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<a href="http://www.penn-station.com/franchise/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=penn-station-seeks-multi-unit-franchise-operators-in-key-markets-2706333" target="_blank" rel="nofollow" target="_blank">Penn Station East Coast Subs</a> franchisees currently operate more than 300 units across 15 states. Many of those locations are owned by multi-unit operators who have built small empires with the brand, and there are still a number of established markets that have room for major multi-unit development.

Pittsburgh, Richmond, Kansas City and Nashville are markets where <a href="https://pennstation.1851franchise.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=penn-station-seeks-multi-unit-franchise-operators-in-key-markets-2706333" target="_blank" rel="nofollow" target="_blank">Penn Station</a> benefits from an existing presence and at the same time, offers the brand and potential franchisees substantial room for growth. That&rsquo;s a rare combination in the franchise world, and according to Penn Station Director of Development and Franchising Greg Goddard, it&rsquo;s a potentially lucrative opportunity for new owners.

&ldquo;These are areas that are concentrically located outside of our most established markets, which provides a number of benefits for owners,&rdquo; Goddard said.

Most of those benefits are logistical, such as access to our distribution network, existing vendors, suppliers and operational support, but neighboring Penn Station territories also provide brand awareness, a valuable feature for any developing market.

&ldquo;There is an existing and underserved customer base in these markets,&rdquo; Goddard said. &ldquo;That&rsquo;s a big opportunity for someone who wants to come in and build and grow restaurants in an underdeveloped market.&rdquo;

A new Penn Station franchisee who enters into an open market and gradually and methodically builds a significant number of stores wouldn&rsquo;t be the first. Franchisees in Dayton, Indianapolis, Louisville, and Lexington operate nearly 70 restaurants between four of them, each staking claim to the lion&rsquo;s share.

Don Robinson, an 18-unit Penn Station owner in Louisville, says scaling up his operation in batches of four to five units at a time has allowed him to significantly increase his return on investment.

&ldquo;In our concept, ROI is strongest when you add units in bundles,&rdquo; Robinson said. &ldquo;You can take advantage of the fixed overhead cost and see a high return on your initial investment at around four to five units, then you see a similar jump at eight to ten, ten to 15, and then 16 to 18, etc.&rdquo;

That kind of growth is made possible by a streamlined operational model that allows owners to open and manage new restaurants without spending unnecessary time and money on training and infrastructure.

&ldquo;Penn Station&rsquo;s operational model encourages multi-unit growth with its simplicity,&rdquo; Robinson said. &ldquo;We have a simple menu: 14 sandwiches, fresh-cut fries, chocolate chunk cookies and hand-squeezed lemonade. That allows us to have a small kitchen and a slimmer crew than most concepts in the fast-casual industry. That leads to less management and a more lucrative bottom line, allowing us to scale up quickly and effectively.&rdquo;

In addition to the financial upside, owning multiple restaurants in a market also provides greater operational freedom. By staking a greater share of stores within a market and by creating brand awareness, Penn Station owners avoid the need for a marketing co-op, a group of marketing franchisees who pool their local marketing dollars and vote on how the money should be spent. Co-ops are useful tools for smaller franchisees, providing more marketing options for a lower cost, but they can be restrictive for owners who want to be the key decision-makers of their local marketing.

&ldquo;The ability to scale big in a market, which Don and some of our other owners have, is the ultimate goal,&rdquo; Goddard said. &ldquo;They don&rsquo;t have a formal co-op per se, so they get to make all of the decisions regarding how their marketing dollars are spent, and because they&rsquo;ve signed multi-unit letters they don&rsquo;t have competition for growth in their territory.&rdquo;

According to Goddard, the Pittsburgh, Richmond, Kansas City and Nashville markets are well positioned for the right franchisees to emulate the success of Penn Station&rsquo;s largest multi-unit owners in Louisville, Lexington, Dayton, and Indianapolis.

&ldquo;The most experienced and sophisticated multi-unit operators are looking for an ability to scale, and that&rsquo;s what these markets provide,&rdquo; Goddard said.

Penn Station Seeks Multi-Unit Franchise Operators in Key Markets

1851 Franchise

The grilled-sub franchise brand has opportunities for large-scale growth in Pittsburgh, Richmond, Kansas City, and Nashville

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