QSRGuy

📢 Exciting Announcement! 🏖️ After over a year of sharing insights & experiences anonymously as QSRGuy, it's time to step out of the shadows. I’m Ryan, a multi-unit franchisee of Little Caesars & Jersey Mike’s in CA, AZ & OR. As promised, I am happy to finally introduce our latest venture we’ve spent the last year working on: CoCo Playa. CoCo Playa is a unique double drive-thru experience combining the best of coffee, cookies, dirty sodas & more, all with a beachy twist & a smile. We have been soft-open for about a week and the response has been overwhelmingly positive; far exceeding our expectations. Follow along my journey of building CoCo Playa as well as everything else I’m doing in the franchise world! 🏖️☕🍪 Insta & TikTok: @trycocoplaya trycocoplaya.com

I am happy to report my brands are all up compared to last year (some big). Caveat that same period last year we were down on the year before.

Your problems might not be your fault, but they are your responsibility. True in restaurants, true in parenting, true in life. Ownership > excuses

@m__spal 🎯

@QSRguy Seen this kill momentum more than once. Everyone focuses on the deal, then the lease becomes the real negotiation.

Had a deal last year that checked every box. Great numbers, solid team, clean operation. One problem. The lease was expiring. What should have been a straightforward acquisition turned into months of back and forth with the landlord trying to negotiate a brand new lease. It dragged out the entire deal and almost killed it because we couldn't come to terms. The deal was great. The lease almost made it worthless. When I look at acquisitions, the lease is one of the first things I check. 10+ years remaining, options to renew, & assignability. Without those, you're building on someone else's timeline. Don't sleep on lease importance.

@smbvirginia We ended up closing the deal AND the original tenant did stay on as PG for the first year.

You said almost. Did you end up closing that deal? Gotta love landlords. I had a deal that was almost killed because the landlord slipped in something on the assignment of lease to keep the seller responsible if we defaulted on our lease agreement. We asked if they had written in the wrong party. They said no. They did it because they knew sellers would be getting a pile of cash and it would be easier to collect from the sellers, then from us (even w/ our PG on it) if we truly defaulted on our lease. I was too mad in the moment to think it was funny, but thinking back at the expressions on the broker and the seller's face when they said they didn't put the wrong name makes me laugh typing this out.

@StevenShortino What is your concept?

@QSRguy Lots of lease term is becoming increasingly hard for landlords to commit to (from what we've seen) 10 Year initial term is usually no issue. We often struggle to get any options beyond that. (maybe that's because of my concept, I'm not sure)

I used to agree selling a ton of units fast was an instant red flag. But the way franchising works today, speed is defense. The big legacy brands didn’t have to worry about this nearly as much, but today if your concept is good - Within 12 - 24 months you’ll have 5-10+ copycats franchising your exact playbook.** If your foot isn’t on the gas early, they will take deal flow from you. They will take customers from you. This isn’t tech, there aren’t real moats early. Those are built when you hit scale. Establishing yourself as a category leader is how you can win longterm: You attract more franchisees → open units faster → establish consumer mindshare That’s the flywheel. Dave’s Hot Chicken, and currently 7 Brew are examples of this. If they moved slower, there’s a real chance they don’t become what they are now. The caveat is you need: • a professional team • capital $$ At the franchisor to do this (most brands don’t have either). If you don't, you will for sure blow up by selling a ton of units. But for the few that do, growing slow comes with plenty of risk as well. ...just something to consider when you see a brand selling tons of units. PopUp Bagels and JetSet Pilates are another two examples in the middle of this right now. **there’s a few categories that don’t have many copycats, but those are the exception not the rule

@Knock503 easy to extend

@QSRguy What about FA expiration?

@PaigeSpiranac If I never heard Baba Booey or Mashed Potatoes again in my life I would be happy.

I don’t think I’ve ever heard someone yell something at a golf tournament and thought wow that was funny I’m so happy they did that

@RagnarSkjold 100%. If they get a fat check, that means you are too :)

The aspect of franchising I’m beginning to enjoy the most is finding smart, hardworking young people in my stores that may have been overlooked throughout their life - and then giving them the opportunity for a leadership position. I pay a % of profit to my managers and there are few better feelings than writing them a fat check at the end of a quarter.

The best thing I ever did as an operator was stop thinking I was the only one who could get things done. Hired people smarter than me. Trusted them. Let them run. I have time for my family and hobbies and we're still growing. Not in spite of stepping back, but because of it. You don't need to work 80 hours a week to build something meaningful. You need the right people around you.

Best place to live in the world.

@EmpiresPod_ Well said. I feel that point often gets lost.

Multi-unit franchisees are founders. Building to 50 units of any brand is like building a start up - Even if you're building 50 McDonald's, you're still rapidly scaling your own company....it just so happens to operate franchises. Incredibly difficult endeavor!

@MUnitfranchisee And just insanely difficult

@QSRguy Facts. Most folks don’t know how to efficiently scale beyond that. Building a team is expensive.

Most franchisees would be better off stopping at 5 restaurants. I know that's not what the industry wants to hear. The whole ecosystem is built around scaling. More units, more revenue, more growth. But the truth is, you can have an amazing life and a great business without 50 locations. Not everyone needs to be a mega operator. The real question is what do you actually want your life to look like?

@MUnitfranchisee @TRUmav @FranchiseMnA Rents are brutal nowadays

@TRUmav @FranchiseMnA Pizza/sandwich/smoothie/cookie guys beg to differ lol

Ridiculously good deal 4 Popeye's for under 3X. No brainer deal... Here is the catch - 1) Over $1M of remodels coming due Now closer to 4x - but still a good deal 2) Numbers advertised below are 2023 peak (despite having 2024-2025 in the deck?) 2024 and 2025 are worse (that's why they show 2023) Includes adjustment assuming YOU can run this with perfect labor/COGS True 2025 cash flow = $375k Re-running the math: $3,200,000 purchase price (inc capex) / $375,000 earnings = 8.5x purchase price 🤮

@RagnarSkjold Let’s go!!

@QSRguy I’m at 3 stores right now. Hopefully 4 end of this year. I’m either stopping at 5 or going to 10 and operating the shit out of them 5-10 top quartile stores is beautiful

@Old_Jeff_Landis 😬

@QSRguy Tell that to the Zor

@_Preet26_ 💯

@QSRguy 5 locations, all above the system average, and all geographically near each other 🙌🏾

@ifrcirruspilot Great work. Extreme focus.

@QSRguy I had 6 that did well above average sales. Made the equivalent net profit of 13 average stores. It was a lot to manage but we also sold and made a large windfall after operating them for 10 years

@restaurantben Big jump

@QSRguy We jumped from 6 to 12 overnight and it was brutal. 7 years of learning hard lessons and we’re still learning them.