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FDD Talk: The Famous Toastery Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

by Franchise Chatter on March 30, 2016

in Breakfast Franchise, FDD Talk 2017: Food Franchises, Franchise Earnings, Lunch Restaurant Franchise



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Famous Toastery from JWL Management

In this FDD Talk post, you’ll learn the following:

  • Section I – Background information on the Famous Toastery franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a Famous Toastery franchise, based on Item 7 of the company’s 2015 FDD
  • Section III – Presentation and analysis of Famous Toastery’s financial performance representations, based on Item 19 of the company’s 2015 FDD, including information on the:
  • total gross sales for the period from January 1, 2014 to December 31, 2014 and the period from January 1, 2015 to May 31, 2015 for each of the 3 affiliate-owned Toast Cafe restaurants that have been in operation for 12 months or more as of December 31, 2014
  • total gross sales for the period from May 27, 2014 to May 26, 2015 for the 1 franchised Famous Toastery restaurant that was in operation for 12 months as of the issuance date of the 2015 FDD

Section I – Background Information

Best friends Brian Burchill and Robert Maynard opened their first breakfast restaurant in a house in Huntersville, North Carolina back in 2005. They established a fun atmosphere and offered unique menu items, such as made-from-scratch portabella mushroom benedicts and avocado omelets, that left customers demanding more.

They started two more locations and in 2013 decided to start franchising the concept. With 11 locations open and another dozen in the works, here’s how Famous Toastery keeps breakfast anything but boring for its customers:

A Better Breakfast

Americans love breakfast, but for those looking for something other than the usual boring options, Famous Toastery delivers.

The fledgling chain was recognized by Technomic and CNBC as one of the top six food franchises to watch in 2016. The list recognizes in particular new chains in the early stages of development that are focused on doing better in the highly competitive restaurant business – better food, better service, and an overall better experience.

The better breakfast segment is still relatively new, which means there’s a lot of untapped potential to be leveraged for business success.

A Better Franchise

Famous Toastery was also featured in Entrepreneur Magazine when its very first franchisee grossed more than $900,000 within its first six months of business. This recognition and success comes from the solid foundation built up in the company’s early years. It has been called the best breakfast and best brunch option in the Charlotte, NC market for more than a decade running.

And franchisees love the limited hours, as most locations are only open from 7:00am to 3:00pm. And yet it yields the same sales volumes as quick-service restaurants that are open 24/7, which means a much saner lifestyle for franchisees.

The quality of the menu allows for a slightly higher price point than many QSR brands, which helps with revenues.

The Menu

The Famous Toastery approach to the better breakfast concept is the exact opposite of what so many breakfast joints have chosen – the literal greasy spoon approach. Everything at Famous Toastery is made fresh each day from scratch, whether it’s salad dressings or fresh-roasted turkey.

For breakfast, the chain offers a great variety of egg dishes, breakfast sandwiches, omelets, flapjacks, and French toast. For those interested in brunch, there are all the breakfast options as well as an array of sandwiches, wraps, melts, salads, burgers, dogs, meatloaf, and mac-n-cheese.

Innovations

There is definitely a niche market of brunch-goers who like an alcoholic beverage with their meal. Most think of brunch booze as limited to the Bloody Mary or a mimosa, but Famous Toastery has started a new trend that pairs wine with brunch. The chain has put a lot of thought into which wines pair well with specific menu offerings, and customers are loving the suggestions.

Famous Toastery is also making the most of such brunch trends as a focus on natural ingredients and minimally processed foods, ethnic inspired foods, and artisan cocktails.

Section II – Estimated Costs

  • Please click here for detailed estimates of Famous Toastery franchise costs, based on Item 7 of the company’s 2015 FDD.

Section III – Financial Performance Representations (Item 19, 2015 FDD) and Analysis



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