The Foodie's Guide to Franchising-Capriotti's

the foodie’s guide to

FRANCHISING

TABLE OF CONTENTS

Part 1: Introduction from Capriotti’s CEO Ashley Morris
Part 2: Recipe for Franchising
Part 3: Recipe for Success

Technology
Marketing
Site Selection
Product
Part 4: Recipe for Franchise Ownership

The Foodie’s Guide to Franchising

INTRODUCING...

CAPRIOTTI’S CEO Everybody enjoys a good meal. But for some, food
ASHLEY MORRIS becomes a passion, an obsession – and, ultimately,
a pursuit. I got into the restaurant business because
my best friend and I fell in love with a sandwich shop
and wanted to share it with the world. We became
franchisees, and eventually bought the brand. My
whole career has revolved around an obsessive
focus on great food– I wouldn’t have it any other way.

For many foodies like me, owning a restaurant is a
natural career choice. But not everyone is drawn to
the risky and demanding job of opening an original
restaurant concept and hoping it takes off.

Franchising provides a clear path to restaurant
ownership and financial independence for anyone
with the work ethic and the desire to make it happen.
I’ve seen franchising change so many lives for the
better – including my own – and I want this framework
to be accessible to all aspiring entrepreneurs.

In this eBook, you’ll learn what the franchising model
looks like, what to look for in a good franchise brand
and where to start your franchise search process.

I hope by the end, you feel more informed and more
confident about your interest in franchising.

Best of luck on your journey to business ownership–
from one foodie to another.

Ashley Morris, CEO

Part 1 // Introduction from Capriotti’s CEO // The Foodie’s Guide to Franchising

RECIPE FOR FRANCHISING

WHAT’S A FRANCHISE?

Franchising is a model where companies (franchisors)
grant individuals (franchise partners) the right to
operate businesses using the franchisor’s brand,
products and processes.

In exchange, franchisors help their franchise partners
run their businesses successfully. This could include
help with site selection, marketing, data analysis and
other areas.

Franchise partners sign a franchise agreement
detailing the terms and length of the deal. Most
partners choose to renew their agreements when
they expire, and many even re-invest by opening more
locations. For example, 70 percent of the Capriotti’s
franchise system is made up of multi-unit owners who
chose to reinvest in the brand.

WHY FRANCHISING?

Many aspiring entrepreneurs gravitate to franchising
because it offers a stable, straightforward path to
business ownership. While there’s risk involved in
every business venture, franchising boosts an owner’s
chances at success by providing a proven business
model, an established brand, a network of like-minded
business owners and fine-tuned processes.

In the restaurant industry, franchising is especially
advantageous. In such a competitive market, a new
concept must quickly establish staying power – or risk
losing steam. With an established brand, franchise
partners benefit from clear brand differentiators and
built-in customer loyalty.

Part 2 // Recipe For Franchising // The Foodie’s Guide to Franchising

RECIPE FOR FRANCHISING

A FOODIE’S TAKE

Not all restaurant chains are known for their high-
quality product. As a foodie, you’re likely looking for a
concept with a sound business model and food you’re
not only proud to serve, but for which you share a well-
meaning obsession.

At Capriotti’s, we don’t sacrifice food quality for
efficiency. Our concept has always hinged on our
mind-blowingly great sandwiches. We’ve grown from
a family-owned, neighborhood sandwich shop to a
national system without losing sight of the mission
our founders started with: To make sandwiches for
real turkey lovers (read: foodies).
Siblings Lois and Alan Margolet opened the original
Capriotti’s in 1976 in Wilmington, Delaware. There,
they started our tradition of roasting whole turkeys in
house each night to achieve the perfect, hand-pulled
turkey for our signature sandwich, The Bobbie. Since
then, Capriotti’s cult following has elevated it to a
national franchise brand– and The Bobbie got voted
Best Sandwich in America.
More than one hundred Capriotti’s franchise
partners have found a way to apply their addictions
to phenomenal sandwiches to a successful and
rewarding business concept. Our franchising recipe
is the perfect mix of structure and personality.

Part 2 // Recipe For Franchising // The Foodie’s Guide to Franchising

RECIPE FOR SUCCESS

One of the biggest benefits of working with a franchise
brand to start your business is the support you’ll
receive from the franchisor. A good franchisor is
invested in its partners’ success at the unit level and
has a concrete plan – or recipe, shall we say – to
maximize partners’ profitability.
Capriotti’s provides a robust system of resources,
tools and best practices, going above and beyond in
its support for franchisees, guiding them through each
step of the opening process and helping them achieve
strong unit-level economics once their businesses are
up and running.

THE CAPRIOTTI’S SUPPORT SYSTEM HAS
MULTIPLE FACETS:

o Site Selection
o Marketing
o Technology
o Product
o Grand opening
o Ongoing training

As you evaluate franchise concepts, make sure to
take a close look at the path to success they lay
out for franchise partners. If it’s clearly defined and
supported by programs from the franchisor, you know
you’ve found the right investment.

Part 3 // Recipe for Success // The Foodie’s Guide to Franchising

SITE SELECTION

AS A RESTAURANT OWNER, A PRIME LOCATION
WILL HELP YOUR EXCELLENT FOOD REACH
MORE CUSTOMERS.

Choosing the best site for your restaurant can be an
intimidating task, but Capriotti’s has your back. We
work with franchise partners to find the best location
and take the stress out of the site selection process.

Our recipe for site selection is data-driven. We’ve
invested heavily in tools that remove the guesswork
for franchise partners as they identify the best real
estate options for their locations. Our site selection
software evaluates real estate based on a variety of
variables, including:

o Vehicular traffic
o Foot traffic
o Visibility
o Population
o Drivability

It also analyzes the demographics, psychographics
and fast casual food market in a given territory to help
determine the best spot for a Capriotti’s.
But our site selection support doesn’t end there.
We’ve got a team of real estate professionals that
has assisted with thousands of restaurant deals
nationwide, and their network of real estate brokers
provide valuable insight into local markets. They’ll
walk you through the process from start to finish.

Part 3 // Recipe for Success // The Foodie’s Guide to Franchising

MARKETING

In the restaurant industry– and especially the highly
competitive fast casual sector– it’s imperative to stand
out from the crowd. With many concepts gunning for
consumers’ attention, there’s no room for lackluster
brand voices.
THAT’S WHY CAPRIOTTI’S DOESN’T WASTE TIME
WITH GENERIC MARKETING. OUR BRAND IS BOLD,
LIVELY AND INFUSED WITH THE SAME SENSE OF
FUN THAT FILLS OUR SANDWICH SHOPS.

We provide franchise partners with ongoing, ready-to-
roll customer acquisition marketing programs that use
our established brand and one-of-a-kind personality
to fuel same-store sales growth.
What makes our brand voice unique? You guessed
it– it’s all about our mouth-watering, distractingly
delicious, over-the-top fantastic food. We don’t
mince words about how good our food is, and this
enthusiasm drives new visitors and repeat business.
In addition, we give franchise partners easy ways to
leverage our brand’s strong customer loyalty, like our
CAPAddicts rewards app. This loyalty program boosts
average ticket price and encourages customers to
return often, driving revenue for franchise partners.
Check out some examples of our distinctive marketing.
Be warned: If you’re not already hungry, you will be.

Part 3 // Recipe for Success // The Foodie’s Guide to Franchising

TECHNOLOGY

WHY DO RESTAURANT INDUSTRY EXPERTS LIKE
QSR MAGAZINE CALL CAPRIOTTI’S THE
“TECH-DRIVEN RESTAURANT OF THE FUTURE?”

It’s pretty simple– We don’t hesitate to adopt new
technology that makes life easier for our customers
and business more profitable for our franchise
partners. We’ve worked closely with the largest
technology firms in the industry to remain on the
cutting edge of restaurant technology innovation.
From more convenient delivery options to smoother
operations and faster service, we’re always on the
lookout for ways to improve the customer– and
franchise partner – experience.

Our recently updated point-of-sale system integrates:

o Inventory management
o Recipes
o Sales data
o Store schedules
o Labor costs

This helps franchise partners easily track (and
maximize) their profitability. Our automation system
also integrates third-party delivery and catering
options, so our franchise partners can tap into the
double-digit sales growth we’ve seen as a result of
partnerships with third-party delivery services.

Next, we’re optimizing our stores for mobile ordering
by offering a new store prototype with a pick-up
window. This, along with our revamped mobile app,
will allow foodies across the nation to conveniently
order their favorite sandwiches whenever and wherever
they want.

Part 3 // Recipe for Sucess // The Foodie’s Guide to Franchising

PRODUCT

While our site selection, marketing and technology
resources position franchise partners for strong
returns, the biggest driver of our system’s success
is – you guessed it – our incomparable food.

The high–quality and unique flavors of our food set us
apart from competitors and keep customers coming
back again and again. Our Arizona franchise partner
Warren Ruttenberg put it best when he developed
the “sandwich to mouth” marketing approach. After
opening a Capriotti’s in a brand new market, Warren
realized all he needed to do to create repeat customers
was get sandwiches into mouths. He’s given away
thousands of free sandwiches, and now owns multiple
bustling Capriotti’s locations in Scottsdale.

OUR FOOD IS SO MEMORABLE BECAUSE WE GO
FURTHER THAN OTHER SANDWICH SHOPS IN OUR
QUEST FOR HIGH-QUALITY INGREDIENTS AND
UNFORGETTABLE FLAVORS.

Our menu features:

o All-natural, hand-pulled turkey slow-roasted in

house every night

o Meatballs made from scratch
o Homemade tuna made fresh daily
o Premium grilled steak and chicken
o Slow-cooked, hand-pulled roast beef
o Homemade coleslaw made fresh daily Capriotti’s

is a franchise system for foodies, by foodies. So,
if you’re on the hunt for a business opportunity
that revolves around obsessively made food that
creates instant fans – you’re in the right place.

Part 3 // Recipe for Sucess // The Foodie’s Guide to Franchising

RECIPE FOR FRANCHISE OWNERSHIP

ARE YOU READY TO GET STARTED? HERE IS As you search for a franchise concept that’s the right
THE RECIPE FOR A TYPICAL FRANCHISE SALE fit for you, it’s important to thoroughly research each
PROCESS: company’s history, culture, leadership, investment
requirements and model. Get in touch with existing
1. INITIAL RESEARCH– Check out any educational franchisees to gauge if they’ve had a good experience
materials the brand offers about its franchise with the brand. And get a clear sense of the
opportunities– i.e. www.capriottis.com/franchise franchisor’s vision of success, and whether it gives
franchise partners a clear plan to achieve that vision.
2. REACH OUT– Get connected with the franchisor
and have an initial conversation

3. FILL OUT A FRANCHISE APPLICATION– This let
the franchisor review your qualifications, desired
territory and available capital

4. DUE DILIGENCE– Review the franchisor’s
Franchise Disclosure Document, research the
brand, contact existing franchise partners

5. ATTEND A WEBINAR– Learn more details about
the franchise opportunity

6. ATTEND DISCOVERY DAYS– At CAPParticipation
and CAPWay days, prospective franchise partners
visit the company’s headquarters, meet with
leadership and ask any remaining questions

7. FRANCHISE APPROVAL– Congratulations! At this
stage, the franchisor approves your franchise
application and grants you a license to franchise
the business

8. EXECUTE AGREEMENT– The franchise agreement
is a contract detailing the franchise partner’s
franchisee fee, ongoing royalties and operating/
brand requirements, as well as what resources
and support the franchisor promises to provide

Part 4 // The Foodie’s Guide to Franchising

READY TO TURN YOUR PASSION FOR
GREAT FOOD INTO A CAREER?

Your foodie status can be good news for your stomach and your wallet.

If you’re ready to turn your passion into a profitable, rewarding career as a Capriotti’s restaurant
owner, reach out today.
To learn more about the Capriotti’s franchise model and franchise opportunities, contact us at

702-374-4746 OR [email protected]