Franchise News
As consumer traffic slows and costs rise, brands like Burger King, Denny’s and Popeyes are investing in modern designs and tech upgrades to boost franchisee performance and future-proof their systems.
As the restaurant industry grapples with inflation, shifting consumer behaviors and increasing operational costs, many major franchise brands are launching large-scale remodeling efforts to stay competitive, as recently reported by NBC News.
For franchisors, these remodels are more than just cosmetic upgrades. They're essential tools for revitalizing the brand and preserving long-term unit-level profitability. Burger King, for example, has unveiled a refreshed aesthetic called “Sizzle”, already deployed in 90 U.S. and Canadian locations, with plans to remodel hundreds more in 2025. Backed by a $2.2 billion investment — including the acquisition of its largest franchisee to accelerate the rollout — Burger King’s update includes digital menu boards, self-order kiosks and branding-laden booths, creating a more immersive and tech-driven customer experience.
Other franchise brands are following suit. Popeyes is incorporating tech upgrades aimed at improving speed, accuracy and employee efficiency. Denny’s, which has invested approximately $250,000 per remodel, is already seeing 6% lifts in traffic and sales in refreshed locations. Chuck E. Cheese has added dynamic digital displays to keep the guest experience feeling fresh. Even historically nostalgic brands like Applebee’s are in the midst of redesigns to appeal to today’s value-conscious consumer.
This movement has clear implications for the franchise industry. First, it underscores how crucial brand modernization is for both consumer perception and franchisee success. Second, these remodels increasingly emphasize efficiency through technology. From self-ordering kiosks to potential AI-driven drive-thrus, tech investments are helping franchise operators offset rising food and labor costs — up 40% and 35%, respectively, over the past five years, according to the National Restaurant Association. As franchises seek to protect margins, tech-enabled remodels are becoming less of a luxury and more of a strategic necessity.
For franchisors, the key takeaway is clear: Investing in the guest experience through smart design and digital upgrades can yield measurable ROI, support brand longevity and help franchisees remain competitive in a turbulent market.
Read the full article here.
Growing and selling franchises is difficult. No great franchise did it alone. Want to learn more about how 1851 helps franchisors grow their franchises with confidence? Visit www.1851growthclub.com and see what we can do for you.
Sign up for the 1851 Franchise newsletter to get our biggest stories before everyone else
By signing up, you agree to our user agreement (including class action waiver and arbitration provisions), and acknowledge our privacy policy.
