🍔 Fast Food Trends Shaping 2024

Bain Capital’s $1B move, top franchise brands, and industry-shaping trends for 2024!

Author

Chris Wright
December 20, 2024

Hey there 👋, welcome to the first issue of The Franzy Five by Franzy.com.

Fair warning: we might get a little too excited about franchising in here. (Yes, we're those people.)

Here's the deal: the franchise development market is worth a whopping ~$1B, yet finding the right franchise feels about as straightforward as assembling IKEA furniture blindfolded. Whether you're dreaming of owning your own franchise or you're a brand looking for rockstar franchisees, the traditional process has all the modern convenience of a dial-up modem.

That's where Franzy comes in. Think of us as the Zillow of franchising (minus the unrealistic 3D home tours 😉). We're here to drag the franchise industry—which makes up a casual ~8% of America's GDP—into the 21st century. Our mission? To democratize franchise discovery by putting all the juicy data and insights right at your fingertips. No more information treasure hunts, 90s-style websites, or magic 8-ball decision making.

Are you ready to make your mark in the world of franchising? This week, learn which franchises are dominating the 2024 rankings, and why emerging brands are the talk of the town. Whether you're a seasoned investor or exploring your first opportunity, these insights can help guide your strategy.

💰 Bain Capital Eyes Major Franchise Acquisition

Private equity firm Bain Capital is in discussions to acquire Sizzling Platter, a prominent franchise operator, for over $1 billion, including debt. Sizzling Platter, based in Salt Lake City, Utah, manages more than 750 restaurant locations across various brands, including Little Caesars, Dunkin', Wingstop, and Jamba.

  • 🍕 Little Caesars: Sizzling Platter operates approximately 450 locations in the U.S. and Mexico, contributing significantly to the brand's presence in these regions.

  • 🍩 Dunkin': The company manages multiple Dunkin' franchises, expanding the brand's reach in various markets.

  • 🍗 Wingstop: With over 140 Wingstop locations, Sizzling Platter plays a key role in the brand's growth and accessibility.

  • 🥤 Jamba: The franchisee operates numerous Jamba outlets, promoting the brand's smoothie and juice offerings.

Sizzling Platter anticipates generating approximately $175 million in earnings before interest, taxes, depreciation, and amortization (EBITDA) this year. The company has been collaborating with investment banks UBS and Deutsche Bank on the sale process for several months. Currently owned by investment firm CapitalSpring, Sizzling Platter's diverse portfolio and substantial earnings make it an attractive acquisition target.

This potential acquisition underscores a broader trend of private equity firms investing in restaurant franchises, drawn by their steady royalty income and relatively lower operational costs. The deal, if finalized, would mark a significant move in the franchise sector, reflecting ongoing consolidation and investment interest in multi-brand franchise operators.

📈 Franchise Industry Leaders Revealed

The Franchise Times has released its 2024 Top 400 list, showcasing the largest U.S.-based franchise systems by global systemwide sales. This annual ranking provides valuable insights into the franchise industry's performance, highlighting both growth and challenges faced by leading brands.

  • 🍔 McDonald's: Maintains the top position with $112.5 billion in global sales, reflecting its enduring market dominance.

  • 🍕 Pizza Hut: Achieved a 3.5% increase in sales, totaling $13.4 billion, indicating a steady demand for quick-service pizza.

  • 🛒 7-Eleven: Reported a 4.8% sales growth, reaching $91.8 billion, underscoring the convenience store's expansive reach.

  • 🐔 Chick-fil-A: Experienced a significant 13% sales surge, amounting to $18.8 billion, highlighting its growing popularity in the quick-service sector.

  • 🏋️ Planet Fitness: Noted a 7.2% increase in sales, totaling $4.1 billion, reflecting a rebound in the fitness industry post-pandemic.

The 2024 Top 400 list also emphasizes the resilience and adaptability of franchise systems in navigating economic fluctuations, supply chain disruptions, and evolving consumer preferences. Brands that have embraced digital transformation, diversified their offerings, and prioritized customer experience have demonstrated notable growth.

Key Highlights:

  • First US Location: PizzaExpress plans to open its inaugural US restaurant in Florida in 2025.

  • Expansion Strategy: This move is part of the company's goal to reach 1,000 global restaurants by 2030.

  • Partnership: Collaborating with Purple Square Management Company, which operates 245 franchise locations across 15 US states.

  • Current Footprint: Operates nearly 360 restaurants in the UK and 100 international locations.

  • Financials: Reported revenues of £454.6 million in 2023.

PizzaExpress's entry into the US market signifies a strategic expansion into a highly competitive arena dominated by established brands. Partnering with an experienced franchise operator like Purple Square Management Company enhances their prospects for success. This expansion could introduce new dining experiences to US consumers and diversify the competitive landscape.

👀 Top New Franchises to Watch

Key Highlights:

  • Entrepreneur highlights fast-growing new franchises like Mighty Dog Roofing and KidStrong.

  • Emerging franchises emphasize health-conscious, tech-forward, and sustainable business models.

  • Many concepts cater to evolving customer values, including transparency and community impact.

👉️ Why It Matters:
Aspiring franchisees and operators can capitalize on these trends by aligning with brands that prioritize modern consumer demands. Early investments in promising franchises often yield strong returns as these businesses scale.

🗞️ Snippets

🌯 Barberitos Expands with New Deals
Barberitos is accelerating growth through two multi-unit agreements in Alabama, marking significant expansion in the Southeast.
Read more

🥪 From Fan to Franchise Mogul
A college graduate turned his favorite sandwich shop into a thriving franchise, showcasing the power of passion in business growth.
Learn his story

🍪 Crumbl Cookies’ Viral Takeover
Crumbl Cookies has harnessed TikTok to fuel massive brand awareness, making it a viral sensation in the dessert market.
See how