JACKSONVILLE Fla. Firehouse Subs, the 373-unit sub sandwich chain based here, announced Wednesday a plan to open 125 franchised units over the next five to seven years in and around Chicago.
The chain’s area representative, former Outback Steakhouse and Bonefish Grill operator Steve Szalinski, is the first franchisee in the trade area and plans to open the first Firehouse Subs location in Wheaton, Ill., by February.
Chicago and its neighboring counties already are heavily penetrated by sandwich segment leaders Subway and Quiznos, and the market also supports such local concepts as Chicago-based Potbelly Sandwich Works and Jimmy John’s Gourmet Sandwiches, which is based downstate in Champaign, Ill.
Despite the build-up of sandwich purveyors, there still is room for sales and unit growth for well-differentiated brands, according to a new report from Technomic Inc. In its “2009 Top 100 Limited-Service Sandwich Chains Restaurant Report,” the Chicago-based research firm noted that the segment had 2008 sales of $22.6 billion, representing a 6.9-percent increase over the prior year.
“The limited-service sandwich chains that continue to perform well have conveyed a strong value equation to their customers — from craveable flavor profiles to reasonable pricing to convenience of ordering,” said Darren Tristano, executive vice president at Technomic. “Given the challenging economic environment, leaders should understand the shifting expectations of their customers and be prepared to make the necessary changes to remain relevant, while keeping a watchful eye on margin erosion concerns.”
Szalinski, who joined the Firehouse system after years as a devoted customer, said the chain’s heaping portions — large subs contain a half-pound of meat — and philanthropic focus through the Firehouse Subs Public Safety Foundation would differentiate the brand and allow it to thrive in Chicago.
“The Public Safety Foundation differentiates Firehouse from really anything else in the quick-service segment,” Szalinski said.
Firehouse, which was founded by firefighter brothers Chris and Robin Sorensen, said the foundation has given more than $1.75 million to fire departments over the past two years, and the National Restaurant Association has recognized the chain’s charitable efforts with a Restaurant Neighbor Award.
Szalinski said the franchisor has expanded efforts to help potential franchisees partner with lenders, as credit remains difficult for small businesses to come by.
“The landscape has changed, no doubt,” Szalinski said. “Where you may have been able to buy a franchise for 10 percent or 15 percent down, it’s now 20 percent [for the lenders]. We view that as a positive. We don’t want franchisees to fail, and the reason they might is because they’re undercapitalized. In the long run, we’ll have healthier franchisees for it.”
Firehouse Subs operates in 19 states.
Contact Mark Brandau at [email protected]