All you need to know about First Watch franchise

What is First Watch Franchise ?

A breakfast and lunch restaurant chain called First Watch franchise serves made-to-order breakfast, brunch, and lunch utilising only the freshest ingredients. So in addition to classic dishes like omelettes, pancakes, sandwiches, and salads, First Watch franchise also serves specialty foods like quinoa power bowls and avocado toast. It also offers alcoholic drinks for sale.

The original First Watch franchise was established by First Watch, Inc. in 1983 in Pacific Grove, California. On April 18, 2008, First Watch, Inc. was dissolved. First Watch Restaurants then started to offer franchises on April 30, 2008. Thus, there will be 321 company-owned sites and 88 franchised outlets spread over 29 states by the end of 2020.

Christopher A. Tomasso serves as both the company's president and chief executive officer. He has been president since November 2015 and the company's chief executive officer since June 2018. One of the biggest private equity organisations in the world, Advent International, owns a majority stake in the First Watch restaurant brand. In addition, Business Intelligence Group named it one of the "Best Places to Work" in 2018.

History of First Watch Franchise

Given that First Watch restaurants are only open from 7:00 AM to 2:30 PM, the name is a nautical allusion to the first work shift on board a ship. The original restaurant was established by Ken Pendery and John Sullivan in 1983 in Pacific Grove, California. After quitting the Le Peep breakfast restaurant in Colorado, the co-owners started this business. They relocated their corporate headquarters to Bradenton, Florida, in 1986.

The Arizona-based The Good Egg was purchased by First Watch in 2014. 18 The Good Egg restaurants have been transformed into First Watch restaurants as of 2021. The corporation bought the Colorado-based Egg & I Restaurants franchise in May 2015. Twenty states have 114 The Egg & I restaurants. Although not every Egg & I Restaurant location will change to a First Watch, 22 conversions had been finished as of 2016. In a study of 150,000 Consumer Reports readers conducted in 2012, First Watch received high marks for flavour, service, value, and menu options, making it the best breakfast chain overall.

2017 saw Advent International, a private equity company, acquire the majority of First Watch. First Watch was acquired by Advent International from Freeman Spogli & Co in 2011. The 85 percent share that Catterton Partners had previously owned was acquired by Freeman Spogli & Co. With the $35 million investment made to acquire Catterton's interest in 2004, First Watch was able to double the number of its locations by growing throughout the Southeast and Midwest. Florida, Texas, Ohio, Colorado, and Arizona are states where First Watch is widely present. First Watch and the Egg & I restaurants offer a wide selection of foods and serve breakfast, brunch, and lunch.

In order to "help hard-working women and their families in Huila in 2018," First Watch started sourcing its coffee from Huila, Colombia in 2018. The coffee is roasted by Royal Cup Coffee, a company with roots in Alabama. First Watch went public in October 2021, raising $170 million through its IPO on Nasdaq.

First Watch Franchise Menu

There are numerous dishes on the First Watch menu. A.M. Superfoods bowl, steel-cut oatmeal, power wrap, French toast, Quinoa Bowl, chilli Chorizo, and other popular items are among the most in demand.

Their mission statement is to deliver breakfast and classic favourites. The meals on their seasonal menu are very vibrant and delectable. It is the greatest spot to go if you enjoy seasonal vegetables.

First Watch Franchise Investment required

• Initial Investment- $899,800-$1,522,000
• Franchise Fee - $40,000
• Royalty Fee- 4%
• Liquidity- $35,000-$125,000
• First Watch Restaurant Franchise Fee

For a First Watch franchise, the initial licence cost is $40,000. In other words, this is the initial investment required to create a First Watch location.

First Watch Franchise Cost

It ranges between $899,800 to $1,522,000 is the projected total investment needed to open a First Watch restaurant.

First Watch Franchise revenue

First Watch does not generally turn a profit, with a net loss of $49.6 million in 2020. Additionally, First Watch had a revenue decline of 21% in 2020, with revenues of $337 million. Additionally, franchise revenues dropped from $7 million in 2019 to $4.95 million in 2020, a drop of almost 30%.

Labor and other related expenses, which total $120 million on the income statement for First Watch Restaurant Group, are the largest expense.

First Watch Franchise Owner Salary

The amount of money a franchise owner at First Watch Restaurants Franchise can earn depends on various aspects, like location, size, etc. On the other hand, as a business owner, you want to keep the level of service high while keeping costs down and sales strong. Like any other franchise, this one may have expenses for utilities, staffing, utilities, inventory supplies, and administrative fees. Seasons and location can affect how much a month will cost. The majority of initial running expenditures, such as those for signage, furnishings, décor, and renovations, are often covered by franchise start-up costs, which are typically fixed.

Conclusion

Even while First Watch Restaurants did experience losses of about $50 million in 2020, the business also had to respond to and make adjustments for the weak demand brought on by COVID-19 for the first three quarters of the year. Franchise locations increased by 19 in 2020 over this period. First Watch also has a bright future because the business recently filed for an Initial Public Offering (IPO), which would raise a significant amount of money for expansion and boosting market share in the daytime restaurant sector.