QSR September 2022

BEST FRANCHI SE DEALS

THESKINNY: Jack in the Box’s incentive program is intended to drive dynamic growth, the company says, as it reduces royalties to help franchisees during formative years. Expansion is picking up. In Q1, the classic chain reported more than two dozen multi-unit deals, which added 98 commitments to its pipeline. The chain last quarter said it’s signed 53 development agreements for 218 restaurants since launching a revi talized franchise program the previous summer—the highest number of commitments in its 71-year history. AUVs recently topped $1.8 mil lion for the first time as well. Jack in the Box’s reimage program, which officially launched in Q2, has rolled forward. As of May, 12 corporate units were already in the design and permitting phase, and 136 franchise restaurants were approved. In Yuma, Arizona, the parking lot doubled in size to accom modate a double drive-thru and fully remodeled dining area. In the first month, the location saw a 25 percent lift in same-store sales and exceeded $100,000 in sales per week, driven mostly by transactions. To put it into context, that equates to an annualized AUV of more than $5 million. The chain is providing capital incentives to encourage opera tors to join the remodeling program. Jack in the Box, as mentioned, acquired Del Taco in March for $585 million. Currently, roughly 49 percent of Del Taco’s footprint is com pany-owned, but Jack in the Box is finalizing a go-to-market plan to refranchise a majority of those units. PrimoHoagies NUMBER OF U.S. FRANCHISE UNITS: 86 NUMBER OF U.S. TOTAL UNITS: 87 TOTAL SYSTEM-WIDE SALES: $80,000,000-plus (2022 projection) FRANCHISE AVERAGE-UNIT VOLUME: $854,000 TOTAL AVERAGE-UNIT VOLUME: $854,000 FRANCHISE FEE: $15,000 ROYALTY: 6 percent RENEWAL FEE: $5,000 MARKETING FEE: 2.5 percent TOTAL START-UP COSTS: $246,000–$612,000 FRANCHISEE INCENTIVES: 10 percent veteran discount and multi-unit operators reduced franchise fees SIZINGUPFROMTHESIDELINES: “Family values with huge upside—the 80-plus unit chain expects to eclipse $80 million in 2022 systemwide sales. Also, it’s not just your run-of-the-mill sub shop. Each PrimoHoagies location serves up old school Italian classic sandwiches on top of award-winning seeded bread. In a crowded category, the quality of the sandwiches, espe cially that bread, stands out.”

original South Philadelphia location arrived over the summer. With cur rent locations operating in Delaware, Florida, Maryland, New Jersey, North Carolina, Pennsylvania, and South Carolina, the past two years brought fresh waves of development that should carry the chain into the triple-digit club in short order. The menu features a wide variety of cold and hot hoagies, cheesesteaks, wraps, vegetarian options, sides, and more. Catering is also available for special events, holidays, game days, and corporate luncheons. DogHaus

JACK IN THE BOX’S REIMAGE PROGRAM, WHICH OFFICIALLY LAUNCHED IN Q2, HAS ROLLED FORWARD.

NUMBER OF U.S. FRANCHISE UNITS: 49 NUMBER OF U.S. TOTAL UNITS: 51 TOTAL SYSTEMWIDE SALES: $67,311,196 FRANCHISE AVERAGE-UNIT VOLUME: $1,653,026.58 FRANCHISE FEE: $40,000 ROYALTY: 6 percent RENEWAL FEE: $10,000 MARKETING FEE: 2 percent TOTAL STARTUP COSTS: $377,000–$968,100

SIZINGUPFROMTHESIDELINES: “The ghost kitchen and virtual space has flooded with opportunis tic players over the course of COVID. But few chains boast the equity and experience of Dog Haus for prospective operators hoping to cash in. Beyond being early adopters, there’s a clear commitment to supporting the model and to putting their name behind it—the virtual brands say ‘powered by Dog Haus.’ Low startup costs and agility, with sizable AUVs and tech systems, offers a great buy for an operator looking to be on the cutting edge of a fast casual with a lot of whitespace.” THESKINNY: When operators sign up with Dog Haus, they can franchise multiple brands—all for the same franchise fee. This means multiple plat forms and revenue streams out of a single restaurant and the same inventory. Dog Haus was one of the first franchises to take the deliv ery-only route when it partnered with Kitchen United in 2019. That world has only expanded. As the brand touts, its approach to virtual brands throughout COVID and into the future hasn’t been to compli cate the back-of-the-house with products and menus that don’t fit its approach. Rather, Dog Haus continues to develop brands that accen tuate what it already offers, just packed in platforms that customers can quickly identify. For instance, Bad Mutha Clucka for chicken and Bad-Ass Breakfast Burritos (for burritos, naturally), as well as Plant B, Jailbird, and Big Belly Burgers. Dog Haus runs these under the umbrella name of Absolute Brands. The flagship Dog Haus concept specializes in gourmet hot dogs, burgers, chicken, and craft beer. q

“ IT’S NOT JUST YOUR RUN-OF-THE-MILL SUB SHOP.”

THESKINNY: PrimoHoagies closed 2021 with 19 new franchise agreements, including the chain’s Texas debut (eight signed in the Lone Star state alone). Otherwise, PrimoHoagies expects to continue expanding in Colorado (five locations), in addition to five new franchises in North Jersey and one in suburban Philadelphia. The signed agreements brought the total number of new secured locations to 61 in 2021. PrimoHoagies is hardly a new comer. The 30 th anniversary of its

Danny Klein is Food News Media’s editorial director. Contact him at danny@QSR magazine.com .

GUILLOCHE BORDER: ADOBE STOCK / SAIFUL, PRIMOHOAGIES, DOG HAUS / J.SHERTZER

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SEPTEMBER 2022 | QSR | www.qsrmagazine.com