1851

For the past few years, businesses have been catering to the millennials. It&rsquo;s no surprise &ndash; they represent over 80 million customers in the U.S., and it&rsquo;s estimated they will spend over $10 trillion in their lifetimes according to Forbes.&nbsp; There&rsquo;s no question that business and restaurants won&rsquo;t continue accommodating them, but a new player has arrived and they are changing the game - Generation Z.

Generation Z, also known as the Post-Millennials, are individuals whose birth years range from the mid-1990s to early 2000s and they represent over 83 million customers. They are the biggest generation since the baby boomers but the difference is that they have grown up with technology and social media. The challenge is getting on their radar. Businesses require speedy high-tech services, eye-catching marketing, and social media that is engaging.

Restaurants are a huge player in the Gen Z game, and they are already making their moves to be in the forefront of the game. According to The NPD Group, from February 2015-2016, Gen Z accounted for $78 billion spent at restaurants. Patrick O&rsquo;Dell, Director of Brand Marketing at <a href="https://pitapitusa.com/franchise/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=move-over-gen-y-gen-z-is-here-9307" target="_blank" rel="nofollow" target="_blank">Pita Pit</a>, has noticed their restaurant interest and new trends.

&ldquo;Generation Z is dining out a lot, and the trend will continue. One thing I&rsquo;ve noticed is they snack a lot more than other generations. They are disrupting the three square meals idea and opting for smaller, lighter portions more often,&rdquo; O&rsquo;Dell said.

He isn&rsquo;t the only one noticing new trends taking shape. Scott Iversen, Vice President of Marketing for <a href="https://toppersfranchise.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=move-over-gen-y-gen-z-is-here-9307#intro" target="_blank" rel="nofollow" target="_blank">Toppers Pizza</a>, has seen how much the digital world really does matter.

&ldquo;Gen Z is the first generation that has grown up with everything digital, and they have so much more access than prior generations. They get what they want and expect it the way they want. Gen Z is also more protective of who they share things with on social media and tend to share only in their closest networks. They require a lot of transparency and authenticity from the brands they engage with, so you have to create and provide content that is relevant for Gen Z to share,&rdquo; Iversen stated.

To better cater to this generation, Toppers Pizza has also been getting involved with Snapchat.

&ldquo;To us, it&rsquo;s not as much about selling as it is to have compelling contests and content that they share with friends. Content has to be immediately interesting. Their attention span is much shorter, so you have to get in front of them effectively,&rdquo; said Iversen.

Pita Pit is getting in front of Gen Z in the social space as well by continuously posting engaging content and hosting contests and challenges. They also have a loyalty and rewards program to get customers involved. They&rsquo;ve made it more than just a points system and have created an engaging aspect to it to be able to reward customers in many different ways.

As for what both Iversen and O&rsquo;Dell think the future holds for restaurants, they both know it is technology. Toppers Pizza&rsquo;s goal is to be more flexible than other big box stores, so they are constantly looking at ways to incorporate technology into their online ordering as well as creating engagement through technology. One example is they recently crowd-sourced their 3-Cheese Garlicstix. &nbsp;

Pita Pit knows restaurants need to be prepared for more online ordering as well as kiosk ordering. For Gen Z, it&rsquo;s less about person-to-person interaction than person-to-digital interaction. Pita Pit also has something big up their sleeve that won&rsquo;t be rolled out until the middle of next year.

&ldquo;We are reshaping our digital ecosystem &ndash; everything from mobile to online ordering to the mobile and web experience. When that is complete, we should be able to communicate more effectively and efficiently to Gen Z,&rdquo; said O&rsquo;Dell.

Technology is the future for Gen Z. Now the question is, what will the next generation want? &nbsp;

Move Over Gen Y—Gen Z is Here

1851 Franchise

Here's what restaurants are doing to cater to the changing demographic. 


This brand page has been paid for by 1851. 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

move-over-gen-y-gen-z-is-here

CapitalSpring

Franchise Times: Alloy Personal Training Backed by CapitalSpring to Fuel Franchise Growth

franchise-times-alloy-personal-training-backed-by-capitalspring-to-fuel-franchise-growth

Onigilly Japanese Kitchen

How Focused Menus Improve Franchisee Performance at Onigilly

how-focused-menus-improve-franchisee-performance-at-onigilly

Extraordinary Brands

NEIGHBORHOOD barre Expands Through Franchising Nationwide With a Model Built for Local Communities

neighborhood-barre-franchise-opportunity

Keke's Breakfast Cafe

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

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

Comfort Keepers

What Care Services Do Comfort Keepers® Franchisees Provide? A Look at Personalized In-Home Care and Owner Responsibilities

comfort-keepers-franchise-personalized-care-services

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

The Top 10 Low-Cost Franchises With High ROI 

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Private Equity Fuels Jiffy Lube’s Next Chapter as Monomoy Strikes $1.3 Billion Deal

private-equity-fuels-jiffy-lubes-next-chapter-as-monomoy-strikes-13-billion-deal

McDonald’s and Burger King Take the QSR Burger Wars to Social Media

mcdonalds-and-burger-king-take-the-qsr-burger-wars-to-social-media

Yum! Brands Pizza Hut Sale - 1851 Franchise

Possible Pizza Hut Sale Signals Shift in Yum! Brands’ Franchise Strategy

yum-brands-pizza-hut-sale

Restaurants Stand Out in 2025 Hiring as Consumers Look for Simple Treats

restaurants-stand-out-in-2025-hiring-as-consumers-look-for-simple-treats

Photo of SONIC franchise logo against blue sky backdrop

KBP Brands Acquires 78 SONIC Locations Across Five States

kbp-brands-sonic-acquisition

Ellianos Coffee Franchise Costs, Fees, Profit and Data for 2025

Franchise Opportunity Deep Dive: A drive-thru specialty coffee franchise focused on speed, quality and Southern hospitality.

ellianos-coffee-franchise-costs-fees-profit-and-data

Franchise Opportunity Deep Dive: A fast-casual restaurant brand serving made-from-scratch sandwiches, salads, soups and pizzas rooted in Southern hospitality.


Newk’s Eatery Franchise Costs, Fees, Profit and Data for 2026

newks-eatery-franchise-costs-fees-profit

Window Genie Franchise - Deep Dive 2025 - 1851 Franchise

Franchise Opportunity Deep Dive: Window Genie is an owner-led, multi-service exterior cleaning brand with recurring demand and Neighborly backing that simplifies operations and supports growth.

Window Genie Franchise Costs, Fees, Profit and Data for 2025

window-genie-franchise-deep-dive

No-H2O Franchise Deep Dive - Costs, Fees, Profit and Data - 1851 Franchise

Franchise Opportunity Deep Dive: No-H2O is a waterless, app-driven car-care model with mobile, pop-up or static formats, low infrastructure, quick ramp-up, matched marketing and systemwide accounts.

No-H2O Franchise Costs, Fees, Profit and Data for 2025

no-h2o-franchise-deep-dive

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.

How much can franchisees make? This guide explains what drives franchise earnings and how to manage costs, with expert tips from multi-unit owner Mangesh Patel on maximizing your franchise income.

How Much Can Franchisees Make? A Guide for Prospective Franchise Owners

how-much-can-franchisees-make-a-guide-expert-tips

<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.

Hardee's Franchise - ARC Burger Lawsuit - 1851 Franchise

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.

Hardee’s Lawsuit Targets Franchisee as 77 Restaurants Prepare to Shut Down

hardees-franchise-closures-arc-burger-lawsuit

As the health and wellness business in America continues to fill out, the fitness industry is growing alongside it. The industry now generates&nbsp;<a href="https://www.ibisworld.com/united-states/industry/gym-fitness-franchises/5599/">over $7 billion</a> in annual revenue, with a revenue increase of nearly 3% in 2023 alone.Rebounding since COVID, both big box and boutique franchises have shown&nbsp;<a href="https://athletechnews.com/fitness-franchising-by-the-numbers-10-key-stats/">membership growth</a>, with premium establishments up 21% compared to a whopping enrollment bump of almost 70% on the budget gym side.&nbsp;&nbsp;<h3>The Pros And Cons Of Big Box Gyms</h3>When it comes to choosing the right fitness franchise, there are pros and cons to each.Big box gyms are able to cast a wider net, attracting a clientele ranging anywhere from newbie to seasoned veteran, with a lower cost of entry potentially attracting even the marginally curious to the idea of a well-established, properly marketed brand.&nbsp;Big box and other low-cost fitness franchises are also able to capitalize on services like personal training and retail amenities, increasing revenue.Driven by recurring membership fees, big box gyms generally cost less. However, the wider net cast in terms of building a clientele, tends to require more equipment in a bigger space, increasing costs like rent. And with a wider array of workout machines to both service and maintain, additional costs tend to follow.<h3>The Pros And Cons Of Boutique Fitness Concepts</h3>On the boutique side, franchises are typically able to offer a more personalized fitness experience, catering to niche markets with an eye on community, quality and loyalty. However, a more hands on approach to management and day-to-day operations may also be necessary to deliver the more customized, immersive experience often demanded of the more boutique environment.As a result, boutique fitness concepts are typically able to capitalize on a more premium pricing model driven by the idea of exclusivity.But, while less equipment in a smaller space can help rein in expenses, it can also be difficult to build the more specific clientele required by the boutique experience, rendering selection of proper location crucial.<h3>Finding The Right Fit</h3>As potential franchisees assess the available opportunities in the fitness franchise realm, it’s important to ponder a number of factors which can impact the bottom line.In terms of budgeting, a full understanding of both initial investment and ongoing operational costs is crucial.&nbsp;Getting to know the customer and surrounding area can help franchisees assess just how much the consumer is looking to pay for a gym membership, helping clarify the big box versus boutique decision when it comes to the question of how to buy a franchise.There’s also market saturation, with big box gyms in particular becoming an increasingly crowded marketplace.On the management side, it’s important for franchisees to seize upon a specific approach, whether it’s applying a more hands on style to the level of personal interaction required on the boutique side or focusing on the moving parts in play in the larger, more complex big box environment.&nbsp;When it comes to buying a fitness franchise, an understanding of the consumer, proper assessment of the marketplace and specific approach to management can go a long way towards avoiding potential risk, helping franchisees find success as they ponder entrepreneurship via fitness franchises.For more info on fitness franchises, check out these related stories on 1851 Franchise:<ul><li><a href="https://1851franchise.com/fitness-franchises-2025-trends-opportunities-2729600">The Rise of Fitness Franchises in 2025: Trends, Opportunities and What to Expect</a></li><li><a href="https://1851franchise.com/top-health-and-wellness-franchises-2729821">Top 15 Health and Wellness Franchises Opportunities for 2025</a></li><li><a href="https://1851franchise.com/fitness-wellness-franchise-guide-2729443">How To Choose the Right Fitness or Wellness Franchise for You</a></li></ul>

Buying a fitness franchise, people exercising

As the fitness industry continues to grow fast, the decision for potential franchisees lies in whether to invest in big box or boutique gym franchise opportunities.

Move Over Gen Y—Gen Z is Here

MORE STORIES LIKE THIS