Early Risers: Top Breakfast Franchise

Winner: Broken Yolk Cafe

Finalists: Black Bear Diner and Famous Toastery

Broken Yolk Cafe isn’t on the highest upward trajectory statistically. From 2021 to 2023, its unit count went from 34 to 37, and average unit sales went from $2.19 million to $2.65 million.

Its franchisees, however, said the brand has been exceptional in continuing to build a strong and stable network of operators, resulting in a loyal, sustainable customer base. Multiple Broken Yolk owners said the solid foundation is because of a comprehensive level of support.

“Having them as a resource for everything from A to Z is a huge benefit,” said Nick Harris, the owner of six cafes in Arizona and California. “You’re not left on an island, so to speak. It’s still a positive for me to this day.”

For Harris, it’s been especially helpful as he entered the franchise world without restaurant experience. With a degree in finance, Harris started a 20-year career in real estate and fiscal services, and he is still involved in that work today. Along that journey, he was looking for other businesses options and franchising piqued his interest.

“I had the opportunity to meet the Broken Yolk team a few years ago and I became convinced because of the level of support,” Harris said. “I was able to understand the foundation this was built on, that it was a franchise model built for people to have success.”

Those with industry experience have been similarly impressed with the brand’s franchisee support. Jennifer O’Neal and her husband, Jim, operate a successful Broken Yolk Cafe in Mesa, Arizona, and the former’s background in restaurants goes back to 1997.

Jennifer O’Neal began as a server before getting into management, and eventually became a general manager for another Broken Yolk operation. Like Harris, she was able to speak directly with Broken Yolk’s leadership and learned about a chance to open a new restaurant.

“When we opened, they sent a full team of trainers to assist us,” O’Neal said. “So, we had that to get going and we still have a lot of resources we can reach out to if needed.”

“The reason people do franchising is that they have the framework and support in place,” Harris said. “No franchise is built the same way or has the same level of support. What enamored me was the level of support, communication and the quality of people at the corporate level. They offer what’s needed for someone interested in the opportunity to run with it, learn and grow.”

In addition to the brand’s support, franchisees noted the company’s push for innovation as another positive. Jim O’Neal said the rewards app the brand rolled out has been helpful in improving customer retention.

“We pay our servers one dollar per sign-up they get on the app and in that way, they do advertising for us,” he said. “We really work to get locals and regulars to be here. We do get a lot of people in spring who come out here to golf and we also get traffic from winter visitors. But the app has been the most helpful in generating new customers that keep coming back.”

Harris, meanwhile, highlighted the brand’s commitment to avoiding complacency, and said, “they’re able to stay up with the times. They’ve managed to stay fresh, getting in front of new demographics and younger crowds with their menu and marketing.”

While he doesn’t have an active development agreement, Harris said he intends to continue opening more restaurants.

Broken Yolk began franchising in 2010, but its origin goes back several more decades, to 1979. In recent years, the brand has been able to grow systemwide sales as it finished 2023 at $98 million, up from $75 million in 2021. That sales increase came as the brand added just three new units, meaning individual restaurants were driving the boost.

It offers an informative Item 19 in its franchise disclosure document, including average yearly sales and the percentage of dollars from gross sales toward labor costs and food expenses. Harris said his financial performance has been in line with expectations from the document.

Food expenses have become a recent notable challenge for franchisees, particularly with eggs.

“Right now, there’s a big bird flu issue and eggs are very expensive, as are avocados,” Jennifer O’Neal said. “We’re hoping to see those prices come down to help with that. We’re also trying to build up new business and our catering operation is going very strong.”

Despite the difficulties, though, O’Neal said it’s a successful brand to franchise with and offers owners a nice work-life balance.

“Having been a general manager for one of the stores, I was able to see all the numbers of an operation,” she said. “They were very attractive then and the stores continue to do well now. We’ve also liked the hours, having it all being during the day. You have the evenings off and it means the quality of life is there.”

Broken Yolk Cafe

Positives

• A great deal of support comes from the franchisor, including a training, technological resources and strategic site development assistance.
• The brand offers attractive hours for owners with its morning and afternoon operations. Franchisees noted the improved quality of life.

Use Caution

• Inventory costs can fluctuate. High egg prices, driven by an uptick in bird flu cases, has become a recent challenge for owners. Unit growth, meanwhile, has been sluggish.

Founded in 1979, Broken Yolk Cafe is a breakfast, brunch and lunch concept with 40 locations. The brand’s initial investment ranges from $553,950 to $1.94 million. In 2023, its average unit volume hit $2.65 million