How do you evaluate whether to stay in your existing brands or diversify into new concepts?

There are two distinct profiles of multi-unit franchisees. One is a single-brand operator who owns multiple units within the same system. They may be satisfied with the leadership, operations, and consistency that come with running a single brand. The other type of owner is a multi-unit, multi-brand operator (MUMBO) with several different concepts within their portfolio. Especially within the heavily populated restaurant industry, there are many options for a franchisee to add to their ownership collection.

Franchise Update asked several restaurant operators about their decisions to stay exclusively with their existing brands or to diversify to additional concepts. We wanted to know some of the factors that went into their decisions, and the areas and metrics they weighed in being able to scale with their brand or others. To get a feel for each perspective, we spoke with two single-brand operators and two franchisees with experience across multiple brands.

Determining whether to add another restaurant brand often starts with research, including the bottom line. Franchisees need to know how profitable it will be to bring on another brand and if it will add value to their overall portfolio. Some owners may look to incorporate similar concepts or complementary brands along with their existing locations. They also evaluated whether a franchisor is focused on the profitability of its individual locations or just adding units.

Some franchisees are aligned and passionate about a single brand and feel no desire to operate a new concept. Even if there is a desire to diversify, finding the right fit with a new brand or having geographic availability within the franchisee’s home market is not always possible.

In this week’s Franchisee Bytes section, we asked several multi-unit restaurant owners about their passion in business. The overwhelming response was that their greatest passion was making a positive impact on others, whether that was with team members and their families or the customers. When talking about the influence they have on their employees, many franchisees want to create a strong work culture and help them develop and grow in their careers. See their responses below to gain insight into what drives several multi-unit restaurant franchisees each day.

Raj Patel

Company: The Hari Group
Brands: 101 Dunkin’, 22 Dave’s Hot Chicken, 6 McAlister’s Deli, 2 Tide Dry Cleaners, 1 Currito
Years in Franchising: 16

When it comes to existing brands, it’s critical to see positive momentum, not just in sales and traffic, but also in strategic unit growth. I’ve seen too many situations where the focus is solely on adding units, with little attention paid to franchisee profitability. That kind of growth isn’t sustainable. Fortunately, the brands I’m primarily involved with are in a strong position where there’s a healthy balance between the two.

That same lens applies when diversifying into new brands. When you’re speaking with leadership, listen closely to what they prioritize. Are they only talking about opening new units, or are they equally focused on franchisee profitability? Both matter. Making sure that balance is important to them is key. If a franchisor is overly focused on unit growth alone, that’s a clear red flag, and usually a sign to walk away quickly.

Stephen Anderson

Brands: 6 Ziggi’s Coffee
Years in Franchising: 10

We take a disciplined approach to growth. If a brand delivers strong unit economics and aligns with how we operate, we lean in. Diversification only makes sense if it adds value without diluting focus, and right now, staying sharp within a proven brand is more effective than chasing new concepts.

Greg Costley

Company: Costley Enterprises Inc.
Brands: 14 Cicis Pizza
Years in Franchising: 28

I’ve never felt the need to chase other concepts because Cicis has always been personal to me. From the moment I entered the industry, I knew I wanted to build something of my own, and Cicis gave me that opportunity. Early in my career, mentors encouraged me to lean into what I was passionate about, and for me, that was this brand.

I came up through restaurant management quickly, including time with TGI Fridays, and was introduced to Cicis through mutual connections. Once I became an owner, my commitment only deepened. Over time, that passion led me to take on a leadership role beyond my own stores, particularly around the entertainment and game room side of the business, which now impacts the brand nationally.

For me, diversification hasn’t meant leaving the brand but finding new ways to grow within it.

Kelly Dunn Hart

Company: PB New Jersey LLC
Brands: 3 Wendy’s. Previous operating experience with Tijuana Flats, Wahlburgers, Guy Fiery's All American Restaurants, Honest John’s. Signed a new franchise agreement for 15 Potbelly shops.
Years in Franchising: 23

Quality, first-hand validation, and location guide our evaluation. With a strong product and enthusiastic recommendations from existing Potbelly franchise operators, my father and I identified Potbelly as the right fit as we looked to expand our franchising portfolio. Becoming Potbelly’s first franchisee group in New Jersey allowed us to establish a dominant regional presence in our home market while introducing a differentiated product to the state.

Franchisee Bytes

What is your passion in business?

What drives me is the ability to change lives. That is creating opportunities for others to grow, succeed, and build something they can be proud of. Watching team members chase their goals and reach them is incredibly fulfilling.
-Lawrence Kouri, Multi-Unit Owner-Operator, Dave’s Hot Chicken, 22 Dave’s Hot Chicken

I’m passionate about building people and culture. There’s nothing more rewarding than watching team members grow into confident leaders and seeing our guests feel a sense of belonging in our shops. Creating that positive environment is what drives me every day.
-Misha Punwani, Multi-Unit Franchise Owner, 16 Playa Bowls

People. Serving others to help them achieve an optimum quality of life and reach their goals and dreams.
-Clement Troutman, CEO, Troutman Management, 2 Tropical Smoothie Cafe, 1 PJ’s Coffee of New Orleans

I love to grow. I’ve had the privilege to help grow the overall Papa Murphy’s brand, along with my own organization, for the past 35 years. We went from around 70 stores to more than 1,500 at its peak.
-Tom Lovelace, Owner/President, Tom Lovelace Group, 96 Papa Murphy’s

I love building new restaurants because it allows my team to create opportunities for growth for our people.
-Chris Aslam, CEO & Principal, 59 Jack in the Box, 5 Golden Chick, 5 Hawaiian Bros Island Grill

Helping others succeed and creating opportunities for growth. If people are going to make the effort, I am going to help them grow. That is why I am in business.
-Joey Pierson, CEO & CFO, Tacala Companies, 381 Taco Bell, 38 7 Brew

Providing a great workplace for employees on their first job and setting them up with skills to take with them to any career they pursue.
-Tamra Kennedy, Franchise Operator, Twin City T.J.’s, 6 Taco John’s

Transforming underperforming businesses into healthy, growing ones while mentoring future leaders.
-Amol Kohli, Managing Partner, Legacy Brands International/Chairman of the Board, Brix Holdings, Franchisee: 63 Orange Leaf, 60 Clean Juice, 36 Red Mango, 6 Humble Donut Co., 3 Souper Salad, 1 Smoothie Factory + Kitchen, Franchisor: 61 Friendly’s

My passion is keeping our customers satisfied by delivering the quality and service that Cousins Maine Lobster represents. I’m committed to upholding our brand values while ensuring every customer has an exceptional experience.
-Yunus Shahul, Franchise Owner, Smartfoods Group, 24 Cousins Maine Lobster, 1 German Doner Kebab