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<a href="https://bestbreakfastfranchise.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=why-famous-toastery-slowed-down-franchise-growth-2719994" target="_blank" rel="nofollow">Famous Toastery</a> is a 25+ unit better breakfast, brunch and lunch franchise located all over the Southeast. Over the past year, Famous Toastery has been emphasizing a new mantra of “<a href="https://1851franchise.com/famoustoastery/be-famous-famous-toasterys-new-president-michael-mabrys-message-to-franchisees-2717719#featured">be famous</a>,” perfecting a business model that encourages franchisees to quickly become locally famous as pillars of their communities and providing not only&nbsp;<a href="https://1851franchise.com/famoustoastery/famous-toastery-attributes-30-increase-in-year-over-year-restaurant-sales-to-its-famous-franchisees-2718852#featured">famously fresh</a> food made daily but a hub for friends, families and neighbors to come together. This all-out brand refresh — which included new additions to the leadership team, a new menu and store remodel, updated cost efficiencies and increased franchisee support — meant actual franchise growth had to slow down for a little while. Now, the Famous Toastery team is ready to put the pedal to the floor and introduce its new-and-improved franchise opportunity to more entrepreneurs across the country.“We were signing a lot of franchisees up until the COVID-19 pandemic,” said Famous Toastery VP of Franchise Development&nbsp;<a href="https://www.linkedin.com/in/eric-gustafsson-32b6a026?trk=public_profile_samename_profile_profile-result-card_result-card_full-click&utm_source=1851franchise.com&utm_medium=article&utm_campaign=why-famous-toastery-slowed-down-franchise-growth-2719994" target="_blank" rel="nofollow">Eric Gustafsson</a>. “Obviously, that put a pause on our growth, as it did for all businesses. But once we started seeing the light at the end of the tunnel, we realized this downtime could be a blessing, and we had an opportunity to give Famous Toastery a second life.”&nbsp;To start, Gustafsson says Famous Toastery set out to fill vacant positions on the leadership team and build out the franchisee support infrastructure.&nbsp;<a href="https://www.linkedin.com/in/michael-mabry?utm_source=1851franchise.com&utm_medium=article&utm_campaign=why-famous-toastery-slowed-down-franchise-growth-2719994" target="_blank" rel="nofollow">Michael Mabry</a> joined Famous Toastery’s executive team as President in November 2021, bringing over 30 years of experience in the food and beverage industry, working in roles from line cook to Chief Operating Officer to President. The Famous Toastery team also promoted&nbsp;<a href="https://www.linkedin.com/in/lorna-martinez-26461834/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=why-famous-toastery-slowed-down-franchise-growth-2719994" target="_blank" rel="nofollow">Lorna Martinez</a> as Director of Marketing;&nbsp;<a href="https://www.linkedin.com/in/jude-colangelo-0999761?utm_source=1851franchise.com&utm_medium=article&utm_campaign=why-famous-toastery-slowed-down-franchise-growth-2719994" target="_blank" rel="nofollow">Jude Colangelo</a> as CFO; and&nbsp;<a href="https://www.linkedin.com/in/jennifer-brul%C3%A9-6733b01a9?utm_source=1851franchise.com&utm_medium=article&utm_campaign=why-famous-toastery-slowed-down-franchise-growth-2719994" target="_blank" rel="nofollow">Jennifer Brule</a> as Chief Culinary Officer.“Having the right team in place is one of the main building blocks of selling franchises,” said&nbsp;<a href="https://www.linkedin.com/in/eric-gustafsson-32b6a026?trk=public_profile_samename_profile_profile-result-card_result-card_full-click&utm_source=1851franchise.com&utm_medium=article&utm_campaign=why-famous-toastery-slowed-down-franchise-growth-2719994" target="_blank" rel="nofollow">Gustafsson</a>. “We really kicked that off in the Fall of last year with the hiring of Michael, and we have continued through this year with new corporate hires.”&nbsp;Additionally, Famous Toastery rolled out a revamped menu and a new “famously fresh” tagline. As part of this new strategy, Famous Toastery is introducing several new menu items created from feedback taken by customers, including a protein power bowl, shrimp and grits and Nutella toast, as well as a first-of-a-kind partnership with North Carolina-based&nbsp;<a href="https://abbysbetter.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=why-famous-toastery-slowed-down-franchise-growth-2719994" target="_blank" rel="nofollow">Abby’s Better Nut Butter</a> for another new toast option.&nbsp;Recently, the Famous Toastery team also set out to&nbsp;<a href="https://1851franchise.com/famoustoastery/famous-toasterys-flagship-location-reopens-with-a-new-look-2719405#stories">revamp and reopen</a> their flagship Davidson, North Carolina location. Here, the team was able to test out new cost efficiencies and improvements to the business model, as well as outline a new-and-improved look for all stores in the system.&nbsp;“That really taught us about how we can save costs and optimize what we have done in the past,” Gustafsson said. “For example, are there ways to set up a kitchen operationally that makes it cheaper to build out? Do we have national contracts with vendors that can provide us with equipment to keep costs down? The Davidson remodel allowed us to answer a lot of those questions and allowed us to develop a model to use going forward.”Now, with all of these new pieces in place to support franchisees, Gustafsson says the team is ready to sell some franchises and expand with additional locations.&nbsp;“We want to do this in a smart way — we don’t want to sell 100 units but only open 20,” said Gustafsson. “We want to grow strategically throughout the Carolinas and expand out from there in the Southeast. Overall, our recent slowdown in growth came down to getting the building blocks and foundation of the company strong post-pandemic. Now that we’ve done that, it's time to bring Famous Toastery to new communities everywhere.”The cost to open a Famous Toastery franchise ranges from $575,500 to $999,500, including a franchise fee starting at $45,000. To learn about franchising opportunities, please visit&nbsp;<a href="http://www.bestbreakfastfranchise.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=why-famous-toastery-slowed-down-franchise-growth-2719994" target="_blank" rel="nofollow">www.bestbreakfastfranchise.com</a>.&nbsp;

Why Famous Toastery Slowed Down Franchise Growth

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Prospective franchisee candidates concerned about the pause in franchise development have nothing to worry about — the team was busy building a better support infrastructure. 

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How much can franchisees make? It’s a question many prospective owners ask before investing in a franchise. While earnings tend to be driven by variables such as industry, location and general management skills, a proper understanding of the key factors driving profitability can help franchise owners develop expectations that are realistic.&nbsp;Multi-unit franchisee&nbsp;<a href="https://www.linkedin.com/in/mangesh-patel-9368569/">Mangesh Patel</a>, who’s readying the launch of six&nbsp;<a href="https://www.beefobradysfranchise.com/">Beef ‘O’ Brady’s</a> restaurant locations in the Macon, Georgia area, shares insights from his franchising experience.<h2>Understanding Franchise Income</h2>Keeping operational costs in check can have a major impact on overall earnings. Taking a proactive approach to expenses such as food and labor, as well as payroll and scheduling, can help align actual franchise income with general expectations for the business.“I just had a meeting with a couple of people, and they said, ‘You talked about a 25% profit margin, but I’m only doing 12%.’ So, I looked at the figures they sent me,” Patel said. “Their&nbsp;<a href="https://1851franchise.com/calculate-restaurant-franchise-profit-2730476">restaurant</a> food cost was running at 37%, which should be around 30%. The national average is about 32%. If I do things correctly, my average food cost needs to be at or below 30%. And payroll should run around 18%. But many people run 25 to 28%.”So,&nbsp;<a href="https://1851franchise.com/unraveling-franchise-earnings-how-much-can-you-really-make-2723935">how much can franchisees make</a>? Here are five areas to consider.<h2>Practical Tips for Prospective Franchisees</h2><ol><li>Control Costs From Day One:&nbsp;It’s important to monitor payroll, food and supply costs closely. Overstaffing and inefficiencies can quickly reduce profits.</li><li>Plan For The Opening Surge:&nbsp;Traffic within the first few months of opening is likely to be higher. It’s important to adjust staffing and inventory accordingly, and pay close attention to how those levels change as time goes on.</li><li>Invest In Training:&nbsp;Properly trained workers can help reduce waste and improve overall service, which has a direct effect on net income.</li><li>Understand Your Market:&nbsp;Each market is unique and revenue potential will vary depending upon location, demographics and competition.</li><li>Track Metrics Regularly:&nbsp;Food cost percentages, labor ratios and weekly sales data act as key indicators operations may need to be adjusted.</li></ol><h2>What Profitability Really Comes Down To</h2>Patel notes that if franchise owners manage labor and costs properly, it’s not impossible to achieve strong cash flow even in the first year, bucking some franchising trends.So,&nbsp;<a href="https://1851franchise.com/how-much-can-you-make-as-a-franchise-owner-2724761">how much can franchisees make</a>? While results tend to vary, careful planning, disciplined operations and a proactive approach to assessing initial costs are essential. But by grasping and guiding the elements that drive franchise profitability, franchise owners can maximize overall business earnings, scaling a business that’s sustainable financially over the long term.Want to learn more about franchise opportunities on 1851 Franchise? Be sure to visit our&nbsp;<a href="https://1851franchise.com/power-rankings">Power Rankings</a> to read more on brands making moves.

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<a href="https://hardeesfranchising.com/">Hardee’s</a>, a 65-year-old burger chain best known for its Thickburgers and breakfast biscuits, is facing a fast-moving round of closures driven by a franchise dispute rather than a bankruptcy filing.&nbsp;<a href="https://www.inc.com/ava-levinson/hardees-shutting-dozens-restaurants/91282586">Inc. recently reported that</a> 77&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-hardees-franchise-costs-fees-profit-and-data-2721286">Hardee’s</a> restaurants are expected to close within two weeks as one of the brand’s largest franchisees exits the system.&nbsp;According to the report, Hardee’s is suing&nbsp;<a href="https://www.arcburger.com/">ARC Burger</a> — a franchise operator owned by&nbsp;<a href="https://www.highbluffcap.com/">High Bluff Capital Partners</a> — alleging the company fell behind on required payments and other contract obligations. Twenty-eight locations had already gone dark as of late December, with remaining sites scheduled to shutter across eight states: Alabama, Florida, Georgia, Illinois, Missouri, Montana, South Carolina and Wyoming.&nbsp;At the center of the complaint is the franchising “stack” of ongoing fees and pass-through costs that keep a system running. ARC Burger allegedly owes more than $6.5 million, including royalties, advertising fund contributions, technology and training fees, rent and taxes, and that payments stopped in December 2024. Hardee’s also argued in the lawsuit that the franchisee’s cash flow was not being used to bring accounts current.&nbsp;Hardee’s, for its part, is framing the shutdowns as a contractual enforcement issue, not a brand-wide retrenchment. “These closures are a result of ARC Burger’s failure to cure its defaults under its franchise agreements, despite solid sales,” a Hardee’s spokesperson said.&nbsp;The situation highlights a familiar franchising pressure point: unit economics. Inc. reported that Hardee’s operates more than 1,800 U.S. restaurants and that average annual sales per location are less than $1.2 million, well below averages cited for&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-wendys-franchise-costs-fees-profit-and-data-2722520">Wendy’s</a> and&nbsp;<a href="https://1851franchise.com/how-much-does-it-cost-to-buy-a-mcdonalds-franchise-2724654#stories">McDonald’s</a>. Lower volumes can leave franchisees with less room to absorb higher labor, food and occupancy costs while staying current on fees.&nbsp;Hardee’s said it is working to limit fallout for workers and communities and is looking for ways to reopen closed restaurants. For franchising, the next chapter will likely involve finding replacement operators, transferring sites and rebuilding compliance — a reminder that franchise growth depends as much on franchisee solvency and execution as it does on consumer demand.Read the original article&nbsp;<a href="https://www.inc.com/ava-levinson/hardees-shutting-dozens-restaurants/91282586">here</a>.Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="https://www.1851growthclub.com">www.1851growthclub.com</a> and start your journey.

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The closures stem from alleged unpaid royalties and missed franchise obligations by a major operator, not a broader chainwide collapse for the Hardee’s system.

Why Famous Toastery Slowed Down Franchise Growth

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