Fazoli`s - International Franchise Expo

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Press Kit
Table of Contents
I. About Fazoli’s
II. Why Franchise With Fazoli’s?
III. Media Highlights
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Why Fazoli’s?
Our franchisees are enjoying record sales with over two years of same store sales growth!
Flexible footprint with in-line, freestanding, and conversion options
Highly regarded by customers and the foodservice industry
Recently expanded Real Estate support
RECENT AWARDS & RECOGNITION:
2016
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2015
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2014
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2013
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Fazoli’s named a Gold Stevie® Award winner in the Company of the Year – Food and
Beverage category in annual American Business Awards
Fazoli’s ranked in the Top 25 of Fast Casual’s Top 100 “Movers and Shakers” list (Brands)
Named by the New York Post as one of the “5 fast-casual restaurants that could be the
next Chipotle”
CEO, Carl Howard, named #1 on Fast Casual’s Movers and Shakers list (People)
Fazoli’s listed as #3 on Fast Casual’s Top 100 “Movers and Shakers” list (Brands)
Franchise Business Review’s “Top 40 Food Franchises”
Fazoli’s named Fast Casual’s “Brand of the Year”
CEO, Carl Howard, named “Executive of the Year” by American Business Awards
Fazoli’s is ranked #2 overall among large national fast-food chains in Zagat Fast Food
Survey
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New Incentive Program!
NEW FRANCHISE INCENTIVE PLAN
Traditional Build (Freestanding and In-Line End Caps)
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Reduced fee from $30,000 to $20,000 for unit #1
Reduced fee from $30,000 to $15,000 for unit #2
Reduced fee from $30,000 to $10,000 for 3+units
Reduced Royalties to 2% for the first year of restaurant operation and 3% for the second
year
Vendor discounts for first 12 months
Non-traditional Build (Gas & Convenience, Airport, Colleges)
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Reduce Royalties to 2% for the first year of restaurant operation
Vendor discounts for first 12 months
*Franchise agreement must be signed by 7/31/2016 and first restaurant open by 3/31/2017 to
take advantage of these incentives.
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May 13, 2016
Fazoli’s Receives Prestigious Gold Stevie Award for Company of the Year
America’s Largest Fast-Casual Italian Chain Recognized As Food & Beverage Company of the Year
Amidst Continued Franchisee Sales Growth
Lexington, KY (RestaurantNews.com) Fazoli’s, America’s largest fast-casual Italian chain, today
announced that it has been named a Gold Stevie® Award winner in the Company of the Year –
Food and Beverage category in the 14th annual American Business Awards.
The American Business Awards are the premier business awards program in the U.S., with
categories to recognize achievement in every facet of work life, including management, marketing,
human resources, new products and websites. More than 3,400 nominations were submitted this
year and judged by more than 250 professionals, whose average scores determined the winners.
“We’re honored to win this award and it proves that it’s an exciting time to be a part of the Fazoli’s
franchise family, following our sixth consecutive year of positive comp-sales growth,” said Carl
Howard, president and chief executive officer of Fazoli’s. “Winning the Gold Stevie Award in the
Company of the Year Food and Beverage category further fuels our desire to expand Fazoli’s
presence nationwide so our customers can enjoy our savory, always fresh Italian food and table
service no matter where they are.”
Fazoli’s strong performance, combined with an industry-leading new franchisee incentive program,
continues to drive the brand’s expansion. With plans to open 12 new restaurants this year, Fazoli’s
also recently opened in Montgomery, Alabama and Macon, Georgia, where the company set an all
time sale record for an opening week. The company is targeting new franchise development in
markets including Atlanta, Cincinnati, Dallas, Detroit, Knoxville, Phoenix, Pittsburgh and several
other markets to grow and further catapult the brand’s development nationwide.
New Fazoli’s franchisees are eligible for discounts of up to $20,000 off the initial $30,000 franchise
fee. Royalties have been cut to 2 percent from 4 percent for the first year, and to 3 percent for the
second year. Vendor fees also will be discounted for the first 12 months. The incentives are
available to franchisees who sign agreements now through July 31, 2016.
With nearly 220 restaurants in 26 states, Fazoli’s is America’s largest Italian fast-casual chain,
serving freshly prepared entrees, Submarinos® sandwiches, salads and pizza. Fazoli’s franchisees
are experiencing record sales growth, and the company is currently seeking single- and multi-unit
operators to join the brand’s rapid expansion. For more information about franchise opportunities,
connect with Fazoli’s online at www.fazolis.com, www.ownafazolis.com, @Fazolis,
and https://www.facebook.com/Fazolis.
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May 11, 2016
Fazoli’s
ALABAMA
Before purchasing his own Fazoli franchise,
Bob Sirkis was a vice president at the parent
company that created the brand back in the
late '80s.
Description: Quick-service, casual Italian
restaurant chain
Owners: Bob and Kendall Sirkis
Years in business: 15
No. of franchises owned: 1
Start-up costs: $30,000 for each location; $250,000 liquidity for each location
Franchisor fees: Royalties 2% of sales for first year, 3% thereafter; marketing 5% of sales
2015 revenue, 2016 projection: $1.4 million; $1.5 million
2016 projected annual growth rate: 7.5%
Bob Sirkis was sold on the Fazoli's quick-service Italian restaurant before he even bought his first
franchise 15 years ago. That's because he was vice president of new concept development at the
parent company that created the brand back in the late 1980s. After working for a number of
different restaurant and retail companies over the years, Bob found himself in Dolthan, Alabama, in
2001, and with his wife, Kendall, opened his own Fazoli's restaurant.
Even though the chain is billed as quick service, this fast, fresh Italian food restaurant with 217
locations in 26 states is always "focused on providing great food and 'wow' service to our guests,"
said Bob. "This has been, and will always be, fundamental to everything we do in our business."
The parent company has helped Bob grow by leveraging its enormous purchasing power to give
franchisees the best food costs. That helps him keep his prices down and still turn a profit. As a
result, he has seen his sales grow steadily over the past several years to over $1.5 million a year
serving about 4,000 customers a week.
As a small-business owner, Bob said he "wears most of the hats" in running the restaurant — from
handling IT and purchasing to human resources and marketing — and finds complying with a
myriad of federal regulations concerning healthcare and unemployment to be among his biggest
challenges. "Every month there seems to be another survey I need to fill out from the Commerce
Dept. or the Labor Dept. or some other form from the state of Georgia," he said. "When you add it
up, that's hours of extra time that I'm not able to spend working on the business."
For anyone looking to buy a franchise, he advised to look closely at how financially successful the
parent company is. "You will be paying a significant amount of money to the franchisor, and they
will control what you can and cannot do," he said. "Ask yourself: Are they worth it, and do they
have a track record of success? Are their egos in check? You want a company where they are
close to the business and listen to the customer and to franchisees."
Note: Sirkis is a resident of Alabama and his company's primary business address is in Alabama.
Currently, his franchise locations are outside of his home state, but Sirkis told CNBC his next move
may be to open a Fazoli's location in Alabama.
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February 2, 2016
Fast Casual Restaurants on the Rise
Fazoli’s Restaurants CEO Carl Howard discusses the rise of the fast casual restaurant trend with
Alix Steel and Scarlet Fu on "Bloomberg Markets."
http://www.bloomberg.com/news/videos/2016-02-02/fast-casual-restaurants-on-the-rise
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September 22, 2015
How Fazoli's went from 'a brand in disrepair' to a six-year sales hot streak
Fazoli’s Carl Howard has several things on his plate to boost
the business, including a franchising push, menu changes and
catering.
Fazoli’s is cooking now, but that wasn’t always the case.
The Lexington, Kentucky-based quick-service Italian chain has
a new owner, an almost six-year run of improving sales and a
plan to attract new franchisees.
“We’ve had to weather some storms,” said Columbus
franchisee Bob Hoseus, who has been with the chain for 20
years and owns five area restaurants.
CEO Carl Howard arrived in 2008, having just left Columbusbased Damon’s International Inc., a restaurant chain with its own set of problems.
“It was a brand in disrepair, but it was a brand with legs and financial support,” Howard said of
Fazoli’s. “It was actually worse than presented.”
The chain was experiencing double digit sales declines. Franchisees weren’t happy. There were
more than 300 Fazoli’s when Sun Capital Partners Inc. acquired it in 2006, but that was culled by a
third in Howard’s early days. There are 217 today.
Howard commissioned a study to see where the brand was struggling.
“Customers were leaving because the food quality was terrible,” he said. “Our service was only
OK.”
The company brought in Culinary Edge, California-based menu consultants, to help with the food.
After changes like bringing back free breadsticks and adding baked pasta dishes, which are a
customer favorite today, sales went from down 10 percent to flat. It was a turn in the right direction,
but still not enough.
“We needed to reposition,” Howard said. “Before we were focused on speed and price. We had a
$1 menu.”
Speed and price remain important – the average check still is $7 and daily lunch deals are $5 – but
Howard saw an opportunity to lift the brand in the eyes of consumers. The idea was to keep the
food moving fast, but not make it seem like fast food. Rather than serving in cartons, Fazoli’s
began using real dishes and silverware. Customers still order at the counter, but employees now
bring the orders to the table.
“It was one of the biggest complainers about going to plate ware,” Hoseus said. “Half of our
business isn’t even in the dining room and we have to add a dishwasher and these new
expenses?”
Hoseus admits he was wrong now.
“That’s been a strong catalyst for sales,” he said. “Baked pastas are about a quarter of what we
sell.”
About 40 percent of sales come through the drive through, where customers get foil tins instead.
The remainder is carry-out.
Sales have been up in 62 of the last 65 months and franchisee same restaurant sales are up 6.4
percent so far in 2015, which is better than corporate-owned stores.
“It’s value and customer experience,” Howard said. “We can offer a $15 experience that you’d get
at a place like Olive Garden for $7.”
The chain has several groups of core customers, including older people and starter families with
young children. There’s also a segment that just wants a good amount of food for a good price.
“We’re not going to win any health awards, but that’s not who we are,” he said. “We are indulgent.
We’re not a quinoa place. You won’t leave hungry.”
Menu development is ongoing with new sandwiches and salads coming in 2016. There will be a
new push for catering business, too.
Fazoli’s units average $1.1 million in annual sales with a goal of raising that to $1.3 million in the
next two years.
Hoseus, who in two decades has seen the business go through all kinds of changes – from former
owner cost-cutting to fads like the Atkins diet – is enjoying the ride right now.
“It’s real simple,” he said. “Give me a good platform to work on. Be friendly. Be clean. Have good,
hot food. I’ll execute. That’s my job.”