In today’s competitive market, franchise growth hinges on a strategic, multi-faceted approach that integrates co-branding, market expansion and digital innovation. These elements are not just buzzwords; they are the pillars of sustainable success. At GoTo Foods, our remarkable achievement of signing 1,177 franchise agreements in 2024 and maintaining four consecutive years of net unit growth exemplifies the power of this approach. Our platform company model, designed to optimize operations, maximize efficiencies and accelerate expansion, has been instrumental in driving this growth.
Co-Branding as a Key Growth Driver
Co-branding has emerged as a pivotal strategy behind GoTo Foods’ franchise expansion, particularly for brands like Auntie Anne’s, Cinnabon, Jamba, and Carvel. In 2024 alone, we signed 353 co-brand deals across 173 locations in 24 states, with nearly half in streetside locations, expanding beyond traditional mall formats. Housing multiple brands under one roof creates operational efficiencies, optimizes real estate use, and expands customer reach. For franchisees, co-branding offers a streamlined investment opportunity. Shared back-of-house operations, cross-training of team members, and consolidated supply chains reduce costs and have potential for enhanced revenue. Meanwhile, customers enjoy greater convenience with a variety of choices in a single location.
Our success in co-branding is a testament to the power of our platform company model, which provides shared resources, including technology, marketing and synergistic brand power. This approach ensures that each brand retains its unique identity while benefiting from shared operational support.
Market Expansion: Targeting High-Potential Growth Areas
Smart market expansion begins with data-driven research and a deep understanding of local markets. Brands must analyze regional demographics, competition, and consumer behavior to identify markets with strong growth potential. Once identified, it’s crucial to tailor strategic development incentives to facilitate franchisee entry and success in these markets. At GoTo Foods we offer operational training, marketing resources, and hands-on guidance from day one. Growth in new territories isn’t just about planting flags; it’s about creating the right conditions to give franchisees the best chance for long-term success. We emphasize collaboration with franchisees, leveraging their local insights to fine-tune operations and strengthen community ties. When brands and franchisees grow together, expansion becomes both strategic and sustainable.
Digital Innovation: Enhancing the Franchise and Guest Experience
Technology plays a crucial role in today’s franchise landscape. From operational efficiency to enhanced customer engagement, digital tools are transforming the way brands grow and thrive. At GoTo Foods, we’ve integrated AI-driven technology to personalize the guest experience. Our digital platforms offer tailored menu recommendations, loyalty rewards, and streamlined ordering processes, resulting in increased customer satisfaction and higher average check sizes. For franchisees, these tools provide valuable insights into customer behavior, enabling data-driven decision-making.
Furthermore, our commitment to innovation enhances franchisee support. Real-time analytics, mobile-friendly training modules, and automated operational systems empower franchisees to operate more efficiently. Brands that invest in digital solutions not only create better customer experiences but also increase franchisee success.
Conclusion
Franchise growth is no longer about choosing one path; it’s about building a well-rounded strategy that integrates innovation, strategic expansion, co-branding, and strong franchisee support. At GoTo Foods, we’ve seen how this multi-faceted approach drives sustainable growth, strengthens brand integrity, and enhances the customer experience. As the industry continues to evolve, brands that remain adaptable and intentional in these areas will be best positioned to thrive for years to come.
Bobby Morena, Chief Development Officer, GoTo Foods