Firehouse Subs is taking multiple steps to bolster its position in the fast-casual sandwich category, with a new owner recruitment program and major digital investments.
The former relates to a new initiative the brand launched to attract more franchisees who bring a background as first-responders and/or veterans. The program, offering $100,000 cash, not only reflects the company’s active search for strong candidates, but aims to honor the heritage of its founders as well.
The sandwich concept was established nearly 30 years ago by brothers and firefighters Robin and Chris Sorensen. Since its launch, Firehouse Subs has grown to more than 1,200 locations with several franchisees coming into ownership with a background as first responders and/or those who’ve served.
In many cases, Firehouse Senior Director of Franchising Kelly Crummer said those owners are some of the most prosperous in the system.
“After digging a bit, we found our first responder franchisees become successful owners because they have perseverance and experience in leadership and teamwork. Challenges don’t deter them.”
Hoping to find similar owners as the brand continues spreading to new markets, Firehouse started the Veteran and First Responder Development Incentive Program for the next two years.
Firehouse Senior Director of Franchising Kelly Crummer
“It allows us to put a focus on bringing on more veterans and first responders into our system,” Crummer said. “We can use that to grow with them. We’ve seen an acceleration in our in our profitability for our franchises, so we see an opportunity to bring that potential of profitable restaurants to more people.”
The program offers $100,000 to a franchisee to open a new Firehouse restaurant, and will provide the same amount for a second and third restaurant. On average, it costs between $400,000 and $500,000 to open a Firehouse unit.
“When we talked to our franchisees and asked what would help them and other franchisees grow faster, they said it was us partnering with them upfront to overcome increasing costs in recent years,” Crummer said. “As we’ve seen our profitability grow, we want to make sure our return on investment continues to match.”
Crummer added that the brand isn’t exclusively looking for former veterans and first responders, though, and is developing other programs to expand its system.
“A growing brand like Firehouse needs a healthy mix of existing franchisees and new franchisees,” Crummer said. “This is one way to make sure we’re growing with the right new franchisees, but it’s not the only group we’re going after. We have other incentives for new franchisees who just love the brand, regardless of background. We’re also exploring another program for current managers to move into restaurant ownership.”
Ensuring franchisee profitability
In addition to creating new incentives for franchisee recruitment, Crummer said the brand is investing in better operations for its owners as it expands.
“A lot of our innovations are around driving efficiencies in the kitchen and we’re looking at some new layouts there,” Crummer said. “We’re also driving up digital adoption through loyalty and marketing programs. Additionally, we’re investing in some expanded marketing messaging, all with the aim of boosting that profitability for the franchisees, which is the foundation of our growth.”
Then, there’s the digital growth, which is coming in the form of more ordering kiosks for its restaurants. Crummer said the brand is now piloting kiosk ordering at company-owned Firehouse locations to test the waters.
The move is reflective of a goal set by leadership at Firehouse Subs’ parent company, Restaurant Brands International. During a discussion with investors, RBI CEO Josh Kobza and Executive Chairman Patrick Doyle shared the importance of digital enhancements for all of its brands, including Firehouse Subs.
“We need to meet our customers wherever they are, whether it’s in our restaurants, on our apps or with our third-party delivery partners,” Kobza said at the mid-February event. “At our restaurants, we found that transforming the front counter ordering experience into self-serve kiosks provides a more positive ordering experience for guests and frees up time for team members to focus on order execution and guest experience.”
RBI CEO Josh Kobza
Related: RBI’s Patrick Doyle Aims to Win With Food and Franchisee Success
Kobza added that the boost in digital investments across RBI’s brands isn’t just for the sake of it, but that it’s because customers prefer it. The digital guests at the restaurants visit more frequently and spend more on items, Kobza said.
“We found that guests and team members generally prefer the order experience with kiosks, which is why we’ve rolled them out in international markets,” Kobza said. “In Spain, we’ve removed the front counter ordering entirely and shifted to be 100 percent digital, with kiosk ordering the only in store option.”
That’s the future Doyle sees for Firehouse Subs, too.
Doyle challenged Firehouse Subs President Mike Hancock “to make Firehouse Subs the first 100 percent QSR in America,” Doyle said. “I think it’s very doable, since 96 percent of our Firehouse restaurants are in-line locations. So, it simply means all we have to do is rip out the front-counter order points and replace them with kiosks.
“Because our guests are either walking in or are ordering ahead of time on their phones anyway, it’s very possible,” said Doyle. “I think we can get Firehouse to 100 percent fully digital in the U.S. and Canada by the end of 2025, Mike thinks 2026. But the point is, I think it can absolutely can be done. Regardless, you’re going to see us speed up our digital journey because it’s good for everyone involved.”