🍟 5/2/2022 – A Hot Chicken Franchise With 20% Margins

FRANCHISE HEADLINES

Flynn Restaurant Group Doubles Down

The Scoop

Flynn Restaurant Group, the largest restaurant franchisee in the United States, recently acquired 1,131 stores from the bankrupt NPC International.

The acquisition included 937 Pizza Hut’s and 194 Wendy’s restaurants.

Flynn Restaurant Group now owns and operates more than 2,300 restaurants that generate over $3.5B in annual sales.

The Wolf’s Take 🍟

Flynn Restaurant Group is an absolute powerhouse.

Started by Greg Flynn, his firm is the largest Applebee’s and Arby’s franchisee, second largest Panera Bread franchisee, and the 3rd largest Taco Bell franchisee. This acquisition has made them the largest Pizza Hut franchisee, and the 5th largest Wendy’s franchisee.

Aside from the monster portfolio Greg Flynn has built, the impressive part about this deal in particular is the turn-around he’s enacting. Same store-sales for both brands are up, and the Wendy’s stores in particular are up 9% for the year, a massive reversal from the previous owner.

While Flynn continues to manage his restaurant portfolio, he has some bigger goals at play: pass Chipotle to become the second largest restaurant operator in the United States!

More Headlines

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Dominos Rethinks 3rd Party Delivery 🍕
Staffing challenges have caused the pizza giant to rethink their strategy

FLAGSHIP FRANCHISE

Auntie Anne’s

  • Founded: 1988
  • Units Open: 1,886
  • Investment Range: $101K – $504K
  • Average Revenue per Location: $558,338

Did you know?

Auntie Anne is a real person!

Anne Beiler grew up in Amish Mennonite family on a farm in Lancaster County, PA. She was raised alongside seven brothers and sisters and became an aunt to 30 nieces and nephews, so it only made sense that she became known as “Auntie” Anne.

FRANCHISE OF THE DAY

Hot Chikn Kitchn

Fast Facts

Background

  • Founded in 2020, franchising since November 2021
  • Based in Florida; 1+ locations open
  • Hot Chikn Kitchn restaurants serve Nashville-style hot chicken tenders and sandwiches with made-to-order spices

Fees + Investment

  • Royalty: 6%
  • Brand Fund: 2%
  • Franchise Fee: $40,000
  • Initial Investment: $193,500 – $581,500

Financial Performance

  • The below financial performance is based on a company owned outlet from November 15th, 2020 – December 31, 2021

The Wolf’s Take 🍟

For having just opened during the pandemic, this restaurant is putting up very impressive numbers (even when adjusting for 12 months versus the 13.5 months the above financials reflects).

It seems others have taken notice too, as they recently announced their plans to open 200+ locations over the coming 3+ years, and are already slated to open new restaurants in Virginia and New Jersey.

In addition to the unit economics and current growth, the brand has some zing to it as well.

Not only do they serve up Nashville style chicken, but they also have their own line of sauces. 

I’ll be watching Hot Chickn Kitchn’s growth, and will be interested to see how new franchisees perform!

Resources

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