When you look beyond 2026, what do you see as the next big transformation for multi-unit franchising?

Multi-unit franchising continues to evolve as restaurant operators navigate a rapidly changing business environment. Franchise Update asked several restaurant operators to identify what they believe will be the next major transformation in multi-unit franchising and how it could change the way they do business. Not surprisingly, technology and AI were top of mind for franchisees.

One operator pointed to the growing availability of data on KPIs, including labor and food costs, as a valuable tool for making smarter, more informed business decisions. Meanwhile, customer-facing technologies, such as self-service kiosks and online ordering platforms, are expected to become even more prevalent as operators look to improve efficiency and meet evolving consumer expectations. Rising real estate costs are also prompting restaurant operators to rethink their development strategies, with many pursuing smaller, more cost-efficient locations and taking a more flexible approach to site selection.

While workforce challenges are nothing new, franchisees emphasized that recruiting, developing, and retaining talented team members will remain a top priority in the years ahead. Another franchisee pointed to the importance of reinforcing the message that franchised restaurants are locally owned businesses, a distinction that could help operators strengthen connections with customers and build loyalty in their communities. In each edition of Multi-Unit Franchisee magazine, we try to give our readers insight into the successful franchisees we profile.

See this week’s Franchisee Bytes section to discover another side of the multi-unit restaurant franchisees we profile each quarter. Max Mukaddam Company: Canary Enterprises, LLC Brands: 5 Keke’s Breakfast Cafe Years in Franchising: 12 I think we’ll see more multi-unit operators using data to make decisions throughout the day, much like a trading desk. Most owners already have the information in their POS, labor, and delivery systems, but it’s spread across different platforms.

Technology and data

Seeing sales, labor, and food costs across all locations in one place makes it easier to spot problems and respond before the day ends. My background is in investment banking, so I’ve seen what good data systems can do. But restaurants still come down to people.

Technology can help you make better decisions, but you still must hire well, train your team, and stay involved in the business. Lisa Tillman Company: HM Sunshine, LLC Brands: 4 Huey Magoo’s Years in Franchising: 10 There will be more AI-focused insights and support across all areas of the business. More models will go to kiosks and online ordering to place orders and eliminate the element of personal service to reduce overhead.

Workforce development

Chris Benner Company: Trident Burgers Brands: 39 Captain D’s, 8 Slim Chickens, 6 Freddy’s Frozen Custard & Steakburgers Years in Franchising: 19 I think the two biggest factors transforming multi-unit franchising are the workforce and how we approach restaurant development. Finding great people has never been more challenging. Positions we used to fill relatively easily, including supervisory roles, are now much harder to recruit for.

As operators, we must be more intentional about developing talent from within, creating opportunities for advancement, and building a culture that encourages employees to grow with the business. The other major shift is restaurant development. Across the three brands I operate, we're seeing a move toward smaller, more cost-efficient formats.

Historically, the focus was largely on finding the right building and ensuring it aligned with brand standards. Now, as construction and real estate costs continue to rise, brands are becoming much more flexible in how restaurants are developed. At Freddy's, for example, we're seeing a greater emphasis on endcap locations and multi-tenant buildings rather than traditional freestanding restaurants.

Looking ahead, I think the operators who prioritize developing strong internal teams while embracing more flexible, cost-efficient restaurant formats will be better positioned to navigate the industry's changing landscape. Sam Cleavanger Company: Cleavanger Enterprise LLC Brands: 3 Jeremiah’s Italian Ice Years in Franchising: 4 The biggest transformation will be a return to locally owned messaging. When most people think about franchising, they picture a large corporation, but the reality is that most franchised locations are locally owned and operated by someone embedded in that community.

Brand storytelling

In the future, the brands that win will be the ones that put that story front and center. Each individually owned business is run by someone who is working in that community every day and genuinely wants to make a positive impact. Pairing that message with franchising, and making it a cornerstone of marketing and growth strategy, is the shift I see coming, and it's one that's long overdue.

** -Misha Punwani, Multi-Unit Franchise Owner, Playa Bowls, 16 Playa Bowls I love to raise goats and chickens. After a long day at work, it is therapeutic to just watch my goats and chickens as they go about their day. -David Weeks, CEO, The Bean Team, 9 Barberitos, 8 Dunkin’, 4 Newk’s Eatery, 1 Dunkin’/Newk’s co-brand **It’s the fear of failure that keeps me driven.

** -Alex Anthraper, Multi-Unit Franchisee, Anthraper Restaurants, 22 IHOP, 1 Applebee's I’m a fairly anxious guy. The people closest to me know I sometimes have moments of doubt in myself. -Nadeem Bajwa, Co-founder and CEO, Bajco Group, 270+ Papa Johns **My self-confidence grows as I serve others.

The more I serve others and hear “thank you,” the less I focus on myself.** -Clement Troutman, CEO, Troutman Management, 2 Tropical Smoothie Cafe, 2 PJ’s Coffee of New Orleans **Emad lost 60 pounds about five years ago through eating right and working out. Ali collected the most cans in a recycling competition in elementary school.

** -Ali Lakhany and Emad Lakhany, Chief Executive Officer (Ali) and Chief Development Officer (Emad), CSM Group, 141 Popeyes Louisiana Kitchen, 11 Tim Hortons, 2 Andy’s Frozen Custard, 118 T-Mobile, 4 LaPasha Mediterranean Lounge and Grill, 4 Marriott International and Hilton Hotels I can drive almost anything: semi-trailer trucks, farm tractors, and motorcycles. *-Tamra Kennedy, Franchise Operator, Twin City T.J.’