Aaron Anderson is a Philadelphia-based former franchisee who’s now a franchisor with his new brand, Brunchaholics.
Being a franchisee isn’t for everyone, Aaron Anderson discovered, but the experience helped him realize he’s better suited for the other side of the business model.
With his latest venture, as founder and owner of Brunchaholics, Anderson stepped into the role of franchisor. As he did with his first company, he’s building from the ground up.
Born and raised in Philadelphia, Anderson launched his first business in 2009 after working as an assistant in the music industry. It was in that field he noticed the importance of merchandise and started a screen printing company.
Anderson owned Union Printing for 13 years, and more recently chose to branch out to follow his interest in the restaurant industry. “I already had a passion for business, but I became infatuated with how restaurants work,” Anderson said. “It’s challenging, which I love, so I decided to go in.”
He got his start in restaurants as a franchisee and opened his first Original Hot Dog Factory location in Philadelphia in 2020, just before the pandemic hit. Despite the challenging time period, Anderson grew his portfolio, increasing his Original Hot Dog Factory locations to seven and opening two Rita’s Italian Ice units. He created a ghost kitchen concept, Chef Rube’s Kitchen, which had two locations.
As a franchisee, though, Anderson didn’t find the satisfaction he sought. The emerging brand status of the Original Hot Dog Factory ultimately wasn’t a fit, and though Rita’s had a solid infrastructure, Anderson said the margins weren’t what he expected. He sold his restaurant assets and changed direction.
“I was able to understand how being a franchisee worked, and it gave me the mentality of wanting to be a franchisor instead,” Anderson said. “I had a building at the time that was intended to be a Hot Dog Factory. But once I had sold my restaurants, I had this spot still and it was a great location.”
Brunchaholics, with a menu full of breakfast items, has two locations open.
Knowing there was a lack of brunch concepts in the Philly area, Anderson opened the first Brunchaholics in April 2022. He opened a second location in nearby Cherry Hill in October 2023. Both are company-owned units and Anderson recently started franchising the concept.
“The benefit is a person that is joining Brunchaholics will have a franchisor who understands what they’re going through,” Anderson said. “It creates a fair system when the franchisor has the ownership experience. And as a franchisor, I can empathize and understand the position a franchisee finds themselves in.”
The reception of the brand so far has been strong, Anderson said, with both locations performing well. Because of the success, he said he wants to expand rapidly with the hope of having 10 locations open by the start of 2025. To do so, he said he’s on the lookout for a variety of owners.
“We’re open to having franchisees who don’t have experience, but ideally, we want someone who has a restaurant background,” Anderson said. “Ultimately, what we really want is an ambitious entrepreneur who has a sense of business and an open mind, ready to learn.”
Anderson said they’re closing in on deals with franchisees to open more locations in and around the Philadelphia metro area. Going forward, the plan is to mainly develop restaurants along the East Coast, although because of interest, Brunchaholics is also looking to expand in Atlanta.
Another potential market is Texas, although growth there may not come via traditional franchise development efforts. Another restaurant, also named Brunchaholics and owned by Jessie Washington, is open near Dallas, and Anderson said he’s been in contact with the business.
“I’ve had conversations with the team at that location and somewhere in the future, we’re open to trying to bring them into this brand,” Anderson said.
Because of his dedication to Brunchaholics, Anderson said he also passed on an opportunity with another concept. In January, The Market Place, a gourmet sandwich restaurant, announced Anderson had been named CEO. Anderson, however, said he is no longer involved in that company, wanting to focus primarily on his brunch concept.
His vision for Brunchaholics is to reach 100 units in five years, with locations in both the United States and international markets.