Franchise Trend #1: Who is the next Crumbl?

For the past 14 years that Todd Pfister and I have helped Frannet Midamerica clients find franchise brands to own, we can count on one hand the clients we have placed in food businesses.

Chalk it up to labor turnover, expensive kitchen build outs, or inflated supply costs, almost every client that comes to us wanting to own a restaurant walks away more excited about concepts in different industries.

But every once in a while, a food brand comes along that takes off like a rocket ship, not only because they make tasty food, but more so because they've found a way to mitigate many of the factors that often derail other food franchises.

The most recent concept that made me pause is Crumbl Cookie.

For the past year, I've wondered...

Why has Crumbl grown as fast as it has? And more importantly...

What type of business could replicate this type of growth in 2024?

Answer: Milkshakes.

Milkshakes share many of the common elements that have pumped jet fuel into the Crumbl model for the past half decade. Sure, both types of businesses make crave-able treats, but more than that, a milkshake-specific franchise runs an almost identical model to Crumbl , just with a different end product.

What do milkshakes share with Crumbl?

• Simple Labor model: It's an open secret that local establishments are more short-staffed than ever, so imagine the chaos servers and chefs deal with assembling dozens of multi-faceted menu items without the help they really need to get their food out to a customer-base with attention spans that only seem to keep shrinking.Not so with cookies. There's dough, frosting, sprinkles, and that's about it. And by the way, there's usually only six Crumbl cookies available at any one time, so the stripped down kitchen looks more like an assembly line that takes only a handful of team members to run.The same holds true with milkshakes. You need milk, ice cream, and, depending on the customer, whipped cream. Owners aren't hiring MBA students, but rather can create a fun, upbeat environment for young people to work in without a lot of training needed. If you can blend a shake and smile, you're hired.
• Low overhead: For business owners, breaking even as quickly as possible is the name of the game. Nothing thwarts an entrepreneur from turning a profit quite like bulky fixed costs. Think high rent for a large retail footprint or expensive up-front purchases like industrial stovetops and ovens. The typical Crumbl needs just a small storefront to get the business started and can pour the working capital typically needed for tables, chairs, and a full kitchen on marketing to get customers in the door (and money in the owner's pocket). Not much changes with a milkshake build-out. Instead of ovens and mixers, you need freezers and blenders. Either way, owners aren't breaking the bank on equipment and are serving easily transported products designed for to-go customers. That means no space, labor, or time spent on waiting on "for here" patrons. Efficiency at it's finest.
• Customizable product: What can you do with a cookie or a milkshake?As it turns out, a lot.How does a caramel popcorn or blueberry cheesecake cookie sound?Or what about red velvet or s'mores flavored milkshakes?Not only are these products easy to make in large quantities with low labor, but they also can lead to a raving fanbase, eagerly waiting for the next special flavor to drop. For both Crumbl and a milkshake-centric franchise, the model is there, but if the product itself isn't good, what's the point? Cookies and shakes are universally enjoyed and a great foundation to build creative renditions that stick out in the food space.

I'll be honest--it takes a lot for me to be impressed with a food brand. And maybe it's my sweet tooth talking.

But the ingredients for success are there for a milkshake franchise, whether you're hungry or stuffed.

Want to find out more? Message me today.