As inflation continues to curtail consumer spending habits, look for cheaper-priced snack concepts to be prioritized. Because today’s Americans want to get more “bang for their buck,” a growing trend is for the snack food establishment to provide an added dose of protein. Look for more and more of these to-go oriented eateries to spring up that specialize in convenient finger food snacks with a hearty meat base. These food concepts tend to target suburban and urban metros with a large number of Gen Z and millennial consumers, including areas that are tourist-heavy and near a college. This younger audience is a fan of the growing “grazing” trend, in which smaller bites are eaten throughout the day instead of the standard breakfast/lunch/dinner routine. The brands that are in expansion mode, which have mastered this easy-to-eat protein snack concept, include Roll-Em-Up Taquitos, Wetzel’s Pretzels — along with its latest new concept, Twisted By Wetzel’s — and Kolache Factory.
Roll-Em-Up Taquitos hopes to open up to 30 new units this year and about 50 new stores in 2024, with that number jumping to around 100 new stores per year in 2025 through 2028. Upcoming expansion will take place nationwide. Southern California, especially Orange County’s beach communities and Riverside County, will see growth. Texas and Oklahoma are also on board to get up to 300 new restaurants between the two states, thanks to a franchise deal that was signed last year. Arizona is also targeted, where Roll-Em-Up opened its first unit in Chandler in June, and new stores are expected in Scottsdale, Gilbert and Goodyear. At least three new sites in Salt Lake City are also being eyed, and Denver is anticipating up to 15 units. More Southeastern and Midwestern states will also be pursued, with Louisville, Ky., and Knoxville, Tenn., expecting at least seven new units. Arkansas, Virginia, Oklahoma, Missouri and Kansas are also on Roll-Em-Up’s radar.
Ideal square footage requirements for Roll-Em-Up are inline sites or end caps with patios, as well as standalone drive-thru pad spaces, between 700 and 2,000 s.f., in strip malls, community shopping centers, lifestyle centers or power centers with a lot of foot traffic. Both urban and suburban sites are considered, preferably in areas with higher-than-average education levels and income, and with a heavy teen to 30-something demographic, such as near college campuses.
Former standalone Starbucks drive-thru sites have worked well for Roll-Em-Up. Sites should ideally be off of a major thoroughfare, and preferred co-tenants should include non-competing fast-casual brands such as Subway or CAVA. Roll-Em-Up has been preparing for this growth by hiring a new VP of franchise of development earlier this year who had previously worked with Fransmart, in addition to hiring a new COO last year who had previously worked with Dave’s Hot Chicken, Raising Cane’s and In-N-Out Burger. Roll-Em-Up Taquitos features multiple variations of its taquitos that come filled with beef, chicken, potatoes, cheese or avocado, as well as a variety of toppings and dipping sauces.
Wetzel’s Pretzels expects to open between 45 and 60 new locations per year over the next two to three years. Although some of these will be store-in-store locations due to the brand’s partnership with Walmart, Macy’s and the Phillips 66 convenience stores, many of its upcoming shops will be in neighborhood power centers that are outside of the traditional regional malls and tourist centers that Wetzel’s is known for. This is especially true as Wetzel’s begins to roll out its latest concept introduced earlier this year, called Twisted By Wetzel’s, which focuses on new premium meal and dessert versions of its handheld pretzel dough creations. This is an effort by Wetzel’s to expand its customer base and capture more of the millennial and Gen Z audience with its expanded snack-meal menu.
Although the Twisted concept is still relatively new and will only be tested in three locations this year (in La Habra, Calif., South Gate, Calif., and Surprise, Ariz.), growth is expected to be strong for the new prototype in 2024, as more of the current Wetzel’s franchisees become familiar with it. States that already have a large number of franchise locations in regional malls such as California, Arizona, Texas and Florida should be especially robust for the new Twisted concept. Outdoor neighborhood power centers with a large number of high-traffic tenants such as Sprouts Farmers Markets, Ross Dress For Less or Dick’s Sporting Goods will be targeted, specifically in densely populated and growing suburbs and university towns. Space should be inline or end caps in the 1,200-s.f. ballpark, ideally with an outdoor patio seating area and street visibility.
Wetzel’s Pretzels’ strong growth projections are aided by MTY Food Group acquiring the brand last year, which is the same team responsible for Baja Fresh and Cold Stone Creamery, among others. Wetzel’s Pretzels is renowned for its soft baked pretzels in various flavors, as well as its dipping sauces and lemonade drinks. The Twisted concept will offer an expanded menu such as loaded hot dogs, pizza twists, soft-serve ice cream in a pretzel cone, and soft pretzels with toppings such as bacon bits, chocolate fudge and Nashville spices.
The Texas-based Kolache Factory franchise anticipates opening about five to eight new units per year for the foreseeable future, centering growth in the West and the Southeast. The brand is eyeing new markets such as the major metros of Florida, California, Arizona and North Carolina, as well as Denver, Tulsa, Okla., Oklahoma City, Lincoln, Neb., Santa Fe and Albuquerque, N.M.
Preferred sites are inline or end cap units in the 1,000- to 3,300-s.f. range, in strip mall spaces or street-facing standalone pad buildings with other co-tenants on a corner lot. Thriving, higher end suburban neighborhoods within a major metro are especially sought after, as well as sites in close proximity to a college. The brand is open to converting end caps with potential drive-thru window capabilities whenever possible. Ideal co-tenants for Kolache include popular errand brands such as Big Lots or Walgreens, as well as other food tenants, including Starbucks. Kolache Factory serves up grab-and-go kolaches, which are Czechoslovakian sweet yeast pastries packed with all manner of fillings for a complete hand-held meal, including curry chicken, sausage, pulled pork, scrambled eggs, pepperoni, cheese, fruit and barbecue brisket.
