Togo’s Franchisee Increases Productivity and Sales Through Store Renovations

In March of 2019, West Coast-inspired big-and-meaty sandwich franchise Togo’s revealed their plans for the store of the future, Togo’s 3.0. Upon hearing about the new updates that were available, multi-unit owner Givo Ishaya knew he wanted to invest in the renovations for one of his three California locations.

When COVID-19 hit the Golden State, Ishaya decided to move forward with the updates while business was slow. Though many restaurants have faltered in the challenging economy, Ishaya’s Togo’s location has seen an increase in revenue — a trend that he anticipates will continue throughout the remainder of the year.

“Everything has changed, “ said Ishaya. “It’s a brand new store. It has brand new floors, walls, ceilings and equipment. We created an office from scratch and changed bathrooms, seating and lighting. Most importantly, we added a new assembly-line set up where the customers can see their sandwiches prepared. It is a much more modern look, and our customers are really responding to the renovations. The new set up makes everything so much more efficient.”

When Togo’s initiated its 3.0 remodel, their intention was to increase speed of service for dine-in, takeout and delivery convenience. According to Ishaya, the renovations to his store have accomplished that and more in the few short months that it has been reopened. Since the updates were completed, Ishaya says the efficiency of the store has increased immensely. The new assembly line system has increased accuracy of orders and diminished occurrences of food waste. Not to mention, sales have increased about seven to ten percent since last year.

“Choosing to renovate the store was really a no-brainer,” said Ishaya. “Food costs last year made up about 42 percent of our budget; since the remodel, food cost is at about 30 to 31 percent. That 12 percent rounds out to about $120,000 that we didn’t have last year. The store will essentially pay for itself over the next three years. At the end of the day, remodeling the store was just a logical move.”

While Togo’s couldn’t have foreseen the coronavirus pandemic, the new model certainly helped customers feel safe ordering from Togo’s. Ishaya said the new assembly line system not only helps maintain the accuracy of the sandwich order, but it allows customers to see how their food is made. More specifically, customers can see sandwich makers wearing gloves and masks in a safe, clean environment. The glass shield between customers and employees also protects everyone involved from any potential concerns of spreading the virus.

“When you go to other fast food establishments you don't know how your food is being made in the back,” said Ishaya. “If they dropped something, you can’t see it. If they’re not changing gloves, you have no idea. With our model, everything happens right in front of you. Safety and health have always been a big concern for us, but these new measures demonstrate a clean and forward-thinking environment that customers can really get behind.”

Ishaya isn’t the only franchisee happy with the results of Togo’s 3.0 renovations. Before adapting his location to the new model in mid-2019, longtime franchisee Dan Pearson was thinking about selling his San Jose store and retiring in the next two years. However, Pearson was so thrilled with the success of the new model that he put his retirement plans on hold.

“My San Jose store has been remodeled over the years, but nothing like what we’ve done now,” Pearson said. “There’s been a huge change in the operating system and a huge upgrade that will launch this brand forward. I want to be part of that.”

John Dyer, Togo’s director of franchise sales and real estate, said the corporate team couldn’t be happier with the response they’ve received from franchisees following the remodel’s launch a year ago. The rebranding initiatives have also yielded both customer satisfaction and strong sales growth across the board. In response to COVID-19, the brand has developed further off-premise services, social distancing protocols, floor markers, safety measures and updated layouts. The brand has also provided shields, masks, gloves and other PPE to each restaurant, and has ensured their franchisees are updated on CDC guidelines in each area of the country.

“Togo’s 3.0 was always meant to differentiate our sandwich shops from the rest, but we had no idea how necessary these changes would be at the time,” said Dyer. “We have always been driven by the customer experience and the model has proven to be more successful than we could have imagined. Our franchisees and their employees come first, and with this new model we can ensure their safety and the safety of our customers while putting a smile on the faces of our fans.”

As far as his business goes, Ishaya is excited to see where he can take all three of his units next. Though he wants to see if COVID-19 will continue to change things, he is already considering bringing the Togo’s 3.0 model to another one of his locations.

“The fact is, we’re trying to attract a new generation of customers,” said Ishaya. “We’ve had a strong customer base for the past 20 years, but the new renovations bring us into the future of fast-casual restaurants. We’ve been receiving really positive feedback from the newbies we’ve acquired since finishing the remodel, and I can’t wait to see that kind of response when we’re able to expand the changes to our other locations.”

The current initial investment for Togo’s franchise ranges from $268,000 to $501,500, which includes a $15,000 to $30,000 franchise fee. For more information, visit https://www.togos.com/franchising.