Fazoli’s Kicks Off International Growth with 25-Unit Canadian Development Deal
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The expansion of Fazoli's into the Canadian market represents a strategic move by FAT Brands to diversify its geographic footprint and tap into new revenue streams. The choice of Alberta as the entry point could be based on demographic studies indicating a potential demand for Italian QSR (Quick Service Restaurant) offerings. The gradual rollout over ten years suggests a cautious approach to international growth, allowing for market adaptation and risk mitigation.
While the QSR segment is known for its competitive landscape, the success of Fazoli's in the U.S. may not directly translate to success in Canada. Consumer preferences, local competition and regulatory environments differ significantly. The partnership with an experienced operator from within FAT Brands' network could, however, provide valuable insights into the Canadian market and foster a smoother transition.
Investors will likely monitor the capital expenditures associated with this international expansion and the impact on FAT Brands' financial health. The long-term investment into 25 locations indicates a substantial capital commitment, but also suggests confidence in the expected ROI (Return on Investment). It's important to evaluate the incremental revenue against the costs of establishing and operating the new locations, including potential franchise fees, marketing expenses and operational costs.
Additionally, the performance of the first few units opened in 2025 will be a key indicator of the brand's resonance with Canadian consumers. The financial results of these initial locations will influence investor sentiment and could affect FAT Brands' stock valuation.
Fazoli's will need to consider cultural nuances and local tastes to ensure the brand's success in Canada. This could involve menu adaptations to include locally sourced ingredients or the introduction of unique menu items catering to Canadian preferences. The ability to adapt while maintaining the core aspects of the brand that have contributed to its success in the U.S. will be a delicate balance that could significantly impact the chain's acceptance by Canadian consumers.
Understanding the cultural context is vital for QSRs entering new markets. It's not just about exporting a business model; it's about integrating into the local dining landscape. Fazoli's approach to this will be closely watched by both industry observers and potential franchisees considering similar expansions.
America’s Favorite QSR Italian Chain Heads North
LOS ANGELES, April 03, 2024 (GLOBE NEWSWIRE) -- FAT (Fresh. Authentic. Tasty.) Brands Inc. parent company of Fazoli’s, and 17 other restaurant concepts, announces a new development agreement in partnership with franchisee Briwin Restaurants Inc. to bring 25 Fazoli’s locations to Canada over the next ten years with the first units expected to open in 2025 in the province of Alberta.
“Fazoli’s has enjoyed tremendous success expanding domestically, operating in 26 states with over 200 locations, and is now well positioned to make its international debut,” said Taylor Wiederhorn, Chief Development Officer of FAT Brands. “At FAT Brands, we have a strong network of international franchisees that span across nearly all our restaurant concepts. We’re excited to have an experienced operator come from within our Fatburger franchise system and commit to launching and developing an additional FAT Brands restaurant concept in Canada. We are confident that expanding in Canada is a natural first step for Fazoli’s in becoming a leading global chain.”
Since 1988, Fazoli's has been committed to serving quality Italian food, fast, fresh, and friendly. From unlimited signature breadsticks to freshly prepared pasta entrees, the chain prides itself on serving high-quality menu offerings, all at an affordable price. For more information on Fazoli’s, visit Fazolis.com.
For more information on Fazoli’s, visit www.fazolis.com.
About FAT (Fresh. Authentic. Tasty.) Brands
FAT Brands (NASDAQ: FAT) is a leading global franchising company that strategically acquires, markets and develops fast casual, casual and polished casual dining restaurant concepts around the world. The Company currently owns 18 restaurant brands: Round Table Pizza®, Fatburger, Marble Slab Creamery, Johnny Rockets, Fazoli’s, Twin Peaks, Great American Cookies, Smokey Bones, Hot Dog on a Stick, Buffalo’s Cafe & Express, Hurricane Grill & Wings, Native Grill & Wings, Pretzelmaker, Elevation Burger, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses, and franchises and owns over 2,300 units worldwide. For more information on FAT Brands, please visit http://www.fatbrands.com.
About Fazoli's: Fast. Fresh. Italian.
Fast. Fresh. Italian. Founded in 1988 in Lexington, Ky., Fazoli's owns and operates nearly 220 restaurants in 27 states, making it the largest QSR Italian chain in America. Fazoli’s prides itself on serving quality Italian food, fast, fresh and friendly. Menu offerings include freshly prepared pasta entrees, sub sandwiches, salads, pizza and desserts – along with its unlimited signature breadsticks. For more information, visit www.Fazolis.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the timing and performance of new store openings and area development agreements. Forward-looking statements reflect expectations of FAT Brands Inc. (“we” or “our”) concerning the future and are subject to significant business, economic and competitive risks, uncertainties and contingencies. These factors are difficult to predict and beyond our control, and could cause our actual results to differ materially from those expressed or implied in such forward-looking statements. We refer you to the documents that we file from time to time with the Securities and Exchange Commission, such as our reports on Form 10-K, Form 10-Q and Form 8-K, for a discussion of these and other factors. We undertake no obligation to update any forward-looking statement to reflect events or circumstances occurring after the date of this press release.
MEDIA CONTACT:
Erin Mandzik, FAT Brands
emandzik@fatbrands.com
860-212-6509
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