Can I Scale a Togo’s Franchise?
Business planning, coaching help franchisees plan for expansion
Togo’s business systems and franchisee support are designed to help franchisees grow their businesses by finding great locations and achieving operational excellence within their restaurants. Once franchisees have mastered their first restaurant, they often set their sights on multiple locations.
Jeff Cohen is a great example. He and his brother Tim opened their first location in 2005. Today, Jeff, Tim, and their brother Frank operate 16 restaurants and plan to open several more. Jeff handles operations, Tim handles acquisitions, and Frank does the accounting. Expanding requires a lot of effort and discipline, Jeff says.
“With a new restaurant you’re always acclimating while trying to keep the other ones from falling apart,” he says. “Togo’s is a consistent brand. If you do things wisely you’ll do well.”
The Cohens plowed their money back into the business to fuel their expansion.
“The goal for the business is to grow. I’m looking for long-term financial security,” Jeff says. “The goal is to have long-term wealth buildup.”
Sandwich franchise opportunity: built for expansion
We’ve designed the operation of a Togo’s to be scalable; an operator who opens a second, third, or fourth location can spread overhead costs across several restaurants. This increases the net profit margin and can stabilize performance, because overall performance is not tied to any single location.
Although loyal guests will drive out of their way to visit a Togo’s, a typical trade area is 1-2 miles. Adding locations allows you to reach more guests and thus increase market share. Proximity also means convenience, so more locations equals more frequent visits and more top-of-mind brand awareness. Sandwiches are a fast and easy meal option, and the more Togo’s there are in a market, the faster you can grow as each location builds word-of-mouth.
Business plans designed to help you meet your goals
During the first quarter of every year, Togo’s support team meets with franchisees to discuss their goals for the year and for the future, and we work with them to design a business plan to help them achieve those goals.
For someone who wants to open several restaurants, we may talk about developing a management structure to oversee multiple locations, how to structure expenses to adjust for additional management overhead, and how to maintain excellence when you cannot be in each restaurant every day. For an ambitious new franchisee who wants to open several locations in their first few years, we’ll help design a roadmap of what operations should look like on Day One, and how they will need to evolve as they grow to add that second, third, or 10th location.
For single-unit franchisees, growth often means growing income. We work with them to find ways to raise top-line revenue through marketing and building partnerships in the community, and to improve the bottom line — holding down expenses, providing on-site management, reducing your labor needs, and improving training and operations to not only reduce costs, but to also boost morale and reduce turnover.
Dave Quinn, who owns a Togo’s in Beaverton, Oregon, says he has been impressed by Togo’s support. One example:
“There’s a conference call on Monday about how to increase our profitability. A lot of companies don’t bother to focus on that,” he says. He also enjoys helpful visits from a local marketing manager and a franchise business coach. “They’re always there if I need them, and I can always email them or pick up the phone and get an answer to any question I may have.”