Popeyes franchisees have bought into the brand’s multi-year plan to increase franchisee profitability.
The company announced Wednesday that 85 percent of restaurants have committed to amending their franchise agreement to align with the Easy to Love strategy, which calls for increased media investment and a unified restaurant image. Stores have agreed to test higher national advertising rates over three years, beginning in April. Advertising rates will start with a step up from 4.5 percent to 5 percent in year one and up to 5.5 percent by year three, subject to certain profitability thresholds being met. The amendment also establishes a remodel schedule that will lead to most of the system featuring a modern image by 2030.
Franchisees will receive a $4,000 royalty credit per restaurant to offset the year one increased advertising spend, which equates to a $10.5 million investment from Popeyes.
“Taken together, the amendment supports our commitment to delivering impactful brand messaging, achieving modern image, and providing greater flexibility and alignment for our franchisees,” said RBI CEO Josh Kobza during the brand’s Q4 earnings call.
Popeyes first announced its Easy to Love platform in May 2023. At the time, the goal was to increase average four-wall franchisee profitability to $300,000 by the end of 2025. But the chain still has a ways to go. Popeyes achieved $255,000 in average franchisee profitability in 2024, up from $245,000 in 2023 and $210,000 in 2022.
READ MORE HERE TO CHECK OUT BURGER KING’S Q4 PERFORMANCE
Under its Easy to Run pillar, Popeyes is working to simplify operations by standardizing processes, enhancing technology, and introducing new kitchen equipment and a new production line. After 18 months of testing across 200 restaurants, the chain will start rolling out changes systemwide. By the end of 2026, Popeyes wants all U.S. locations to have cloud-based POS systems, digital drop charts, sticky label printers, order-ready boards, kiosks, and upgraded back-of-house equipment (auto batter makers and improved hot holding units).
“These upgrades enhance the team member experience, reduce wait times, and improve order accuracy, all while preserving the brand’s unique Louisiana culinary heritage and our food quality,” Kobza said. ” … During a recent visit to Orlando and to Houston, which are hub markets for Easy to Run, I saw firsthand how operators who have embraced these improvements are already delivering notable performance gains.”
Additionally, with its Easy to Access initiative, Popeyes has been “raising the bar for new franchisee development so that every new Popeyes restaurant delivers a great guest experience,” Kobza said. The CEO noted the chain’s heightened focus on operational standards led to a slowdown in unit growth; however, the company managed to open more than 160 stores in 2024.
Popeyes wants to build on this momentum with new formats that upgrade convenience, optimize build costs, and lead to strong AUV.
“For Popeyes, our strategy is clear: attract more people to try our food and ensure every guest receives a consistently great experience. Our food quality speaks for itself, so delivering consistently exceptional guest experiences will be key to unlocking further growth,” said RBI executive chairman Patrick Doyle.
Popeyes’ same-store sales increased 0.1 percent in Q4, lapping a 5.8 percent lift in Q4 2023. For full-year 2024, comps lifted 0.6 percent. Kobza said top-line results came in softer than the company had hoped, but it was happy with the impact of its $6 Big Box value meal and its 3 for $5 deal involving three pieces of protein. The promotions helped Popeyes moderately expand its share within the chicken QSR category in 2024. The brand also made notable improvements in order accuracy, driver wait times, and product satisfaction in the fourth quarter.
Popeyes finished 2024 with 3,148 U.S. stores, a net gain of 97 units year-over-year.
Here’s how RBI’s other concepts performed in Q4 and fiscal 2024:
Tim Hortons Canada
- Average franchisee profitability increased from $280,000 to $305,000 in 2024.
- 4.3 percent same-store sales growth for 2024, significantly outperforming the Canadian QSR market (-0.5 percent average). In Q4, comps lifted 2.5 percent, lapping an 8.8 percent rise in Q4 2023.
- 15th consecutive quarter of positive traffic growth, driven primarily by increased customer visits.
- Morning sales led growth, including high-single-digit increases in breakfast sandwiches and wraps.
- Flatbread pizzas contributed to 5 percent growth in afternoon main food sales during the fourth quarter.
- Cold beverage sales rose 6 percent due to warm Q4 temperatures and strong demand for Ice Capps, Cold Brew, and Quenchers.
- Drive-thru efficiency improved, with window times reduced to 28 seconds per car—one of the fastest in North America.
- The chain should return to positive net unit growth in Canada this year, particularly in underpenetrated regions like Western Canada and rural areas.
Firehouse Subs
- Average franchisee profitability decreased from $110,000 per store to $90,000 in 2024. RBI attributed the dip to “broader sub-sandwich category sale dynamics over the summer and fall.”
- Full-year same-store sales declined 1.3 percent because of a challenging U.S. sub sandwich category in Q3. The fourth quarter showed recovery, including a 5-point sequential improvement that led to flat comps.
- New menu innovations like the Thanksgiving Sub and French Dip Sub boosted Q4 performance.
- The fast casual opened 80 locations across the U.S. and Canada in 2024.
