In this FDD Talk 2017 post, you’ll learn the following:
- Section I – Background information on the Another Broken Egg Cafe franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for an Another Broken Egg Cafe franchise, based on Item 7 of the company’s 2017 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for an Another Broken Egg Cafe franchise, based on Items 5 and 6 of the company’s 2017 FDD
- Section IV – Presentation and analysis of Another Broken Egg Cafe’s financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:
- 2016 average, median, high, and low gross sales for the 49 franchised Another Broken Egg Cafe restaurants that had been open for at least 12 months as of December 31, 2016
- 2015 average, median, high, and low gross sales for the 39 franchised Another Broken Egg Cafe restaurants that had been open for at least 12 months as of December 31, 2015
- 2014 average, median, high, and low gross sales for the 25 franchised Another Broken Egg Cafe restaurants that had been open for at least 12 months as of December 31, 2014
Section I – Background Information
13 Things You Need to Know About the Another Broken Egg Cafe Franchise
Creates Eco-friendly Containers
1. At the start of April, Another Broken Egg Cafe announced that it had partnered with Eco-Products to create new environmentally friendly and easier to use to-go containers. The company said that the new containers are made from a renewable resource derived from the stalks of sugarcane. All of the brand’s restaurants will start using the new clamshells and bowls.
2. Eco-Products custom designed the 13-by-9-inch clamshell and 8-ounce bowl specifically for Another Broken Egg Cafe and said that the updated containers function just like traditional foam or plastic clamshells. Additionally, the containers are freezer safe, microwave friendly, and grease- and cut-resistant.
3. Kevin Armantrout, Chief Operating Officer of Another Broken Egg Cafe, said that the company updated its containers because it wants customers to know that it cares “about them as well as the environment.”
Launches New Menu
4. Around the same time that Another Broken Egg Cafe released its new eco-friendly containers, the brand also launched its new menu. The company says that the new menu is designed to be easier for customers to navigate and easier for the staff, improving the speed of service at the restaurants.
5. In February, Another Broken Egg Cafe announced its partnership with the Louisiana Seafood Promotion and Marketing Board to promote the restaurant chain’s use of Louisiana seafood in its new menu items. According to the agreement, all new and existing locations will sell Louisiana shrimp and crawfish.
6. In addition to the Louisiana seafood, the chain added three new pancake flavors to the new “Sweet Temptations” category, as well as two additions to its “Sensible Solutions” menu items. Kevin Armantrout, Chief Operating Officer of Another Broken Egg Cafe, said that the company is excited about its new menu and new environmentally friendly containers and that Another Broken Egg Cafe has “a lot of great things going on right now.”
Fall Seasonal Menu
7. Another Broken Egg Cafe always updates its seasonal menu and recently launched its fall limited-time items, which include the Shrimp, Crawfish, and Andouille Stuffed Omelette; Asparagus, Ham, and Brie Frittata; Carrot “Pan” Cake Stack Combo; and Quinoa Power Bowl.
8. The brand is calling its seasonal menu the “Fall Farmers’ Market” and says that the new items offer “an eclectic mix of fresh produce and ingredients combined to create hearty selections to satisfy the taste buds.”
9. The new omelette features shrimp, crawfish, and Andouille sausage, sauteed with red peppers and onions, and topped with house-made spinach cream sauce and Jack cheese; the frittata is an open-faced omelette with ham, asparagus, diced onions, and roasted red peppers, topped with Brie cheese; the seasonal pancake features carrot, raisin, and walnut cakes layered with cream cheese frosting (the brand suggests pairing it with the new Spiked Pumpkin Spice Cold Brew); and the Quinoa Power Bowl comes with roasted chicken, spicy house-pickled beets, charred broccoli, mushrooms, and avocado served over a spinach and quinoa salad, drizzled with honey jalapeno vinaigrette.
10. Another Broken Egg Cafe was founded in 1996 by Ron Green in Louisiana. Green found the site for the first cafe in 1994 in Old Mandeville, Louisiana and spent the next two years renovating the old building which dates back to 1908. By that summer, the house was fully restored and “The Broken Egg Cafe” opened its doors during the week of Thanksgiving in 1996.
11. Green didn’t advertise his new restaurant, but relied on word of mouth instead. Within the first two months, the cafe quickly became a popular dining spot for locals. Green changed the restaurant’s name after a regular at the first location asked him to open up “another Broken Egg” in New Orleans.
12. He opened up a few more locations in the area during the rest of the 1990s and franchising officially began in 2005. Today, there are over 65 locations, mostly in the Southeastern U.S.
Entrepreneur’s Franchise 500
13. Another Broken Egg Cafe ranked a few times on Entrepreneur’s annual Franchise 500 list in the past decade. The company’s highest rank was No. 354 in 2015, while its lowest rank was No. 378 in 2013.
Section II – Estimated Costs
- Please click here for detailed estimates of Another Broken Egg Cafe franchise costs, based on Item 7 of the company’s 2017 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on Another Broken Egg Cafe’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2017 FDD.
Section IV – Financial Performance Representations (Item 19, 2017 FDD) and Analysis
- Below, Another Broken Egg Cafe has provided unaudited statements of average annual Cafe Gross Sales as of December 31, 2016, December 31, 2015, and December 31, 2014.
- The data below does not include Cafes operated by Another Broken Egg Cafe’s principal owner.
- The data does include two locations that are operating under a License Agreement. They operate using the System and the Marks, but they do not operate under a Franchise Agreement similar to that which is being offered by the disclosure document.
- The three tables below provide information on average Gross Sales of Cafes during each of the 12-month periods starting January 1, 2016, and ending December 31, 2016; starting January 1, 2015, and ending December 31, 2015; and starting January 1, 2014, and ending December 31, 2014.
- The Cafes are limited to Cafes operated by franchisees.
- The term “Gross Sales” is defined as all products and services sold in or from the Cafe, including off premises catering and delivery, but excluding excise or sales taxes.
- The data below is a representation of average Gross Sales for Cafes divided into quartiles.
- Gross Sales during the first year of operations likely will differ from those that have been open for a year or more. Some Cafes have attained the results described below. Your individual results may differ. There is no assurance you will do as well.
Part 1 – Statement of Average Gross Sales for 2016
- As of December 31, 2016, there were 58 Cafes operated by franchisees and 2 Cafes operated by Another Broken Egg Cafe’s principal owner.
- Of the 60 Cafes, 49 Cafes operated by franchisees and 2 Cafes operated by Another Broken Egg Cafe’s principal owner had been open for at least 12 months as of December 31, 2016.
- Of those 51 Cafes, 2 Cafes were excluded since they were Cafes operated by Another Broken Egg Cafe’s principal owner.
- Of the 49 Cafes referenced in the table below, all reported sufficient financial information to be included in this financial performance representation.