Eager to maintain its status as the biggest quick-service Italian chain in the United States, Fazoli's spent the summer making expansion plans and making changes to its management team. The strategy paid instant dividends, as the franchise's units recorded a 4.9 percent jump in sales in August. The boost in revenue also marked 17 straight months of sales increases, and this momentum has built since Fazoli's began a dramatic turnaround in 2011. The brand's recent growth and ongoing success also reflect how franchises can stay successful by responding to the needs of their customers.
Customer-focused management
Fazoli's has made numerous changes to satisfy customers over the past few years, including the addition of real plates to its dining rooms and a revamped menu. The stores now feature table-side breadstick delivery, says the Kentucky Herald-Leader. The franchise even invested in major interior renovations and hired over 1,000 new workers as part of its revamp strategy in 2011, all moves designed to drastically improve the customer experience at Fazoli's.
Fazoli's has made changes to its leadership team in line with its prioritization of customer satisfaction. The company recently promoted two team members who were integral to the franchise's rebranding to vice president roles, according to the company's news page. CEO Carl Howard explained that the two promotions were made to continue the brand's efforts toward "increasing guest satisfaction, growing sales and helping [Fazoli's] expand in new markets." Fazoli's top executive noted that the new vice presidents were instrumental in the improving guest satisfaction rating.
The executives achieved growth by instituting franchise-wise changes that played to Fazoli's strengths. Key components of the brand revamp included the hiring of an in-house chef to design new dishes, customizable menu options and investments in less processed ingredients, according to the Kentucky Herald-Leader.
New expansion targets
Fast Casual reports that Fazoli's franchisees enjoyed 50 months of same-store sales increases over the past four and half years. The optimistic sales numbers have encouraged aggressive expansion by the franchise, and Fazoli's is even eyeing new targets for international development. The brand is currently working with World Franchise Associates to bring Fazoli's to Middle Eastern nations like Kuwait, Qatar, Oman, Saudi Arabia and the United Arab Emirates. Fazoli's has committed to continued expansion stateside as well. The franchise recently opened stores in Dayton, Ohio, and plans a string of openings across Texas, Indiana, West Virginia and Kentucky.
Fazoli's new store in Texas is also notable because it is the company's first location on a college campus. The new franchise unit, located in the Texas Tech University's food court, will be designed especially for facilitating a high flow of student diners, according to The Lane Report. The licensing agreement between Fazoli's and Texas Tech that made the new location possible was mutually beneficial. The University receives a new source of revenue, while Fazoli's is provided an opportunity to experiment with new franchising possibilities.