Do you prefer to grow through acquisitions, conversions, or new builds? Why?

Franchisees have several options when selecting sites to expand their portfolios. Some prefer to acquire existing businesses or convert facilities to meet their specifications, while others choose to build new units from the ground up. Franchise Update spoke with several multi-unit restaurant operators about their preferred approaches and the strategies behind their decisions.

Each franchisee had experience with multiple methods of unit growth and shared the advantages of each. Acquisitions and conversions can provide built-in infrastructure, an established customer base, and an existing team. New construction, meanwhile, gives owners greater control over real estate selection and restaurant layout, while incorporating the latest amenities and design elements.

The best approach often depends on the market. Some areas may have limited or costly real estate opportunities, while others offer an abundance of second-generation restaurant spaces that can be well suited for conversion. Regardless of which method an owner chooses, the franchisees stressed the importance of research, planning, and finding the location that is best positioned for sustainable success.

In this week’s Franchisee Bytes section, we asked several multi-unit restaurant franchisees how they are using technology and AI to manage their business. Each indicated they are leveraging AI to help streamline their operations in areas such as scheduling and training employees, forecasting sales, monitoring supplies, or reducing costs. See how some of the top restaurant operators are using technology to improve efficiency in their business operations.

Brad Steven

Company: 3B Lodge
Brands: 9 Twin Peaks 
Years in Franchising: 4

We have experience with both acquisitions and new development, and each has advantages. Acquisitions can give you an established team, existing guest base, and immediate operating history. New builds allow you to start with the right real estate, layout, and operating plan from day one. For us, the preference is really driven by the opportunity. We are less focused on the type of growth than on whether the market, economics, and leadership structure make sense for long-term success.

Andrea Wells

Company: Wells Pie Group
Brands: 6 Your Pie Pizza 
Years in Franchising: 11

We prefer growth that is strategic and sustainable rather than simply growing for the sake of adding units. New builds give us the opportunity to select the right market, create the location from the ground up, and establish the culture and operational standards we want from day one. However, the cost is often the biggest obstacle when looking to convert a blank space to fit our concept’s needs. At the same time, we remain open to acquisitions when the location, economics, and opportunity make sense. You can often get into these for less than a new build. However, there needs to be a lengthy, detailed review to outline where you plan to make adjustments/improvements for an acquisition to truly be successful.

Moe Moustafa

Company: LES Wings Partners
Brands: 3 Atomic Wings 
Years in Franchising: 5

There's no strict preference, since each approach has its own opportunity depending on the market. In New York, New Jersey, and Philadelphia, second-generation sites and conversions come up often, so we take advantage of that when the space and location make sense. Those opportunities are rarer in other markets, like the Midwest, so it's typically a new build. What matters most is the demographic and the strength of the location itself. Before finalizing a site, we do a lot of research, drive around the area, and spend time there to make sure it's the right fit.

Sam Batt

Company: Batt Enterprises
Brands: 15 TCBY and 2 Mrs. Fields 
Years in Franchising: 16

I tend to prefer acquisitions and conversions because you're starting with an existing customer base, infrastructure, and traffic instead of building demand from zero. That head start can shave real time off getting to profitability. We've had success taking over existing businesses and converting them to TCBY, bringing our brand, product, and operating model into a space that already had the right footprint and foot traffic. New builds make more sense when there's no existing site that fits; a new market where we need a flagship location, for example. I ultimately look at each opportunity individually and focus on the location and its long-term potential.

Amy Boesen

Company: AK89 LLC
Brands: 6 Rock N Roll Sushi 
Years in Franchising: 21

I have experienced all these types of transactions firsthand. With technology continuing to advance, I believe site selection is becoming the real golden ticket to success. One of the things I enjoy most is taking a struggling franchise and helping bring it back to brand standards. It can take time, patience, and a lot of hard work to turn things around, but when you finally see the business succeed, it makes all that effort worthwhile. There is nothing more rewarding than seeing hard work pay off.

Franchisee Bytes

In what ways are you using technology (like AI) to manage your business?

We’ve started using analytics and automation tools for scheduling, sales forecasting, and training. The goal is to streamline operations and make smarter decisions while keeping the human connection that defines our brand.
-Misha Punwani, Multi-Unit Franchise Owner, 16 Playa Bowls

AI touches our business in more ways than we may even realize, streamlining operations and shaping guest experiences behind the scenes. Our franchisor is actively leveraging AI in areas like recruitment, marketing, and operational insights, helping us run more efficiently and connect more effectively with both guests and team members.
-Lisa Starnes, Franchise Owner, Starnes Holdings, 8 Captain D’s

We use it to help with our scheduling, forecasting, digital sales optimization, training, and operational insights.
-Andy Kumar, Multi-Unit Franchisee, Kumar McDonald’s, North Texas, 19 McDonald’s

I have discovered ChatGPT over the past few months, which has revolutionized how I respond to people via email. I have used it to create spreadsheets that help control our supplies. I have also used several other AI tools to assess the locations of new cafes we are exploring to gauge the viability of those sites.
-James Bullock, Multi-Unit Franchisee, Ekon Investments, 14 Tropical Smoothie Cafe

To help brainstorm and build out strategic decisions and implementation. Using AI to help run different scenarios for your business, including cost savings options, menu pricing, or break-even analysis, has become simple. Describing the problem in your own words and seeing thoughtful responses to complicated questions is a game changer.
-Christopher Aslam, CEO & Principal, Rock Strategies and various entities, 59 Jack in the Box, 5 Golden Chick, 5 Hawaiian Bros Island Grill

Right now, I am using a lot to get the latest data, trends, and business insights for the catering side of my business.
-Shak Patel, Multi-Unit Franchisee, Breaking Bread LLC, 6 Potbelly, 1 The Halal Guys

As a brand, Taco John’s has recently introduced automated drive-thru guest interaction, and we are beginning to roll it out as an option for each restaurant. Within our stores, we are using AI to analyze data to collect results, and we use that to create data points for training and operations.
-Tamra Kennedy, Franchise Operator, Twin City T.J.’s, 6 Taco John’s

Technology is at the core of our business these days, and we can’t operate without it. From our POS to the AI that forecasts our orders, we need technology to survive.
-Andy Cabral, CEO, Vigario Management, 25 Dunkin’, 9 Baskin-Robbins