are transferred: the percentage of net sales paid by the transferor at the time of the transfer (currently, either 1.75 or 2 percent of net sales, but expected to increase to 2 percent of net sales by the end of 2022). TOTAL START-UP COSTS: Traditional restaurant at an endcap or inline shopping center location $821,000–$1,308,850; traditional restaurant at a newly constructed freestanding location $1,382,550– $2,187,450; express restaurant $393,500–$636,200. FRANCHISEE INCENTIVES: International Franchise Association’s VetFran program. For qualifying veterans or members of the Armed Forces, the Initial Franchise Fee is $20,000.

“ FEELS LIKE A GOOD FIT FOR A LARGE DEMOGRAPHIC OF HEALTH CONSCIOUS

AND ON-THE-GO PROFESSIONALS AND PARENTS.”

NUMBER OF U.S. FRANCHISE UNITS: 31 NUMBER OF U.S. TOTAL UNITS: 32 TOTAL SYSTEM-WIDE SALES: $34,000,000 FRANCHISE AVERAGE-UNIT VOLUME: $1,001,000 TOTAL AVERAGE-UNIT VOLUME: $1,001,000 FRANCHISE FEE: $30,000-40-000 ROYALTY: 6–7 percent RENEWAL FEE: $10,000 MARKETING FEE: 3 percent TOTAL START-UP COSTS: $450,000–$500,000

FRANCHISEE INCENTIVES: Multi-unit (three or more) development franchise fee discount of $10,000 per unit; 15 percent veteran’s discount

SIZINGUPFROMTHESIDELINES: “With an AUV of $1.8 Million in the U.S., McAlister’s Deli has actively

GUILLOCHE BORDER: ADOBE STOCK / SAIFUL, CHICKEN SALAD CHICK, WING ZONE

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SEPTEMBER 2022 | QSR | www.qsrmagazine.com