Top Food Franchises for 2021

Franchise Business Review, an independent market research firm serving the franchise sector, has announced the Top Food Franchises of 2021. The award-winning brands on the list were identified based on survey feedback over the past 18 months from 10,220 franchise owners across many of today’s leading food brands.

For this year’s research on the Top Food Franchises, each survey participant was asked 33 benchmark questions about their franchisor that focused on areas such as leadership, training & support, financial opportunity, and core values as well as 16 more personal questions concerning their business lifestyle and overall enjoyment of running their franchise. This year, 30 brands scored high enough to exceed Franchise Business Review's benchmarks for the Top Food Franchises award list.

“Yes, things were bad overall for the restaurant industry this past year. But there were plenty of food brands, fast-service franchises in particular, that had a great company behind them guiding them on how to pivot their businesses to more efficient pick-up and delivery models,” said Eric Stites, founder & CEO of Franchise Business Review.

“And that’s really the big advantage of being part of a strong franchise,” said Stites, “having that reliable support system, always watching your back when things go bad.”

This year's list of our Top Food Franchises for 2021 includes 30 brands that are outperforming their competitors and franchisees' expectations. We invite you to explore franchise opportunities with these brands that have the highest franchisee satisfaction in the food industry.

 

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RECIPE FOR SUCCESS

Supporting franchisees this past year proved pivotal for Top Food Franchises

Rarely does a day go by when Landon Eckles doesn’t count his blessings. While many of his colleagues in the food service industry struggled to cope and even survive COVID-19 restrictions this past year, his beverage and food franchise actually thrived, posting year-over-year revenue growth while adding to his inventory of franchise units.

“I think sometimes you're lucky and sometimes you're good. For us it was probably a combination of both,” said Landon, who, along with his wife Kat, own one of the fastest growing health-focused food and beverage franchise brands on the market with Clean Juice.

“If anything, COVID made people take a long hard look at their health, and of course a big part of that is eating right and what you put into your bodies. People started to take notice of what we were offering with our healthy organic foods products, and that really appealed to them,” Eckles said.

The first USDA-certified organic juice bar when it was launched five years ago, Clean Juice is one of a select group of brands that were recognized by Franchise Business Review recently as one the Top Food Franchises of 2021. The 30 award-winning companies on FBR’s list were identified based on survey feedback from 10,220 franchise owners across many of today’s leading food service franchise brands over the past 18 months.

For this year’s research, each franchise owner was asked 33 benchmark questions about their franchisor that focused on areas such as leadership, training & support, financial opportunity, and core values, as well as more personal questions concerning their business lifestyle and overall enjoyment of running their franchise.

Among the more recognizable brands on FBR’s Top Food Franchises List are Checkers & Rally's, Kona Ice, Qdoba, Tropical Smoothie and Wingstop. Nothing Bundt Cakes, another popular national brand, was named Best in Category in the food and beverage segment in FBR’s 2021 Franchisee Satisfaction Awards. Two newcomers to the list —  Ellianos Coffee Co. and Wetzel’s Pretzels, also made FBR’s Top Culture List.

“The 30 award-winning food brands that made our list were lauded for their ability to work with franchisees and help them navigate all the challenges thrown at them this past year,” said Eric Stites, Founder & CEO of Franchise Business Review. “The data is very telling in that it provides real insight into the franchises that were best able to navigate the pandemic while maintaining their strong relationships with their franchisees.”

Stites points out that franchise owners are often better positioned to weather a setback – even something as devastating as a public health crisis – better than small independent, “mom-and-pop businesses” because they can draw on support, strong leadership, and brand recognition of a large franchise organization and a network of fellow franchisees.

“Yes, things were bad overall for the restaurant industry this past year, but there were food brands, fast-service franchises in particular, that had a great company behind them guiding them on how to pivot their businesses to more efficient pick-up and delivery models,” Stites said. “The brands on our list also took on the responsibility for the financial health of their franchisees by guiding them through the whole Payroll Protection Program (PPP) loan process, renegotiating their leases and just keeping the communication channels open to their business operators.

“And that’s really the big advantage of being part of a strong franchise,” said Stites, “having that reliable support system, always watching your back when things go bad.”

STRONG RECOVERY ON THE MENU

It is estimated that pandemic cost the U.S. restaurant industry a staggering $240 billion in sales in 2020, according to the National Restaurant Association. But economists are already tracking a robust recovery in 2021 as more people get vaccinated and restaurant restrictions continue to ease up to full capacity around the country.

Couple that with the public’s changing culinary habits and pent-up appetite for eating out again at their favorite eateries, and the restaurant sector is looking to restart the record-setting trajectory enjoyed prior to the pandemic. The International Franchise Association, using FRANdata statistics, projects quick-service restaurant franchise establishments alone will grow 4.1 percent this year.

FBR Top Food Franchise Wetzel’s Pretzels was one of the brands that proved pandemic-resistance. With more than 340 bakeries in 30 states and six other countries, the Pasadena, California-based company opened 28 locations in 2020, and is looking to open 30 more this year, according to Jennifer Schuler, the company’s CEO. 

It’s part of the brand’s move, she said, to expand into nontraditional locations and flexible store formats like kiosks at family entertainment venues, professional sporting arenas, airports and tourist destinations —a plan that some other quick-service chains are now embracing.

“We have that big brand strength but it's a small company feel,” said Schuler, explaining Wetzel’s Pretzels success in FBR’s latest Satisfaction Report. “Our franchisees know they can call us with questions, issues, etc. and someone here in corporate is going to answer the phone and provide them with personalized attention.”

Schuler said that her company’s ability to never lose its core values during the height of the COVID scare was a big reason why Wetzel’s Pretzels handled the pandemic so well. She said that started with prioritizing the personal health of their franchisees, customers and crew members and continued with securing the financial health of the company by coordinating the renegotiation franchise leasing and PPP loan process.

But perhaps the biggest factor in the franchise’s ability to adapt to the pandemic challenge this past year, was keeping the line of communication open throughout the crisis and providing real-time updates to their franchisees during the government-mandated shutdowns.

“Looking back at it now, I think the best thing we did was build trust from the beginning with our franchisees and demonstrate full transparency and that we had a real alignment of interest in their success,” said Wetzel’s Pretzels Chief Development Officer Jon Fischer.

Another food franchise that was spurred to innovate during the pandemic was Another Broken Egg. The Orlando, Florida-based full-service breakfast, brunch and lunch establishment signed development agreements to open 18 new units in 2021 after opening up nine new units in 2020.

Another Broken Egg Cafe’s pivot towards an off-premise business model combined with an innovative food and beverage program helped the brand navigate the pandemic complexities, while positioning the company for sustained success, said Chief Development Officer Jeff Sturgis.

“We’re a brunch destination restaurant and so the biggest shift for us was moving away from a full-service restaurant with a bar to an off-premise model with pickup and delivery,” Sturgis said. “Luckily our CEO and head of marketing had experience in the off-premise world and the company was able to use their relationships with third-party delivery services and set up an online ordering platform quickly.”

Asked what he believes is the most important lesson learned from the pandemic and operating a successful franchise, Surgis said it all begins with the training and support the company provides the franchisees.

“We want to make sure our franchisees really understand that you have to get the operations right in the kitchen, but at the same time you also have to get the operations right in the front of the house,” he said. “I think we’ve done a great job with that.”

Even when the pandemic was threatening to shut down the entire economy, Clean Juice was able to grow. In the early months of 2021, Clean Juice launched into several new states, including five new multi-unit franchise partners in Connecticut and Minnesota, along with its first store in Nevada. Clean Juice is now in 28 U.S. states while existing franchise partners secure multiple Arizona, Florida, and Texas locations.

Clean Juice is registered to license franchises in 47 states and is on target to exceed systemwide goals by adding 60 total units this year.

Eckles, who was named one of 2021 Most Influential Restaurant CEOs by National Restaurant News, attributes the company’s rapid growth to a number of factors. They include creating more awareness around its wraps, salads, and acai bowls and a new Cleanse Club subscription launched in January which allows guests to purchase juice cleanses, pick them up each month on a certain day, to help establish a consistent routine.

“Franchising is a particularly interesting business model,” Eckles said. “Your franchisees are dependent on you while at the same time you’re dependent on them. It really is a team effort,” Elkes said.

Explore Franchising Opportunities

The hours will be long and the initial investment may be substantial, but there are certainly many rewards of owning and operating a food and beverage franchise. If you’re interested in pursuing franchise ownership, this year’s Top 30 Food Franchises is a great place to start.