Operations

Fazoli's surges into 2022

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February 15, 2022

Fazoli's, owned by FAT Brands Inc., finished 2021 on a growth spurt.

The 222-unit brand reported 20 consecutive months of positive same-store sales growth, seeing SSS increase 21.7% year-over-year in December 2021. Traffic was positive 15.7% for the year and increased 13.8% over 2019. Drive-thru sales dominated for the brand, accounting for 49% of Fazoli's total revenue, Fazoli's CEO Carl Howard said in a company press release.

"Fazoli's closed out 2021 with tremendous sales and traffic growth," he said. "We plan to do the same in 2022, focusing on our proven strategy for success — providing craveable Italian dishes with great service at a value and convenience that guests can't find anywhere else."

Fazoli's prominent value proposition has been paramount to its success, Howard said. Over the past year, for example, the company expanded its family meals to provide more variety. It incorporated guests' favorite menu items — signature bakes and samplers — to create the Baked Super Family Meal and Ultimate Sampler Family Meal, both of which feed up to eight people. Fazoli's also doubled the menu mix of its family meal platform growing from 5% to 10%. Additionally, Fazoli's 5 Under $5 menu continues to yield solid numbers. The value-driven 5 Under $5 campaign marked the brand's strongest performing promotion with an average incidence between 11-12%. The brand's value message is resonating with guests and will continue to be a key driver of success in the year ahead.

Culinary innovation has also been part of Fazoli's recipe for success, according to Howard. In summer 2021, for example, the brand introduced Fried Mozzarella Skewers and has several other LTOs, such as Cheesy Double-Stack Lasagna, Philly Cheesesteak Ravioli and Baked Shrimp & Lobster Alfredo, coming soon.

Along with leveraging value and menu innovation, Fazoli's has put elevating technology at the forefront of the brand, Howard said. It recently reached 1 million app downloads, and its loyalty app accounted for nearly 10% of its total revenue over the past year. Following the success of its AI carry-out pilot, Fazoli's is also working toward perfecting its AI technology to support restaurant teams through its largest sales channel — the drive-thru.

With Fazoli's record-breaking sales and traffic, franchise interest is at an all-time high. In 2021, the brand signed 22 franchisees, adding 64 locations to its pipeline. Closing out the year, Fazoli's opened 10 locations throughout Florida, Georgia, Iowa, Kentucky, Missouri, Ohio and Texas. The chain will open 20 locations this year.

"It's been an incredible year for Fazoli's as we continued our historic sales streak," Howard said. "Over the past two years, the world presented its share of challenges from supply chain to staffing and labor issues. Everything we've accomplished over the last 20 months is a true testament to the hard work and dedication of everyone in the Fazoli's family. We have no plans of slowing down in 2022, with a laser focus on growing the brand and expanding our footprint."

FAT Brands owns 17 restaurant brands: Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Fazoli's, Twin Peaks, Great American Cookies, Hot Dog on a Stick, Buffalo's Cafe & Express, Hurricane Grill & Wings, Pretzelmaker, Elevation Burger, Native Grill & Wings, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses, and franchises over 2,300 units worldwide.