How Togo's Is Bouncing Back from COVID-19

Since COVID-19 hit, businesses across all industries have been forced to pivot operations in order to survive amid mandated shutdowns — especially in the restaurant industry. Now, as states slowly begin to reopen, franchisors are helping restaurant operators prepare for the complex process.

Togo’s, the West Coast’s original big-and-meaty sandwich concept, was founded in San Jose, California in 1971 and has since grown to nearly 200 locations. While almost all of Togo’s locations have been able to stay open for pick-up and delivery services during the pandemic, dining rooms have remained closed. Now, guidelines are slowly starting to change throughout the country and Togo’s restaurants have been able to open for outdoor dining.

“Togo's is preparing to reopen our dining rooms in many ways,” said John Dyer, director of franchise sales and real estate. “Social distancing guidelines are set to become long-lasting in certain areas and Togo’s has created a thorough plan that includes supplying franchisees branded decals for the floors to ensure social distancing, and we’ve been gradually making other safety decisions around store operations. All employees are required to wear face masks and employees are  given a wellness check before starting their shift.”

As Farid Biglari, senior director of operations services points out, Togo’s has already had to pivot operations in order to succeed during this difficult time. “Our business has certainly shifted over the past few months and off-premise service is more important than ever,” he said. “We have also increased support and communication with franchisees about staff training, CDC guidelines, testing and more. We’ve provided flyers and in-store signage to help franchisees prepare for reopening and ensure that operations run smoothly.”

According to Biglari, 30% of Togo’s systemwide sales are now from online orders and third-party delivery. To further minimize guest interactions during the pandemic, Togo’s has added a curbside pick-up option so customers can place orders online and have the option of staying in their car. . In addition, all take-out bags are sealed with tamper resistant stickers to promote sanitation.

With this adaptable business model, Togo’s has seen sales slowly bounce back. “In April, our systemwide sales were down over 40% compared to the same time last year, but as of August, we're only down 9%,” said Biglari. “Compared to most other concepts, that’s really great and shows that our customers truly love our products. All the steps we have taken for our franchisees and our guests have created loyal customers.”

While Togo’s has always stayed ‘true to the sandwich,’ the fast-casual brand has spent the last year working to align their flavorful offering with a younger generation of fans thanks to a brand refresh known as Togo’s 3.0.

Biglari points out that this Togo’s 3.0 model has proven to be incredibly valuable amid COVID-19 and will position the stores for success when they reopen. For one, the revamped restaurant layout focuses on off-premise services, with streamlined pick-up areas that make the process easier for employees and customers. The 3.0 stores also feature third-party delivery partnerships with couriers like DoorDash.

Even amid the pandemic, Togo’s has been able to give the green light for remodels at some of the brand’s established locations. By the end of the year, the brand also plans to remodel two or three more stores in the Northern California area.

“We’ve analyzed everything from product offerings to vendor partnerships to technology to restaurant layout, and we feel great about where Togo's is headed in relation to the new normal,” said Biglari. “The landscape of the industry will be very different coming out of COVID-19 and we’ve been working hard to ensure that our restaurants are cost-effective for franchisees and create an unmatched experience for our guests.”

The current initial investment for Togo’s franchise ranges from $268,000 to $501,500, which includes a $15,000 to $30,000 franchise fee. For more information, visit https://www.togos.com/franchising.