Top Franchises that Boomed During the Pandemic

The pandemic has depressed sales and contracted franchises in a wide variety of industries. Yet, the pandemic has significantly increased revenue and forced some brands to add jobs where others are cutting. These are the five franchise brands booming amid the pandemic.

1. Wingstop 

Q1 REVENUE INCREASE: 9.9%
ADDITIONAL JOB ANNOUNCED: N/A

Wingstop has formulated a recipe for success during the pandemic with its tech-heavy approach to the traditional QSR model. Despite closing all of its 1,413 dining rooms on March 16, Wingstop’s same-store sales soared more than 33% in April. 

The company has expended considerable efforts on transitioning the brand to digital sales. Wingstop’s CEO, Charlie Morrison, said the brand’s goal is to convert 100% of Wingstop’s transactions to digital. Currently, 65% of sales are made via the chain’s digital channels, and 75% of orders are for off-premise consumption. According to Wingstop, digital transactions both require less labor and carry a $5 higher check average for the brand. 

Related: Wingstop Franchise Cost: A Pandemic-Proof Franchise

Leveraging its tech, the brand rounded out Q1 with a 9.9% same-store sales increase. For context Q1 same-store sales results from Wingstop’s peers look significantly different:

• McDonald’s-down 17%
• Burger King-down 3.7% 
• Starbucks-down 3%
• Chipotle-plus 3.3%

2. Papa John’s

Q1 REVENUE INCREASE: 5.3%
ADDITIONAL JOB ANNOUNCED: 20,000

The pandemic has reinvigorated the American appetite for pizza. Papa John’s has certainly benefited from the rediscovered taste.  Impressively, the brand estimated same-store sales rose 33.5% in North America and 7% globally for the month of May. 

“In May, for the second straight month, Papa John’s team members and franchisees delivered the best sales period in the company’s history,” CEO Rob Lynch said.

The May increase comes on the heels of a strong Q1, where the brand ended plus 5.3%. To support the growth, Papa John’s recently announced it needs to fill 20,000 positions immediately.

Related: How Much Does a Papa John’s Franchise ACTUALLY Cost

3. Ace Hardware 

Q1 REVENUE INCREASE: 4.2%
ADDITIONAL JOBS ANNOUNCED: 30,000

Ace Hardware has seen significant gains amid the coronavirus pandemic. Ace boasts 75% of Americans live within 15 minutes of an Ace Hardware location. With many areas under stay at home orders, Ace demand has been high during the coronavirus shutdown. The nation’s largest retail hardware cooperative saw online sales jump over 580% and same-store sales increase 26% in the month of April. The franchisor rounded out Q1with an increase in US same-store sales of 4.2%.

In light of the increases, the company announced it’s undertaking a massive hiring wave. Ace and its independent retailers will be adding 30,000 positions. This includes a mix of full-time, part-time and seasonal employees at 4,300 locally owned stores. 

“Over these 95 years, our local owners have weathered their community through a crisis or two and these ‘red-vested heroes’ stand ready to do it again,” Ace Hardware CEO John Venhuizen says. “We feel fortunate that we are able to provide employment opportunities for those who may be looking for work, with our growing need for more helpful associates.”

4. Domino’s

Q1 REVENUE INCREASE: 1.6%
ADDITIONAL JOB ANNOUNCED: 10,000

Returning to America’s rediscovered appetite for pizza, Domino’s is also faring well. Global retail sales for the pizza giant improved 4.4% year over year in the first quarter. The upside can primarily be attributed to solid comps at international stores (up 3.9%) and domestic stores (up 4.9%). The pizza giant notched a 1.6% increase domestically in Q1.

Domino’s is leveraging big-brand power to shift its focus to contactless delivery. The company spent approximately six weeks rewriting its operating procedures. The main focus–moving to a 100 percent contactless delivery model nationwide. The company announced the contactless shift will likely result in an additional 10,000 new hires. The positions will include delivery drivers, pizza makers, and truck drivers.

CEO Ritch Allison said in a statement to CNBC, “Our corporate and franchise stores want to make sure they’re not only feeding people, but also providing opportunity to those looking for work at this time, especially those in the heavily-impacted restaurant industry.”

“We are seeing a tailwind as consumer behavior across the restaurant industry has shifted toward delivery and carryout, though we are not sure whether this trend will continue for the remainder of the second quarter or how long this tailwind may last,” CEO Ritch Allison said in a statement.

5. Edible Arrangements 

Q1 REVENUE INCREASE: 8.7%
ADDITIONAL JOB ANNOUNCED: N/A

In a time when face-to-face interaction is so limited, it makes perfect sense a gift delivery service would be booming. But just how booming, is shocking. Edible’s same-store sales for the brand are up 8.7% year to date. 

The uptick is certainly continuing for Edible. Edible posted a staggering 61% same-store growth for the month of April. The company noted it experienced its most successful Mother’s Day holiday in company history.