Growth Club
1851 Growth Club
The List Issue: Full-Service Restaurant Franchises to Watch
15 of the most exciting brands in the full-service segment
In the franchising world, the quick-service-restaurant segment tends to dominate popular consciousness. Many of the biggest names in the QSR segment—McDonald’s, Taco Bell, Starbucks—have become all but synonymous with franchising. But as consumer tastes trend away from “fast food” and toward more health-conscious options, the full-service restaurant segment is poised to significantly increase its market-share.
As consumers become more aware of what and how they are eating, they are beginning to place more value on the experience of eating a full meal with their families rather than grabbing a quick bite on the go. Now, restaurants in the full-service segment are gearing up to take advantage of this sea change in consumer preferences.
1851 took a close look at the full-service segment to find 15 of our favorite franchises positioned for success in 2018. The brands on this list include little-known regional gems as well as household names, with investment fees ranging from under $100,000 to over $1million.
In 1986, just six years after the first Applebee’s restaurant opened in Decatur, Georgia, the fledgling franchise changed the full name of their brand to Applebee's Neighborhood Grill & Bar, signaling their mission to make all of their restaurants neighborhood fixtures. Since then, Applebee’s marketing campaigns have been punctuated by community-centric slogans such as “Together is good,” “It’s a whole new neighborhood,” and “See you tomorrow.” Now, a sprawling network of franchisees operates over 2,000 Applebee’s restaurants throughout the U.S., virtually fulfilling the franchise’s goal of becoming a neighborhood hub for the entire country.
Number of locations: more than 2,000
Startup costs: $1,700,000 to $3,100,000
Arooga’s Grille House & Sports Bar
Founded in 2008, Arooga’s is one of the youngest brands on this list, but the emerging franchise is quickly making a name for itself. The casual, American-food bar-and-grill concept has taken the East Coast by storm, opening 16 locations in just its first two years of franchising. Arooga’s is now looking to expand throughout the rest of the country, and with over 100 development deals for new restaurants in the works, Arooga’s could quickly become a household name across the U.S.
Number of locations: 16
Startup costs: $1,313,400 to $3,996,900
Bennigan’s has been on a dramatic upswing over the past few years. After filing for bankruptcy and closing all 150 corporate locations in 2008, the brand restructured in 2010 and set out on a path for resurgence, hiring new CEO Paul Mangiamele in 2011. Mangiamele’s operational changes included the implementation of a new revenue stream through catering and a renewed marketing emphasis on the brand’s Irish roots. Those efforts have reinvigorated the franchise, which has crept back up to more than 20 locations in the 11 U.S. states and more than 10 in seven other countries. The Bennigan’s corporate team plans to continue that measured development strategy throughout 2018, expanding their footprint in new markets and reclaiming their former glory as one of the most sought-after full-service franchises in the industry.
Number of locations: 33
Startup costs: $1,400,000 to $2,600,000
Buffalo Wings & Rings didn’t invent the wings-and-sports-bar concept, but they may have perfected it. The Cincinnati-based franchise has seen consistent growth year over year, opening dozens of new units in new markets across the globe each year and bringing in millions of dollars in system-wide sales.
Number of locations: more than 65
Startup costs: $1,292,500 to $2,407,000
Since 2005, when Famous Toastery opened their first location in Huntersville, North Carolina, the breakfast restaurant has been adamant about serving only high-quality, fresh-made breakfasts in a casual, family-oriented atmosphere. That combo struck a chord with customers in 2005, and Famous Toastery soon expanded to three restaurants, eventually turning to franchising in 2013. Now Famous Toastery has 13 locations throughout the East Coast, and they are still expanding.
Number of locations: 13
Startup costs: $601,500 to $1,044,000
Golden Corral has long been one of the most reliable full-service brands in franchising. The country’s largest buffet chain, Golden Corral regularly brings in well over $1 billion in system-wide sales for the year. And the chain is still growing, taking advantage of the collapse of other buffet brands to open new units in existing buildings, expanding their system with reduced development costs.
Number of locations: 481
Startup costs: $1,961,000 to $5,539,000
Though Ground Round Grill & Bar may not be one of the more universally recognized brand names on our list, it has an impressive franchise pedigree. Ground Round was founded in 1969 by hotel franchise juggernaut Howard Johnson’s. The family-oriented casual dining chain is now entirely franchisee-owned, with 25 units operated in large part by the franchisee group Ground Round Independent Owners Cooperative, LLC.
Number of locations: 25
Startup costs: $1,140,000 to $2,205,000
Inspired by the upscale supper clubs of the 1940s and ‘50s, Johnny’s Italian Steakhouse has meticulously refined every detail of their design, menu, and service to achieve a classic steakhouse experience. The result is an explicitly more elegant concept than other full-service restaurants on this list.
Number of locations: 11
Startup costs: $1,255,000 to $4,000,000
Last year, Johnny Rockets began rolling out an aesthetic redesign that recast the brand’s nostalgic 1950s American iconography into a sleek, modern design. The new design is a savvy pivot aimed at capturing a new demographic while retaining customers who feel a personal connection to the decades-old restaurant chain. Of course, the new design will take some time to reach all of Johnny Rockets restaurants, of which there are more than 200 spread across 32 countries.
Number of locations: 220
Startup costs: $553,500 to $1,069,000
Old Chicago Pizza & Taproom saw its record high in system-wide revenue in 2016, pulling in an 11 percent increase from 2015. The pizza-and-craft-beer brand capitalized on that growth in 2017, opening dozens of restaurants in new markets, including Arkansas, Missouri, Montana, Oklahoma, Michigan, South Carolina, Texas, and Wyoming.
Number of locations: more than 100
Startup costs: $1,419,000 to $2,177,000
In 2012, rock royalty Gene Simmons and Paul Stanley teamed with restaurants Michael Zislis and his business partners Dave Furano and Dell Furano to open Rock & Brews, a family-oriented rock-and-roll-themed restaurant chain. Three years later, Nation’s Restaurant News named Rock & Brews one of their Break Out Brands of The Year, and in 2017, the franchise began to stretch its legs, signing multi-unit contracts for new locations throughout the country. In Chicago alone, Rock & Brews is slated to open 10–15 restaurants within the next 5–7 years.
Number of locations: 18
Startup costs: $1,510,000 to $2,505,000
Ruby Tuesday is a titan not only in the full-service segment but in the entire franchise industry. For decades, the family-friendly American food concept has been carefully extending its reach throughout the world, opening over 700 locations in more than 13 countries. Ruby Tuesday’s growth strategy for the next decade is designed to continue attracting partners in international markets, further strengthening its brand across the globe.
Number of locations: 612
Startup costs: $1,559,650 to $3,877,400
In its existing markets, Ruby’s Diner boasts one of the strongest brands in franchising. For over 30 years, the retro-diner concept has cultivated a stellar reputation and enviable brand loyalty, and Ruby’s is now focusing their development efforts on pushing out into the untouched markets surrounding their existing locations, presenting a big opportunity for prospective franchisees to join a beloved brand as it begins to reach new customers.
Number of locations: 35
Startup costs: $737,500 to $1,922,000
In the year since Sobelmans Pub & Grill began franchising, the burger-and-blood-mary concept has become a Wisconsin hallmark, offering a fine-tuned version of the type of indulgent, unpretentious American fare that the state is famous for. Now Sobelmans is preparing to cement their growing reputation as a Wisconsin mainstay by moving into every market throughout the state.
Number of locations: 3
Startup costs: $276,500 to $849,000
TGI Fridays has long held a prominent role in pop culture as the pinnacle of a certain type of casual dining chain, one defined largely by tchotchkes and flair. But in recent years, TGI Fridays has embarked on an ambitious pivot designed to appeal to younger generations. The brand is rolling out a new restaurant design that ditches the road signs and movie memorabilia in favor of a cleaner, brighter, and all around more contemporary aesthetic. Some new locations are also being designed and marketed as community hubs, complete with Wi-Fi for work-from-home crowds and stages for live concerts and open-mics.
Number of locations: 992
Startup costs: $2,000,000 to $6,000,000
*This brand is a paid partner of 1851 Franchise. For more information on paid partnerships please click here.
