Over the final month of 2025, Franchise Update contacted several multi-unit restaurant franchisees to get their thoughts about the year ahead. In today’s Paths to Success feature, we asked them about both the challenges and opportunities they see for their business in 2026.
The biggest challenge restaurant operators currently face is the cost of goods, specifically brought on by the tariffs over the past year. In some cases, owners face the dilemma of absorbing the costs or passing them along to customers through higher prices. Labor continues to be an ongoing issue that the restaurant industry has faced over the past several years.
Despite these challenges, restaurant franchisees maintained a positive outlook for the coming year and saw an opportunity to grow and improve their business. Their biggest priority is to connect with the customer and continue to provide a great experience. That may come by delivering value, ease of ordering, promotions, or menu enhancements. Other franchisees cited the opportunity to create a positive culture and experience for their employees to build and maintain a consistent team environment. Multi-unit franchisees are a forward-minded group with thoughts of growth regardless of any challenges they foresee in the year ahead.
Whether it is a goal or resolution, the beginning of the year is also a good time to look ahead and plan for the next 12 months. In Multi-Unit Franchisee magazine, we asked restaurant operators about their goals over the next year. Not surprisingly, nearly every multi-unit owner planned to open more restaurants and expand their footprint. They also had plans to increase productivity, reach financial targets, or incorporate new systems and processes into their business operations. Read the Franchisee Bytes section below to see the goals of some of the top multi-unit restaurant franchisees over the past year.
Joe Saldana
Company: JKSK
Brands: 5 Smoothie King
Years in Franchising: 5
The most significant challenge for our business will be the continued rise in the cost of goods, with tariffs further pressuring margins across nearly every industry. Very few businesses are insulated from these cost increases, making margin management an ongoing concern.
Despite these challenges, there is a meaningful opportunity for us to connect with consumers who are actively seeking lifestyle changes, particularly as interest in healthier living continues to grow. A silver lining of rising whey and protein prices, along with increased attention on peptides, is that more consumers are rethinking their nutrition choices. This shift creates an opportunity for us, as we offer products that align well with these evolving needs and preferences.
Dan Sacco
Company: Central Coast Hospitality, Inc, dba Pancheros Mexican Grill
Brands: 3 Pancheros, 3 Your Pie Pizzerias
Years in Franchising: 21
Our brands are preparing for what’s next by keeping one thing top of mind – our customers.
Pancheros, for instance, is maintaining its focus on the customer by delivering value, keeping a simple digital ordering experience, and offering promotions that resonate with our guests. In today’s market, value marketing and having an in-depth understanding of your consumer are of utmost importance. Once that’s a priority, steady growth is possible, and your brand becomes a part of another customer’s weekly meal rotation.
Stuart Ottinger
Company: OPG Holdings
Brands: 5 Another Broken Egg Cafe, 1 Mercy Kitchen, 1 BJ’s Pizza, 1 Palmyre
Years in Franchising: 23
Labor remains a challenge across the industry, particularly as costs have risen significantly over the past few years. However, it’s also an area where we’ve found opportunity by focusing on culture and retention. We’ve built an environment where people want to stay and grow, not just collect a paycheck. Many of our managers have been with us for more than a decade, which creates stability and consistency across our restaurants. I’m optimistic about 2026. With interest rates beginning to ease and the industry resetting after a difficult period, I see real opportunity for growth and a positive economic revival for well-run, people-first businesses.
Ron Parikh
Company: CMG Companies
Brands: 60+ Little Caesars, 190+ Sonic, 160+ KFC/Taco Bell, 60+ Rent-A-Centers, 40+ Ace Hardware, 30+ American Freight
Years in Franchising: 25
The industry continues to face the same equation: guests want value, teams want a great place to work, and operators are navigating rising costs and tight labor. Whether you’re running one restaurant or managing a large portfolio, those pressures stack up fast. At the leadership level, we’re constantly looking at ways to mitigate costs without compromising the guest experience. For brands like Little Caesars that are focused on value and efficiency, maintaining that balance becomes even more essential.
On the opportunity side, the fundamentals haven’t changed. Speed, accuracy, and cleanliness win in any environment. At Little Caesars, the business model continues to prove that if you deliver on those basics consistently, you can perform no matter the climate. It’s a model built on simplicity and execution, which gives operators the confidence to scale. Across our broader brand portfolio, we take lessons learned from Little Caesars, like operational efficiency, cost discipline, and throughput strategy, and apply them elsewhere. This cross-pollination of best practices, whether it’s around staffing, maintenance, or guest expectations, helps us stay agile and competitive in every segment.
Steve Zahn
Company: Tulsa Development Incorporated
Brands: 7 The Big Biscuit, 2 Sonic
Years in Franchising: 30
2026 will be a year defined by disciplined growth and the solidification of our market strategy in Tulsa and Oklahoma City. We are working diligently on site selection for our eighth, ninth, and tenth The Big Biscuit locations. Site selection is something we work closely with the franchisor to secure the best value for our locations. We also make sure that each site has adequate parking, room for a patio, and other features important to the brand, and the ability to grow in thriving communities currently underserved in the breakfast segment. I have been fortunate to have an experienced and loyal operations team, but labor and operational efficiency are always top of mind for a growing business. We haven’t seen nearly the swing in costs we saw a few years ago, but we never lose sight of margins and a strong value proposition.
Steven Young
Company: MLY Investments
Brands: 12 Freddy’s Frozen Custard & Steakburgers
Years in Franchising: 11
There will be expected challenges with a tight labor pool, especially with management candidates, and continued rising costs in COG and new store construction costs. I think primary opportunities lie in brands that are able to reliably deliver consistency in guest experience, with an emphasis on hospitality, quality, and cleanliness.
Franchisee Bytes
What are your goals over the next year?
We’re planning aggressive expansion across the U.S. My partners and I are developing locations in Arkansas, Missouri, Alabama, California, Florida, Georgia, Nevada, Arizona, New Mexico, Tennessee, Louisiana, and Virginia. We’re excited about what’s ahead.
-Lawrence Kouri, Multi-Unit Owner-Operator, Dave’s Hot Chicken, 22 Dave’s Hot Chicken
Further development of each brand and acquisition. Continue a slow and steady new store development plan and keep our eyes out for great existing opportunities for acquisitions.
-Chris Aslam, CEO & Principal, Rock Strategies and various entities, 59 Jack in the Box, 5 Golden Chick, 5 Hawaiian Bros Island Grill
To move third-party delivery to 15 percent of our overall revenue and grow the loyalty app base across all our stores.
-Tamra Kennedy, Franchise Operator, Twin City T.J.’s, 6 Taco John’s
We are currently launching our new growth brand, Hawaiian Bros Island Grill. We are thrilled to break ground on the first few and get them operational.
-Alex Karcher, Operating Principal, JCK Restaurants, 61 Carl’s Jr., 11 Jersey Mike’s Subs, 8 The Human Bean, 8 Dave’s Hot Chicken, 1 Hawaiian Bros Island Grill
Open multiple new units across Brix brands, execute at least one strategic acquisition, and expand Friendly’s into two or three new states.
-Amol Kohli, Managing Partner, Legacy Brands International/Chairman of the Board, Brix Holdings, Franchisee: 63 Orange Leaf, 60 Clean Juice, 36 Red Mango, 6 Humble Donut Co., 3 Souper Salad, 1 Smoothie Factory + Kitchen, Franchisor: 61 Friendly’s
Continue our development with Tropical Smoothie Cafe and focus on our operational processes, throughput, and urgency in all that we do. We are also working on another standalone building prototype that improves our development cost and sets us up for a few different options from a real estate development standpoint. We are also focused on improving individual cafe profitability.
-Nick Crouch, Co-CEO, Dyne Hospitality Group, 118 Tropical Smoothie Cafe
Over the next year, we are slated to open another Barberitos, another Dunkin’, and our first Guthrie’s location.
-David Weeks, CEO, The Bean Team, 9 Barberitos, 8 Dunkin’, 4 Newk’s Eatery, 1 Dunkin’/Newk’s co-brand
Reaching more than $100 million in annual revenue.
-Sam Chand, CEO, Jasam Enterprises, 25 Checkers & Rally’s, 35 KFC
Ideally, I’d like to open two more new stores, particularly in airports and military bases. Across the board, I’d also like to lower costs on my existing locations.
-Yousuf Nabi, Owner & CEO of Gotham IP Inc., Gotham Cookies Inc., DBA Mrs. Fields Cookies, 10 Mrs. Fields, 10 Sbarro, 4 TCBY
