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While restaurant sales, in general, have been steadily improving since the early days of the pandemic, <a href="https://www.npd.com/wps/portal/npd/us/news/press-releases/2021/with-hope-for-recovery-in-2021-the-us-restaurant-industry-ends-2020-making-its-way-out-of-the-steep-declines-caused-by-pandemic/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=why-full-service-restaurant-franchises-are-starting-to-look-more-like-qsrs-2714686" target="_blank" rel="nofollow">newly released data from The NPD Group</a> provides some interesting insight into how full-service and QSR chains have been weathering the crisis differently. In April, casual dining chains saw a whopping 70% decline in sales, while QSR concepts only saw a 35% decline. Last month, the full-service category experienced transaction declines of 30%, while the QSR industry saw a decline of 8%.&nbsp;Over the past few months, traditionally dine-in focused restaurant chains have taken a page out of the quick-service handbook in an attempt to cut losses.&nbsp;<h4>The Big Difference Between QSR and Casual</h4>The primary factor for this steady discrepancy between casual dining and QSR is off-premise services. This is an offering that has been a staple of the QSR segment for decades but has become an invaluable lifeline amid <a href="https://1851franchise.com/national-restaurant-association-survey-finds-17-of-all-us-restaurants-closed-in-economic-free-fall-2714475">dining room closures</a> and <a href="https://www.bloombergquint.com/business/covid-superspreader-risk-is-linked-to-restaurants-gyms-hotels?utm_source=1851franchise.com&utm_medium=article&utm_campaign=why-full-service-restaurant-franchises-are-starting-to-look-more-like-qsrs-2714686" target="_blank" rel="nofollow">consumer anxiety about eating in restaurants</a>. McDonald's U.S. comparable sales <a href="https://corporate.mcdonalds.com/content/dam/gwscorp/assets/investors/Q3-20_Earnings_Release_99.1.pdf?utm_source=1851franchise.com&utm_medium=article&utm_campaign=why-full-service-restaurant-franchises-are-starting-to-look-more-like-qsrs-2714686" target="_blank" rel="nofollow">were up 4.6%</a> during Q3 2020, for example, marking its highest monthly comps in nearly a decade, McDonald's CFO Kevin Ozan said <a href="https://seekingalpha.com/article/4387002-mcdonalds-corporation-mcd-q3-2020-results-earnings-call-transcript?utm_source=1851franchise.com&utm_medium=article&utm_campaign=why-full-service-restaurant-franchises-are-starting-to-look-more-like-qsrs-2714686" target="_blank" rel="nofollow">during the company's October earnings call</a>.Whether it be <a href="https://1851franchise.com/driving-the-competition-fast-casual-chain-eateries-are-implementing-drive-thrus-to-compete-with-fast-food-giants-2709766">introducing drive-thru lanes</a>, <a href="https://1851franchise.com/wingzone/wing-zone-is-thriving-by-providing-contactless-free-delivery-curbside-pickup-and-247-franchisee-support-2712739">implementing curbside pick-up</a> or <a href="https://1851franchise.com/panera-bread-finally-joins-the-third-party-delivery-party-2710862">partnering with third-party delivery providers for the first time</a>, full-service restaurant chains are now realizing that they need new systems if they hope to achieve the same results as their QSR peers.For example, IHOP is one full-service chain that has pivoted successfully during the pandemic. The chain implemented a brand new curbside pick-up offering within weeks of the pandemic, and has seen a major boost in sales. In Q3 of 2020, off-premise comp sales at IHOP were up by 154%, <a href="https://www.forbes.com/sites/aliciakelso/2020/11/02/ihop-is-rethinking-its-real-estate-format-to-get-back-to-growth/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=why-full-service-restaurant-franchises-are-starting-to-look-more-like-qsrs-2714686" target="_blank" rel="nofollow">according to Forbes</a>. The off-premise mix is "a little over 30%, split nearly evenly between delivery (16%) and takeout (18%), with more than 20% of all orders placed digitally," the article states.Now, to build off of this momentum, IHOP is even considering a brand new real estate strategy. “We are looking at prototypes to think how we handle to-go orders more efficiently. What are better, easier ways to pick up food? Does that include a pickup window?” <a href="https://www.forbes.com/sites/aliciakelso/2020/11/02/ihop-is-rethinking-its-real-estate-format-to-get-back-to-growth/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=why-full-service-restaurant-franchises-are-starting-to-look-more-like-qsrs-2714686" target="_blank" rel="nofollow">IHOP President Jay Johns told Forbes</a>. “We’re thinking through a lot of ideas right now and the footprint itself, asking if we need as much space, or if we dedicate more for to-go, less for tables. If we look at real estate that automatically has a patio. We were already thinking about to-go differently, but now we’re thinking about it more and ideating the most optimal ways to pick up food.”&nbsp;<h4>A Long Time Coming</h4>Although COVID-19 has undoubtedly sped-up the process, the full-service category was already looking to shift towards off-premise to <a href="https://foodinstitute.com/focus/full-service-restaurants-struggle-amid-success?utm_source=1851franchise.com&utm_medium=article&utm_campaign=why-full-service-restaurant-franchises-are-starting-to-look-more-like-qsrs-2714686" target="_blank" rel="nofollow">combat mediocre same-store sales</a>. Last year, <a href="https://1851franchise.com/flipd-by-ihop-why-fast-casual-spinoff-concepts-are-the-latest-trend-for-full-service-dining-brands-2711823#stories">IHOP announced the roll out of Flip’d</a>, a fast casual concept that was designed to target the <a href="https://1851franchise.com/pizza-hut-to-test-cubbie-system-pick-up-location-in-los-angeles-2710559">to-go and delivery crowd</a> with <a href="https://1851franchise.com/self-service-kiosk-market-to-reach-over-30-billion-2710538">guests ordering from a digital kiosk or online</a>. In February of 2019, The Cheesecake Factory opened an Asian-themed fast casual concept called <a href="https://www.nrn.com/casual-dining/cheesecake-factorys-fast-casual-spinoff-set-open?utm_source=1851franchise.com&utm_medium=article&utm_campaign=why-full-service-restaurant-franchises-are-starting-to-look-more-like-qsrs-2714686" target="_blank" rel="nofollow">Social Monk Asian Kitchen</a>. That same month, Hooters announced<a href="https://www.chicagobusiness.com/restaurants/hooters-minus-short-shorts-expanding-here?utm_source=1851franchise.com&utm_medium=article&utm_campaign=why-full-service-restaurant-franchises-are-starting-to-look-more-like-qsrs-2714686" target="_blank" rel="nofollow"> its fast casual concept Hoots</a>.&nbsp;Now, these concepts may be better positioned than ever to compete against fast food giants, especially since <a href="https://www.restaurantdive.com/news/Casual-restaurant-curbside-pickup-faster-than-fast-food/586880/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=why-full-service-restaurant-franchises-are-starting-to-look-more-like-qsrs-2714686" target="_blank" rel="nofollow">a recent report from Rakuten Ready found that casual dining had faster curbside pickup service than the QSR segment</a>. While this may be surprising at first glance, it actually makes a lot of sense. Full-service restaurant brands benefit from large real estate footprints that can hold more parking spots, which is one of the biggest operational hurdles for curbside pick-up.Of course, these off-premise channels come at a price, especially if they are integrated with advanced POS technology or <a href="https://1851franchise.com/warning-restaurant-owners-third-party-delivery-services-are-taking-over-2710756">third-party delivery providers who charge a hefty commission fee</a>. Still, franchisors may not have much of a choice, as these investments can help curb future closures and can yield a strong ROI if consumers remain dedicated to these channels after the pandemic ends. Digital sales, for example, are <a href="https://www.incisiv.com/report-limited-service-restaurant-digital-maturity-benchmark-2020?utm_campaign=Restaurant+Benchmark+2020&amp%3Butm_source=Ketner+Group&amp%3Butm_medium=Press+release&amp%3Butm_content=Ketner+group+promo&utm_source=1851franchise.com&utm_medium=article&utm_campaign=why-full-service-restaurant-franchises-are-starting-to-look-more-like-qsrs-2714686" target="_blank" rel="nofollow">now expected to make up more than half of limited-service restaurants’ business by 2025</a>, a 70% increase over pre-pandemic estimates.<h4>How the Franchisee Can Help</h4>For full-service franchisors who are looking to adopt these new revenue streams but are still nervous about the outcome, willing franchisees can be a great way to pilot new initiatives. <a href="https://www.nrn.com/casual-dining/applebee-s-testing-its-first-drive-thru-location?utm_source=1851franchise.com&utm_medium=article&utm_campaign=why-full-service-restaurant-franchises-are-starting-to-look-more-like-qsrs-2714686" target="_blank" rel="nofollow">An Applebee's franchisee is adding the brand’s first drive-thru pickup window to an existing restaurant in Texarkana, Texas, early this year</a>. The franchisee will evaluate feedback from guests and operators to potentially inform future store design. Applebee’s saw off-premise business <a href="https://www.restaurantdive.com/news/how-13-casual-chains-are-turning-sales-around/589509/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=why-full-service-restaurant-franchises-are-starting-to-look-more-like-qsrs-2714686" target="_blank" rel="nofollow">make up 20% of its sales during Q3 and off-premise YOY sales increased by 144%</a>.Many franchisees are even taking matters into their own hands. Nearly 40% of franchisees surveyed by TD Bank as part of its <a href="https://www.prnewswire.com/news-releases/off-premise-sales-and-non-traditional-payment-options-are-top-of-mind-for-restaurant-franchisees-in-covid-19-landscape-301156796.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=why-full-service-restaurant-franchises-are-starting-to-look-more-like-qsrs-2714686" target="_blank" rel="nofollow">2020 Restaurant Franchise Pulse</a> said they added drive-thru capabilities to overcome pandemic-related restrictions, while 72% rolled out enhanced delivery services or online and mobile ordering platforms.<h4>The Future is Fast Food?</h4>This all begs the question: is the traditional, sit-down-only restaurant franchise a thing of the past? With some experts claiming that <a href="https://www.restaurantbusinessonline.com/financing/full-service-restaurants-may-not-recover-until-2025-new-data-show?utm_source=1851franchise.com&utm_medium=article&utm_campaign=why-full-service-restaurant-franchises-are-starting-to-look-more-like-qsrs-2714686" target="_blank" rel="nofollow">full-service restaurants won’t fully recover until 2025</a>, it is likely that many of the casual-dining staples like IHOP and Applebee’s are going to start to look more and more like McDonald’s in an attempt to bounce back quicker.&nbsp;Hopefully, once dining rooms do reopen, full-service restaurants will still have some of those traditional dine-in systems in place to keep up with the pent-up consumer demand. Better yet, with all of these new off-premise channels in place, maybe customers won’t have to wait as long to get a table!

Why Full-Service Restaurant Franchises are Starting to Look More Like QSR’s

1851 Franchise

As full-service restaurant brands like IHOP and Applebee’s adapt to recover from the pandemic at the same pace as their QSR competitors, the distinction between the two categories may be shrinking.

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Layne's Chicken Fingers

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Layne’s Chicken Fingers Accelerates Growth in Q1 2026 With 50+ Restaurants Awarded and Expansion Across Key Markets

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The Junkluggers

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The Junkluggers Franchisees and Leadership Gathered to Build Momentum for 2026

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Lawn Squad

Why Invest in a Lawn Squad Franchise vs. Competitors?

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One Hour Heating and Air Conditioning

Women in Leadership Driving Success at One Hour Heating & Air Conditioning

Women in Leadership and Strong Team Culture Are Driving Success at One Hour Heating & Air Conditioning

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Central Creativity

How Central Creativity Is Closing the Resource Gap in STEAM Education

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Jersey Mike's Takes First Steps Towards Initial Public Offering

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Prince St. Pizza Partners With Dave’s Hot Chicken Franchisee for National Growth

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FTC Settlement Puts New Focus on Franchise Disclosure Standards - 1851 Franchise

FTC Settlement Puts New Focus on Franchise Disclosure Standards

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Applebee’s Franchisee Files for Bankruptcy as Dine Brands Moves to Acquire 53 Units - 1851 Franchise

Applebee’s Franchisee Files for Bankruptcy as Dine Brands Moves to Acquire 53 Units

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Why Skilled Trades Are Emerging as the Economy’s Most AI-Resilient Careers

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Private equity firm&nbsp;<a href="https://skylineinv.com/">Skyline Investors</a> has acquired rent-to-own franchisor&nbsp;<a href="https://buddysfranchising.com/">Buddy’s Home Furnishings</a> in a deal that signals continued investor confidence in franchise-based retail models, according to a&nbsp;<a href="https://www.retailtouchpoints.com/features/mergers-and-acquisitions/rent-to-own-franchisor-buddys-home-furnishings-purchased-by-private-equity-firm">report from Retail TouchPoints</a>. The transaction, announced Feb. 4, brings new ownership to a system of more than 220 locations across 18 states and Guam, positioning Buddy’s for its next phase of growth within the franchising sector.Financial terms of the deal were not disclosed, but the acquisition reflects a broader trend of private equity firms targeting established franchise brands with recurring revenue and strong unit-level performance. For Buddy’s, which specializes in furniture, electronics and appliances, the partnership is intended to strengthen its operational platform and expand long-term opportunities for franchisees.“This is an exciting new chapter for Buddy’s,” CEO&nbsp;<a href="https://www.linkedin.com/in/michael-bennett-cfe-a9309538/">Michael Bennett</a> said in a statement. “Skyline brings a collaborative mindset that our franchisees and customers will feel immediately. We’re not just changing ownership; we’re gaining committed partners who understand our business, value our franchise network and are ready to invest in our collective success.”Skyline structured the investment alongside&nbsp;<a href="https://www.linkedin.com/in/jeffrey-jaeger-bb48b43/">Jeffrey Jaeger</a> and&nbsp;<a href="https://www.linkedin.com/in/scott-alter-7aa99311/">Scott Alter</a>, co-founders and principals of affordable housing developer&nbsp;<a href="https://standard-communities.com/">Standard Communities</a>. Their involvement adds financial and strategic expertise aimed at supporting capital formation, balance sheet management and disciplined expansion.For franchise operators, the deal offers potential benefits in the form of increased corporate resources, enhanced systems and renewed investment in technology and infrastructure. Private equity-backed franchisors often prioritize scalability, data-driven decision-making and operational consistency, all of which can influence franchisee performance and long-term brand stability.Skyline brings prior experience in the rent-to-own space, including investments in&nbsp;<a href="https://www.gomajik.com/">Majik Rent-to-Own</a>, which may help accelerate Buddy’s development efforts and refine its franchise support model. Company leaders say the firm’s approach is centered on partnership rather than short-term returns.“Buddy’s represents exactly the type of platform opportunity we’re built to support,”&nbsp;<a href="https://www.linkedin.com/in/kevintom/">Kevin Tom</a>, founder and managing partner at Skyline Investors, said in a statement. “With Buddy’s proven brand and strong franchise network, there’s a clear runway for growth.”As private equity continues to expand its footprint in franchising, deals like this highlight the sector’s appeal to institutional investors. For Buddy’s franchisees, the acquisition marks a transition that could shape everything from marketing strategies to multi-unit development in the years ahead, reinforcing the brand’s position in the competitive rent-to-own marketplace.Read the original article&nbsp;<a href="https://www.retailtouchpoints.com/features/mergers-and-acquisitions/rent-to-own-franchisor-buddys-home-furnishings-purchased-by-private-equity-firm">here</a>.Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="http://www.1851growthclub.com">www.1851growthclub.com</a> and start your journey.

Buddy's Home Furnishings Acquisition - Skyline Investors - 1851 Franchise

Skyline Investors’ acquisition highlights how rent-to-own operators with dense unit networks and steady demand are drawing long-term capital and operational playbooks.

Buddy’s Home Furnishings Deal Signals More Private Equity Interest in Franchise Retail

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The&nbsp;<a href="https://www.franchise.org/">International Franchise Association</a> has released its annual&nbsp;<a href="https://www.franchise.org/franchising-economic-outlook/">Franchising Economic Outlook</a> report for 2026, painting the picture for a positive year of growth after notable economic turbulence in 2025.“The resilience of franchising has enabled our model to adapt, endure and thrive in the face of challenging macroeconomic headwinds,”&nbsp;<a href="https://www.linkedin.com/in/matthewhaller">Matt Haller</a>, IFA president and CEO, said in a release. "After a year of recalibration, franchising is better positioned to navigate an improving economic environment than independent businesses due to tax certainty, lower interest rates and investments in AI that will propel brand growth, franchisee unit-level economics and wage growth for the franchise workforce."The report features key industry projections for the year, including:<ul><li>The addition of over 12,000 new franchised businesses</li><li>The addition of over 150,000 jobs — meaning the industry will represent nearly 8.9 million jobs</li><li>An increase in total franchise GDP from $549.9 to $558.4 billion</li><li>An increase in multi-unit ownership as current single-unit franchisees pursue scale</li></ul>In addition to the strength of the industry as a whole, the organization highlighted segment-specific trends.&nbsp;<ul><li>This year, child services and commercial and residential services are recognized as top performers, expected to achieve a 3.2% year-over-year growth rate.</li><li>A focus on experiential dining, rather than value alone, may drive full-service restaurants to outpace quick-service brands in output growth.</li><li>Preventive health care has risen to be the third-largest franchised industry, and it represents strong opportunities as consumer awareness surrounding preventive health care persists.</li></ul>In terms of growth markets, Texas continues to lead the country as the fastest-growing state for franchising, followed by Florida, Georgia, Arizona and North Carolina. Michigan, Ohio and Utah have joined the top 10 this year thanks to their relative affordability and the potential they offer for market leadership and long-term growth.The outlook for 2026 is upbeat, and the drivers behind it look different than they did a few years ago. More brands are putting AI and automation to work in day-to-day operations, which helps franchisees move faster on basics like scheduling and inventory and stay tighter on margins.The growth in multi-unit ownership points to a shift in how people are approaching franchising. More operators are treating it like a scalable investment, focused on building an asset, not just buying themselves a job.As the year ramps up, IFA’s data suggests growth in 2026 will be driven by those leveraging the scale of the franchise model, embracing a tech-forward approach to business ownership, and staying agile in an evolving business landscape.Find the full 2026 Franchising Economic Outlook report&nbsp;<a href="https://www.franchise.org/franchising-economic-outlook/">here</a>.

Highlighting child services and commercial and residential services as top performers, the organization predicts the industry will add over 150,000 jobs and increase its GDP by billions this year.

IFA Releases 2026 Franchising Economic Outlook Report, Predicting Over 12,000 New Franchised Businesses This Year

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<a href="https://princestreetpizza.com/">Prince St. Pizza</a> has partnered with a&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-daves-hot-chicken-franchise-costs-fees-profit-and-data-2723529">Dave’s Hot Chicken</a> franchisee to support its national expansion,&nbsp;<a href="https://www.pizzamarketplace.com/news/prince-st-pizza-partners-with-daves-hot-chicken-franchisee-for-national-expansion/#:~:text=Prince%20St.%20Pizza%2C%20a%20New%20York%2Dbased%20pizzeria,the%20country%2C%20according%20to%20a%20press%20release.">Pizza Marketplace recently reported</a>. The New York-based brand has joined forces with&nbsp;<a href="https://www.linkedin.com/in/lawrencekourie/">Lawrence Kourie</a>, founder and largest franchisee of Dave’s Hot Chicken, to grow its footprint across the country. Kourie’s experience opening and operating locations in multiple markets will help the brand as it enters new territories."Lawrence has built and operated one of the fastest-expanding restaurant concepts in the country, but what stands out is his disciplined approach to growth and brand integrity," said&nbsp;<a href="https://www.linkedin.com/in/lawrence-longo-342856/?skipRedirect=true">Lawrence Longo</a>, CEO of Prince St. Pizza. "He understands how to develop a concept without losing what made it special in the first place, which is critical as we enter this next phase."The expansion will use Kourie’s existing infrastructure and operations to introduce Prince St. Pizza into new markets. Each location will aim to reflect the same experience as the brand’s original Nolita shop."I have spent years evaluating restaurant concepts, and it is rare to find one that delivers both a strong product and a clear identity," Kourie said. "What Prince St. has built is difficult to truly replicate. The focus now is on growing the brand in a way that preserves that foundation while introducing it to new communities."Kourie is a key operator within the Dave’s Hot Chicken system,&nbsp;<a href="https://1851franchise.com/daves-hot-chicken-sold-to-roark-capital-in-1-billion-deal-to-fuel-global-expansion-2729557#stories">which Roark Capital acquired in a $1 billion deal in 2025</a>. The partnership connects Prince St. Pizza to an operator with experience scaling a brand that has attracted major private equity investment.Read the full article&nbsp;<a href="https://www.pizzamarketplace.com/news/prince-st-pizza-partners-with-daves-hot-chicken-franchisee-for-national-expansion/#:~:text=Prince%20St.%20Pizza%2C%20a%20New%20York%2Dbased%20pizzeria,the%20country%2C%20according%20to%20a%20press%20release.">here</a>.Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="http://www.1851growthclub.com">www.1851growthclub.com</a> and start your journey.

Prince St. Pizza is teaming up with a leading Dave’s Hot Chicken franchisee to expand nationwide, tapping proven operator experience to drive growth.

<a href="https://www.jerseymikes.com/franchise">Jersey Mike’s</a> is preparing for a potential initial public offering after confidentially filing an S-1 with the U.S. Securities and Exchange Commission,&nbsp;<a href="https://www.prnewswire.com/news-releases/jersey-mikes-announces-confidential-submission-of-draft-registration-statement-for-proposed-initial-public-offering-302746694.html">according to a recent press release</a>.&nbsp;The brand’s rapid expansion is a key driver behind this decision. Jersey Mike’s has grown from 2,387 locations at the start of 2023 to more than 3,200 stores in early 2026, positioning itself as a serious challenger to&nbsp;<a href="https://1851franchise.com/what-subway-reviews-reveal-about-the-brands-franchise-experience-2729934">Subway</a> in the sub sandwich category. This growth has been further accelerated by&nbsp;<a href="https://1851franchise.com/blackstone-acquires-majority-stake-in-jersey-mikes-signaling-ambitious-growth-plans-2727945">Blackstone's acquisition of a majority stake in 2024</a>.A major differentiator for&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-jersey-mikes-franchise-costs-fees-profit-and-data-2720908">Jersey Mike’s is its strong unit-level performance</a>. The brand reports an average unit volume of about $1.4 million for mature stores, significantly higher than&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-subway-franchise-costs-fees-profit-and-data-2722471">Subway’s estimated $500,000 AUV</a>.&nbsp;While IPO activity was relatively quiet in 2025, the successful public debut of&nbsp;<a href="https://ir.br.coffee/news-releases/news-release-details/black-rock-coffee-bar-announces-closing-initial-public-offering">Black Rock Coffee Bar</a> has raised optimism that more brands could follow. At the same time, several restaurant companies, such as&nbsp;<a href="https://1851franchise.com/dennys-franchise-outlook-triartisan-acquisition-2731234">Denny’s</a>, have moved in the opposite direction, going private or exploring alternatives to avoid public-market pressures.Read the full press release&nbsp;<a href="https://www.prnewswire.com/news-releases/jersey-mikes-announces-confidential-submission-of-draft-registration-statement-for-proposed-initial-public-offering-302746694.html">here</a>.&nbsp;Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="http://www.1851growthclub.com">www.1851growthclub.com</a> and start your journey.

With more than 3,200 locations and backing from Blackstone, Jersey Mike’s positions itself as a top contender for investor interest amid shifting restaurant market dynamics.

How much can franchisees make? It’s a question many prospective owners ask before investing in a franchise. While earnings tend to be driven by variables such as industry, location and general management skills, a proper understanding of the key factors driving profitability can help franchise owners develop expectations that are realistic.&nbsp;Multi-unit franchisee&nbsp;<a href="https://www.linkedin.com/in/mangesh-patel-9368569/">Mangesh Patel</a>, who’s readying the launch of six&nbsp;<a href="https://www.beefobradysfranchise.com/">Beef ‘O’ Brady’s</a> restaurant locations in the Macon, Georgia area, shares insights from his franchising experience.<h2>Understanding Franchise Income</h2>Keeping operational costs in check can have a major impact on overall earnings. Taking a proactive approach to expenses such as food and labor, as well as payroll and scheduling, can help align actual franchise income with general expectations for the business.“I just had a meeting with a couple of people, and they said, ‘You talked about a 25% profit margin, but I’m only doing 12%.’ So, I looked at the figures they sent me,” Patel said. “Their&nbsp;<a href="https://1851franchise.com/calculate-restaurant-franchise-profit-2730476">restaurant</a> food cost was running at 37%, which should be around 30%. The national average is about 32%. If I do things correctly, my average food cost needs to be at or below 30%. And payroll should run around 18%. But many people run 25 to 28%.”So,&nbsp;<a href="https://1851franchise.com/unraveling-franchise-earnings-how-much-can-you-really-make-2723935">how much can franchisees make</a>? Here are five areas to consider.<h2>Practical Tips for Prospective Franchisees</h2><ol><li>Control Costs From Day One:&nbsp;It’s important to monitor payroll, food and supply costs closely. Overstaffing and inefficiencies can quickly reduce profits.</li><li>Plan For The Opening Surge:&nbsp;Traffic within the first few months of opening is likely to be higher. It’s important to adjust staffing and inventory accordingly, and pay close attention to how those levels change as time goes on.</li><li>Invest In Training:&nbsp;Properly trained workers can help reduce waste and improve overall service, which has a direct effect on net income.</li><li>Understand Your Market:&nbsp;Each market is unique and revenue potential will vary depending upon location, demographics and competition.</li><li>Track Metrics Regularly:&nbsp;Food cost percentages, labor ratios and weekly sales data act as key indicators operations may need to be adjusted.</li></ol><h2>What Profitability Really Comes Down To</h2>Patel notes that if franchise owners manage labor and costs properly, it’s not impossible to achieve strong cash flow even in the first year, bucking some franchising trends.So,&nbsp;<a href="https://1851franchise.com/how-much-can-you-make-as-a-franchise-owner-2724761">how much can franchisees make</a>? While results tend to vary, careful planning, disciplined operations and a proactive approach to assessing initial costs are essential. But by grasping and guiding the elements that drive franchise profitability, franchise owners can maximize overall business earnings, scaling a business that’s sustainable financially over the long term.Want to learn more about franchise opportunities on 1851 Franchise? Be sure to visit our&nbsp;<a href="https://1851franchise.com/power-rankings">Power Rankings</a> to read more on brands making moves.

How much can franchisees make? This guide explains what drives franchise earnings and how to manage costs, with expert tips from multi-unit owner Mangesh Patel on maximizing your franchise income.

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