Franchise Chains Target Shuttered Sites

Franchise chains such as Panera Bread, Buffalo Wild Wings, Burger King and Chili’s  are pushing hard to expand during tough times by converting competitor sites to their own brands. It's not just independent restaurants that the chains are eating. Franchise owners of weaker chains are not able to sell their site to other franchisees and are shuttering their doors.

Companies like Buffalo Wild Wings has put in place a rebranding "SWAT Team" of construction, operations and other professionals who can take a vacated site and convert it in just a little more than five months.

What’s in these conversions for either a company-owned or a franchise buyer?

Conversions cost the chain at least 20% less than building a new restaurant from scratch, which can take up to 13 months, Mr. Brokl says. Others estimate the savings can be even greater. Gene Baldwin, a partner with the restructuring firm CRG Partners LLC, estimates that moving into an existing site can cut development costs in half. - WSJ

Panera Bread’s chief development officer, Mike Nolan, says, “Our experience says the best time to grow, all else considered, is during times of recession," says Mr. Nolan.

Panera Bread Co. has been negotiating with landlords to move into several former Bennigan's locations since the parent company of the bar-and-grill chain filed for Chapter 7 liquidation last summer, according to Mike Nolan, the fast-casual chain's chief development officer.

"Our experience says the best time to grow, all else considered, is during times of recession," says Mr. Nolan. - WSJ

Read the full story at the Wall Street Journal