Fazoli's Franchisees Outpace Industry in Same-Store Sales

LEXINGTON, Ky. — Sales at Fazoli's franchised units outpaced the overall restaurant industry as operators saw a sixth straight year of same-store sales growth.

According to the company, during the fiscal year ended March 30, the fast-casual Italian chain saw 91 franchise locations break 117 weekly sales records, with sales for the period up 4.8 percent on a 3.5-percent traffic increase.

Two-year franchise comp-sales increased a total of 12.1 percent on traffic that was up 8.8 percent.

The sixth consecutive year of same-store sales growth took place in a time period when restaurant industry sales grew 1.6 percent, according to research firm TDn2K. Additionally, sales so far this year have remained tepid, while Fazoli's franchisees reported that same-store sales grew 3.9 percent in March.

"Fazoli's continued growth shows just how perfectly the brand is positioned for the current economic climate," said Fazoli's President and CEO Carl Howard. "Consumers are responding extremely well to our combination of casual dining quality food and table service at an average check of under $7."

This strong performance, along with a new franchisee incentive program, is driving expansion, the company said. Fazoli's opened five new franchised units in 2015 and has up to 12 more planned for this year. So far in 2016, it has added franchised units in Montgomery, Ala., and Macon, Ga.

New 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 feels will also be discounted for the first 12 months. These incentives are available through July 31.

Fazoli’s currently operates 123 company restaurants and 91 franchised restaurants. Eight of the franchised units are in convenience stores, located in Colorado, Indiana, West Virginia, Tennessee and Indiana (under construction). Its c-store presence includes three Kwik Stop units operated by Rainbo Oil Co., based in Dubuque, Iowa.