• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Menu
  • Home
  • About
    • About Franchise Chatter
    • Contact
    • Privacy Policy
    • Terms of Service
    • Affiliate Disclosures
  • Subscribers Hub
    • Login
    • New to Franchise Chatter? Start Here
    • America’s Most Lucrative Franchises
    • Franchises Ranked by Average Revenues
    • Franchises Ranked by Average Profits
    • Franchise Winners, Survivors and Losers Last Year
    • FDD Talk
    • Search by Name
  • Top Franchises
  • Franchise Earnings
  • Costs
  • Fees
  • Quiz
  • Search

FDD Talk: The Lenny’s Sub Shop Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

Last updated on November 26, 2017 by Franchise Chatter Leave a Comment
in FDD Talk: Food Franchises, Franchise Earnings, Sandwich Franchise, Sub Sandwich Franchise

Lenny's Sub Photo by The_Mac_Daddy



Learn Which Franchises Can Make You Rich

In this FDD Talk 2016 post, you’ll learn the following:

  • Section I – Background information on the Lenny’s Sub Shop franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a Lenny’s Sub Shop franchise, based on Item 7 of the company’s 2016 FDD
  • Section III – Presentation and analysis of Lenny’s Sub Shop’s financial performance representations, based on Item 19 of the company’s 2016 FDD, including information on the:
  • 2015 average sales, total labor, cost of sales, total rent, utilities, all other expenses, total expense, and EBITDA (plus total Restaurant count and number of Restaurants inside and outside the Greater Memphis area) for the top 5, top 50%, bottom 50%, and all 68 franchised Lenny’s restaurants that originally opened before January 1, 2014; remained open as of March 31, 2016; had the same franchise owner since January 1, 2014; and submitted information in time for publishing the 2016 franchise disclosure document

Section I – Background Information

Bringing Philadelphia Style Subs to the South

The first Lenny’s Sub Shop location was opened by Leonard Moore and his wife Sheila in 1998 in Memphis, Tennessee. Moore wanted to bring Philadelphia style sub sandwiches to the South. The couple had initially only intended to run the one shop, however Lenny’s drew a lot of interest. Over the next few years, the Moores continued to open Lenny’s Sub Shops in the Memphis area.

Franchising officially began in 2001. By that same year, the chain had 20 locations throughout the Southeastern U.S.


🔐The Very Best of Franchise Chatter



America’s Most Lucrative Franchises


Franchises Ranked by Average Sales & Profits


Franchise Winners, Survivors & Losers


✅ Subscribe Now or ✅ Log In


In 2004, Moore sold majority ownership of Lenny’s to a group of private investors. Moore remained with the company until his death in 2008, as a franchisee. The Moores brought Lenny’s to the Houston, Texas area.

In 2013,  Rick Johnson and Kevin Martin bought Lenny’s Sub Shop and have taken several steps to grow the brand.

Today, Lenny’s has over 100 locations throughout the United States.

Lenny’s Revitalizing Its Brand

Since Rick Johnson and Kevin Martin acquired the brand in 2013, the duo has been implementing changes to help revitalize the company. Martin and Johnson brought on Randy Hough as Senior Vice President of Operations in 2016. Hough worked for Dominos for 13 years and was present during Dominos’ successful re-branding. The new leadership team hopes to take Lenny’s Subs in the same direction and breathe new life into the franchise.

Martin and Johnson have focused on three key initiatives:  improving guest count, improving unit economics, and systematizing the company’s processes across all franchises. Sales are growing now that changes have been implemented. Before the new leadership, Lenny’s sales had been down for a few years. In 2015, Lenny’s saw a 7 percent increase in guest count and same-store sales.


🎯Find Good Franchises That Are Still AVAILABLE in Your Target Area (Free Tool)



🚀How to Find, Vet & FUND a Good Franchise. Watch Our Webinar Live or the Recording Later (Register Now – It's Free)



💵How Much Franchise Can You AFFORD? Use Our Free Financial Calculator


In April 2016, Lenny’s made changes to the look, menu, and name of the company-owned location in Highland, TN. The test location has a modern red and yellow color scheme instead of the original blue. The new interior will eventually be implemented at all Lenny’s locations. Additionally, Lenny’s is testing a new menu at the company-owned location that includes salads and soups.

In addition to the new menu and interior, the company is testing a new name, Lenny’s Grill and Subs, at the company location and a few other units. So far the new name has helped increase dinnertime traffic. Lenny’s has not yet stated whether all locations will eventually be rebranded with the new name, but all new locations are being branded as Lenny’s Grill and Subs.

Lenny’s Pushing Expansion

Lenny’s new leadership has stated a desire to rapidly expand the brand. The company had plans to open several new locations in its home state of Tennessee by the end of 2016. Lenny’s currently has over 50 locations throughout Tennessee. The franchise has plans to open an additional 25 locations in 2017.

After selling the company in 2004, original owner and founder Leonard Moore brought Lenny’s to Texas. Early this year, the brand announced plans to continue to expand throughout the state. There are currently 5 locations in the San Antonio area, but the company hopes to open more locations.

All the new locations will have the Lenny’s Grill and Subs branding. Kevin Martin, CEO and President is confident that the new branding will help Lenny’s successfully expand through 2017.

Lenny’s Celebrates Sale of 25 Millionth Philly Cheesesteak Sandwich

Lenny’s #1 selling sandwich has always been the Philly Cheesesteak. On July 8, 2016, Lenny’s sold its 25 millionth Philly Cheesesteak at one of its San Antonio, Texas locations. The customer who bought the sandwich received a $250 gift card. The company launched a special promotion to celebrate the occasion. Later in the month, on July 26th, customers received 25% off their Philly Cheesesteak sandwich.

Due to the success of Lenny’s original Philly Cheesesteak, the company has added new variations of the sandwich. Lenny’s now offers an A1 Steak Sauce Philly, veggie Philly, and more chicken Philly options.

Not Ranked on Entrepreneur’s Franchise 500

Lenny’s Sub Shop did not rank on Entrepreneur’s annual Franchise 500 list for 2017. In fact, the franchise has not ranked on the list since 2014. That year, Lenny’s ranked at No. 333.

Section II – Estimated Costs

  • Please click here for detailed estimates of Lenny’s Sub Shop franchise costs, based on Item 7 of the company’s 2016 FDD (updated).

Section III – Financial Performance Representations (Item 19, 2016 FDD) and Analysis



To Access the Rest of This Article and Other Premium, Income-Enhancing Content, Subscribe Now or Log In.

Gain the Insider Information (and Actual Earnings Data) You Need to Make a Safe and Smart Franchise Investment. Click Here to Learn More.



Gain the Insider Information (and Actual Earnings Data) You Need to Make a Safe and Smart Franchise Investment - See more at: https://www.franchisechatter.com/register/#sthash.le7wKJKM.dpuf

🎯Find Good Franchises That Are Still AVAILABLE in Your Target Area (Free Tool)



🚀How to Find, Vet & FUND a Good Franchise. Watch Our Webinar Live or the Recording Later (Register Now – It's Free)



💵How Much Franchise Can You AFFORD? Use Our Free Financial Calculator













🎯Find Good Franchises That Are Still AVAILABLE in Your Target Area (Free Tool)



🚀How to Find, Vet & FUND a Good Franchise. Watch Our Webinar Live or the Recording Later (Register Now – It's Free)



💵How Much Franchise Can You AFFORD? Use Our Free Financial Calculator


Tagged as: Lennys Grill & Subs

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Previous post: FDD Talk: The Pak Mail Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

Next post: Q&A with Ben Davis, Founder of The Gents Place

Primary Sidebar

Subscribe Now

⚠️Buying a Franchise on Your Own Can Be Overwhelming

✅ Get the guidance and support you need throughout the franchise research process from an experienced franchise broker at no cost to you.

✅ Fill out this form and a specialist from the Franchise Brokers Association will reach out to you.

🚀How to Find, Vet and FUND a Good Franchise (Webinar)

✅ Is Franchising a Path for You? – Dec. 15 (Fri.), 11 a.m. EST

✅ Solid, Steady Recurring Revenue – Dec. 19 (Tues.), 4 p.m. EST

✅ Register Now to Get Free Access to Recordings of Both Webinars

Register Now

⭐️Franchise Chatter is reader-supported. We may receive a commission for leads generated from affiliate links and banners on our site.

As seen in:  New York Times, Bloomberg Businessweek, and CNBC

Login

Remember Me
Register | Lost your Password?
Reminder: Your username and password are case-sensitive.

Need help? Email franchisechatterblog@gmail.com

👍”Your website and you have been instrumental in finding this franchise opportunity and I am overwhelmingly grateful.” (David F., subscriber)

🏆Top Franchises by Industry

Top Franchises by Industry (All Lists)

Top Gym/Fitness Franchises (2024)

Top Pizza Franchises (2024)

Top Sandwich Franchises (2024)

Top Childcare Franchises (2024)

Top Ice Cream Franchises (2024)

Top Coffee Franchises (2024)

Best Hamburger Franchises

Best Salon and Beauty Franchises

Best Chicken Franchises

Best Smoothie and Juice Franchises

Best Maid Service Franchises

Best Mexican Restaurant Franchises

Best Massage Service Franchises

Best Tutoring Franchises

Best Auto Repair Franchises

Best Auto Oil Change Franchises

Best Asian Restaurant Franchises

Best Pet Franchises

Best Commercial Cleaning Franchises

Best Sports Bar Franchises

Best Baked Goods Franchises

Best Moving/Junk Removal Franchises

Best Mailbox Franchises

Best Apparel Retail Franchises

Best Senior Care Franchises

Best Restoration Franchises

Best Tech Franchises

Best Travel Agency Franchises

Best Trampoline Park Franchises

Best Tools Distribution Franchises

Best Property Management Franchises

Best Real Estate Franchises

Best Flooring Franchises

Best Acai Bowl Franchises

Best Poké Bowl Franchises

Best Donut Franchises

Best Kitchen and Bath Remodeling Franchises

Best Window Covering Franchises

Best Plumbing Franchises

Best Home Inspection Franchises

Best Garage Franchises

Best Barbershop Franchises

Best Laundromat Franchises

Best Storage Unit Franchises

Best Car Wash Service Franchises

🚀Daily FDD Talk Posts

Maaco Franchise

360 Painting Franchise

Superior Fence & Rail Franchise

Crushr Franchise

Pearle Vision Franchise

The Designery Franchise

PuroClean Franchise

Wingstop Franchise

Nothing Bundt Cakes Franchise

MaidPro Franchise

Farrell’s eXtreme Bodyshaping Franchise

Nékter Juice Bar Franchise

Jeremiah’s Italian Ice Franchise

CycleBar Franchise

My Salon Suite Franchise

Crumbl Cookies Franchise

Charleys Philly Steaks Franchise

The Learning Experience Franchise

Floor Coverings International Franchise

BFT Franchise

Mosquito Squad Franchise

M14 Hoops Franchise

Restore Hyper Wellness Franchise

Hello Garage Franchise

4Ever Young Anti Aging Solutions Franchise

Any Lab Test Now Franchise

Fresh Coat Painters Franchise

Home Instead Senior Care Franchise

Maid Brigade Franchise

Pure Barre Franchise

Rainbow Restoration Franchise

Goosehead Insurance Franchise

Cinnabon Franchise

Buffalo Wild Wings Franchise

Molly Maid Franchise

Outdoor Lighting Perspectives Franchise

The Grounds Guys Franchise

Stretch Zone Franchise

Card My Yard Franchise

Oxi Fresh Carpet Cleaning Franchise

101 Mobility Franchise

Massage Heights Franchise

The Junkluggers Franchise

The UPS Store Franchise

Jan-Pro Regional Developer Franchise

Code Wiz Franchise

Pizza Hut Franchise

TITLE Boxing Club Franchise

Hand & Stone Massage and Facial Spa Franchise

Kitchen Tune-Up Franchise

The Brothers That Just Do Gutters Franchise

Chem-Dry Franchise

Blo Blow Dry Bar Franchise

Bar-B-Clean Franchise

Retro Fitness Franchise

Fleet Clean Franchise

Häagen-Dazs Franchise

Fish Window Cleaning Franchise

Amazing Lash Studio Franchise

MilkShake Factory Franchise

Snap Fitness Franchise

Franchise Chatter © 2023