Penn Station’s Item 19 Showcases Its System’s Strength Without Having To Rely on Third Party Delivery Systems
When prospective franchisees begin the discovery process, they inquire most about investment and return. To provide insight into the potential return rate of a Penn Station franchise and help give prospective franchise partners as much information as possible on the front end, Penn Station has opted for full transparency in its Franchise Disclosure Document, or FDD.
“The numbers speak for themselves. Our Item 19 is one of the purest out there. We let the potential franchisee make an informed decision by letting them take a look under the hood before joining,” said Greg Goddard, Director of Development and Franchising for Penn Station.
Penn Station has long been known for its franchise profitability and return-on-investment; the brand was recognized among Forbes’ Best Franchises to Buy in 2016 and QSR Magazine’s Best Franchise Deals in both 2016 and 2017.
While industry competitors are focused on third-party delivery systems, Penn Station aims to continue its growth without the hindrance of what many in the industry term ‘tablet hell,’ or the onslaught of a different device for each delivery carrier. Goddard noted that Penn Station’s Item 19 is particularly strong due to the fact the brand does not rely on discounts or utilize third-party delivery partners. Unlike competitors, Penn Station’s franchise investment return is based on in-store sales, which is incredibly impressive in the age of GrubHub and DoorDash.
“Other brands have Item 19 numbers that reflect their foray into delivery systems,” Goddard said. “For Penn Station, our numbers are strong because our franchisees have worked hard to earn that revenue.” The average net sales were $641,474 for all locations operating in 2018.
To maintain steady recurring revenue, Penn Station also keeps its food costs in check, leveraging streamlined unit-level economics to support franchisee profitability.
“We aren’t a discount company,” he said. “Our products are high-quality and our Item 19 reflects that consumers are willing to pay for that quality. For example, our fresh-cut fries don’t have preservatives, so they are best enjoyed at the time of order. A third-party delivery system would only lead to us serving soggy fries. We aren’t a company who cuts corners and that’s reflected in our return on investment.”
This focus on franchisee profitability is also evident in the brand’s continued menu innovation. Penn Station is currently testing a new ‘tweaked’ menu which features six cold sandwich options at a well-established location in Ohio.
Goddard said, “Although most of our guests come to us because of our hot, grilled sandwiches—something that helps us stand out in the sandwich industry—we’re also seeing if franchisees will benefit from the introduction of cold sandwiches to their markets.”
By continuing their “no rebates” rule, placing better policies and procedures internally in the company and focusing efforts on ensuring profitable franchisees, Penn Station is proud of its strong, steady Item 19, encouraging potential franchisees to see its successful investment return rate and be inspired to join the team.
The initial start-up investment for a Penn Station franchise is $290,984 to $594,478 with a franchise fee of $25,000. To learn more about available opportunities with Penn Station, visit https://www.penn-station.com/franchise/.