Franchise News: Workout Anytime, Foundry Group and Bankruptcies
- Krispy Kreme refranchises 23 western U.S. units to multi-brand franchisee WKS.
- Under a new Workout Anytime program, franchise leaders encourage single- and multi-unit owners to consider converting existing gyms to the brand.
- The Foundry Group invests in New York Butcher Shoppe.
- One Applebee’s franchisee and one Firehouse Subs franchisee declare bankruptcy.
Krispy Kreme concluded a sweeping $90 million agreement with joint venture partner WKS Restaurant Group in late March. The deal is part of Krispy Kreme’s goal of shedding company-owned stores.
WKS acquired 23 company-owned Krispy Kreme units in California and Hawaii, bringing its franchise unit total to 73, RestaurantDive.com reported. WKS also has about 1,000 fresh delivery sites such as Kroger, Target and Walmart.
Under the deal, WKS will develop additional stores and expand Krispy Kreme’s fresh delivery system, the online article said. WKS also operates Wendy’s, Denny’s and El Pollo Loco restaurants across 19 states.
Workout Anytime Pushes Growth Through Gym Conversions
Workout Anytime has started a program that enables its franchisees to scale faster by acquiring existing gyms and converting them to its brand. According to a Workout Anytime news release, the conversion initiative expedites openings, which translates to quicker revenue generation while lowering franchisees’ upfront investment when compared to the cost of a ground-up build.
The 24/7 fitness concept encourages its single- and multi-unit franchisees to consider scaling through the conversion program. Atlanta-based Workout Anytime has nearly 200 U.S. locations that provide a high-value customer experience.
Partners: New York Butcher Shoppe and Foundry Group
New York Butcher Shoppe, known for its Certified Angus Beef, curated wines and chef-crafted meals, on Thursday, April 2, announced that an investment by The Foundry Group will support the franchise’s nationwide expansion. The Foundry Group already has begun enhancing the brand’s operations, training, marketing, supply chain and development.
“We were intentional in selecting a partner that brings more than capital,” franchise CEO Jim Tinal said in an article on Franchising.com. “The Foundry Group shares our vision and has the operational expertise to help us scale in a thoughtful, disciplined way… for sustained, long-term growth.”
New York Butcher Shoppe was founded in 1999 in Mount Pleasant, S.C., and is on track to have about 50 locations by year-end. The Foundry Group is a restaurant development, investment and management company focused on scaling hospitality brands.
Applebee’s, Firehouse Subs Franchisee Bankruptcies
Multi-unit franchisees with two high-profile restaurant franchises have filed for bankruptcy.
Neighborhood Restaurant Partners Florida, a struggling 53-unit Applebee’s franchisee, will sell its restaurants to Applebee’s corporate. The process should be completed by mid-May. Inflation hurt operating costs and depressed customer traffic, according to USA Today and RestaurantDive.com.
CN Holdings, an 11-unit Firehouse Subs franchisee operating in Utah and Idaho, has filed for bankruptcy with the intention of restructuring and eliminating low-performing units. Court filings stated that CN Holdings was hurt by an overly ambitious 2023 development agreement, QSR Magazine reported.
Quick Takes from the Fast-Food Arena
Two major players in the world of quick-service restaurants made headlines as follows:
- Burger King wants to hire 60,000 entry-level to managerial employees in the United States, it announced Thursday, April 2. A Burger King news release said the global restaurant brand needs the influx of workers because of the success of its turnaround campaign. “We’ve done the important work of strengthening our operations, modernizing our restaurants and listening to our guests, and it’s paying off,” Tom Curtis, president of Burger King U.S. & Canada, said in the news release. “Now we need great people to help us keep that momentum going.”
- Taco Bell fans have spoken, choosing the India-cuisine-influenced Butter Chicken Taco for a place on the fast-food purveyor’s U.S. menu, Nation’s Restaurant News reported Friday, April 3. The crisp, chalupa-shell taco contains roasted chicken simmered in a tomato-cream sauce. The Butter Chicken Taco received 65% of Rewards members’ votes, one of Taco Bell’s many polls designed to assess diners’ menu preferences.
