Dive Brief:
- Fat Brands opened a record number of stores (142) in 2022, the company said Monday.
- This is the first time Fat Brands has opened over 100 units in one year, the company wrote in an email to Restaurant Dive.
- Fat Brands has a 1,000-unit pipeline, and expects to open these units within the next five years.The company plans to open 175 units in 2023, which would surpass this year’s openings.
Dive Insight:
Fat has been particularly bullish on co-branded stores and opened its first tri-branded restaurant in Los Angeles last year. CEO Andy Wiederhorn told Restaurant Dive in 2022 that as much as half of its 1,000-unit pipeline could include co-branded units.
Leading last year’s growth was Fatburger/Buffalo’s Express with 86 stores, followed by Fazoli’s with 61 stores, Round Table Pizza with 56 units and Twin Peaks with 50 units, according to the press release. The company also opened in new markets. Johnny Rockets opened in Washington, D.C., Fatburger/Buffalo’s Express opened in Kansas and Northern Virginia and Great American Cookies entered Las Vegas, Miami and San Diego, California, the company said in an email.
The company is exploring nontraditional locations, including airports, universities, amusement parks and stadiums, and had opened 13 such units as of October, Wiederhorn said during the company’s Q3 earnings call.
The 1,000 units in Fat’s development pipeline will result in 43% new unit growth and provide about $60 million in incremental adjusted EBITDA over the next few years, Wiederhorn said.
“We … have a healthy and growing organic development pipeline that will fuel organic growth for many years to come,” he said.
