Breakfast is considered the most important meal of the day in the American culture.
Since childhood, many individuals have been taught the importance of starting the day with a nutritious and wholesome breakfast.
However, the dynamic lifestyle is the leading cause behind the increasing popularity of breakfast restaurants.
The popularity of breakfast restaurants began to rise significantly in the 1960s and 70s, with the emergence of chain breakfast restaurants like IHOP and Denny’s, which focused on serving breakfast throughout the day.
Additionally, there’s a social aspect as breakfast restaurants often serve as a gathering place for people to meet families and friends in a cozy, family environment.
Breakfast restaurants offer casual dining services and diverse menus at affordable prices, further fueling the demand.
In this article, we’ll introduce you to the top ten breakfast restaurant franchise opportunities to embark on in 2023. Let’s get started!
10 Best Breakfast Restaurant Franchise Opportunities
Here’s our guide to some popular breakfast restaurant franchise opportunities that come with incredible franchise support:
1. Denny’s
| Founded in | 1953 |
| Franchising Since | 1963 |
| Estimated Outlets | 1,625 |
| Franchise Fees | $30,000 |
| Initial Investment | $1,428,422-$2,326,537 |
| Liquidity | $500,000 |
| Royalty Fees | 4.5 % |
Denny is a famous family chain of snack-style restaurants in the United that offers breakfast, lunch, and dinner around the clock.
Originally started as a coffee shop, it gradually transformed into a casual- dining restaurant with an extensive menu offering a variety of combo breakfast platters at affordable prices.
With more than 1600 restaurants worldwide, Denny has a presence in all 50 states of the United States.
Denny is a great franchise opportunity with ample benefits. The franchisees will get solid training, business support, site selection, and ongoing assistance.
Denny’s also offers in-house and third-party financing to cover the startup costs such as franchise fees, equipment, inventory expansion, and payroll.
Read our complete article on the delicious Denny’s breakfast menu, along with all the details on the prices.
2. Famous Toastery
| Founded in | 2005 |
| Franchising Since | 2013 |
| Estimated Outlets | 25 |
| Franchise Fees | $45,000 |
| Initial Investment | $605,500-$1,029,500 |
| Liquidity | $250,000 |
| Royalty Fees | 5% |
Famous Toastery is one of the most innovative family-style breakfast restaurants.
Starting in 2005, the restaurant serves a wide range of breakfast and brunch items such as sandwiches, signature omelets, benedicts, burritos, quesadillas, cookies, and more.
Famous Toastery has been ranked among the top 500 top food franchises in 2021 by Entrepreneur Magazine.
With more than 25 locations nationwide, the franchise is on its way to opening 50 units by 2024 and actively looking for qualified and self-motivated entrepreneurs to join them.
Franchisees will receive goal-driven franchise support and a dedicated team member who will work with them and support them through every step of the day and turn their dreams into reality.
3. Lumberjacks Restaurant
| Founded in | 2004 |
| Franchising Since | 2004 |
| Estimated Outlets | 6 |
| Franchise Fees | $40,000 |
| Initial Investment | $432,300-$1,320,700 |
| Liquidity | $100,000 |
| Royalty Fees | 4% |
Lumberjack is a breakfast restaurant known for its family-friendly environment, home-cooked meals, and enormous portions at reasonable prices.
Started in 2004, the breakfast restaurant offers a classic menu of dishes with something for everyone.
Considering the tremendous success it has achieved over time, Lumberjack is an excellent franchise opportunity to enter the food industry and be your boss.
The eligible franchisees must have an understanding of how to carry a branded concept.
Franchises will be provided with the tools and support necessary to run and grow their business. Ongoing training and support are readily available for the franchisees to keep them updated on new techniques and processes.
4. Jimmy’s Egg
| Founded in | 1980 |
| Franchising Since | 2008 |
| Estimated Outlets | 60+ |
| Franchise Fees | $25,000 |
| Initial Investment | $481,300-$572,000 |
| Liquidity | N/A |
| Royalty Fees | 4% |
Jimmy’s Egg is another famous casual breakfast and lunch restaurant that has been serving breakfast, brunch, and lunch for the last 30 years.
Starting back in the 1980s, Jimmy is an excellent place to start your day with fresh, home-like delicious food.
Jimmy’s Egg has a unique and proven business model and an incredible franchise support system for its partners. They offer multi-unit franchisees, unique for each location and circumstance.
All franchisees will be provided with comprehensive training in all facets of operating a Jimmy’s Egg franchise efficiently, assistance and site selection, and operational support to achieve a long-time success.
5. IHOP
| Founded in | 1958 |
| Franchising Since | 1960 |
| Estimated Outlets | 1,770 |
| Franchise Fees | $40,000-$50,000 |
| Initial Investment | $92,000-$810,000 |
| Liquidity | N/A |
| Royalty Fees | 4-5% |
IHOP is one of the most eminent names in the breakfast restaurant industry that offers a wholly unique and exciting dining experience.
The restaurant serves a delicious variety of pancakes, omelets, and more in a friendly and relaxed environment.
In addition to breakfast, IHOP also specializes in lunch, brunch, and dinner items that are available throughout the day.
With over 58 years of heritage of serving customers their favorite food, IHOP is one of the best breakfast restaurant opportunities in the United States.
With 99% of their restaurants owned by franchises, they are offering exclusive territories for both non-traditional vendors and international markets.
The company is looking for franchisees with financial ability and experience in restaurant management and operation.
As a franchise, you will get training and all sorts of ongoing support to get started and run your business effortlessly.
6. Another Broken Egg Café
| Founded in | 1996 |
| Franchising Since | 2005 |
| Estimated Outlets | 65 |
| Franchise Fees | $50,000 |
| Initial Investment | $505,500-$1,175,500 |
| Liquidity | N/A |
| Royalty Fees | 5% |
Another Broken Egg Café is an upscale breakfast restaurant that offers gourmet meals for breakfast, brunch, and lunch.
Started in 1996, the café soon became a dining sensation for its hospitality and a one-of-a-kind menu featuring a variety of breakfast options, including eggs benedict, pancakes, omelets, waffles, French toast, and other upscale delights.
Another Broken Egg Café has over 65 locations nationwide and plans to expand quickly across the USA.
They are looking for franchise candidates who must demonstrate a relentless passion for the restaurant business, similar to the brand.
As a franchisee, you will be provided with initial training, tremendous marketing support, and resources.
In addition, you can take advantage of their flexible business model, impressive technology, third-party financial support, and additional revenue streams to operate and grow your restaurant successfully.
7. Elmer’s Breakfast Lunch Dinner /Egg N’Joe
| Founded in | 1960 |
| Franchising Since | 1982 |
| Estimated Outlets | 14 |
| Franchise Fees | $40,000 |
| Initial Investment | $1,047,750-$3,209,500 |
| Liquidity | N/A |
| Royalty Fees | N/A |
Elmer’s Breakfast Lunch Dinner/Egg N ‘Joe is a small café built on the foundation of Walt Elmer’s famous buttermilk pancakes.
Originally started in the 1960s as a breakfast restaurant, they have slowly expanded their menu to lunch and dinner items served in a warm and family atmosphere.
Elmer’s has gained recognition nationwide for their consistent taste, hospitality, value for money, and environment and also has been ranked among 50 emerging chains for the future by FSR Magazine.
As an Elmer franchisee, you will get extensive initial training, resources, and continuing support to help you run your business smoothly.
Their support team will be there to guide you about the latest developments with the brand.
8. Sunny Street Café
| Founded in | 2008 |
| Franchising Since | 2008 |
| Estimated Outlets | 22+ |
| Franchise Fees | $35,00-$87,500 |
| Initial Investment | $598,000-$956,000 |
| Liquidity | $100,000 |
| Royalty Fees | 5.25% |
Sunny Street Café is an emerging breakfast, lunch, and catering franchise known for its fresh and unique menu.
Founded in 2008, the family-owned restaurant serves a wide variety of breakfast, brunch, and lunch items in a cozy home-like community-driven atmosphere.
Sunny Street Café is one of the most excitingly affordable yet highly rewarding breakfast franchise opportunities to get started in this hot industry.
The franchise is expanding rapidly throughout the United States and Canada and seeking both single and multi-unit developers.
From initial training and operational support to marketing and grand opening, they are offering their expertise and support at every step of the way to help you accomplish this kickoff and build a successful business.
9. Flying Biscuit Café
| Founded in | 1993 |
| Franchising Since | 2006 |
| Estimated Outlets | 24 |
| Franchise Fees | $40,000 |
| Initial Investment | $642,000-$944,000 |
| Liquidity | $150,000 |
| Royalty Fees | 5% |
The Flying Biscuit Café is a breakfast restaurant franchise known for serving southern-inspired cuisine and a charming atmosphere.
Started in 1993, the café is primarily famous for its biscuits and grits but also offers a variety of other breakfast, lunch, and dinner items all day long.
The Flying Biscuit Café is an excellent breakfast franchise opportunity for those looking to own a southern-themed restaurant in their local communities.
All the franchisees will receive extensive initial and ongoing support throughout their franchising process, including initial training, site selection, brand awareness, and marketing.
The Flying Biscuit Café franchisees will also receive hands-on training and ongoing support after opening the franchise.
Additionally, they also offer in-house financing to cover startup costs, franchise fees, accounts receivable, inventory, and other costs.
10. Perkins Restaurant & Bakery
| Founded in | 1958 |
| Franchising Since | 1958 |
| Estimated Outlets | 300+ |
| Franchise Fees | $40,000 |
| Initial Investment | $1.5M-$2.5M |
| Liquidity | $500,000 |
| Royalty Fees | 4% |
Perkins Restaurant & Bakery is one of the highly recognized names in the breakfast restaurant industry.
The all-day breakfast restaurant offers a versatile breakfast, lunch, and dinner menu that appeal to a wide range of pallets.
With dozens of waffle and pancake options, Perkins also offers a wide selection of handcrafted burgers, steaks, soups, cream pies, and more.
Perkins has more than 300+ franchise locations throughout Canada and the United States and looking for desirable franchise candidates nationwide to open franchisees in their local communities.
As a Perkin franchisee, you will be guided by their experienced management team throughout the franchising process.
You will get comprehensive training, marketing assistance, and ongoing support to get your franchise up and running.
Comparison of Top 5 Breakfast Restaurant Franchise Opportunities
| Company Name | Denny’s | Famous Toastery | Lumberjacks Restaurant | Jimmy’s Egg | IHOP |
|---|---|---|---|---|---|
| Founded | 1953 | 2005 | 2004 | 1980 | 1958 |
| Outlets | 1,625 | 2013 | 6+ | 60+ | 1,770 |
| Franchise Fee | $30,000 | $45,000 | $40,000 | $25,000 | 40,000-$50,000 |
| Initial Investment | 1,428,422-$2,326,537 | $605,500-$1,029,500 | $432,300-$1,320,700 | $481,300-$572,000 | $92,000-$810,000 |
| Royalty Fee | 4.5% | 5% | 4% | 4% | 4-5% |
Is Breakfast Restaurant Franchise Right For You?
Ask yourself these questions before deciding if a breakfast restaurant franchise is right for you.
Do I have the needed investment?
Breakfast restaurant franchises cost a lot, with the average investment being $500,000.
So before you think about investing in a breakfast franchise, make sure you have the needed capital or have your finances sorted.
You can also look for franchises that offer in-house financing options in case the investment amount is a problem for you.
Am I willing to run my business with limited flexibility?
Franchisors have their own set of rules and standards that the franchises must follow.
As such, you might have only limited or no control over the timings, marketing campaigns, menu, prices, etc.
If you are okay with this, then you can go for opening a franchise, and if not, then starting a business from scratch may be ideal for you.
How To Choose A Breakfast Restaurant Franchise?
Choosing the right franchise opportunity requires diligent research and an alignment of investment goals and values. Here are some factors that you must consider:
Brand Reputation
Whether a breakfast restaurant franchise has 100 or 10,000 locations doesn’t matter. What matters is how good their brand reputation is.
Shaking hands with a reputed breakfast restaurant franchise will ensure a smooth start for your business and will make the business journey smooth for you in terms of customer base and revenue growth.
Location
Location is a key factor to consider when opening any franchise, for that matter. For a breakfast restaurant franchise, you should look for areas where there is not much competition.
Additionally, opening a breakfast restaurant franchise near offices or colleges, etc., can attract more footprint since people in a hurry could always grab a quick bite if the breakfast restaurant is nearby.
Franchise Support
You can do only so much alone, especially when undertaking someone else’s business.
At the start and during your initial years, you will require franchise support from time to time. So you must look at companies that offer complete franchise support.
Concept and Menu
There are a whole bunch of items and options that you can find on a breakfast menu. A breakfast menu can be simple and can consist of just coffee, waffles, and other bakery items.
Or it can consist of only smoothies and juices, etc.
You must consider the concept and menu of different breakfast restaurant franchises and choose the one that people can relate to the most in your area.
Conclusion
With more and more people seeking a quick, convenient, and wholesome morning dining experience, the breakfast restaurant industry in the United States is experiencing a boom that has paved the way for franchise opportunities, allowing ambitious entrepreneurs to break into this thriving industry.
All the breakfast restaurant franchises mentioned in this article offer unique advantages, with a common thread being their remarkable franchise training and support programs and a strong commitment to equip their franchisees with the necessary knowledge and tools to help them succeed quickly.
In conclusion, by joining any of these franchises, you can not only take benefit from the established brand reputation and the expertise of the franchisor, gaining a competitive edge in the market and improving your chances of success.
FAQ
How Much Does a Breakfast Restaurant Franchise Cost
The Cost To Open A Breakfast Restaurant Franchise Varies Widely Depending On Various Factors, Including Brand, Popularity, Size, And Location. But Generally, Most Franchises Take Anywhere Between $250,000 To $1 Million In Startup Costs.
Do I Need Prior Experience To Open A Breakfast Restaurant Franchise?
While having relevant experience in the restaurant or hospitality industry can be beneficial, it is not always a prerequisite to starting your franchise.
Some franchisors may ask for the experience, but most provide the initial training to teach all the aspects of running and growing a breakfast restaurant franchise, such as menu development, food preparation, and business management.
So, even if you have zero experience in the industry, you can still be a franchisee.
Is Breakfast Restaurant Franchise Profitable?
Yes, a Breakfast restaurant franchise can be quite profitable, especially because breakfast items like eggs, flour, etc., have a high-profit margin. Several breakfast franchises make annual sales of over $1 million, making it a good business niche.
What Is Breakfast Restaurant Franchise Profit Margin?
Different breakfast restaurant franchises have different profit margins depending on their brand’s popularity, among other factors. On average, however, a breakfast restaurant franchise offers a profit margin in the range of 5-15%.
Which Is The Cheaptest Breakfast Restaurant Franchise?
IHOP is one of the cheapest breakfast restaurant franchises, with initial investments ranging from $92,000 and going up to $810,000. Jimmy’s Egg is another cheap breakfast restaurant franchise option with an initial investment ranging from $481,300-$572,000.
Sources
https://dennysfranchising.com/
http://www.lumberjacksfranchise.com/#GetStarted
https://www.anotherbrokeneggfranchise.com/next-steps/
https://www.ihop.com/en/about-ihop/franchise-opportunities
https://www.flyingbiscuit.com/franchising/
https://perkinsfranchising.com/
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.