Sunny Street Café Franchise Information

Stasko spoke with 1851 Franchise to share more about the history of this better breakfast franchise, the challenges it has overcome in recent years and its plans for the future. 

1851 Franchise: How did Sunny Street Café get to where it is today?

Mike Stasko Jr., President of Sunny Street Café: We were founded in 2007, originally born from a restaurant concept called Peaches in Florida. My father, who has over 30 years of experience in the restaurant equipment business, encouraged the family to enter the restaurant industry. The challenge, however, is significant with long hours and late nights, which can really impact your lifestyle. When he discovered the opportunity with Peaches, he persuaded me and my family to get involved. Initially, we only operated in Ohio but soon realized we had something special. We acquired the concept, rebranded it to Sunny Street Café early on, and took off from there.

It's been an exciting journey, and I anticipate more thrilling developments ahead. This is particularly appealing for someone aspiring to be an entrepreneur or who is passionate about the restaurant industry. We recognized early that our culture centers on family, a specific lifestyle and opportunities to enjoy life outside of work. The breakfast and lunch hours, running from 6:30 AM to 2:30 PM, create a perfect scenario where even on challenging days, work ends by 3 PM. This schedule allows for a life beyond work, benefiting everyone from management to hourly workers. 

This advantage is evident in several positive aspects, such as employee retention. For instance, our employees can attend evening classes, manage a second job or pick up their children after work. Our turnover rate is lower compared to the industry standard because our employees enjoy a lifestyle that offers them time outside the conventional late-night hours. We're proud to have team members who have been with us for over 15 years, which says a lot about our culture.

1851 Franchise: In particular, how have the past few years been for the brand?

Stasko: The COVID period presented significant challenges for all restaurants, which pushed operators and franchisors to improve. If adjustments weren't made, survival was unlikely. We emerged from COVID as better operators — our menu was streamlined and we refocused on our strengths. As a result, we've experienced two consecutive years of double-digit sales growth, proving our business model is both successful and replicable. 

We have spent the past few years enhancing our advertising efforts, which we hadn't emphasized previously. Specifically, we were known for our pancakes, a highly profitable category. Although popular among customers, we hadn't highlighted them adequately. Next month, we plan to revamp our menu to feature pancakes prominently, introducing some exceptional and exciting new items.

1851 Franchise: What do you perceive as the difference between the steady growth you’re seeing now and the potential for explosive growth?

Stasko: Our growth strategy has been intentional. We own 10 out of the 22 operating restaurants, so our decisions benefit both the system and our individual locations. 

We're very hands-on with decisions about build-outs, remodels, new menus and equipment because we understand the direct impact these decisions have at the store level. Our franchisees, who have been with us for a long time, are quick to provide feedback, and they have a direct line to us. This two-way communication ensures that the decisions we make affect us just as much as them. We're not simply imposing costly ideas from the top down without bearing any of the costs ourselves. This approach prevents the kind of disconnect that can occur in other franchise systems and helps maintain a healthy relationship between franchisor and franchisee.

1851 Franchise: Would you say listening is a big part of that strategy?

Stasko: Definitely. People primarily want to be heard. As we start conversations with those interested in our concept, the entrepreneurial spirit shines through — having input on the brand’s direction is crucial. Unlike some businesses where the process is rigid, our approach as a family-owned company is to actively involve our franchisees. Their feedback on everything from menu items to design has been invaluable. This level of engagement is unique and I believe it’s a strong selling point.

1851 Franchise: What's your dream now for where this brand goes in the future?

Stasko: Looking ahead, we see this as just the beginning. With controlled growth, particularly in an underserved segment, our goal is to expand thoughtfully with the right partners who reflect our cultural values and engagement in the franchise system. This growth will be both through franchising and company-operated locations. 

1851 Franchise: On the reverse side: What about fear? What's your fear with the business?

Stasko: Addressing challenges is always part of the equation. Recently, food costs and labor were major concerns due to external market factors, but we've adapted well. Managing labor effectively, especially in the current climate, is crucial. We focus on operational efficiencies and retaining staff to ensure service quality while managing costs, which have remained low. Our operational model benefits from a one-shift staffing system, for example, which is pretty atypical. 

Our menu, designed for execution at the hourly level without the need for head chefs, also balances simplicity with “wow” items. This approach ensures both quality and ease of replication across locations. In general, our adaptability helps us manage without constant fear.

1851 Franchise: How about innovation? Are there any possibilities of a mobile Sunny Street Café trailer truck or anything like that?

Stasko: Yes, we’ve played around with ideas like the trailer truck concept. It's part of exploring diverse avenues for expansion and bringing our unique offerings to a broader audience. 

Another successful initiative has been our catering service. Despite the cost of maintaining a location 24/7, catering has become a valuable third revenue stream. We've utilized our existing menu to facilitate catering without significant additional costs, mainly just some extra paper goods. We've designed the service to be simple to implement, leveraging our existing operations and menu. 

Interestingly, breakfast catering — including hot breakfasts and boxed lunches — really gained popularity post-pandemic due to health safety concerns. This has significantly boosted our business, reflecting a strong market demand and proving to be a great asset.

1851 Franchise: Overall, what do you want prospective franchisees to know about Sunny Street Café? Why is this an exciting franchise right now?

Stasko: For anyone on the fence about franchising, especially those new to the restaurant industry or looking to expand their portfolio, our brand offers a compelling opportunity. Our most successful franchisees often had no prior restaurant experience. They simply had a strong entrepreneurial drive. We’ve simplified our operations to support those new franchisees who are unfamiliar with the industry. If you’re looking to join a business that values personal connection and has a track record of building wealth for families, Sunny Street could be the right choice.

To find out more information on costs to buy this franchise, please visit ownasunnystreet.com.