When you think of franchisees, you immediately think of restaurants. This is because restaurants are some of the most successful franchises out there. The following is the list of the 10 restaurant franchises which got the highest score in the AllBusiness AllStar franchise rankings.
The first branch of Submarine Sandwich Restaurant Chain was opened in Connecticut by Fred De Luca and Peter Buck in 1965. They started franchising it in 1974. Subway established franchisees all over the country and even abroad because of the healthy and fresh-alternative to junk foods provided by them.
The company recently launched a $100 million ad campaign for successfully weathering the economic downturn. In 2008, Dunkin’ focused on increasing the number of nutritive food options it serves. Dunkin’ Donuts was initially called Industrial Luncheon Services started by William Rosenberg in Boston in 1946. The Donut shop started by him in Massachusetts was called Open Kettle and two years later its name was changed to Dunkin Donut’s. Now it is located in over 40 countries.
Started in 1982 as a small time sandwich shop and wing eatery, the aim was to open at least more than 1,000 restaurants nationwide by the year 2012. Presently there are at least 500 such restaurants. The number of units was nearly doubled by the company between 2007 and 2008. The restaurants has consistently won awards for “Best Sports Bar ” and “Best Wings” from restaurant visitors from the world over.
This restaurant is greatly profiting from Americans’ growing health conscious population. The company focuses on giving the franchisees a strong foundation for success through the maintenance of strong business systems. Smoothie King has greatly benefited from this approach and has reported a growth rate of 27 percent for each of the past four years.
Since 1953, Denny’s has been in business and it has been franchising for 46 years. When it comes to recession, its strong brand and value-oriented menu has seen it tide through. With the aim of improving sales, Denny’s created four new regional VP of operations positions last year. This was also undertaken to improve brand awareness through innovation and local marketing efforts.
A part of the strong parent company, Yum! Brands which also owns KFC, A&W, Taco Bell and Pizza Hut, Long John Silver is another top restaurant franchisee. To foster growth opportunities and cut costs, Yum recently restructured its U.S. business. Yum is also engaged in working towards re-franchising underleveraged stores or trying to improve their performance.
This hamburger chain has been recession resistant and is the most powerful brand in the industry. McDonald’s has continually posted stronger-than-expected sales both abroad and domestically. McDonald’s same-store sales had increased for 55 months in a row as of November 2008.
When CKE Restaurants Inc. purchased Hardee’s in 1997, their main re-branding effort concentrated on improving the menu. Since then Hardee has offered quality menu items and premium burgers. The sales of its thick burgers continue to be strong in spite of the recession.
Although many restaurants are floundering because of the tight economic conditions, the sandwich sector has by and large remained unaffected. Since its inception in 1983, Jimmy John’s Gourmet Sandwich Shops have enjoyed impressive growth. The company’s main focus is on fresh gourmet sandwiches and quick delivery.
The company is still enjoying positive growth in sales despite aggressive discounting on the part of its competitors. The company is known for its attention-grabbing ads aimed at young males who are their important target market.