Dive Brief:
- Schlotzsky’s has rebranded, returning to its Schlotzsky’s Deli name, and debuted a new restaurant prototype, the company said Monday.
- The name change is a response to a 2025 survey that found two-thirds of guests see the brand as a deli.
- Other chains, including Starbucks, Smashburger and Domino’s, have undergone rebrands or major shifts in brand positioning in recent years to better connect with guests.
Dive Insight:
Schlotzsky’s Deli’s prototype is “purposefully engineered to cut through the visual clutter of today’s fast-casual landscape,” the company said. The format includes a simplified interior that creates a natural flow for customers from entry to ordering and pick-up or the dining room. There are natural places to pause that also help guide guests through the restaurant, the company said.
The design features self-order kiosks, digital pickup areas, grab-and-go items, pre-made cold deli subs and a beverage station located to boost “speed of service, throughput and ease of use.” The design features its new “Life Needs Lotz” slogan as well.
The chain also redesigned its back of house, with a more compact kitchen that has optimized equipment placement and reduces redundancy. The back of house redesign is meant to improve labor efficiency and streamline peak-period operations, the company said.
The model is adaptable to various footprints, including non-traditional, and tops out at about 2,100 square feet. Schlotzsky’s previous generation of restaurants ranged from 1,400 to 3,600 square feet. The new design is estimated to reduce operating costs by 20% to 25% and create better unit-level economics over time.
“This design empowers franchisees with unparalleled flexibility without sacrificing impact and brand presence,” Donna Varner, chief brand officer of Schlotzsky's Deli, said in a statement. “It's efficient, easily adaptable and strategically engineered to support a range of development paths, whether launching a new restaurant or refreshing an existing location.”
The new branding and prototype comes as parent company GoTo Foods is preparing for significant growth in the near future. Last year, it signed commitments to develop over 1,400 franchised units, which would grow its overall unit count from 7,300 to nearly 9,000. GoTo Foods will focus on improving personalization through loyalty as well as boosting its multi-channel digital foundation and improve performance by using artificial intelligence to better serve customers and franchisees.
