Keke's Breakfast Cafe

When Denny’s acquired&nbsp;<a href="https://www.kekes.com/franchise?utm_source=1851franchise.com&utm_medium=article&utm_campaign=john-ehrhard-franchisee-story-2729755" target="_blank" rel="nofollow">Keke’s Breakfast Cafe</a> in 2022, fans of the Florida-based brand had questions. Would the welcoming, neighborhood charm survive under corporate ownership? Would the model change? For franchisee&nbsp;<a href="https://www.linkedin.com/in/john-ehrhard-9b191917b/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=john-ehrhard-franchisee-story-2729755" target="_blank" rel="nofollow">John Ehrhard</a>, the deal wasn’t a cause for concern—it was confirmation.“I don’t know that they could have found a better buyer than this Denny’s team,” he said. “They’ve got a fantastic culture and have elevated what [founders] Keith and Kevin [Mahan] built.”Ehrhard didn’t start in hospitality. He and his wife,&nbsp;<a href="https://www.linkedin.com/in/kimberly-belcher-ehrhard-0524146/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=john-ehrhard-franchisee-story-2729755" target="_blank" rel="nofollow">Kimberly</a>, spent 25 years running a television production company, and when they began thinking about stepping away from that world, restaurants weren’t even on the radar. But a friend, already involved in the Keke’s system, introduced him to the brand, and things moved quickly from there.“We had zero restaurant experience—honestly, it was the last place I ever thought we’d end up.”&nbsp;They began as passive investors in a few units. But after seeing the success and potential of the business, they bought out their partners and took a more hands-on role. Today, the couple operates nine Keke’s locations across Orlando and South Florida, with more growth on the horizon.“It’s a great brand with great people. I genuinely love the combined Keke’s and Denny’s team—and the model works. Exceptional culture, exceptional product.”Scaling nine units in just a few years takes more than enthusiasm, though—it requires a leadership style that keeps teams aligned and motivated. Ehrhard says his approach starts with a genuine commitment to his people.“The biggest thing? Serving your leadership team in ways that go above and beyond—genuinely. When you lead like that, it cascades. They pay it forward to their teams, and it creates something powerful.”Culture, he says, isn’t just a buzzword; it’s the foundation of everything, a lesson he brought with him from his time in TV production. His restaurants are built on a spirit of trust and experimentation, where trying something new is encouraged and small wins are celebrated.“None of us will be perfect, but as long as we’re trying to be better every day, that’s all I care about,” he said. “Let’s try things—some will work, some won’t—but that’s how we grow.”That same mindset applies to the guest experience. Keke’s Breakfast Cafe is known for its warm, home-like feel, and the couple works hard to preserve that across all their locations. According to Ehrhard, it starts with service—the way guests are greeted, how they’re treated and how they feel when they leave.“The service has to be warm, genuine, and excellent. When guests come to Keke’s, it should feel like a treat—you see it in their faces when the plate hits the table.”Thoughtful design plays a role too. The brand’s signature high-backed booths offer a sense of privacy and comfort, creating a space that feels more like a weekend breakfast at home than a casual restaurant chain.“That design choice says a lot about the brand. It’s not about efficient seating—it’s about creating a space where people can slow down, connect, and enjoy the moment.”While his focus is always on delivering a great experience for customers and employees alike, Ehrhard is also mindful of the business mechanics behind growth. One of the biggest lessons he’s learned is how important it is to scale with the right infrastructure at the right time, a balancing act that gets trickier with every new location.“You can’t let your infrastructure outpace your profit, but you also can’t fall behind. Scaling is a constant balancing act.”Despite those challenges, Ehrhard believes the brand is just getting started. Though it’s long been a favorite in Florida, national awareness is still relatively new, and that excites him.“We’re a young brand with a huge runway. For a concept that already works this well, it still feels like we’re just getting started.”He encourages other operators — especially experienced ones — to consider joining the system. The brand is hungry for new ideas, he says, and the corporate team is open to innovation from the field. “They let you test, tweak, and build—if it works, they’re ready to scale it. It’s a great setup for experienced operators who want to bring fresh ideas to the table.”For Ehrhard, joining Keke’s wasn’t just a business decision — it was the beginning of something meaningful. The day-to-day work is about more than transactions. It’s about connection, community, and creating something lasting.“Being part of the Keke’s family is incredibly rewarding. The community, the commitment to quality, the joy we bring guests every day—it’s special. It’s not just food; it’s creating a place that feels like home. And the support from the Keke’s network has been a huge part of our growth. We’re genuinely proud of the journey.”To find out more information on the costs to buy this franchise, please visit&nbsp;<a href="https://www.kekes.com/franchise?utm_source=1851franchise.com&utm_medium=article&utm_campaign=john-ehrhard-franchisee-story-2729755" target="_blank" rel="nofollow">https://www.kekes.com/franchise</a>.

John Ehrhard Story: TV Producer to Keke’s Franchise Owner

1851 Franchise

From television production to restaurants, John and Kimberly Ehrhard are creating a thriving business with trust, empowerment and a family feel.

This brand page has been paid for by KEKE'S BREAKFAST CAFE. Content within this page that is paid will showcase a Sponsored icon. This means the brand has engaged 1851 FRANCHISE to write the content. Content without the Sponsored Icon is aggregated media placements the brand earned. Questions can be sent to editorial@1851franchise.com

John Ehrhard Builds Success With 7 Keke's Breakfast Cafes

john-ehrhard-franchisee-story

FRANCHISE INFORMATION

About Keke's Breakfast Cafe

Create Your Fresh Start

Experience the Difference

Why You Should Invest in a Keke’s Breakfast Cafe

Franchisee Highlight

Executive Q&A

Learn

Download Brochure

Visit Website

KEKE'S BREAKFAST CAFE

Facebook

Instagram

LinkedIn

TikTok

SOCIAL MEDIA

Daily Meal: Keke's Breakfast Cafe Recognized as a Rising Restaurant Chain To Watch in 2026

Building a People‑Powered Breakfast Franchise: How Christie Schatz Shapes Culture at Keke’s Breakfast Cafe

Veteran Restaurateurs Jeff And Kim Rigsby To Open Five Keke's Breakfast Cafe Locations In Upstate South Carolina

KEKE'S BREAKFAST CAFE MOST READ STORIES

1851 LOGIN

GROWTH CLUB LOGIN

ABOUT KEKE'S BREAKFAST CAFE

CONTACT KEKE'S BREAKFAST CAFE

facebook

instagram

twitter

linkedin

First Name

Last Name

Email

Phone

City Of Interest

State

Do you have at least $300,000 of liquid capital available?

Do you have a net worth of $1M+?

Do you have experience in restaurant ownership or operations?

Why do you want to own a Keke's Breakfast Cafe?

Own a Keke's Breakfast Cafe Franchise

Neetu and Sanjeev Bali are no strangers to the early morning rush. With 25 years of experience as franchisees and nearly three decades within the&nbsp;<a href="https://dennysfranchising.com/">Denny’s</a> system, the duo built a career on the foundational elements of the great American diner. Now, the veteran operators are channeling that expertise into a new direction by signing a three-cafe development deal with&nbsp;<a href="https://www.kekes.com/franchise">Keke’s Breakfast Cafe</a>. This move signals a significant expansion for the brand into the growing markets of Sacramento, Roseville and Rocklin, California.<h2>A Shift Toward Modern Breakfast Efficiency</h2>What appealed to the Balis about&nbsp;<a href="https://1851franchise.com/kekes-breakfast-cafe/info">Keke’s</a> was the change in pace. Their existing restaurants require constant oversight, but Keke’s is centered on breakfast and lunch, giving the day a more defined rhythm."We still have Denny’s. But we wanted to pursue a new venture," Neetu said. "It’s a shorter operating window because it’s not 24 hours. But it has strong sales."This shift in schedule represents a major evolution for the Balis. After years of managing the complexities of a 24-hour business, the 7 a.m. to 2:30 p.m. window offered by Keke’s provides a lifestyle benefit that’s rare in the restaurant industry. Neetu noted that the simplicity of the model was a primary draw, explaining that after the doors close in the early afternoon, "the rest of the day is yours."<h2>Simplicity and Quality in a Growing Market</h2>Beyond the schedule, Keke’s direct approach to the menu stood out to the Balis. Unlike the expansive menus found at traditional diners, Keke’s meals are freshly crafted to order. Menu items emphasize a focused selection of fresh ingredients and elevated American classics, and a clean restaurant layout. It’s about simplicity, and that simplicity allows franchisees to focus on the quality of the food and the speed of service.The Balis say their local experience will shape how they approach each new cafe. They’re looking at fast-growing residential areas and plan to lean on the same fundamentals that have served them well for years: a clean restaurant and strong guest service."We’re going to bring that 24-hour experience of taking care of the guests," Neetu said. "We’ll run a good, clean restaurant with good food, served fast and hot. All of it will make the customer come back."<h2>Building Success Through Team Member Loyalty</h2>The couple also attributes their long-term success to a philosophy of internal stability. In an industry often defined by high turnover, the Balis maintained a remarkably loyal staff, with some team members remaining on their team for 25 years. They believe that if they take care of their staff, those team members will naturally provide the personalized service that Keke’s requires.The breakfast and brunch segment remains in the midst of an evolution of sorts. Moving toward more specialized and modern concepts, the Balis see Keke’s as a perfect Northern California fit. After visiting existing locations in Florida and seeing the positive reception from guests firsthand, their confidence in the brand has only grown.For other entrepreneurs looking at the franchise space, Neetu emphasizes that success requires a mix of financial readiness and a genuine love for people. She believes the Keke's model is ideal for those who are willing to put in the effort during a concentrated window of time."You work hard, you’re done with your day and you go home," Neetu said. "The rest of the time is with your family."To find out more information on costs to buy this franchise, please visit&nbsp;<a href="https://1851franchise.com/kekes-breakfast-cafe">https://1851franchise.com/kekes-breakfast-cafe</a>.About Keke's Breakfast CafeKeke's Breakfast Cafe is a Florida-born restaurant chain specializing in breakfast, brunch and lunch favorites. Known for its freshly made meals, Keke's offers a wide range of options, including pancakes, waffles, omelets and other classic dishes. With a commitment to high-quality ingredients and excellent customer service, Keke's Breakfast Cafe provides a welcoming and relaxed dining experience for customers of all ages. The cafe currently operates in Florida, Georgia, Tennessee, Nevada, Texas, Colorado and California, with other locations in multiple U.S. states slated in the near future. For more information, please visit&nbsp;<a href="http://www.kekes.com">www.kekes.com</a> and follow Keke's on Instagram, Facebook and LinkedIn.

Neetu and Sanjeev Bali, longtime Denny's operators in Northern California, have signed a three-cafe deal to grow Keke's in Sacramento, Roseville and Rocklin.

Keke's Breakfast Cafe Expands into Sacramento with Three-Cafe Deal from Denny's Franchisees Neetu and Sanjeev Bali

sacramento-franchise-expansion

veteran-restaurateurs-to-open-five-kekes-breakfast-cafes-south-carolina

How Two Keke's Breakfast Cafe Owners Are Solving Workplace Burnout With A Novel Incentive System

kekes-breakfast-cafe-franchise-employee-retention-kitchen-scoreboards

At&nbsp;<a href="https://www.kekes.com/franchise">Keke’s Breakfast Cafe</a>, marketing is all about people. Under the leadership of&nbsp;<a href="https://www.linkedin.com/in/jennaashleylaw">Jenna Law</a>, Senior Director of Marketing and Communications, the brand has built a marketing engine designed to support nearly 100 locations while preserving the neighborhood feel that made&nbsp;<a href="https://1851franchise.com/kekes-breakfast-cafe/info">Keke’s</a> a fan favorite long before national expansion.“I’ve spent well over a decade in advertising and marketing at agencies as well as large public companies, including Darden Restaurants and Disney,” Law said. “But my love of restaurants goes back to my roots. My father was a corporate executive chef at several well-known casual dining concepts, so our kitchen at home was essentially another test kitchen–my brother and I were always immersed in culinary ideation and the hospitality industry.”She started working in restaurants as soon as she was old enough, from quick-service to fine dining in Chicago. When the opportunity arose to help build Keke’s marketing program from the ground up following its acquisition by Denny’s Corporation, it felt like a full-circle moment.“When the opportunity to join Denny’s to help build Keke’s Breakfast Cafe’s marketing program from scratch came along, it wasn’t one I could pass on,” Law said. “It was a chance to return to the restaurant industry and build a brand that I have enjoyed as a guest many times.”<h2>Building a Franchise Marketing Engine From the Ground Up</h2>When Law stepped into her role, there was little established infrastructure. Rather than seeing that as a hurdle, she viewed it as an opportunity.“From the owned side, building and fine-tuning our digital footprint is an ongoing effort, as there was very little established when this marketing team was founded just over two years ago,” Law said. “We are fully living the ‘building the plane while you fly it’ adage as we examine and enhance everything from our website to social presence to off-premise strategy.”As a franchise, that work is about balancing national consistency with local empowerment. “We design the brand centrally, but we ensure it can be activated locally,” Law said. “The corporate team owns positioning, voice, creative standards and national paid, earned and owned media, while franchisees get localized toolkits and resources that let them plug into their communities.”Every franchisee has access to a portal with pre-approved collateral, clear brand guardrails and agency partnerships when needed. But beyond templates and toolkits, Law emphasizes&nbsp;<a href="https://1851franchise.com/kekes-breakfast-cafe/lucas-jovita-interview-2731393">flexibility</a>.“We seek to provide as many clear guardrails, templates and tools as possible to empower them to be active in their neighborhood,” she said, “plus offer a process for requesting customized materials and support to bring their local initiatives and ideas to life.”<h2>A People-First Approach to Franchise Support</h2>Law is candid about the realities of franchise marketing. “Our relationships with our franchise owners bring both accountability and energy to everything we do," she said. "That partnership is genuinely one of our greatest strengths as a brand."At Keke’s, the guiding principle is simple. “Our most important guiding principle is&nbsp;<a href="https://1851franchise.com/kekes-breakfast-cafe/kekes-breakfast-cafe-franchise-dave-schmidt-interview-2729445">‘People First.’</a> That isn’t a phrase just printed on a poster; it’s ingrained in our culture, and it extends to our franchisee relationships, as well,” Law said. “We don’t send a playbook over email and say, ‘good luck.’ We are invested in each cafe’s success, franchise or company-operated, like it’s our own business.”From day one, new franchisees receive&nbsp;<a href="https://1851franchise.com/kekes-breakfast-cafe/reasons-buy-kekes-breakfast-cafe-franchise-2729573">brand immersion training, new cafe opening playbooks, menu versioning support and technical setup assistance, including local listings and social profiles.</a>“Whether a franchisee needs a high level of support or already has a marketing infrastructure in place, we make ourselves available to meet them where they are,” Law said.<h2>Digital as the Growth Multiplier</h2>As an emerging brand with a modest budget, Keke’s relies heavily on digital precision. “Digital channels enable us to be precise, targeted and easily test as we grow into new markets and try new things,” Law said. “We fully manage optimizing our digital channels to drive sales and traffic at the corporate level to ensure a cohesive strategy, consistency and efficiency.”But for Law, the most powerful lever is insight. “Understand the guest deeply,” she said. “Get out in the field and talk to them; don’t just rely on databases and sales data. Know the guest, know their problems and tell them how your brand solves them. The best campaign in the world won’t move the needle if it doesn’t activate the right channels and resonate with your audience.”She also sees future untapped opportunity in employee-generated content. “Team member engagement, especially in social media, is incredibly powerful,” Law said. “Influencers and UGC are great, but let’s dig into EGC: employee-generated content. When team members feel personally engaged, the guests feel it, and local storytelling creates incredibly powerful connections with the community.”<h2>Protecting the Guest Experience Above All</h2>For all the strategy and storytelling, Law is unwavering on one point:&nbsp;<a href="https://1851franchise.com/kekes-breakfast-cafe/kekes-breakfast-cafe-franchise-2730103">marketing cannot outpace operations.</a>“No level of marketing in the world can fix poor guest service and operations,” she said. “It damages the entire brand, not just one location. Don’t invest a dollar into marketing until you can deliver a superior experience to every person driven in by those tactics.”That philosophy aligns with what first drew her to the brand. “It’s something I loved from day one at Keke’s, long before this formal marketing team existed, there was a commitment to excellence in operations and service,” Law said. “That’s how this concept organically grew to more than 50 locations before being acquired, and it’s a story I now get to craft into our messaging.”Through it all, Law remains grounded in the human element that makes franchise marketing uniquely rewarding.“It’s not only the corporate bottom line anymore, but it’s also helping individuals build their businesses and support their families,” she said. “Franchisees have this incredible entrepreneurial spirit that consistently pushes me to think outside the box, be flexible and it naturally generates a pipeline of new ideas from the field.”At Keke’s, national marketing leadership isn’t about controlling the narrative from the top down. It’s about building the systems, relationships and stories that allow every cafe to thrive locally, one guest, one neighborhood and one breakfast at a time.To find out more information on costs to buy this franchise, please visit&nbsp;<a href="https://1851franchise.com/kekes-breakfast-cafe">https://1851franchise.com/kekes-breakfast-cafe</a>.

Senior Director of Marketing and Communications Jenna Law shares how brand storytelling, digital strategy and franchisee support drive traffic and unit-level performance.

How Keke’s Breakfast Cafe Builds Local Demand Through National Marketing Leadership

how-kekes-breakfast-cafe-builds-local-demand-through-national-marketing-leadership

Following its strongest growth year to date,&nbsp;<a href="https://www.kekes.com/franchise">Keke’s Breakfast Cafe</a> is positioning itself for another milestone year in 2026.“There are quite a few milestones,” said&nbsp;<a href="https://www.linkedin.com/in/jon-ahrendt/">Jon Ahrendt,</a> senior director of franchise relations. “But I would say the biggest one is that we reached our greatest growth milestone. We doubled our previous highest year’s growth target. We opened 19 cafes last year.”Ahrendt said the growth starts with&nbsp;<a href="https://1851franchise.com/kekes-breakfast-cafe/info">Keke’s</a> knowing exactly who it is as a brand. That clarity has made it easier to stay focused on the right kind of growth.“Our whole purpose is growth for existing franchisees,” he said. “Helping them grow their individual businesses and growing into new markets and touching new guests. Our overall target is to share as many fresh starts every day to every guest.”<h2>A Concept Built for Longevity</h2>While interest in franchising continues to grow, Ahrendt said several fundamentals consistently draw candidates to the Keke’s system.“People are looking for stability. They’re looking for a great brand that has great support and the ability to properly support a community that they’re really passionate about,” he said.One of Keke’s biggest differentiators is its breakfast-only model. Cafes operate from 7 a.m. to 2:30 p.m., offering a lifestyle-friendly schedule that resonates with franchisees, managers and team members alike.The brand is also seeing increasing interest from professionals in technology-related fields who are evaluating long-term career security in the age of artificial intelligence.“I think they see the advent of AI starting to come in and they’re looking for places to work and put effort where it’s safe from AI being able to take it over,” Ahrendt said. “We will certainly have AI intertwined, but I think it’ll take quite some time before humans want a robot to take their order and serve them. It’s going to feel impersonal and cold.”Instead, Ahrendt likened Keke’s to a modern-day gathering place.“We’re a place to go get that warm breakfast to get your day started,” he said. “The essence of wanting to be around other people is something that humans are based on.”<h2>Fans First, Franchisees Second</h2>Ahrendt noted that many new franchise partners start as loyal guests. The emotional connection they have often turns into a desire to bring the brand home, with 50% to 60% of existing franchisees being fans before investing.&nbsp;“They came in and enjoyed us,” he said. “They might have been on vacation in Orlando, going to Disney World or Universal and they stopped by Keke’s because they saw us on Yelp or heard about us.”<h2>Technology That Reduces Stress and Improves Profitability</h2>Over the past year, Keke’s has made meaningful investments in technology to streamline operations and support unit-level economics. One major initiative is a systemwide rollout of a new POS platform and kitchen display system.“That tool has really helped us with efficiency and really enhanced the experience for all of our team members,” Ahrendt said. “It’s almost a calming force in the kitchen.”Before the change, kitchens were filled with hanging tickets, constant callouts and rising stress levels, but today the workflow is simpler and clearer, with team members knowing exactly where to jump in and support. The new system also allows servers to take orders tableside, sending them directly to the kitchen.”<h2>Catering, Loyalty and Brand Awareness Take Center Stage</h2>Looking ahead to 2026, Ahrendt said Keke’s has two major areas of focus: catering and guest engagement.“We have a good program today, but we’re looking to make it excellent in 2026,” he said. “Everything from what type of ladles we’re using, how we deliver it, who delivers it, how it’s set up once it gets there, all the way to the technology that’s used.”For much of its first 17 years, Keke’s operated without a formal marketing function, but today the brand is taking a more consistent approach to getting its name out through channels like social media, mailers and in-cafe promotions.The brand is also preparing to launch its first loyalty program. It will integrate with the new POS system, creating stronger data connections and more cohesive guest experiences.<h2>Nationwide Expansion Ahead</h2>Keke’s footprint has expanded rapidly in a short period of time. It went from being in just one state at the end of 2024 to now being in seven. The brand’s presence in those seven states will continue to grow in 2026, alongside targeted expansion across the country.“We’ve got interest in the Chicago market, the Mid-Atlantic and the Northeast,” he said. “We’re already on the West Coast. We’re already in Las Vegas. Arizona is another opportunity. The Midwest — really everywhere.”Ahrendt believes the brand’s menu and positioning translate well anywhere. “It’s an elevated all-American classic breakfast that just plays well in every market,” he said.<h2>A Message to Prospective Franchise Partners</h2>As Keke’s enters 2026, Ahrendt says the brand is operating with confidence and clarity.“We’ve really solidified who we are. We have a strong brand, an incredible team,” he said. “If you take the next steps to come and get the FDD and set up a discovery day, you won’t be disappointed. I think you’ll be blown away by what we put on the plate, how we do it, and the attention to detail.”Everything the brand does is driven by purpose, and Keke’s is a strong fit for franchise partners who value that kind of intentional approach.To find out more information on costs to buy this franchise, please visit&nbsp;<a href="https://1851franchise.com/kekes-breakfast-cafe.">https://1851franchise.com/kekes-breakfast-cafe.</a>&nbsp;

After a record-setting year of expansion, Keke’s Breakfast Cafe is entering 2026 focused on smarter growth, stronger franchisee support and technology-driven operations.

Keke’s Breakfast Cafe Has Bold Franchise Growth Plans for 2026

kekes-breakfast-cafe-has-bold-franchise-growth-plans-for-2026

Breakfast may be the most underappreciated daypart in the restaurant industry. But for&nbsp;<a href="https://www.kekes.com/franchise">Keke’s Breakfast Cafe</a>, it’s a competitive advantage. And&nbsp;<a href="https://www.linkedin.com/in/lucasjovita/">Lucas Jovita</a>,&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-kekes-breakfast-cafe-franchise-costs-fees-profit-and-data-2722276#stories">Keke’s</a> senior director of finance, lies at the heart of turning that advantage into measurable growth.With a deep understanding of franchise finance, operational efficiency and cost management, Jovita is helping&nbsp;<a href="https://1851franchise.com/kekes-breakfast-cafe">Keke’s</a> navigate everything from labor and food costs to site selection, construction optimization and scaling strategies. Under his leadership, the brand is balancing affordability with a high-quality guest experience, keeping costs low while helping franchisees maximize profitability.&nbsp;As&nbsp;<a href="https://1851franchise.com/kekes-breakfast-cafe/info">Keke’s</a> continues to refine its model and plan for expansion, Jovita is looking ahead to what could be a pivotal year for the brand and the franchisees who are part of its growth story.1851 Franchise sat down with Jovita to discuss the benefits of a limited-daypart model and what’s in store for 2026. Here’s what he had to say:1851 Franchise:&nbsp;When we talk about the breakfast and brunch segment, it inherently has lower food costs. What are the key ingredients in the categories (eggs, dairy, bread, produce, meats)? Where do the advantages lie and how does that compare to full-service operations?Lucas Jovita: From an operations standpoint, the number of ingredients is pretty small. Our top 20 ingredients represent about 60% of everything we buy. So, we have a tight number of SKUs. There’s a lot of velocity with our top 20 items, which helps with waste.Last year wasn’t a great example because of the egg crisis. Eggs are a huge part of what we do (about 12% of everything we buy). But in a typical year, theoretical food costs for breakfast items range from 15% to 20%. Many of those items go through the egg station (about 30 to 40% of what we sell). They’re high-velocity items, easy to cook and have a 15 to 20% food cost. That makes it attractive from a food cost standpoint.That’s excluding the challenges we faced with the avian flu this year.1851:&nbsp;When targeting those food cost percentages for Keke’s, how does that compare with benchmarks in full-service restaurants or the fast-casual/QSR space?Jovita: Full-service depends on the concept. But it’s generally 25 to mid-30%. Our food cost is about five to 10 basis points lower than full-service concepts. Dinner tends to have a higher cost of goods as a percentage of sales and lunch has a little leverage. But breakfast is even better.1851:&nbsp;To what extent does having a limited daypart simplify operations? It obviously reduces waste. But are there hidden cost trade-offs like idle equipment or staffing flexibility?Jovita: There are fixed costs. But limited hours help. For example, if you’re driving $2 million in sales over six hours, really, your busy hours are nine to one. You’re driving most of your sales in that particular window. Labor costs are more efficient because you can schedule team members when it’s busy (as opposed to during slower periods, like in full-service restaurants).Now, with full-day operations, you have unproductive hours after lunch before dinner or happy hour. Whereas here, it’s turn-and-burn. When you’re busy, team members are in. When you’re not, you can cut them. That makes labor more efficient.Limited hours also allow us to have one or two managers per store, depending on volume. Full-day operations might require four or five managers to cover all shifts.1851:&nbsp;But, even in this segment, there are still things squeezing margins. What are the biggest factors and how are you coaching franchisees to mitigate those factors?Jovita: There are three main components: labor, food cost and rent. Labor is a big input cost. Food cost is also important. Rent is critical because the business only has limited hours to generate revenue. So, you don’t want to overextend on rent in a location that looks busy at night but is closed during your operating hours.I’ll give you an example. You wouldn’t want to be next to an NBA stadium because the games played in that stadium are at night. You’d pay high rent – but miss the foot traffic.&nbsp;Selecting the correct site is really key.1851:&nbsp;The last few years have obviously been turbulent economically. Inflation has affected everyone. How are you navigating that without frequent price hikes that could upset your core customers?Jovita: Even with inflation, our guest satisfaction scores and net sentiment are best in class. That gives us some pricing power. We’ve increased prices modestly (while not fully covering input costs). Supply chain efficiency and menu engineering are also a focus. But the ultimate goal is pricing. We’re hoping to price for two-thirds of inflation and find efficiencies to cover the rest. Not all those costs are passed on to guests.1851:&nbsp;In your capital structure and footprint – kitchen size, equipment, square footage – it’s similar to full-service or fast casual, right? How do you optimize fixed overhead to ensure franchisees are profitable?Jovita: Keke’s restaurants saw an impressive average AUV of $2,089,007 in 2024 for all franchised restaurants that reported through the iLumen Reporting Software, with the top half of franchise restaurants seeing net sales of $2,589,666, according to the brand’s most recent Franchise Disclosure Document. * This allows our franchisees to see a bigger return on investment. Brand standards and demand, particularly on weekends, help cover fixed costs.1851:&nbsp;And as you scale more franchise units, when do economies of scale kick in? Are there frictions in realizing efficiencies now?Jovita: Having been a part of a larger system like Denny’s gave us some leverage for contracts, purchasing and support. This allowed us to generate savings and economies of scale, which we maintain today. Technology transitions are helping as well. Construction costs are a focus. We aim to bring them down even more.When you hit a 1.5 to 2 sales-to-investment ratio, that’s the sweet spot. A payback period of three to four years allows any concept to grow quickly.1851:&nbsp;That three to four-year payback seems to be the magic number. Brands that can engineer that model tend to explode because institutional investors and multi-unit operators can see the ROI.Jovita: We’re always working hard to get there. Reducing construction costs is a big initiative and will drive growth.1851:&nbsp;The brands that can do it attract serious growth…Jovita: Next year is going to be massive for us. With the egg crisis behind us, we’re focusing on franchise growth, controlling costs and leveraging technology. The foundation is laid for robust comp sales and profitability.To find out more information on costs to buy this franchise, please visit&nbsp;<a href="https://1851franchise.com/kekes-breakfast-cafe">https://1851franchise.com/kekes-breakfast-cafe</a>About Keke's Breakfast CafeKeke's Breakfast Cafe is a Florida-born restaurant chain specializing in breakfast, brunch, and lunch favorites. Known for its freshly made meals, Keke's offers a wide range of options, including pancakes, waffles, omelets, and other classic dishes. With a commitment to high-quality ingredients and excellent customer service, Keke's Breakfast Cafe provides a welcoming and relaxed dining experience for customers of all ages. The cafe currently operates in Florida, Georgia, Tennessee, Nevada, Texas, Colorado and California, with other locations in multiple U.S. states slated in the near future. For more information, please visit&nbsp;<a href="http://www.kekes.com">www.kekes.com</a> and follow Keke's on Instagram, Facebook, and LinkedIn.* ( We had 25 franchise restaurants report full-year information through iLumen.)&nbsp;

We dig into how Keke's low food cost model changes the math for franchisees - and how it stacks up to full-service, fast casual and QSR operations.

Why Breakfast-Only Franchises Might Be the Secret Weapon of Restaurant Profitability

lucas-jovita-interview

John Ehrhard Builds Success With 7 Keke's Breakfast Cafes

MORE STORIES LIKE THIS