Dive Brief:
- Toastique, a fast casual cafe chain that started in Washington, D.C., will open its first location in Arizona on Dec. 6, according to a press release.
- The brand’s store will open in Scottsdale, Arizona, and have a menu anchored by coffee, toast, bowls and juices. A local franchisee will operate the location.
- The market entry comes as many brands eye the Sun Belt for continued expansion and as fast casual chains plow ahead with unit construction despite the macro headwinds causing a contraction in consumer traffic at many brands.
Dive Insight:
Arizona, Texas and Florida have been particularly significant growth markets for chains in recent years, as the broader Sun Belt has seen dramatic population growth. Zaxby’s, for instance, is expanding in Nevada and Arizona, White Castle is planning its market entry in Texas, and Chicken Salad Chick has made Arizona one of its target growth markets.
In addition to this geographical trend, Toastique is looking to capitalize on consumer shifts toward foods that consumers consider healthy. Josh Decker, the operator of the forthcoming Scottsdale location, cited the healthy perception of Toastique’s menu as an important factor for the brand.
Toastique, according to its website, has about 50 open units and about 10 slated to open soon. Many of the open units started up earlier this year; the chain’s franchise disclosure document lists its unit count at the end of 2024 as 36. This growth parallels the expansion of fast casual chains like Shake Shack and Cava, which have continued to open new stores despite the difficult consumer environment.
Toastique’s unit volumes, however, are relatively low, with an average sales volume of $712,148 across the 17 locations in its comps base, according to its FDD. This low volume could make it more difficult for franchisees to finance expansion.
