Growth Club
1851 Growth Club
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Food Franchise Brands with over $1 Million AUV
15 foodservice franchises that rake in more than a million dollars per unit on average
Prospective franchisees look at a number of different factors when evaluating a franchise concept. Does the corporate team provide a reliable support system? Does the culture fit? Is there room for growth? Is the brand strong? But there is one factor in particular—one number on one line of the franchise disclosure document—that every prospect is likely to check before anything else: Average Unit Volume.
Of course, the AUV doesn’t tell the whole story. Sophisticated investors know that the significance of the AUV depends on a number of contextual factors, including year-over-year growth, franchise fees, and overhead. But to get a baseline idea of how profitable a franchise may be, the AUV is the first place to look.
1851 has gathered 15 our favorite foodservice brands with towering AUVs. The restaurants represented on this list include QSR brands and full-service restaurants, with unit-counts ranging from single to triple digits. Here are our 15 favorite food franchises with $1 million+ AUVs.
Selling biscuits in the south is like selling sand in a desert. The competition is steep, including not only other restaurants but just about every family’s generations-held recipe. And yet, Bojangles’ has managed to stand out in that market. Their buttermilk biscuits have become a regional staple, and the brand now operates over 700 locations primarily throughout the Southeast. Now, Bojangles’ is eager to extend their brand throughout the rest of the country.
AUV: $1,229,478
Startup costs: $357,733 to $636,580
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.
AUV: $2,000,000
Startup costs: $1,292,500 to $2,407,000
The Brass Tap’s simple but genius franchising innovation was to create a scalable bar & grill model that tailors each location’s extensive beer menu to local preferences, making every Brass Tap location feel like the neighborhood bar. The concept allows The Brass Tap to roll with any changes to consumer preferences on the fly without eschewing the franchise model.
AUV: $1,205,000
Startup costs: $664,050 to $1,223,000
Culver’s has always been a strong partner to the Midwest. Not only did the burger concept originate and grow in the region, it has designed its menu to patronize that essential industry of the Midwest: farming. Now that organic and environmentally-conscious eating has become a priority for consumers, Culver’s dedication to farm-fresh ingredients has become an even greater value proposition.
AUV: $2,183,800
Startup costs: $1,845,000 to $4,155,000
With well over 6,000 locations throughout the U.S., Dairy Queen is one of the largest brands on our list. The classic American-fare concept is also one of the most iconic, its Blizzards and Dilly Bars virtually inventing new genres of dessert. And the brand is still innovating. Recently, Dairy Queen introduced their Grill & Chill model, a slimmer restaurant concept that dramatically reduces overhead and infrastructural investment requirements.
AUV: $3,621,069
Startup costs: $361,450 to $1,835,825
Del Taco has a number of competitors, including one particular taco-focused chain often ranked among those behemoth brands we mentioned up top. But you wouldn’t know it in California, where Del Taco was founded in 1964 and has since become a state-wide institution, its fans ardent in their conviction that Del Taco is the best taco brand around.
AUV: $1,400,000
Startup costs: $859,700 to $2,016,500
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, and Famous Toastery quickly 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.
AUV: $1,490,000
Startup costs: $601,500 to $1,044,000
In the fifteen years that Five Guys has been a franchise, the brand has rocketed from a handful of locations in Virginia and Maryland to nearly 1,500 locations throughout the U.S., Canada, Europe, and the Middle East, with another 1,500 in development. In 2018, Five Guys is looking to extend their brand even further, with plans to open restaurants in new international markets, including Australia, Japan, and South Korea.
AUV: $1,319,491
Startup costs: $152,600 to $360,300
From fast-food to fine-dining, French fries have been a staple of American food for decades, but French Fry Heaven is one of the few concepts to put fries front and center. Not only has French Fry Heaven refined their recipe to provide a perfect fry, they’ve built a menu of creative and enticing fry-based entrees, including poutine, pizza fries, country-fried chicken fries, and pulled-pork fries.
AUV: $1,072,429
Startup costs: $214, 500 to $490,500
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 a 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.
AUV: $4,916,939
Startup costs: $1,961,000 to $5,539,000
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.
AUV: $1,100,000
Startup costs: $553,500 to $1,069,000
MOOYAH Burgers, Fries & Shakes*
In MOOYAH Burgers, Fries & Shakes’ 10 years of franchising, the brand has earned an enviable collection of industry accolades and acknowledgements, including a spot on Fast Casual Magazine’s Top 100 Movers & Shakers list several years in a row and a number of high rankings from franchiserankings.com in categories including Best Fast Casual Restaurant Franchises, Best Restaurant Franchises, and Best Overall Franchises.
AUV: $1,000,000
Startup costs: $334,950 to $529,700
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.
AUV: $1,116,700
Startup costs: $1,559,650 to $3,877,400
Since the first Slim Chickens opened in Fayetteville, Arkansas in 2003, the fried-chicken brand has distinguished itself through a focus on home-style dining in a fast-casual setting. Fresh chicken tenders and wings are cooked to order and served with made-from-scratch dipping sauces. And with more than 40 locations open today and a fanatical following in 10 states, the brand is emerging as a leader in the “better chicken” segment.
AUV: $1,350,000
Startup costs: $400,000 to $927,000
Zaxby’s has been on a bit of a development tear recently. In 2016, the comfort-food concept opened 74 new units, and they are on pace to beat that number this year. Still, Zaxby’s restaurants are located almost exclusively throughout the southeastern U.S., so the brand has an enormous opportunity for further growth.
AUV: $2,174,300
Startup costs: $284,000 to $664,300
*This brand is a paid partner of 1851 Franchise. For more information on paid partnerships please click here.
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