When “better breakfast” is part of your brand description, it only makes sense to spend a bit more on securing the finest and freshest ingredients. However, the fact that the company does spend more on high-end offerings may leave potential franchisees worried about how it could affect the bottom line.
According to Robert Maynard, co-founder and chief executive of Famous Toastery, it’s a misplaced concern.
“We don’t charge the same way an IHOP or Denny’s does,” he said. “We charge more than a brand that doesn’t have the same type of quality. You’re able to make up the difference. I mean, when you’re charging $9.99 for an omelet, it’s a big difference from $6.99. People are willing to pay for quality – these days everybody’s a food critic, everyone wants to post to Instagram or Yelp about their meal.”
In short, people who think Waffle House is the best thing since sliced bread when it comes to food aren’t the types Famous Toastery is going after.
“Our restaurants see huge customer volume,” Maynard continued. “Our franchisees are seeing in eight hours the same amount of people who may come into another restaurant in 24.”
Maynard also pointed out that franchisees benefit from the buying power of the company.
“We have about 20 committed restaurants that are going to open,” Maynard said. “We should have 40 stores in the next 18 months. With that comes buying power from vendors. They know we spend a certain amount of money eon food each year, so they’re going to give us a much better deal than some guy on the street, whether it’s eggs or anything else. On top of that, we get rebates on our orders that help us save more.”
Once again, this comes back to volume. Since Famous Toastery locations sell more than your average breakfast spot, they have to purchase more food, which in turn gives them greater leverage with vendors.
“Our muscles get bigger and bigger each time we open a new store,” Maynard said with a laugh. “It’s like Popeye eating spinach.”
Strategy is also important to passing on savings to franchisees.
“For instance, we buy lobster straight from Maine,” Maynard said. “But we work with multiple guys to get the best price. If one is too high, the other will be okay. Most breakfast brands aren’t selling fresh caught Maine lobster on a daily basis. We’re able to do it at an affordable price by being smart in how we buy.”
It’s that combination of smarts and dedication to the best ingredients that has made Famous Toastery such a hit with both franchisees and their customers.