Emerging Franchisors to Watch: Lennys Grill & Subs

As one of the most well-known segments of the franchising industry, food service can be incredibly competitive for emerging franchisors—and their franchisees. That’s especially true in the sandwich segment, where legacy brands can dominate the conversation. So, to break the mold and disrupt the industry’s status quo, Lennys Grill & Subs is taking a different approach to sandwiches.

Fueled by its mission to bring quality ingredients and menu items to its customers, Lennys is an emerging franchise that’s well on its way to crossing the milestone 100-unit mark. Fresh off a system-wide rebranding initiative that’s designed to attract both consumers and franchisees, the brand is now looking to build off of its existing momentum and expand in markets in which guests already know its name. To learn more about that expansion strategy, 1851 Franchise spoke with the brand’s CEO, Kevin Martin.

1851 Franchise: What makes Lennys Grill & Subs stand out to franchisees in both the franchising industry as a whole and within the restaurant segment specifically?

Kevin Martin, CEO of Lennys Grill & Subs: There are two key things that really help us and our franchise family. Number one is the product. We have a terrific product and supply chain, and our vendor partners work with us diligently to ensure that the quality and freshness of our product is intact. When you look at the way we source, we really focus on partnering with suppliers that uphold the same standards that we hold ourselves to. Second, we’re always looking for ways to ensure that our system can be executed in the best way possible. That’s really what a franchisee is looking for—they want to work with a franchisor and system that will support them consistently day in and day out. We go above and beyond to support our franchisees and help them deliver the fresh quality that Lennys customers have come to expect.

1851 Franchise: What’s on deck for Lennys in 2018?

Martin: We’re continuing to look at the ways that we can improve upon the build of our sandwiches, especially in our deli selection. We’re really working to ensure that when guests buy our deli sandwiches, the first word that comes out of their mouths is “wow.” The goal is to challenge our competitors to build their sandwiches as well as we do. We’re adding larger tomatoes, thicker cut bacon, larger cheese slices and more vegetables to our sandwiches.

Lennys is also in the process of relaunching our brand under the Lennys Grill & Subs umbrella. Our aggressive goal is to get the remaining balance of the system to move over to that new name and branding. Almost half of our system either completed or started the process in 2017, and by the end of 2018, we’re working to get that other half either completely over the finish line or help them get started.

In terms of growth, we’re already off to a strong start. Within the next three months, we have a handful of restaurants that are going to be opening. We’re really excited about the growth prospects that we’re seeing, and we’re going to continue aggressively pursuing new franchisees while also helping our existing operators become multi-unit owners.

1851: Why is now the time to invest in Lennys?

Martin: The Lennys Grill & Subs branding is completed. This is the brand that we’re going to be building off of moving forward. We’ve also secured some great vendor partnerships, both for our deli sandwiches and our signature Philly cheesesteak sandwich. When franchisees are going into a new market, they can be confident that there isn’t going to be a competitor out there that makes a Philly cheesesteak sandwich as good as ours. We’re on a mission to say, “Forget that fast food burger. Step up to steak.” That’s a huge competitive advantage that will help franchisees with the growth of the brand.

1851: Where will Lennys be in five years?

Martin: Over the next five years, we’re aiming to grow from the 91 units that are currently open today to 200. That’s the goal we’re working on, and then we’re going to continue growing from there. That comes from a density strategy. You’re going to see us grow in a lot of markets that we’re already in, and we’re certainly going to look at adjacent markets that are nearby to build on our existing brand awareness. We also want to grow in markets where we know we can support our franchisees from a marketing and distribution standpoint.

1851: What does the ideal Lennys franchisee look like?

Martin: The ideal franchisee is somebody who, first and foremost, understands and appreciates great hospitality. That’s what we’ve found—our most successful franchisees as laser-focused on bringing service back to restaurants. That’s why our guests consider us to be a leader when it comes to hospitality. Another piece that makes a great franchisee is experience leading a team of people. The average restaurant has about 15 to 20 people working in it, so having the ability to relate and lead a team is really critical. Lastly, while it’s not required, having a foodservice background also helps.