Fazoli’s announced today that it ended 2016 with 15 consecutive quarters of same-store sales growth and opened five restaurants. It also signed 11 franchise agreements to develop a total of 25 restaurants nationwide.
“It’s been an incredible year of growth for Fazoli’s as we signed more than double the number of franchise agreements in the last 12 months than in the previous year,” Carl Howard, president and chief executive officer of Fazoli’s, said in a company press release. “The brand’s success can be attributed to several factors, including 15 consecutive quarters of positive same-store sales, high average unit sales volume, as well as enhancements made to our menu and catering program, to name a few. From our unlimited bread sticks to warm table service, Fazoli’s provides both customers and franchisees a value second to none in the fast casual industry.”
As part of last year’s brand refresh, Fazoli’s began remodeling some of its locations with a contemporary look and feel. In addition, the company introduced an upgraded menu using premium ingredients, which has been well received by guests.
To accelerate its national expansion efforts this year — which includes 16 planned openings in communities nationwide including Zionsville, Indiana; Snellville, Georgia; and Maysville and Hazard, Kentucky — Fazoli’s has launched a new franchise development incentive program available through June 30, Howard said.
New franchisees that sign an area development agreement for three or more traditional restaurants will receive a discount of $10,000 off of the initial $40,000 franchise fee, Howard said. Franchisees that sign an ADA for three or more non-traditional locations, including gas and convenience stores, will receive a $5,000 discount off of the initial $20,000 franchise fee. For these agreements, franchise owners will receive reduced royalty fees for the first two years of operations.
Furthermore, franchisees that sign an ADA agreement for three or more non-traditional units on college campuses, airports and casinos will receive a $5,000 discount off the initial $15,000 franchise fee. Fazoli’s is targeting new markets including Atlanta, Charlotte, Cincinnati, Dallas, Detroit, Knoxville, Phoenix, Pittsburgh and several other cities for expansion, Howard said.
“At Fazoli’s, we are always seeking ways to advance our business model and, as we kick off 2017, we couldn’t be more excited about the many opportunities that lie ahead,” he said.
This April, Fazoli’s, which has nearly 220 restaurants in 25 states, is set to unveil a modern interior redesign of its restaurants featuring a Wi-Fi bar and a warm, friendly environment for its guests. The company plans to redesign a total of 15 restaurants by year’s end. Furthermore, later this year, the company will roll out an enhanced menu with more customizable options made with simple ingredients to accommodate ever-changing consumer preferences.
Howard said his franchisees are experiencing nearly three times the industry average growth rate with new franchised restaurants continually setting new system-wide records.
Howard will speak more about the company’s success at the Restaurant Franchising & Innovation Summit, July 18-20 in London. Registration is now open.
