Operations

Capriotti's inks deals for 18 units amid COVID-19

July 1, 2020

The pandemic has not slowed growth at Las Vegas-based Capriotti's Sandwich Shop as it as has signed 18 development agreements since the onset of COVID-19.

From adapting operations to prioritizing customer and employee safety to unveiling a new menu, the brand's success can be attributed to a commitment to innovation this quarter, CEO Ashley Morris said in a company press release.

"Restaurants around the globe have been impacted by the coronavirus pandemic and we are no exception," he said. "Through ghost kitchens and virtual brands, we hope to offer fans peace of mind and comfort when they are ordering our extraordinary subs, while providing a low-cost, high demand franchise option for interested franchise partners."

Earlier this month, Capriotti's partnered with Snake River Farms, a producer of American Wagyu steaks and roasts, to make beef that is served in top-rated restaurants worldwide available at shops across the nation. Beyond the menu, Capriotti's has also expanded its franchise opportunity to include ghost kitchens and virtual brands that cater to consumer demand for delivery, catering and online ordering. The chain is also rolling out nine virtual brands that serve reimagined versions of classic subs via delivery platforms like GrubHub and Door Dash.

The chain has been able to maintain growth through franchising this quarter with seven ghost kitchen opportunities under development and 11 area development agreements for traditional stores, making up a total of 40 restaurants slated to open across the United States in 2020 with another 180 shops in the pipeline for development for coming years. During the pandemic, the brand was also ranked #17 on Fast Casual's Movers and Shakers list for its outstanding performance and commitment to innovation, Morris said.

With the top 25% of its shops averaging $1.1 million average unit volume and an initial average investment of $376,000 with high growth potential, Morris called Capriotti's a "profitable and rewarding franchise investment."

The brand is backed by a corporate leadership team that offers a continuous support program for franchisees, called CAPMastery. This online and field program provides significant support to franchisees for marketing, retail sales, operations and growth strategies through every stage of their ownership. Capriotti's plans to expand to 500 locations by 2025 through franchising, according to the release.

Founded in 1976, Capriotti's has more than 100 locations in the United States.