Dive Brief:
- Fatburger has signed a new 40-unit, 10-year expansion deal covering several Florida markets with Whole Factor Inc., according to a Wednesday press release.
- Whole Factor previously signed a 14-store franchising commitment with Fatburger in 2021 and has opened two units of the burger chain.
- If Whole Factor builds out all the units it has signed deals for, that would mark a massive expansion for Fatburger, which has more than 80 units in the United States, according to its website.
Dive Insight:
A deal of this scale would shift the brand’s geographical concentration away from the West Coast and be an inflection point for the fast-casual burger chain’s national growth plans.
The brand’s first Florida units have “exceeded expectations,” said Taylor Wiederhorn, Co-CEO and chief development officer of Fat Brands, Fatburger’s parent company.
“Two years ago, Fatburger made its return to the state of Florida after a 20-year absence, and we are not looking back,” said Wiederhorn, who was appointed co-CEO earlier this year.
The new deal will bring Fatburger to the Jacksonville market and other trade areas, according to the press release. The brand’s two Florida locations are in the Orlando and Tampa areas.
Fat Brands’ store growth has slowed since 2022 when it opened a record-breaking 142 units. The firm still opened 92 units last year, however, and may be looking for ways to speed up unit growth now that it has a pipeline of over 1,000 units. Its strategy for Fatburger includes developing co-branded units with sister brands Buffalo Express and Hot Dog on a Stick, as well as Round Table Pizza, Andrew Widerhorn, Fat Brands chairman, said on the company’s Q1 2025 earnings call.
Such “strategic combinations not only enhance the guest experience, but also maximize operational efficiency and market presence, positioning us for continued growth,” Andrew Wiederhorn said.
Fatburger did not specify if any of the forthcoming Florida stores are multi-brand enterprises.
In addition to co-branding, Fatburger’s growth has hinged, of late, on international development, with a recent 30-store franchising agreement for France, according to the earnings call.
The brand also recently opened a restaurant in the American Airlines employee dining hall at the Dallas-Fort Worth International Airport, which Andrew Wiederhorn said was “the first restaurant franchise in an employee cafeteria at the airport.”
Such non-traditional venues will supplement conventional franchise agreements and could become a strategic priority, according to Fat’s earnings call.
