Capriotti’s Wins Franchise Times Zor Award as Top Brand to Buy

Winner: Capriotti’s

Finalists: Cousins Subs and Firehouse Subs

Capriotti’s Sandwich Shop franchisee Brenda Torres’ two restaurants had sales of $1.2 million and nearly $1 million last year, and the Los Angeles operator said she could not be happier with her ownership experience. Beyond financial performance, she said the Capriotti’s team has made her feel welcome in her three years as a franchisee.

“Capriotti’s makes us feel like family,” she said about the sandwich chain and its leaders. “I even tell corporate: any franchisee or any future franchisee, they can come to our stores. I want them to feel like I feel myself. I want them to feel like you can do it. It’s fun.”

After the success of her first two units, Torres has a third one on the way, in a promising location off an interstate exit near a Six Flags theme park. “I’m super excited for this one,” she said.

Franchise Times selected Capriotti’s as a Zor Awards winner and noted that in addition to consistent unit growth, the brand’s average unit volume hit $913,683 in 2021, with sales ranging from $415,662 to $1.77 million for stores open during all of 2021. Its Item 19 provides expense information for 11 company stores, factoring in royalty and marketing fees, which helps provide a clearer financial picture for prospective owners.

The Las Vegas-based brand sells cheesesteaks along with vegetarian, turkey, wagyu beef and classic subs. The Bobbie—a Thanksgiving leftovers-style sub with turkey, cranberry sauce, stuffing and mayo—is a fan favorite. Another bestseller is the Capastrami, with hot pastrami, Swiss cheese, coleslaw and dressing.

It was the product that first attracted Torres. “It’s like cooking at home. Nobody else makes it like us,” she said. She always wanted to own her own business, and has experience working in restaurants. Her husband introduced her to the brand on a consumer level, and she fell in love with it. “I feel passion for our recipes,” she said.

In addition to Zor Awards finalists Cousins Subs and Firehouse Subs, Capriotti’s sits in a sandwich segment with no shortage of competitors, including a giant in Subway, plus Jersey Mike’s, Jimmy John’s and several smaller players.

Torres attributes much of her success to connecting with her employees. “I go to my stores and work shoulder to shoulder with them two times a week,” she said. She also holds daily 10-minute meetings to establish priorities with the team.

The communication from corporate, meanwhile, is excellent, Torres said. She did have to contend with some construction-related challenges as she worked to open her stores, something prospective franchisees should prepare for as operators everywhere face increased materials costs and supply delays. On the training front, Torres spent a month in Las Vegas for an extensive on-site training program to learn how to work in and operate a store.

While Torres was most recently a stay-at-home mom before owning a franchise, fellow California franchisee Javier Gomez has been working in quick-service restaurants since his high school days. He dove into franchising about a decade ago, when he bought out his partner and became the owner of 11 Checkers and Rally’s stores.

Gomez wanted to add another brand into his portfolio, and he learned about Capriotti’s at a convention, where he tried the food and met some of the team. “It’s great, great food, and we didn’t have a sandwich out here that’s comparable to that quality,” Gomez said.

Now, he has four units open with another on the way. His average unit volume hovers in the $800,000s.

His first store, which opened in 2021 in Fresno, California, faced some pandemic-related delays. During the opening process, he said he appreciated the support from the Capriotti’s team and that strong team is part of what initially drew him to the franchise. “That’s what kind of caught my attention,” Gomez said. “They had all their right field departments and personnel ready to grow the brand, so I was impressed by that.”

The company is quick to resolve any issues that have come up, he said. As for potential improvements, Gomez said he’d like to see more marketing fine-tuned to the local level. “They’re looking more on a national level,” he said. “But, if we could get more support on the local side … that would be a very grateful experience for us.”

Gomez said franchisees should be prepared for extra expenses during the opening process that, early on, he was unsure about. The Capriotti’s team was helpful in its explanations, but at times he felt like “an open checkbook for them, because they want you to spend on this, do this remodel, or get a new item of this,” Gomez said.

Long term, however, “I understand why they’re doing it,” he continued. “… At the end of the day, when you open up your restaurant, after the frustration of, ‘Why should I buy a new thing when this was good?’ Or, ‘Why should I put it this way? I could save money like this.’ When you first open, you say, ‘OK, great. I know why they’re doing that, and I’m glad they convinced me to do that.’”

Capriotti’s Sandwich Shop

Positives

• Capriotti’s provides ample support during the construction stages and beyond, franchisees say.
• AUVs hit $913,683 in 2021, and have consistently increased since 2019.

Use Caution

• With a nationwide growth focus, marketing efforts aren’t yet tailored to the local level, one franchisee says. Opening costs and other expenses can be a surprise to operators, so prospective franchisees should make sure they have a clear understanding of the investment.

Founded in 1976 in Delaware, Capriotti’s started franchising in 1991. The brand, now based in Las Vegas, has more than 100 stores in 27 states serving a variety of cheesesteaks and sub sandwiches. Capriotti’s acquired Wing Zone in late 2020 and franchises the wing chain as an affiliate brand.