The Wolf of Franchises 🍟's Threads

Apr 21, 2024 • 20 tweets • 9 min read

In 1975, Steve Jobs approached his former boss - Nolan Bushnell - about investing in his computer company.

Bushnell declined the opportunity to own 33% of Apple for just $50k 🤯

He was too focused on bringing his restaurant idea to life.

The restaurant? Chuck E Cheese's👇

Bushnell graduated from The University of Utah in the late 1960's.

He worked as an engineer at an electronics company before founding Atari in 1972.

The company saw immediate success as they invented arcade classics still played to this day.

The game 'Pong' was the first hit.

Apr 7, 2024 • 16 tweets • 8 min read

In 1894, two companies began in Lancaster, Pennsylvania.

By sheer fate, they shared the same name - a fact that would cause over 100 years of bitterness.

One is now a global behemoth, the other just a regional ice cream chain.

This is the untold story of Hershey's:

Milton Hershey is the founder of Hershey's Chocolate.

Despite growing up poor (literally half-starved), he struck gold with Hershey's after shutting down 2 failed candy shops.

His legacy includes Hershey's Chocolate, a town, school, theme park, & reshaping US industries.

Mar 24, 2024 • 14 tweets • 5 min read

Trader Joe's absolutely dominates grocery stores.

They earn ~$2,100 per square foot, which is more than 2x Whole Foods, and ~4.5x Walmart.

Put simply, they've created an experience that makes customers LOVE them.

Here's how:

Trader Joe's began as Pronto Market in 1958.

Founder Joe Coulombe, the "Joe" in Trader Joe's, pivoted from Pronto Market to avoid a clash with the "800-pound gorilla" of convenience stores dominating the LA area: 7-Eleven.

AKA...TJ's (sorta) owes its existence to 7-Eleven.

Mar 10, 2024 • 15 tweets • 7 min read

What does the:

• Taco Bell Quesalupa 🌮
• Pizza Hut stuffed crust 🍕
• Domino’s cheesy bread 🧀

and other fast-food items have in common?

Apparently...a secret government agenda to offload 1.4 BILLION pounds of surplus cheese.

Welcome to the Big Cheese Illuminati:

The US government has a problem.

They own ~1.4 billion pounds of "surplus" AKA unneeded cheese.

Most of which is kept deep underground in converted limestone mines - which are temperature controlled at 36 degrees Fahrenheit.

How on earth did we get here?

Jan 16, 2024 • 13 tweets • 4 min read

The franchise industry creates dangerous hype cycles.

Over the last 5 years, I’ve seen the cycle repeat itself many times.

If you’re evaluating new franchises, don’t fall for it. Here's how it works: PHASE 1: new franchise brand hits the market

The first territories sell quickly thanks to an impressive item 19.

PHASE 2: those early franchisees show proof of concept, and the brand uses that success to sell out the entire country.

Then...things go south 📉

Jan 14, 2024 • 16 tweets • 6 min read

Operating in just 7 states, Wawa does a whopping $15 BILLION in revenue.

Each year, they serve:

• 200M cups of coffee
• 80M made-to-order "hoagies"
• Over 600 million customers

Oh, and there's gas too ⛽

Here's how Wawa became a convenience store behemoth:

In 1902, owner George Wood shifted his family business from an iron factory, to dairy farming 🐄

He opened a milk processing plant in none other than Wawa, Pennsylvania (where their corporate HQ still is today).

But the first Wawa store wouldn't open for decades...

Dec 24, 2023 • 11 tweets • 4 min read

Today, KFC in Japan will sell 5-10x more chicken than any day of the year.

Millions of Japanese citizens will line up for their bucket of Christmas Eve fried chicken.

Here's the story behind this annual tradition:

KFC opened its first Japanese location in the small city of Nagoya in 1970.

This was one year BEFORE McDonald's opened their first location in Tokyo!

Dec 10, 2023 • 15 tweets • 6 min read

Hooters, the described "happiest accident in restaurant history"
was started by 6 friends with no restaurant experience.

In 1983, on April Fools Day.

They've now been winging it for 40 YEARS.

And they grossed $860M in 2022 🧵

From a seafood shack in Clearwater, FL to "420+" stores in the US & 29 abroad, they're master branders.

They've been known for Hooters Air, Hooters Casino Hotel, and Hooters Racing -- to name a few.

They've also been known for...controversy

Nov 19, 2023 • 17 tweets • 6 min read

Krispy Kreme was the hottest IPO of the early 2000s.

But an SEC investigation would wipe out $2.7B of shareholder value just a few years later.

After declaring bankruptcy, they've been acquired and are now back on the public markets.

Here's the story of the "donut theatre":

Krispy Kreme was founded in 1937 by Vernon Rudolph.

A North Carolina invention, Rudolph procured their secret yeast recipe from a French chef.

Food historians say mashed potatoes could be a secret ingredient but regardless:

The brand says TASTE as their #1 differentiator.

Oct 22, 2023 • 14 tweets • 5 min read

What's the secret to McDonald's 40,000+ stores in 100+ countries?

Adapting the menu to local cuisine.

It's why there's Matcha McFlurry in Japan, spam breakfast platters in Hawaii, and McCrunchy bread with Nutella in Italy.

But there's one item you can't get anymore: PIZZA👇

Their expanded menu highlights reel goes something like this:

-Egg McMuffin: '73
-Chicken McNuggets: '83
-McPizza: '89

That's right: served in 500+ stores, McPizza was the crown jewel of a 15-year development plan.

And a total failure, discontinued by 2000.

Here's the story.

https://twitter.com/McDonalds/status/1323409947875512320

Oct 8, 2023 • 15 tweets • 6 min read

McDonald's is THE most successful fast food chain in the world.

In fact, they invented the blueprint for fast food, thanks to an auto-inspired assembly line approach to food prep in the 1940s.

But here's what you don't know:

They’re actually a real estate business worth $42B👇

This is the story of how McDonald's became a global real estate empire, ranked #5 in the world by assets.

In the beginning, Ray Kroc envisioned 1,000 McDonalds' in the US.

Today, there are 40,000+ restaurants in 100+ countries.

And those stores are all paying rent.

Sep 24, 2023 • 16 tweets • 5 min read

For the uninitiated, Culver’s is a regional burger franchise largely based in the Midwest, with 800+ stores.

They've been franchising since 1988, and in their 35-year history, guess how many locations they've closed?

Just *two*.

Meet the burger version of Chick-fil-A 👇

Let's start with an origins story.

In Wisconsin, northwest of Madison, lies Sauk City.

It's a small town of 3,500, and the birthplace and current HQ of burger franchise Culver’s.

The first was built near the Culver family's OG dairy farm (they ran an A&W franchise prior).

May 21, 2023 • 19 tweets • 7 min read

In 2011, Dippin' Dots, aka the "ice cream of the future", went bankrupt.

After being swooped up for relative pennies at just $12M, they were acquired last year for $222,000,000.

The crazy part? Most of the company's value wasn't from selling ice cream.

Here's the wild story:

In 1987, Curt Jones was working as a microbiologist in Kentucky.

After inventing a flash-freezing process that prolonged the nutritional value of cattle feed (yup - food for cows), Curt used the same tech on ice cream.

The result? Cold pellets of ice cream aka Dippin' Dots

May 19, 2023 • 4 tweets • 2 min read

The first Chick-Fil-A location to *ever* open, is officially going out of business 🤯

It's been open since 1967 in the Greenbriar Mall in Atlanta, Georgia.

Considering Atlanta is the home of Chick-Fil-A, and the average mall location does $3.7M in revenue...this is...shocking

The Atlanta natives have spoken:

Greenbriar is apparently a 💩 place to be.

Aka this is a "Mall problem" not a "Chick-Fil-A problem"

May 7, 2023 • 22 tweets • 9 min read

In 1952, a 65 year-old man wanted to expand his restaurant.

But thanks to a controversial past that included gunfights and courtroom beatdowns, he only had his $105 monthly social security check to help fund the venture.

Here's the real story of Colonel Sanders & KFC:

Harland David Sanders was born Henryville, IN on September 9, 1890.

After his father's early death, Sanders was forced to take care of his two younger siblings while his mother was away at work.

As a result, he learned learned the basics of cooking at 7 years old.

Apr 30, 2023 • 18 tweets • 6 min read

She came into life on a bad hair day.

Born into extreme poverty, it seemed that Martha was destined for hardship.

But by playing her cards right, she developed the first franchise ever and scaled it to 137 locations.

This is Martha Matilda Harper, the mother of franchising:

Born in 1857, Martha came from nothing.

Her 12 person family lived in a one room cabin in the icy Ontario climate.

To make extra money for the family, Martha's father sent her to work for a wealthy family as a domestic servant.

At the age of 7, she started to work.

Apr 23, 2023 • 19 tweets • 7 min read

McDonald's once owned:

• Redbox 📀
• Chipotle 🌯
• Donatos Pizza 🍕
• Boston Market 🍗

...all at the same time.

Here's the story of the Golden Arches era of exploration:

In the early 1990s, McDonald's was experiencing slowing global growth.

Rather than double-down on their burger business, they invested heavily into *other* businesses.

This saw them go toe-to-toe with Taco Bell, Domino's...even Netflix & Blockbuster.

It all started in 1998...

Apr 2, 2023 • 18 tweets • 5 min read

Chick-Fil-A is closed every Sunday.

Despite being open 52 less days each year, the average location generates over $8,000,000 in annual revenue.

Their success is no accident. Here's how they did it 👇

Truett Cathy entered the restaurant industry in 1946 after returning home from World War II.

His first restaurant was a small diner in Atlanta called "Dwarf House", named because of it's small size and limited seating.

Mar 30, 2023 • 4 tweets • 1 min read

Crumbl Cookies financials are out, here's how things shaped up in 2022:

• Avg Revenue: $1,838,908
• Avg Net income: $298,319

This is based on the performance of 324 locations.

Revenue is up from $1.68M in 2021, but net income is down from $358k.

Other notes:

• 2021's #'s were based on 115 locations

• The estimated initial investment per location has changed quite substantially

In 2021 it was $347k - $691k. Now the range has broadened from $367,666 - $1,404,333...that's quite a big shift

Mar 29, 2023 • 9 tweets • 4 min read

Fast-food & other franchises get the headlines, but there's a category that:

• Has high margins
• Can be fun to operate
• Only requires $40k-$90k investments

And there's a company acquiring these brands for the benefit of their franchisees.

Meet Youth Athletes United:

Adam Geisler & John Erlandson formed Youth Athletes United in 2018.

Their mission is to positively impact 1 million kids every year.

Today, the Youth Athletes umbrella includes:

• 3 franchise brands
• 112 franchise owners
• 268 units in operation

Mar 26, 2023 • 20 tweets • 8 min read

America may run on Dunkin', but Japan runs on Mister Donut.

In fact, this eerily similar competitor was spawned from a bitter business breakup with Dunkin's founder, decades ago.

Here's how a family feud changed the trajectory of donuts in both America AND Japan:

In 1933, William Rosenberg got a job as a delivery boy at Jack & Jill Ice Cream when he was 17 years old.

In just 4 years, he worked his way up to becoming the National Sales Manager.

His rapid ascent was thanks to an early mentor, Harry Winokur.

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