The fast food industry is a lucrative business, with numerous billionaires behind well-known brands such as Jimmy John’s, Jersey Mike’s, In ‘N Out, Panda Express, and Chick-fil-A. Franchising these brands has allowed thousands of people to potentially make good money, with over 190,000 franchised restaurants in the US bringing in roughly $289 billion last year and employing over three million people. Despite the financial success of these brands, their finances remain opaque, making it difficult to determine just how much money an individual franchisee could make.Tracking the financial success of fast food franchises can be challenging, but Forbes decided to focus on four of the fastest growing franchises in the nation to gain insight into the complex world of franchise finances.
One of the fastest-growing fast food franchises is Wingstop, known for its buffalo-style chicken wings with flavors like Lemon Pepper and Hot Honey Rub. Despite changes in ownership, Wingstop remains efficient with low labor costs and an estimated net margin of 17%. Forbes estimates that franchisees might be able to break even in roughly two years. Rapper Rick Ross is among the franchisees, reportedly owning more than 20 stores. Another rapidly growing franchise is Scooter’s Coffee, a drive-through coffee chain with a 28% annual growth rate over the past five years. With territories still available in many states, prospective owners with a net worth of around a million dollars may find success with this brand.
Jersey Mike’s is a sandwich chain that has achieved rapid growth, with over $3.3 billion in systemwide revenue from 2,800 locations. The brand’s success is attributed to obsessive training, investments, and a national ad campaign featuring Danny Devito. While the initial investment for a Jersey Mike’s franchise is relatively modest at $500,000, only 1% of applicants are accepted. Tropical Smoothie Cafe, founded in 1997 in Destin, Florida, has seen 12 consecutive years of same-store sales growth and has over 1,400 locations in 44 states. Blackstone acquired the brand in 2024, highlighting its continued success within the fast food industry.
The fast food industry continues to present opportunities for financial success, with many franchises experiencing significant growth in revenue and locations. While the financial success of individual franchisees may vary, investing in a fast food franchise remains an attractive option for those looking to enter the business world. The competition among fast food brands remains fierce, with each franchise offering unique menu items and branding strategies to stand out in the crowded market. As the industry continues to evolve, it is essential for franchisees to stay informed about the financial outlook and growth potential of their chosen brand to maximize their chances of success.
