Fazoli's Is Back and Better Than Ever
 Fazoli's is a brand with a rich history tracing back to 1988. Based in Lexington, Kentucky, Fazoli's was created with the mission of serving America premium quality Italian food, fast, fresh and friendly. But, like many legacy brands, Fazoli's faced a few growing pains including changing consumer tastes and operational challenges. When Carl Howard joined as chief executive officer and president in June 2008, Fazoli's was ready for an update and Howard rolled up his sleeves.
"We are a much stronger brand because of our challenges - it's an exciting time to be at Fazoli's," Howard said. "Many of our franchisees stuck with us and are now reaping the benefits. After considerable diligence and perseverance by our talented franchisees and team members, we are seeing renewed momentum. Fazoli's continues to offer strong unit economics, innovative menu options and personalized franchise support."
Bob Sirkis worked with the original company that developed Fazoli's. As part of the legacy system, he felt Fazoli's had lost its way. He credits a happy accident for keeping his group in the Fazoli's system.
"We were disappointed when a deal to sell our last Fazoli's location fell through and then the Great Recession hit," Sirkis said. "But, it turned out to be the best deal we never made. We remodeled our restaurant, promoted value and enjoyed remarkable success with record sales and profits for years. We offer unbeatable value to the consumer and have no direct fast casual competitors. We're also very on-trend as the industry shifts to off-premise dining - we offer drive thru, carryout and catering opportunities."
After a few tumultuous years, Sirkis is motivated by the renewed excitement for the brand. He opened a second location in Dothan, Alabama earlier this year that is already on pace to set a new record for first month sales.
Allen Peake and his business partner, Mike Chumbly, opened their first Fazoli's restaurant in the mid-90's, but sold in 2000 feeling the brand needed an update.
"The restaurant business is competitive," Peake said. "If you don't have a concept that is fresh and appealing for customers, they will find a new place to eat."
In 2015, Peake and Chumbly were so impressed by the changes Fazoli's had made that they decided to give the brand another shot. The restaurant franchise veterans saw a renewed opportunity that was "right on the money." They now have three new Fazoli's locations with six additional locations in development.
"After we saw major improvements in food quality and the exciting new prototype, we decided it was time to get back in business with Fazoli's," Peake said. "The updated design helps attract a new customer and that's a tremendous value. But, at the end of the day, people come to Fazoli's because we have great food - we've seen a very positive response."
In 2018, America's largest premium QSR Italian chain set records with its number of new openings. In addition to new development, Fazoli's legacy franchisees were first in line for new opportunities.
Legacy franchisee, Rob Hearden, was eager to start building again and credits Howard with putting the brand on the right track by improving food quality and service, along with reducing overall costs. Hearden, who owns four Fazoli's locations, including a new Fazoli's in Paragould, Arkansas, appreciates Howard's commitment to developing a positive working relationship with franchisees that continues today.
"When Carl came on board, it gave us a sense of confidence that he was committed to the brand and in it for the long haul. Both turned out to be true!" Hearden said. "I like the new look and feel of the brand and we continue to see growth in sales and profits. I also believe there is tremendous untapped potential. Fazoli's new image is updated and fresh, the food quality has never been better and unit economics have stayed very consistent. We like being in a market niche and believe, if we continue to grow, execute and build brand awareness, there is no telling where this brand will be in the next 10 years."
To maintain its competitive edge, Fazoli's continues to invest in new technologies to elevate the guest experience. They recently launched a new loyalty program and third-party delivery as an incremental revenue stream. The brand is also focused on its "killer LTO" strategy, creating innovative new menu items and enhancing value offerings to drive traffic. The introduction of Fazoli's Snacks and Shareables is one example of the brand's culinary innovation, which resulted in the highest incidence for a limited time offer (LTO) at nearly 10 percent and increased check averages by two percent in the third quarter.
Fazoli's is confident in its growth plan and is offering an impressive incentive plan to sweeten the deal for potential franchisees. The new incentive program offers a guaranteed savings of at least $125,000 for franchisees developing at least three locations. Franchisees developing more than five locations will save over $200,000. The savings comes from a combination of reduced royalties and initial franchise fees.
"There has never been a better time to open a Fazoli's location," Howard said. "Our brand offers an unparalleled franchise opportunity with premium products and a very loyal consumer base. We still have amazing development opportunities in many desirable markets. Now is the time to join the Fazoli's family."
With nearly 220 restaurants in 28 states, Fazoli's is currently seeking single- and multi-unit operators to join its growing, successful franchise network and is targeting new markets across the U.S. For more information about franchise opportunities, contact Senior Directors of Franchise Sales, Kathy Davidson at
Kathy.davidson@fazolis.com or Steve Bailey at
steve.bailey@fazolis.com.
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