Fazoli’s CEO Carl Howard announced that the company has signed three new franchisees to add seven new locations to its pipeline throughout the Florida Panhandle, Virginia and Pennsylvania. The Pennsylvania agreement marks Fazoli’s first ever development in the state. The first of Fazoli’s seven new locations is expected to open in late spring 2021.
“After a challenging year for the restaurant industry, we proved to everyone that Fazoli’s remains a best-in-class brand with staying power,” says Fazoli’s CEO Carl Howard. “We closed out eight straight historical months with double-digit month-over-month sales and traffic during a global pandemic, and new and existing franchisees have taken note of our brand’s success. We’re thrilled to enter the Pennsylvania market, and we hope to gain additional interest in this state so we can achieve our goal of growing our brand footprint. As we gear up for a record-breaking number of openings in 2021 with 10 to 15 new locations expected to open during the calendar year, we’re keeping franchise interest at an all-time high. Our new franchisees couldn’t have joined the Fazoli’s Family at a better time.”
These agreements were fueled, in large part, by Fazoli’s conversion strategy. Seizing an opportunity to revitalize the restaurant industry, in June, the iconic Italian brand launched its 2020 Franchise Incentive Program, which encourages challenged quick-service or fast-casual restaurant operators to convert their existing shells into a Fazoli’s. With the new conversion incentive, franchisees can sign a short five-year term, versus the typical 15-year commitment, with zero down payment, zero franchise fees and zero royalty fees in the first year. Fazoli’s also relaxed many of its conversion requirements so operators can get a 2,000- to 3,500-square-foot restaurant open for under $350,000.
Additionally, after a year of unprecedented digital sales growth of 560.7% in delivery sales and 295.4% in online order sales, Fazoli’s is developing three new prototype concepts designed to capitalize on its extraordinary surge in off-premise revenue. A new 1,700 double drive-thru prototype, and a 2,200- and 2,500-square-foot prototype are in the works to cater to prospective franchisees looking for smaller options that take advantage of Fazoli’s off-premise sales success.
“It’s no secret that our aggressive conversion strategy is resonating with potential franchisees,” Howard says. “We’ve proposed a compelling, exclusive opportunity for people to bring closed restaurant locations back to life with a dynamic, remarkable brand. And with our new state-of-the-art prototypes, Fazoli’s has positioned itself for yet another incredible year full of unprecedented growth and development.”
