Good morning Wolf Pack, Today's "From The Pod" section features my conversation with Greg Flynn, the largest franchise owner in the world.
While I couldn't be busier (or more excited) by the things I'm working on to end the year, I had to stop and reflect on this milestone - landing an interview with the #1 and most sought after franchise owner worldwide.
Just a little over a year ago, I started this account as a side hobby after paying someone on Fiverr to create the french fry logo. Today, it's a brand that collectively has ~115,000 followers/subscribers across all social platforms.
It's become larger than I ever thought it would get, and I want to thank YOU for reading, listening, and / or engaging along the way. Alright enough with the sentimental drama - I've queued up an analysis on 2 great drive-thru coffee brands. Let's dive in š |
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- Founded in 2015, franchising since 2021
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Based in Arkansas; 13 locations open at the start of 2022
- A drive-thru coffee concept serving premium coffee via a fun drive thru experience
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- Royalty: 4.5% - 7%
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Brand Fund: 1%
- Franchise Fee: $45,000
- Initial Investment: $790,800 - $1,582,000 (two Store minimum commitment)
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The below table disclose information on eight 7 Brew stores that were open for the full year 2021
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Drive-thru coffee is heating up, but 7 Brew looks to be a formidable contender. Right off the bat, itās important to note that their investment range assumes a 2 unit commitment, so the investment per individual store is roughly half the range provided.
Considering that, these numbers are very impressive. ~$2.4 million in average revenue at a ~20% EBITDA implies ~$450,000+ drops to the bottom line. Thatās a lot of coffee cash!
7 Brew stores typically are placed on an out-parcel to a shopping center with street exposure in an urban or downtown location with heavy population, preferably with highway exposure or proximity.
The ideal location only needs to be 510 square feet, and just a few employees to manage the drive-thru and prepare beverages Itās rare to see a food & beverage franchise fall into a low labor + high margin concept, but 7 Brew has tweaked the model to fit that description.
Outside of the operating model and financials, 7 Brew has a clear brand strategy, and itās paying off via the growth of their social media presence. An instagram account with nearly 60,000 followers is a great place to be barely 1 year into growing as a franchise.
If youāre interested in 7 Brew check them out below! |
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Founded in 1994, franchising since 1999
- Based in Michigan; 281 locations open at the start of 2022
- A drive-thru coffee shop that also serves hot chocolate, tea, and ācream freezeā smoothies
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Royalty: 6%
- Brand Fund: 3%
- Franchise Fee: $20,000
- Initial Investment: $276,000 - $439,000
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Just like 7 Brew, Biggby is a drive-thru coffee concept that requires minimal square footage, and demonstrates the potential for high margins for a food & beverage concept.
Biggby is more developed than 7 Brew, as they already have 280+ concepts nationwide. But, as demonstrated by big players like Starbucks and Dunkinā, the total addressable market of potential locations can be well into the thousands for coffee concepts.
I would caution a potential franchisee looking at a newer coffee concept to strongly consider their location, as brand recognition can be a major factor in coffee consumers choices (i.e. good luck opening up anything other than a Dunkinā in the New England area!).
Overall however, Biggby boasts impressive numbers for the second year in a row (their average unit sales are roughly the same despite having DOUBLE the amount of locations). Just like 7 Brew this is a formidable competitor in the drive-thru coffee game! |
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Greg Flynn - Flynn Restaurant Group |
From 7 Applebeeās to $4 Billion in Revenue In 1999, Greg Flynn acquired 7 Applebee's. This year, he'll do over $4 billion in revenue. In addition to his Pizza Huts and Applebee's, he owns: - 369 Arby's
- 192 Wendy's
- 130 Panera's
- 283 Taco Bell's
This makes Greg Flynn the largest franchise owner in the world! It's truly astounding what you can accomplish with a long term mindset.
Check out our conversation below! P.S.
Check out my twitter thread if you want the Greg Flynn Story in written format! |
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How To Be The BEST
Click this link for a ~1 minute video compilation of how Mr. Beast thinks about creating content. While the subject is content creation on YouTube - it's his intensity and mindset that can be applied to any venture. If you do, you're bound to be a top performer on a long enough timeline!
How to Find + Research FDD's
FDD's are a necessary evil to buying a franchise. They're long, painful, 200+ page documents, but they contain critical information that will help you make an informed decision on buying a franchise. Check out my guide on how to find and navigate this document
For Founders & Startup Employees
Ever heard of QSBS? If not, and you're considering starting a company, or working at a startup - read this for a tax strategy that can potentially save you millions down the road! |
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THE WOLF OF EVERYTHING ELSE |
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Thatās it for this edition of The Wolf Report. Feel free to reply with any questions or feedback. Thanks and see you next week! ā The Wolf |
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