Maximizing Franchise Growth: Understanding FAT Brands' Conversion Strategy from Smokey Bones to Twin Peaks
Discover how FAT Brands is leveraging the conversion of Smokey Bones locations to Twin Peaks to drive franchise expansion and ROI.
Photo by Sten Ritterfeld on Unsplash
The Strategic Conversion Approach
FAT Brands' strategic decision to convert Smokey Bones locations to Twin Peaks showcases a forward-thinking approach to maximizing ROI and accelerating franchise growth. By leveraging existing real estate and infrastructure, the conversion process significantly reduces construction time and costs, allowing for a quicker market entry for the Twin Peaks brand.
Photo by Sten Ritterfeld on Unsplash
Enhancing Return on Investment
The conversion from Smokey Bones to Twin Peaks presents a unique opportunity for FAT Brands to capitalize on the popularity and success of the Twin Peaks concept. With similar square footage and target market appeal, the conversion not only streamlines operational processes but also enhances the overall ROI for the company, providing a win-win scenario for both franchisor and franchisees.
Driving Franchise Expansion
By identifying a pipeline of about 30 Smokey Bones locations for conversion over the next several years, FAT Brands is setting the stage for robust franchise expansion under the Twin Peaks brand. This strategic move not only boosts the footprint of Twin Peaks but also diversifies the brand portfolio, catering to a wider range of consumer preferences and geographic locations.
Success of Twin Peaks Concept
With Twin Peaks emerging as the fastest-growing concept within FAT Brands, the decision to convert Smokey Bones locations further underscores the confidence in the brand's potential for growth and profitability. The strong average-unit volumes and positive consumer reception of Twin Peaks positions it as a key player in the polished casual dining segment, paving the way for continued success and market expansion.
Strategic Expansion Plans
FAT Brands' acquisition of Twin Peaks in a $300 million deal in 2021 laid the foundation for strategic expansion and market dominance. The subsequent acquisition of Smokey Bones in 2023 further solidified FAT Brands' position as a major player in the restaurant franchise industry. The decision to take Twin Peaks public as a separate company highlights the commitment to unlocking the full potential of the brand and maximizing shareholder value.
Photo by Sten Ritterfeld on Unsplash
Diversified Brand Portfolio
With a portfolio of 18 diverse restaurant concepts under its umbrella, including iconic brands like Fatburger, Johnny Rockets, and Marble Slab Creamery, FAT Brands has created a powerful ecosystem of dining options that cater to a wide spectrum of consumer tastes. This diversified brand portfolio not only mitigates risks associated with operating a single concept but also positions FAT Brands as a leader in the competitive restaurant franchising landscape.
