Tag: QSR

The Post-Summer Reset: For QSR and Fast Casual, the Real Year Starts Now

Summer is ending, routines are returning, and the restaurant business is entering a stretch that may matter more than everything that came before it. For QSR and fast-casual franchise brands, September through December isn’t simply the fourth quarter. It’s an opportunity to reset operations, reconnect with customers, strengthen franchisees, and determine how the brand will enter 2027.

Summer has a way of distorting the restaurant business. Travel patterns change. Families abandon their normal schedules. Employees take vacations. Tourism lifts some markets while draining others. College towns empty and then suddenly refill. Highway and destination locations may flourish while neighborhood restaurants experience inconsistent traffic. Labor becomes more difficult to predict, promotions compete with vacations and entertainment spending, and even loyal customers behave differently when their normal routines disappear. For QSR and fast-casual franchise brands, summer can create both false confidence and unnecessary panic because the numbers often reflect temporary behavior rather than the underlying condition of the business.

That is why the weeks immediately following Labor Day should be treated as something far more important than simply the end of summer. They should represent a post-summer reset.

From now through December 31, the restaurant calendar compresses quickly. School is back in session. Youth sports return. Commuting patterns become more predictable. Football dominates weekends. Families settle back into routines. Halloween arrives, followed almost immediately by Thanksgiving, holiday shopping, office gatherings, travel, Christmas and New Year’s Eve. Consumer behavior becomes simultaneously more predictable and more competitive because restaurants are no longer simply competing against other restaurants. They are competing for dollars being pulled toward travel, gifts, entertainment, sporting events, celebrations and virtually every other expense associated with the final four months of the year.

For QSR and fast-casual franchise brands, this is no time to coast into year-end. It is time to reset.

Start With the Truth About the Numbers

Before launching another promotion, adding another limited-time offer or asking franchisees to spend another dollar on marketing, brands should know exactly where they stand. Not where they hoped they would be when the annual budget was created. Not where the strongest stores are performing. Not where systemwide averages make the organization appear to be. Leadership needs an honest store-by-store assessment of traffic, average ticket, transactions, food cost, labor, discounting, delivery mix, digital sales, customer frequency and four-wall profitability.

Averages can be dangerous in franchise systems because strong operators frequently disguise weak ones. A brand reporting respectable systemwide sales growth may still have franchisees quietly struggling with declining transactions, higher labor costs, occupancy pressure or excessive dependence on discounting. The problem becomes even more pronounced when topline sales increases are driven primarily by price rather than increased customer visits. Revenue can rise while the underlying health of the business deteriorates.

September should therefore become something of a diagnostic month. Which stores are gaining customers? Which are losing them? Which markets are improving? Which franchisees are generating acceptable sales but insufficient cash flow? Which restaurants are becoming too dependent upon third-party delivery? Where are online reviews deteriorating? Which units have labor problems? Where is food waste climbing? Which franchisees are delaying repairs, reducing staffing or cutting local marketing because cash is getting tight?

These aren’t simply operational questions. They are early-warning signals.

The worst time for a franchisor to discover a franchisee is in financial trouble is when that franchisee can no longer make payroll, pay vendors or meet royalty obligations. A strong post-summer reset requires leadership to identify vulnerability while there is still time to do something about it.

Traffic Must Matter More Than the Illusion of Sales Growth

Restaurant operators have spent years navigating inflation, wage pressure, food-cost volatility and increasingly price-sensitive consumers. Menu prices increased across much of the industry because they had to, but there is a limit to how long pricing can compensate for declining transactions.

That makes one question especially important heading toward year-end:

Are more people choosing the brand?

A restaurant can raise prices and temporarily protect revenue. It cannot build a sustainable future without customers.

QSR and fast-casual brands should therefore use the post-summer period to aggressively evaluate traffic rather than becoming satisfied with sales alone. Frequency matters. Visit patterns matter. Dayparts matter. Customer acquisition matters. The restaurant with a slightly lower average ticket but increasing visits may ultimately be healthier than one producing a larger ticket from a shrinking customer base.

This also means brands should resist the temptation to solve every traffic problem with discounts. Value and discounting are not synonymous. Consumers may want affordability, but they also want convenience, quality, reliability, hospitality and an experience that justifies what they spend. Constant discounting can train customers to wait for deals while simultaneously compressing franchisee margins.

The better question is not simply, How can we make the meal cheaper? It is, How can we make the customer feel the meal was worth what they paid?

That distinction could become increasingly important through the remainder of the year.

Operations Need a Fall Tune-Up

The final months of the year leave very little room for operational weakness. Restaurants that enter October with staffing problems, equipment issues, inconsistent food execution or poor management practices will find those weaknesses amplified as traffic patterns change and holiday demands increase.

September should therefore become the restaurant equivalent of preventative maintenance.

Franchisees should be examining equipment before failures occur. Managers should be reviewing scheduling and labor deployment before holiday availability becomes an issue. Training should be refreshed. Restaurants should be cleaned beyond the normal closing checklist. Exterior signage, lighting, parking lots, restrooms, dining rooms, drive-thru lanes and digital menu boards should be evaluated through the eyes of a customer who has never visited before.

Mystery shops and operational audits can be valuable, but leadership should also spend time physically visiting restaurants without turning every visit into a ceremonial appearance. Sit in the dining room. Order through the app. Use the drive-thru. Place a delivery order. Visit during a rush. Visit during a slow period. Read recent online reviews.

Experience the business the way customers experience it.

Franchise executives sometimes become too far removed from the restaurant itself. Reports, dashboards and conference calls provide information, but they don’t tell you whether fries are arriving cold, tables are dirty, employees appear disengaged or a customer waited twelve minutes for an order that was supposed to take five.

Those details determine whether customers return.

The Customer Experience Is Becoming Part of the Value Equation

For years, much of QSR competed primarily around speed, convenience and price. Fast casual added quality, customization and a somewhat elevated environment. But consumer expectations continue to evolve, particularly when discretionary dollars are under pressure.

When people spend hard-earned money eating away from home, even a thirty- or forty-minute restaurant visit can represent a small escape from the demands of the day. That matters.

Customers increasingly notice whether the dining room is inviting, whether employees acknowledge them, whether the restaurant feels clean, whether the music is appropriate, whether orders are accurate and whether the experience feels transactional or hospitable. Even businesses built primarily around takeout and drive-thru should recognize that hospitality doesn’t disappear simply because the interaction is brief.

A smile still matters. Recognition still matters. Accuracy matters. Cleanliness matters. Speed matters. And making someone feel appreciated may matter more than another loyalty-program notification appearing on their phone.

Technology should enhance that experience rather than replace it.

Marketing Must Become Local Again

National campaigns have value, but restaurants live in communities.

The post-summer reset should include a renewed emphasis on local store marketing, particularly as schools, sports leagues, churches, nonprofits, businesses and community organizations return to more predictable schedules. Franchisees should not simply wait for corporate marketing to generate traffic. They should become visible again.

Sponsor the local team. Partner with a school. Host a fundraiser. Connect with nearby businesses. Participate in community events. Build catering relationships. Reach out to office managers. Create reasons for customers within a three- to five-mile radius to think about the restaurant before they think about competitors.

Digital marketing can amplify these efforts, but it cannot replace them.

A restaurant with thousands of social media followers but little connection to the neighborhood surrounding it may have built an audience without building a customer base.

The distinction matters.

Football Season Should Be Treated as a Business Season

For many QSR and fast-casual concepts, particularly pizza, wings, sandwiches, barbecue, burgers and other group-friendly categories, football season creates opportunities that extend far beyond running a Sunday promotion.

NFL and college football create recurring consumption occasions. So do high school games, fantasy leagues, tailgates, watch parties and youth sports. Brands should be examining bundles, catering, family meals, group ordering, pickup efficiency and digital ordering capacity now rather than improvising later.

The opportunity is not simply to sell more food during games. It is to become part of the ritual surrounding them.

The brands that accomplish that create habits, and habits are far more valuable than promotions.

Franchisee Health Must Become a Systemwide Priority

A franchise system cannot be healthy if a meaningful portion of its franchisees are financially unhealthy.

That sounds obvious, yet too many franchise organizations remain primarily focused on unit development, franchise sales and systemwide revenue while struggling operators quietly deteriorate beneath the surface. Growth looks impressive in press releases, but new openings mean considerably less if existing restaurants are closing, transferring under distress or generating insufficient returns for their owners.

The post-summer reset should therefore include meaningful conversations with franchisees about profitability, debt, labor, food cost, local competition, management challenges and capital needs.

Not every struggling franchisee needs to be rescued, and not every underperforming restaurant can be fixed. But franchisors should know the difference between an operator who needs coaching, a location that needs intervention and a business that may no longer be economically viable.

Pretending everything is fine until the problem becomes unavoidable benefits no one.

Development Should Be Examined Through the Same Lens

The reset should extend beyond restaurant operations and into franchise development.

How many units were projected to open this year? How many actually opened? How many signed franchise agreements remain undeveloped? How many franchisees are struggling to secure financing, real estate or construction? How many development schedules are realistic rather than aspirational?

Brands should also ask whether opening more restaurants remains the correct priority in every market.

Sometimes the best growth strategy is opening twenty stores. Sometimes it is making the existing fifty significantly stronger before opening number fifty-one.

Unit count makes headlines. Unit economics build franchise systems.

The strongest brands heading into 2027 will understand the difference.

Use the Holidays Before the Holidays Use You

By the time Thanksgiving arrives, much of the year’s remaining strategy has already been determined. Restaurants should therefore be preparing now for holiday catering, gift cards, employee scheduling, seasonal promotions, community events, corporate orders and year-end celebrations.

Gift cards deserve particular attention because they generate both immediate cash and future traffic. Catering can introduce the brand to customers who may never have visited. Corporate holiday orders can become recurring business relationships. Community partnerships formed during the holidays can continue throughout the following year.

But none of these opportunities materialize simply because December arrives.

They require planning, outreach and execution beginning now.

Technology Needs an ROI Conversation

Restaurant brands have accumulated an enormous technology stack: POS systems, loyalty platforms, ordering apps, kiosks, delivery integrations, kitchen display systems, labor tools, inventory software, CRM platforms, AI applications and countless analytics dashboards.

September is an appropriate time to ask an uncomfortable question:

Which of these technologies are actually making the restaurant more profitable?

Technology should reduce friction, improve productivity, increase customer frequency, strengthen decision-making or lower costs. If it does none of those things, it may simply represent another monthly expense appearing on the franchisee’s P&L.

Every technology vendor can produce a dashboard. The restaurant still needs to produce a profit.

The Final Four Months Should Also Be About 2027

Perhaps the greatest mistake brands can make during the post-summer reset is treating the remainder of the year solely as an effort to hit 2026 numbers.

September through December should also become the laboratory for 2027.

Test menu ideas. Experiment with local marketing. Refine labor models. Evaluate pricing. Improve catering. Study loyalty behavior. Strengthen franchisee communication. Identify technology that works and eliminate what doesn’t. Examine underperforming markets. Revisit development assumptions. Listen carefully to customers and operators.

By December, leadership should not merely know whether the brand hit its annual targets. It should understand why it did or didn’t and what must change next.

That knowledge becomes far more valuable than another spreadsheet forecasting optimistic growth.

Final Thoughts

The end of summer offers QSR and fast-casual franchise brands something increasingly rare in the restaurant business: a natural moment to recalibrate.

The next four months will move quickly. Football will become Halloween. Halloween will become Thanksgiving. Thanksgiving will become Christmas, and suddenly executives and franchisees will be sitting in January meetings discussing what happened in 2026 and what needs to happen in 2027.

The brands that wait until January to ask those questions will already be behind.

This is the time to walk the restaurants, study the numbers, listen to franchisees, reconnect with customers, repair operational weaknesses, strengthen local marketing and challenge assumptions that may have quietly become accepted as fact. It is also the time to remember that restaurant success ultimately comes down to something remarkably simple despite all the technology, analytics and strategy surrounding the business: give people a compelling reason to choose you, deliver on that promise consistently and make sure there is enough profit left for the people operating the restaurants.

September isn’t merely the month after summer.

For QSR and fast-casual franchise brands, it may be the starting line for the most important race of the year.

The question isn’t whether your brand is ready for the fourth quarter. The question is whether you’re willing to use the next four months to build the brand you want to take into 2027.

Pizza Hut’s $1.5 Billion Reality Check: Is the Pizza Industry Being Reshuffled, Cleansed—or Left Behind?

The surprisingly modest price paid for one of the world’s most recognizable restaurant brands says less about America’s appetite for pizza than it does about the widening divide between legacy restaurant systems and brands built for tomorrow.

Yum! Brands has officially completed the sale of Pizza Hut outside mainland China to LongRange Capital for approximately $1.5 billion, with the possibility of another $75 million tied to future performance. Combined with the separate $1.2 billion sale of Pizza Hut’s mainland China business to Yum China Holdings, the transactions value the global enterprise at approximately $2.7 billion. Still, the comparison is difficult to ignore. The portion acquired by LongRange includes more than 15,500 restaurants across over 100 countries and generates approximately $10 billion in annual systemwide sales, yet it sold for only a fraction of the reported $8 billion valuation placed on Jersey Mike’s when Blackstone acquired its majority interest. Jersey Mike’s had just over 3,000 locations at the time—roughly one-fifth the size of Pizza Hut’s international restaurant footprint. Dave’s Hot Chicken, a brand founded in a Los Angeles parking lot less than a decade ago, reportedly commanded a valuation of approximately $1 billion with fewer than 400 restaurants. Look only at location count, brand recognition and worldwide sales, and Pizza Hut’s selling price appears extraordinarily low. But restaurant companies are not valued according to how famous they once were, how many signs they have hanging above storefronts or how many units they managed to open over several decades. They are valued according to profitability, franchisee health, development momentum, operational simplicity, consumer relevance and, perhaps most importantly, expectations for future growth. That is where the Pizza Hut transaction becomes more than another private-equity acquisition. It becomes a warning to every mature restaurant brand that believes size alone guarantees value. (Restaurant Dive, Yum! Brands)

Is this evidence of a depression within the pizza segment of the quick-service restaurant industry? Not necessarily. Consumers have not stopped eating pizza, and pizza remains one of the most familiar, shareable and delivery-friendly foods in America. The category itself is not disappearing. What may be disappearing is the automatic advantage once enjoyed by enormous legacy chains. Pizza has become intensely fragmented and relentlessly competitive. National brands compete not only with one another but with regional chains, independent neighborhood pizzerias, convenience stores, grocery-store offerings, frozen products, ghost kitchens and delivery apps that place hundreds of alternatives on the same screen. The very attributes that once made the large chains dominant—mass distribution, standardized menus, national advertising and broad consumer familiarity—no longer produce the same separation. Digital ordering has democratized customer access. Third-party delivery has allowed independent operators to appear beside global brands. Social media has made it possible for a five-unit concept to generate more excitement in a market than a chain with thousands of restaurants. Pizza remains popular, but popularity of the product does not automatically translate into increasing value for every company selling it.

The valuation disparity also reveals that investors are purchasing tomorrow’s earnings, not yesterday’s memories. Jersey Mike’s was acquired as a growing platform with strong unit-level economics, considerable white space and franchisees eager to develop additional restaurants. Dave’s Hot Chicken represented cultural relevance, extraordinary growth velocity and a substantial development pipeline. Pizza Hut, by contrast, arrived at the negotiating table as a transformation project. Yum! had already announced plans to close approximately 250 underperforming U.S. restaurants during 2026, while the brand continued wrestling with aging assets, changing consumer expectations and a restaurant base developed across different eras, formats and markets. A buyer looking at Pizza Hut was not simply acquiring more than 15,000 revenue-producing locations. It was also assuming the responsibility of modernizing a vast international system, strengthening franchisee economics, addressing underperforming units, clarifying the brand’s position and determining what Pizza Hut should represent to a new generation of consumers. Scale can create enormous value, but it can also create enormous complexity. When thousands of locations require reinvestment, remodeling or repositioning, size becomes less of a premium and more of an obligation. (SEC transaction announcement, Reuters on Jersey Mike’s)

Perhaps this is best described as a shuffling of the restaurant deck. Large corporate parents are becoming more selective about where they place their capital, management attention and technological resources. Yum! is not abandoning restaurants; it is concentrating on brands it believes offer stronger growth prospects within its portfolio. LongRange Capital is making a different calculation—that Pizza Hut’s brand equity, global reach and systemwide sales provide a foundation from which meaningful value can be rebuilt. Both parties could ultimately be right. Pizza Hut may have become less valuable inside a company balancing Taco Bell, KFC and Habit Burger & Grill, while becoming far more strategically important as a standalone organization whose leadership wakes up every morning focused exclusively on pizza, franchisees and customers. Under dedicated ownership, the brand no longer needs to compete internally for attention against concepts generating stronger momentum. LongRange can concentrate on store economics, digital capabilities, menu relevance, marketing and selective development without having to justify every investment against the performance of Taco Bell or KFC. In that sense, the sale may not mark the dismantling of Pizza Hut. It may create the freedom necessary to rebuild it.

There is also an element of cleansing underway, although not in the sense that pizza or traditional quick service is nearing extinction. The restaurant industry is cleansing itself of assumptions that persisted through years of inexpensive capital and nearly automatic expansion. More locations are not always better. Market penetration does not compensate for weak unit economics. Brand awareness cannot indefinitely overcome operational inconsistency. Selling more franchises does not create a healthy franchise system when existing operators are struggling to generate acceptable returns. Restaurant brands are increasingly being forced to confront locations that should have closed years ago, franchise agreements that no longer reflect economic reality, bloated menus that slow execution, aging stores that no longer meet consumer expectations and development strategies focused more on collecting initial fees than building sustainable businesses. For decades, some brands were able to cover these weaknesses by adding units, increasing prices or relying on their names. Higher labor costs, elevated food costs, expensive construction, cautious lenders and value-conscious consumers have made those weaknesses much harder to conceal.

The price paid for Pizza Hut should therefore be viewed less as a verdict against pizza and more as a judgment on the future earning power of a mature system in need of reinvention. Investors were willing to pay approximately $8 billion for Jersey Mike’s because they saw a runway. They paid approximately $1 billion for Dave’s Hot Chicken because they saw velocity. LongRange paid $1.5 billion for Pizza Hut outside China because it saw both an iconic asset and the considerable work required to restore its trajectory. One investment rewards demonstrated momentum; the other discounts the cost and uncertainty of transformation. Pizza Hut possesses something most emerging brands would spend fortunes trying to create: worldwide recognition, enormous systemwide sales, multigenerational familiarity and thousands of established points of distribution. What it does not automatically possess is permission to remain unchanged. Nostalgia may bring former customers back once. Only relevance, quality, value and consistent execution will keep them returning.

Today’s customers are also becoming more deliberate about where and how they spend their hard-earned dollars. Convenience remains important, but convenience alone is no longer enough to command loyalty—especially when delivery fees, service charges and tips can transform an ordinary takeout order into a relatively expensive purchase. When consumers decide to spend money away from home, many increasingly want some form of experience in return. That experience does not need to be elaborate or consume an entire evening. It may be nothing more than spending 30 or 40 minutes seated across from a friend, sharing a meal, enjoying a comfortable atmosphere and momentarily stepping away from the rush of everyday life. That simple human connection can provide more perceived value than carrying another bag or cardboard box away from a transactional QSR counter. This may help explain the growing appeal of neighborhood restaurants, polished fast-casual concepts and independent pizzerias that combine convenience with atmosphere, hospitality and identity. It also raises an important question for traditional pizza chains that spent years eliminating dining rooms and reducing their restaurants to pickup and delivery points: In becoming more operationally convenient, did they also remove much of the experience that once made customers care about the brand?

Pizza Hut may represent one of the clearest examples. There was a time when Pizza Hut was not merely someplace from which a pizza arrived in a cardboard box. It was a destination. The red roof, the dining room, the salad bar, the arcade games, the pitchers of soda and the unmistakable pan pizza created an experience that belonged to the brand. Families gathered there. Friends met there. Children celebrated birthdays there. The experience created memories, and those memories created an emotional connection that cannot be replicated through an ordering app. Over time, much of that distinction was surrendered as the system migrated toward delivery, carryout and smaller footprints. Those changes may have improved convenience and reduced certain operating costs, but they also pushed Pizza Hut into a more interchangeable competitive arena where speed, price, technology and promotional intensity often matter more than atmosphere, hospitality or human connection. Its next chapter may require more than updated apps and remodeled pickup locations. It may require reconsidering whether at least part of Pizza Hut’s future can be found in what it left behind—a relevant, modernized version of the place where people once gathered around a pizza.

That does not mean Pizza Hut should attempt to recreate the 1980s or rebuild yesterday’s oversized restaurants across the entire system. Nostalgia without sound economics is not a strategy. The opportunity may lie in reinterpreting the brand’s heritage for today’s consumer through smaller dining areas, warmer and more contemporary interiors, simplified menus, visible food preparation, local community engagement and a level of hospitality that makes even a brief visit feel worthwhile. Different markets may require different solutions. A dense urban neighborhood may support a highly efficient carryout and delivery model, while a suburban or small-town market may benefit from becoming a gathering place again. The future of a global pizza system may not be one uniform prototype replicated everywhere, but a more disciplined portfolio of formats built around how customers actually live, eat and socialize in each market.

This distinction matters because the restaurant industry may be approaching the limits of pure convenience as a competitive strategy. Nearly every major brand offers mobile ordering, delivery, loyalty rewards and some form of rapid pickup. Once everyone can offer convenience, convenience stops being a meaningful differentiator. The competitive advantage then moves toward the food, the people, the environment and the emotional value customers receive from the interaction. Consumers may still want speed on a busy Tuesday night, but on another occasion they may want connection. They may want to sit down, talk with a friend, bring their children somewhere casual or simply enjoy a meal without feeling rushed. The brands positioned to succeed will not necessarily choose between convenience and experience. They will understand when and how to deliver both.

Independent pizzerias and emerging pizza concepts should pay close attention because a legacy leader’s difficulties do not necessarily signal weakness throughout the category. They may create opportunity. Local operators capable of delivering authenticity, hospitality, product quality and community connection can compete more effectively than ever. Emerging concepts with efficient footprints, disciplined menus and strong unit economics may attract franchisees and investment that once flowed automatically toward the largest names. At the same time, they should not celebrate too quickly. The pressures facing Pizza Hut—labor, food costs, delivery economics, discounting, franchisee profitability and changing consumer behavior—also confront smaller brands, often without the capital, purchasing leverage or awareness available to a global company. The lesson is not that small brands will inevitably defeat large ones. It is that focused, economically sound and culturally relevant brands can now outperform companies many times their size.

So, is the pizza QSR industry experiencing a shuffling, a cleansing or a depression? It is certainly experiencing a shuffling as capital moves away from size for size’s sake and toward momentum, economics and future potential. It is undergoing a cleansing as underperforming restaurants close and outdated operating assumptions are exposed. But calling it a depression would go too far—at least for now. Pizza is not the problem. Complacency is the problem. Undifferentiated brands are the problem. Franchise systems that prioritize expansion over franchisee success are the problem. Restaurants built for yesterday’s consumer and yesterday’s cost structure are the problem. The Pizza Hut transaction does not tell us that pizza has lost its future. It tells us that even one of the most recognized restaurant brands in the world must continuously earn its place in that future.

For entrepreneurs, franchisors and restaurant operators, the billion-dollar lesson is remarkably simple: The market does not pay a premium for how large a brand became. It pays for where that brand can still go. Pizza Hut has been given new ownership, new focus and perhaps its best opportunity in years to answer that question. Whether the transaction eventually looks like an extraordinary bargain or an expensive turnaround will depend not on the power of its past, but on its willingness to rebuild relevance, restore franchisee confidence and give consumers a compelling reason to return. The hut is still standing. Now it must prove that what is being built inside it belongs in the restaurant industry’s next era.

The question is no longer whether consumers still want pizza, but whether pizza QSR brands are prepared to give them a compelling reason to choose—and experience—their brand. What do you believe the future of pizza QSR looks like?

QSR & Pizza Fueling Franchise Growth

Fast-Food-2Each year the International Franchise Association commissions a study from PwC (PricewaterhouseCoopers) on the economic impact of franchising in the U.S. Highlights from that study include the following:

  • Taking into account the indirect impact of franchised businesses, business format franchises support more than 13.2 million jobs, $1.6 trillion in economic output for the U.S. economy, and 5.8 percent of the country’s GDP.
  • Franchise businesses provided more jobs in 2016 than wholesale trade, transportation and warehousing, nondurable goods manufacturing, and information (including software and print publishing, motion pictures and videos, radio and television broadcasting, and telecommunications carriers and resellers).
  • Quick service restaurants (QSR) is the largest category, representing 25 percent of all franchise establishments and 45.5 percent of all franchise jobs.
  • Jobs supported because of franchise businesses were at least 10 percent of the private sector nonfarm workforce in 33 states, and at least 6 percent in every state.
  • The number of people employed by franchises is greatest in California, Texas, Florida, Illinois, and Ohio.
  • Franchisees own and operate 88 percent of all business format franchise establishments and franchisors own and operate 12 percent.

Read more…

Quick Serve Franchise Sector Continues to Blaze a Trail for Franchising

There is little doubt that the franchise industry is undergoing significant changes fueled in great part by the success of various PE firms that began in the QSR sector. As other franchise sectors are targeted by PE investors, the competitive environment in those sectors will become more challenging. In order to prepare for these challenges, small to medium sized franchises will need to become successful franchise systems that produces sustained system growth, successful franchisees and an efficient operating system.

Multi-unit franchisee ownership that originated in the QSR sector continues to increase as franchisors seek large multi-unit franchisees that can own and operate more franchise units.This ownership model provides organizational stability, ample financial resources, sustained growth and economies of scale to the franchisee operation.

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Who’s Winning the Pizza Wars?

Welcome to the pizza wars, where brands big and small, quick-service and fast-casual alike face two choices: pick up the pace and earn relevancy through definitive, clear marketplace differentiation or step aside.

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