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Why Sunny Street Café Remains Largest Multi-Unit Operator of the Better Breakfast Franchise

As the operator of 10 restaurants, the next great brand in the better breakfast franchise space is taking a different approach than its competitors – establishing a large foundation to test all ideas/rollouts first.

By Luca Piacentini1851 Franchise Managing Editor
SPONSOREDUpdated 10:10AM 03/05/24

Despite the potential for explosive franchise growth, Sunny Street Café, the 22-restaurant better breakfast franchise, has opted for a measured expansion strategy, leveraging its 10 corporate locations to focus on gathering best practices. 

"Our approach ensures that we're fully aware of the impact our decisions have at the store level, from build-outs and remodels to menu changes and new equipment,” said Mike Stasko Jr., who recently took over as president of Sunny Street Café. “We have a strong core of franchisees who provide valuable feedback and have a direct line to us, ensuring that our decisions benefit not just the company but them as well. Rooted in our status as a family-owned company, we believe this level of engagement and the incorporation of franchisee ideas are unique aspects of our business model and serve as key selling points.”

Stasko now envisions a future of controlled growth, where Sunny Street Café expands with the right partners who share the brand's values and dedication to community and culture. The team is targeting southern U.S. markets like Florida, Georgia, North Carolina and South Carolina for continued franchise growth.

"Whether you're already in the restaurant industry looking to expand your portfolio, or you're aspiring to become a business owner without prior experience, our franchise offers a unique opportunity in an underserved and hot segment,” said Stasko. “We've designed our system to be simple and teachable, ensuring anyone can succeed.”

The brand recently announced a franchise initiative — the $35,000 franchise fee has been reduced 50% to a mere $17,500, with an enticing 0% royalty scheme at the onset that gradually escalates over 18 months.

"Franchising with us goes beyond just business — it's about building relationships and sharing a common vision,” said Stasko. “We're looking for partners who share our passion, sincerity and commitment to building something significant — not just for immediate gains but for long-term success and wealth for their families. This philosophy is at the core of why we started Sunny Street Café and is fundamental to the partnerships we seek to establish with our franchisees.”

From Humble Beginnings to Franchising Success

Founded in 2007, Sunny Street Café's story begins with a small Florida restaurant and a father’s vision to involve his family in the restaurant industry without the drawbacks of long hours and late nights. 

"My father, who's been in the restaurant equipment business for 30-plus years, had wanted us to enter the industry as well," Stasko said. “So, he bought a local restaurant, originally named ‘Peaches,’ and rebranded it to Sunny Street Café with a focus on the breakfast and lunch daypart, ensuring a lifestyle where you have a life outside of work."

Despite starting just one year before the 2008 recession, Sunny Street Café has continued to grow year after year over the past decade-and-a-half. Especially now, as national chains like IHOP and Bob Evans are dying out, more community-driven franchises like Sunny Street Café are emerging to fill that void. 

Sunny Street Café, which is still led by the Stasko family, currently has locations throughout Ohio, Texas, Missouri, Illinois and Alabama, including 10 corporate-owned and 13 franchise-owned restaurants. 

Flexible Hours, Impressive Employee Retention and More

Since day one, the culture at Sunny Street Café has been centered around family, lifestyle and positive work-life balance. This has translated directly to a particularly attractive franchise opportunity. 

“When it comes to affording a certain kind of lifestyle and doing things outside of work, the breakfast/lunch daypart is the sweet spot,” said Stasko. “We are open from 6:30 a.m. to 2:30 p.m., so even on a bad day, you still get out at 3 o'clock. And that trickles down from ownership or management all the way down to at the hourly staff level.”

This ethos has resulted in remarkably low turnover and a workforce that often stays with the company for decades. And since the breakfast category is full of so many regulars, excellent employee retention is essential to creating equally excellent customer service.

"Our turnover is just not what it is in the rest of the industry, and I'm proud of that," Stasko said. “Normally, if you are closing down shop at 1 a.m. and repeating it the next day, it can be a real grind.” 

Keeping Up With the Times and Overcoming Cost Challenges

Although Sunny Street Café has developed a winning culture and model, the company isn’t resting on its laurels. The team continues to innovate and find ways to position restaurants for greater success. 

During COVID, Sunny Street Café trimmed some of the fat off its menu, eliminating items with extra ingredients or those that hampered back-of-house operations. This not only resulted in a much more functional menu, but also allowed the brand to lower food costs. 

“We were forced to improve our operations and become better at what we do,” said Stasko.  “Labor, for example, remains a critical challenge across the industry, prompting us to focus on retaining staff and optimizing our operational setup to manage peak and off-peak hours efficiently, thus keeping our labor costs at a minimum. Remarkably, our food and labor costs are the lowest they've been in the last 15 years, a testament to our ability to adapt to the current economic climate.”

Stasko also highlighted the unique operational model of Sunny Street Café, which employs a one-shift staffing system to simplify management and enhance efficiency. 

“We've also simplified our menu to balance staple breakfast items with unique offerings, ensuring everything can be executed by our staff without the need for head chefs or corporate chefs,” said Stasko. “We're about to introduce a menu reboot next month that will feature pancakes more prominently, for example, along with introducing some unique and exciting pancake presentations. This simplicity and focus on core offerings are crucial for our model's success and replicability.”

Armed with these new initiatives, the brand recently unveiled a new-and-improved restaurant design concept that will be implemented at their upcoming Marion, Illinois, location. The new design features a brighter ambiance, efficient use of space and a designated carry-out area catering to the needs of dine-in and third-party service customers. 

All of this has led to double-digit sales growth for Sunny Street Café over the past two years, matched by robust average unit volumes (AUVs) for franchisees.

To find out more information on costs to buy this franchise, please visit https://1851franchise.com/sunnystreetcafe/info.

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