🍟 2/7/2022 – Yum! Brands Launches Accelerator

Franchise Headlines

Yum! Brands Launches Accelerator

The Scoop

Yum! Brands, the parent company of KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill, is working with two universities on a master’s-level program to assist female entrepreneurs and people of color in franchise careers.

The program is kicking off with 10 grad students doing a 5-month fellowship program. 6 of the students are from Howard University, and four are from the University of Louisville – all of them are second-year MBA candidates.

The program will end with aΒ pitch contestΒ – where the top two competitors will be given start-up capital and an opportunity to operate a Yum! Brands restaurant franchise.

The Wolf’s Take πŸŸ

A few weeks ago I covered the “business school” of sorts that Yum was launching specifically for Taco Bell franchisees. I wrote that I would love to see Yum launch something similar for all of its brands – I didn’t expect it to happen so soon!

Going forward I expect many big brands to launch similar programs. Start-up capital and quality training are the biggest barriers to becoming a successful franchise owner. Programs like these from Yum! not only create positive press for the company but also ensure a pipeline of candidates for its thousands of restaurant locations.

Kudos to Yum! Brands for leading the charge!

More Headlines 

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First Automated Pizza Hut Opens in Israel
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Domino’s Will Pay You $3 to Pickup Your Pizza
The labor shortage is real, so Domino’s will pay you to opt for pick-up instead of delivery

Franchise of the Week

Dunkin’

  • Founded: 1948
  • Units Open: 12,800
  • Investment Range: $437,500 – $1,787,700
  • Average Revenue per Location: $1,336,281

Did You Know?

The brother in-law of Dunkin’ founder William Rosenberg, broke his partnership with Dunkin’ and created his own company: Mister Donut.

While the company only has 1 location remaining in the US, it’s flourished abroad and is the largest donut chain in Japan.

Must’ve been some awkward family parties over the years..

FRANCHISE BREAKDOWN 

Detroit Wing Company

Fast Facts

Background

  • Founded in 2015, franchising since 2021
  • Based in Detroit; 7 locations open as of 2021
  • A restaurant serving a variety of wings, with 19 signature sauces that gets prepared on-site daily

Fees + Investment

  • Royalty: 6% of gross sales
  • Brand Fund: 2% of gross sales
  • Franchise Fee: $30,000
  • Initial investment: $339,839 – $572,339

Financial Performance

  • The below information contains performance data for the year 2020 for 3 licensees (the brand no longer awards licenses as it’s franchising now)

The Wolf’s Take πŸŸ

$1.6M in revenue is a VERY impressive return. But beyond that, Detroit Wing Co. has the qualities you’d hope for in a modern fast-casual restaurant:

Carryout focused – heading into covid, 85%-90% of orders were carryout. 

Small footprint – units are just 1,200 – 1,500 square feet, and many new locations will include a drive-up window. 

Great product – the wings + signature sauces have gotten coverage locally and nationally, earning it representation on numerous “best of” lists from MSNBC, Esquire, Men’s Health, and more. 

The franchise has a goal of hitting 100 units open nationwide over the next 2 years, and given all it has going for it, I think they have a legit shot at accomplishing this!

Resources

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