In this FDD Talk 2016 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 2016 FDD
- Section III – Presentation and analysis of Famous Toastery’s financial performance representations, based on Item 19 of the company’s 2016 FDD, including information on the:
- actual gross sales for the period from January 1, 2014 to December 31, 2014 and the period from January 1, 2015 to December 31, 2015 for each of the 3 affiliate-owned Toast Cafe restaurants that were open and operating for a full twelve months as of December 31, 2014
- actual gross sales for the period from January 1, 2015 to December 31, 2015 for the 2 franchised Famous Toastery restaurants that were open for a full 12 months in 2015
Section I – Background Information
Best Friends Open a Breakfast Restaurant
The first Famous Toastery location was opened by Brian Burchill and Robert Maynard in 2005 in Huntersville, North Carolina. The restaurant was initially called Toast Cafe and was immediately successful.
Soon after opening the first location, Burchill and Maynard opened two more Toast Cafes in the area. Franchising officially began in 2013. In early 2015, the company changed its name to Famous Toastery as plans for a large expansion were announced.
Today, Famous Toastery has 16 locations in North Carolina, South Carolina, Florida, and Virginia. The company currently has 31 locations in development from Colorado to New York.
Named One of CNBC’s Top Franchises to Watch
In early 2016, Famous Toastery was named one of the Top 6 Food Franchises in America by CNBC. The list was compiled by Technomic, a research and consulting firm focusing on the food service industry. Technomic President Darren Tristano says that the restaurants that make the list are striving to do a better job with everything from food to service and customer experience.
Famous Toastery also made Technomic’s list in 2015 as one of 12 Restaurants to Watch in America.
Co-founder Robert Maynard says that being named one of the top food franchises in the country is a testament to the growing demand for better, chef-inspired, and healthier breakfast and brunch options.
In addition to being recognized by CNBC and Technomic, since opening its first location in North Carolina in 2005, Famous Toastery has consistently been winning the best breakfast and brunch awards in the Charlotte area.
Famous Toastery Opening Locations in Co-Founders’ Hometown of Long Island
In the fall of 2016, Famous Toastery announced plans to open its first New York location in Commack, Long Island. Co-founders Brian Burchill and Robert Maynard are originally from Long Island. The inaugural location is part of a 10-store deal that was signed in early 2016.
The Long Island opening is part of Famous Toastery’s plans to continue expanding throughout the eastern United States. According to Maynard, the pair had been receiving constant calls from Long Island locals asking when they would bring Famous Toastery to their home state.
Maynard and Burchill hope that the new franchise deal in New York will open up opportunities to target the rest of the tri-state area, including New Jersey and Connecticut.
Standing Out From the Competition by Serving a “Better Breakfast”
Since its inception, the goal of Famous Toastery has been to serve a “better breakfast,” which means using only fresh ingredients and making all of its dishes from scratch. The food at each Famous Toastery location is made fresh daily. Workers come in early everyday to prep and make everything from scratch.
According to co-founder Robert Maynard, Famous Toastery has “a tremendous following of loyal and regular customers because [its] brand is up-front about where [its] food is coming from.”
Not only are the ingredients fresh at Famous Toastery, but the menu items are of a higher quality than you would find at a typical breakfast food chain. Famous Toastery’s menu includes gluten-free items, different variations of eggs benedict, corned beef hash, fresh-grilled burgers, and scratch made macaroni and cheese.
Not Yet Ranked on Entrepreneur’s Franchise 500
Despite being in business for over a decade, Famous Toastery has only been franchising since 2013. While the restaurant is pushing for a large expansion in the coming years, Famous Toastery has not yet garnered the attention of Entrepreneur Magazine, and has yet to earn a spot on Entrepreneur’s annual Franchise 500 list.
Section II – Estimated Costs
- Please click here for detailed estimates of Famous Toastery franchise costs, based on Item 7 of the company’s 2016 FDD (updated).