Sales Performance: Restaurant Franchises

Total category sales of $456.6 billion

Bakery, Café and Deli Franchises

Segment sales of $10.9 billion

After sizable growth in total sales in 2023, when the category was up 6.1 percent, things swung the other way in 2024. Total sales were down 2.8 percent, to $10.9 billion. Panera Bread, the behemoth in the category, saw sales decline an estimated 6.3 percent, dropping $400 million to $5.9 billion even as it added 43 net new units. With the launch this year of a new brand platform, “It Just Meals Good,” aimed at positioning the brand as an anytime eatery, Panera is working to turn things around. Paul Carbone was appointed CEO in March, the third chief executive in less than two years.

Paris Baguette was the top percentage sales grower, as it increased sales by 4.4 percent, to $2.5 billion. Owned by South Korean conglomerate SPC Group, most of Paris Baguette’s 3,786 stores are outside the U.S., but it’s growing a domestic foothold and earlier this year opened its 250th North American location. Darren Tipton, CEO for the Americas, said the brand is successfully establishing itself as the neighborhood bakery. “Those old-school bakeries have greatly diminished and you find in the category now there’s a lot of eateries. We really are a true bakery and I think we continue to innovate. You see that with our limited-time offerings, monthly cake holidays … it’s really been received incredibly well,” said Tipton, who noted in the U.S. the brand is going on 19 consecutive quarters of positive comp sales and 18 straight quarters of positive comp traffic. “That’s a tremendous feat.”

At Newk’s Eatery, CEO Frank Paci said the company is benefiting from the acquisition by FSC Franchise Co. in November 2023. It’s driving down the cost of goods for franchisees, has self-order kiosks in most locations and is using sales forecasting tools to help operators save on labor. Still, sales fell 2.4 percent last year.

—Laura Michaels

Better Burger Franchises

Segment sales of $3.7 billion

Consumers’ appetite for more premium burgers increased in 2024 despite some of the better-known brands in the category seeing significant sales and unit dips. No. 35 Five Guys carried the better burger segment with a 4.8 percent sales increase and 4 percent unit growth. The Alexandria, Virginia-based company that was founded in 1986 by the Murrell family added 75 locations to reach 1,938 units in 2024. It was the only chain in the category to post gains, however, with No. 271 Fatburger and No. 276 BurgerFi both posting negative sales and unit growth.

Despite the move to co-brand units by pairing with Buffalo’s Express and putting the brand into 40 Round Table Pizzas, Fatburger saw sales fall by nearly 5 percent and its unit count drop by 6.3 percent after shedding 12 restaurants. Its menu prices, though, continue to rise. The online pickup menu in various markets listed prices of $8.49 for an original Fatburger and $15.27 for an original Fatburger meal. An XXL double patty Fatburger meal goes for $19.76. The Los Angeles-based chain is part of the FAT Brands restaurant portfolio that includes Johnny Rockets, Fazoli’s and others.

BurgerFi saw sales drop by 13 percent and its unit count fall by 18.6 percent with 19 fewer locations after filing for Chapter 11 bankruptcy protection in 2024 and its subsequent asset sale to Trew Capital. Led by founder Jeff Crivello, Trew bought BurgerFi International, the former owner of Anthony’s Coal Fired Pizza and BurgerFi, out of bankruptcy last October in a credit bid of $54 million ($44 million for the Anthony’s assets, $10 million for BurgerFi assets). Trew later sold 51-unit Anthony’s to Burger King franchisee Kuljeet Singh. BFI went public in December 2020 by merging with Opes Acquisition Corp., a special purpose acquisition company. Less than four years later, in September 2024, BFI filed for bankruptcy.

—Joe Halpern

Breakfast-Focused Franchises

Segement sales of $8.3 billion

In a country that’s always on the go, sit-down breakfast chains are taking a hit. Total sales for the category declined by 0.5 percent in 2024, to $8.3 billion. At Ascent Hospitality Management, which owns Perkins and Huddle House, sales were likewise down overall. Huddle House, which saw a 4 percent sales dip, nonetheless dove into nontraditional real estate options like universities and airports to expand its reach. Last year was its biggest year for new franchise commitments, said Ascent CEO James O’Reilly. WE Food Enterprises signed a deal with Huddle House last fall to open 20 units in Texas. Perkins, meanwhile, debuted its Griddle & Go concept in 2024 to adapt to a younger customer base. Even though sales were down 2.9 percent, Perkins had a record year for franchise agreement signings, O’Reilly said. Perkins “went through a lot of evolution,” he noted, and leaders at Ascent “are huge believers” in family dining. Elsewhere, sales at Denny’s fell 1.2 percent, to $2.9 billion. Keke’s, which Denny’s bought in 2022, did $111 million in sales, a 9.2 percent increase.

—Emilee Wentland

Casual Dining Franchises

Segment sales of $5.4 billion

John Crawford, CEO of The Melting Pot, didn’t downplay the struggles in the restaurant industry, which have put more pressure on his brand and other casual dining concepts. “We’re doing a lot of things to try and overcome that, but the consumer is sending a message right now,” he said. “So, one of the things we’ve been trying to do is create different offerings for our guests, while still delivering the perfect night out.” The brand’s sales fell 7.8 percent last year. It’s a similar story at Johnny Rockets, with sales down 6 percent. But Jake Berchtold, chief operating officer, said menu optimization showed promising results. “It’s a focus on our top-performing menu items and most profitable menu items, because that results in more operational efficiencies and reduced turnover, because you’re eliminating some of the extra work, resulting in a better bottom line and making it easier for employees to execute their jobs,” he said. Applebee’s, the largest brand in the segment at $4.3 billion, saw sales fall by 5.5 percent. Steak ‘n Shake was the lone bright spot, up 1.4 percent. Red Robin and Chili’s, both with small percentages of franchise units, didn’t submit their financials for inclusion in this ranking. In its 2024 earnings report, Red Robin said total revenue was $1.25 billion last year, down $54.5 million. Chili’s, meanwhile, did an estimated $4.3 billion, down from $4.5 billion in 2023.

—Matthew Liedke

Chicken Restaurant Franchises

Segment sales of $79.9

Google “American food” and you’ll be flooded with pictures of cheeseburgers and hot dogs. But lately it’s chicken that’s taking over menus in the United States. Whether it’s wings, tenders or even chicken salad, chicken-focused brands are experiencing significant growth. The category pulled in nearly $80 billion in sales last year, up 6 percent from 2023. Just one brand on the list, Wings & Rings, reported a sales decline. A huge chunk of the $80 billion came from KFC as the Yum Brands-owned company finished last year with $34.5 billion in systemwide sales. That’s just a 1.7 percent increase, even as the brand added more than 2,000 units. Chick-fil-A, still a darling in the category, saw its sales growth moderate to an estimated 5.3 percent after a 15 percent jump the prior year. Dave’s Hot Chicken is on a major expansion kick and is the top percentage sales gainer. The company grew sales by $230 million in 2024, or 56.6 percent, and added 79 net new locations. That expansion is set to continue after Roark Capital bought the chain in June, at which point it had 315 stores—already a jump of more than 50 units since year-end 2024. New on the list this year is No. 280 Huey Magoo’s, which increased sales by 24.3 percent, to $137 million. CEO Andy Howard said the performance is driven by serving “the greatest tenders ever created on this Earth.” Many of Huey Magoo’s executives came over from another chicken chain, Wingstop, including Howard, who was its chief marketing officer for nine years. Huey Magoo’s franchisees are typically experienced multi-brand operators who can take their pick of store formats, including inline, drive-thru and second-generation real estate or nontraditional locations in casinos, college campuses or stadiums, Howard said. “The chicken category is probably the hottest thing going right now,” he said. Customers are demanding boneless chicken and there is strong competition in that sector. “There’s still room for us. Huey Magoo’s is standing tall,” Howard said. At Slim Chickens, another tender-focused brand, Chief Strategy and International Officer Sam Rothschild said brand growth comes from its marketing initiatives. “We’re very conscientious to the fact of what’s going on with the consumer,” Rothschild said. “There’s always this talk these days about where are you at on the whole value equation. For me, it’s always been quality service over pricing equals value, because it’s about the entire experience in the restaurant. So we look at that.” The Arkansas-based brand boosted its systemwide sales by 23.4 percent, to $570 million, and added 37 restaurants to its unit count.

—Emilee Wentland

Mexican Restaurant Franchises

Segment sales of $22.2 billion

Of the major restaurant categories in the Top 400, Mexican saw the highest percentage growth at 6.7 percent. Total sales were $22.2 billion, and the biggest percentage sales grower was Bubbakoo’s Burritos at 11.6 percent. Taco Bell, meanwhile, tacked on $1.3 billion in sales, good for an 8 percent increase to $17.2 billion as it continues its dominance. On the flip side, sales for Taco John’s slid 3.4 percent, to $415 million, and its unit count declined 6.6 percent, to 340. At Qdoba, CEO John Cywinski said the fresh preparation of ingredients and ability to customize bowls, burritos and more continues to attract customers. Sales were up 10.5 percent in 2024, to $1.2 billion, and with a heavy emphasis on franchise development the brand’s unit count went up by 49, to 796. “We are drawing lots of interest from large, proven, multi-concept franchisees in both casual dining and QSR, and the reason for that is they are in very difficult, challenged, mature, over-developed categories,” Cywinski said. “They’re all slugging it out for market share.” With average sales nearing $1.7 million and an average development cost of about $800,000, Qdoba stands out for its return-on-investment potential, he continued. It’s had three years of traffic growth, “and 60 percent of the country has yet to discover us.”

—Laura Michaels

Off-Premises Pizza Franchises

Segment sales of $40 billion

2024 proved to be a tough year for pizza across the category. Delivery-focused pizza concepts saw overall sales of $40 billion, a mere 0.9 percent increase from the year prior. No. 7 Domino’s generated nearly half of the segment’s sales, finishing the year with $19.1 billion, a 4.6 percent increase from 2023. Domino’s and Marco’s Pizza, the latter up 0.5 percent to $1.1 billion, were the only brands in the subcategory to increase sales. Marco’s, down four spots from last year to No. 74, netted 21 new units. Gerardo Flores, chief development officer at Marco’s, said the brand is taking a disciplined approach to fundamentals: “Development 101.” “With development, things just don’t pivot on a dime,” Flores said. “It takes a while to implement those strategies and changes and show the results of those.” As consumers continue gravitating toward third-party apps like Uber Eats and Grubhub, Flores said the brand is responding to people prioritizing convenience. “Our consumer right now is looking for convenience, quality and value all wrapped in one … and we take that information and develop how we’re designing our stores,” he said. As a result, Marco’s is focusing less on dine-in seating as it sees more consumers using third-party apps or carryout services than eating in store. Ledo Pizza, at No. 279, saw sales decrease by 1.4 percent, to $138 million, and netted just one unit. “The unit growth was a little softer than normal, and that is corporate-driven,” said Jamie Beall, Ledo Pizza president and chief operating officer. “We don’t focus on new stores unless the existing franchisee base is healthy and happy and moving in the right direction. We will intentionally pull back on new store growth to double down on the existing stores and to help out any of the lower-hanging units that we can double down and reinvest in.”

—Alyssa Huglen

QSR Burgers

Segment sales of $202.1 billion

With the exception of a few midsized brands that saw sales increases, 2024 was a tough year overall for burger franchises. While No. 1 McDonald’s, No. 4 Burger King and No. 11 Wendy’s experienced notable slowdowns, Culver’s, Whataburger and Freddy’s Frozen Custard & Steakburgers turned in strong results. Culver’s led the gainers with a 12.1 percent sales increase to reach $3.7 billion in revenue. Rich Modjeski, chief operating officer, credited the brand’s longtime franchisees for continuing to execute at the unit level. “The other thing that has helped us a lot was we’ve gotten a lot sharper with technology and reducing the friction for our customers,” said Modjeski. Culver’s last year rebuilt its website for online ordering, rolled out third-party delivery across the system and later this year will launch its loyalty program. Whataburger, owned by BDT Capital Partners, increased sales by $353 million, and Freddy’s, which Thompson Street Capital Partners sold this year to Rhône Group, increased sales by $63 million to set the pace for burger franchises. Whataburger also led the category in unit growth with an 8.8 percent increase after adding 88 net new locations. “Over the course of the last five years we’ve doubled the size of our franchisees. We have 11 legacy partners who have grown with us over the years and they have decades of wisdom with the brand. We also brought in 11 newer franchisee partners that are bringing in fresh ideas, and so that balance is keeping us sharp and growing,” Whataburger CEO Debbie Stroud said. She said the company, which celebrated its 75th birthday August 8, entered North Carolina in 2024 and is now in 17 states. It plans to extend further in central Texas and Tampa, Florida, next year. Stroud said the brand has been focused on menu and digital optimization over the past year, and enhancing the curbside pickup experience for loyalty customers. While Freddy’s was unable to duplicate its notable 2023 success, when it posted 14.5 percent sales growth, it did turn in another positive performance in 2024 with a 6.8 percent sales increase.

—Joe Halpern

Sit-Down Pizza Franchises

Segment sales of $3.8 billion

Across the subcategory, sit-down pizza concepts didn’t fare much better than their off-premises counterparts. The segment wrapped up last year with $3.8 billion in total sales, a 0.7 percent decrease from 2023. Unit growth followed this trajectory, down 0.4 percent. But some brands delivered encouraging numbers on an individual level, like No. 295 Pizza Inn, up 19 spots on this year’s list. The Dallas-based concept, owned by parent company Rave Restaurant Group, increased sales by 7.8 percent, to $124 million. Rave CEO Brandon Solano partially attributed this to rolling out a new online ordering platform through Olo. Though only about a tenth of Pizza Inn’s business, online sales increased by 75 percent as a result of the rollout. “A big boost for us,” Solano said. “We’re still focused on dine-in, but we’re opportunistic about our carryout and third-party delivery services as well.” Solano sees struggles across the board for pizza and believes emphasizing value can ease concepts through the rough patch. “Consumers really abandoning the restaurant category in droves has been very difficult,” he said. “You’ve seen a lot of negative comp sales from pizza in particular.” Mountain Mike’s Pizza, clocking in at No. 168, was the only sit-down pizza brand in the black for both sales and unit growth. Sales were up 4.9 percent, to $361 million, and net unit count went up by 20, a 7.2 percent increase. Mountain Mike’s CEO Jim Metevier credited the franchisees for a promising 2024. “I think we bear a lot of the fruit because we have that authentic connection at the restaurant level in the communities … and I think that helps us to get through a lot of the challenges every brand faces.” Becoming community pillars has helped the brand build credibility with consumers. “There’s been crazy headwinds in the restaurant space,” Metevier said, “and I think you can’t just throw a promotion out there or a price point and just expect people to line up.”

—Alyssa Huglen

Snacks & Treats Franchises

Segment sales of $39.5 billion

Though a slowdown from 2023’s 8.8 percent uptick, the snacks subcategory generated overall sales of $27 billion last year, up 3.8 percent. No. 12 Dunkin’ reported systemwide sales of $13.8 billion, a 3.5 percent increase. The company opened 306 net new stores last year. Dunkin’s star-studded ad campaigns helped drive sales, President Scott Murphy said. “The DunKings” Super Bowl ad, which starred actor Ben Affleck, kicked off a slew of limited-time offers and later the brand launched a value menu. “We understand the importance of investing in product quality and consistency, and so do our franchisee partners,” Murphy said. At GoTo Foods-owned Auntie Anne’s, streetside units generated strong sales for the traditionally mall-based concept. President of Brands Mike Freeman said the company is working to make its brands more accessible. “Making our brands available through digital channels and expansion of new capabilities within those legacy systems is something we’re going to continue to explore going forward.” Auntie Anne’s did $932 million in sales. It was a split year for sales growth in the treats subcategory as nearly half of the brands reported declines in 2024. Yogen Fruz had the largest percentage decrease, 6.1 percent, as it ended the year with $185 million in system sales from 462 units, 30 fewer than in 2023. Sales at Baskin-Robbins fell 2.6 percent to $2.2 billion. The company opened its 1,000th store last September in India, which brand head Jerid Grandinetti said is a key growth market. New last year were the ice cream brand’s loyalty program, mobile ordering option and its flavor of the month offerings. “Choosing ice cream is often based on the occasion, so it’s important that we support our franchisees by increasing foot traffic to their stores,” Grandinetti said. Baskin-Robbins is able to weather tough economic times because customers still want to celebrate with ice cream. “During tough times, finding moments of joy becomes even more important,” he said. “We have the chance to create those moments for our guests by offering unique and innovative flavors, great value and delicious products.” Ohio-based Handel’s Ice Cream was the segment’s top percentage grower, with sales up a cool 37.6 percent, to $146 million. CEO Jennifer Schuler credited the brand’s commitment to quality—and big scoops. “We’re really conscientious about our price points and our serving size, to make sure that it always feels like that little, simple, affordable indulgence that you can have in your life,” she said. At Cinnabon, with a slight 0.6 percent decline to $494 million, modernization was a key focus. “2024 gave us an opportunity to lay some really critical groundwork for keeping these brands culturally relevant and providing more menu innovation,” said Mike Freeman, president of brands at Cinnabon parent GoTo Foods. Loyalty programs bring in guest reviews that the brands can assess. “They want to know that a brand is listening, to listen and respond effectively and accordingly. And I think all of our brands do that really, really well,” Freeman said.

—Emilee Wentland

Sandwich Franchises

Segment sales of $26.8 billion

There’s a “haves” and “have-nots” feel to the sandwich category, as some brands such as Cheba Hut and Jersey Mike’s generated double-digit growth, while others were on the declining end of the sales spectrum. Sales for the category were up just 1 percent, to $26.8 billion. Cheba Hut’s 23 percent sales growth led all brands. Jersey Mike’s, the second-largest player behind Subway, was up 11.6 percent, to $3.7 billion, thanks in large part to the addition of 316 net new units. Subway was back in the red, with global systemwide sales down an estimated 1.4 percent, to $17 billion in 2024. (That comes after a 7.3 increase in 2023.) Its global unit count likewise took a hit, with a net loss of 631 stores. At Cheba Hut, there’s no substitute to executing the brand promise of an “awesome product and authentic hospitality,” said Chief Relationship Officer Seth Larsen. “I think the number one marketing tool that any restaurant can have is truly operational excellence and delivering on the promise,” he said. Store traffic jumped by 15 percent, while the average check was $21. Cheba Hut underwent a sizable digital transformation last year to install digital menu boards and a new point-of-sale system at its 75 stores, while digital orders accounted for one-third of sales. At Firehouse Subs, Senior Director of Franchising Kelly Crummer said culinary innovation in the form of Thanksgiving Turkey and French dip subs “drove trial and repeat buyers, but also just reinforced our hot sub leadership.” Upfront cash incentive programs were extended to new franchisees last year, noted Crummer, and helped spur development by helping alleviate the barrier to entry. Firehouse sales were up 3.3 percent, to $1.2 billion.

—Laura Michaels