And it’s not just global juggernauts like Starbucks and McDonald’s that have managed to navigate the seismic shifts in the competitive landscape to find their way to sales growth.
Smaller brands and their franchisees also made their mark and gained momentum during the pandemic. In fact, with a projected growth of 16.4%, franchise output is expected to pump $780 billion into the U.S. economy this year.1
Take Penn Station East Coast Subs, the fast-casual chain that continues to bite into a bigger slice of market share with its grilled specialty subs, fresh-cut fries and hand-squeezed lemonade. Last year, the brand piled on record sales to propel it forward into 2022.
With over 300 locations spanning 14 states, Penn Station East Coast Subs experienced a boost of both sales and units in 2021.2 The chain served up a 20% increase in same store sales (a solid progression from 5% in 2020) and raised systemwide sales by more than 21%.2
As Penn Station East Coast Subs President Craig Dunaway explained: “2021 brought new challenges to the restaurant industry with an extremely difficult labor market and unprecedented supply chain issues. Restaurants that were able to pivot and stay ahead of these challenges had a huge opportunity for growth. We are very proud of our franchisees and general managers for working so hard and leading from the top to help the brand succeed in 2021.”2
Moving forward, the brand plans to expand its franchises aggressively “into new markets and to increase our unit count in more mature markets as well,” Dunaway said.2
In keeping with its commitment to be a cut above, the sandwich restaurant brand has made a point of combining good food and good will. Last year, it donated $60,000 to The National Down Syndrome Adoption Network and raised $146,000 for Down syndrome organizations nationally with a roundup campaign.2
Meanwhile, quick-serve, better-for-you brand Bee Healthy Cafe is building on its success with its first franchise deal. As part of the chain’s rebrand and new growth plan, the deal transitions Kharissa Edmond from unit manager to multi-unit franchisee.1 “I have loved working for the Bee Healthy team, and I am looking forward to working alongside them now, as a franchisee,” Edmond said.1
“Kharissa embodies our corporate values of humanity, humility and hunger and we are thrilled to have her as our first franchise partner,” said Cody Pepper, CEO of Bee Healthy Cafe.
Pepper explained that the choice to grow through franchising reflects the company’s faith in the high level of commitment that owner-operators bring to the business.
“We choose to grow by franchising because we believe that owner-operators run businesses differently than employees of corporate-managed locations,” Pepper said. “Our goal is to put owners who are passionate about our mission of making it easy to be healthy, directly in touch with the guest.”
According to the U.S. Small Business Administration, a growing number of entrepreneurs, especially women, are becoming franchisees.1 Bee Healthy Cafe is expanding franchise opportunities to Texas, 27 other states and the District of Columbia.1
At Mondelēz International Foodservice, we help franchisees optimize their menus for sales growth on and off premises. Reach out below to learn how our acclaimed chefs use our trusted brand ingredients to bring more business to foodservice operators across segments.
1 NRN Staff, “Bee Healthy Cafe announces first franchisee; expands opportunities in Texas,” Nation’s Restaurant News, January 6, 2022
2 NRN Staff, “Penn Station Subs announces record sales,” Nation’s Restaurant News, January 6, 2022