--- title: "How Penn Station’s Measured Growth Strategy Promotes Franchisee Success" url: https://burnaze.com/article/7851dfc1-026b-4fae-9471-411dafc5c487 source: "1851 Franchise" original_url: https://1851franchise.com/how-penn-stations-measured-growth-strategy-promotes-franchisee-success-2708659 category: "Sandwich & sub" industry: "Restaurants" segment: "Sandwich & sub" topics: ["People"] published: 2018-12-14T01:20:01.000Z modified: 2026-11-01T01:48:17.420Z image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/134ce63057f068a219a0df338fb0b7235816.jpg --- # How Penn Station’s Measured Growth Strategy Promotes Franchisee Success **TL;DR:** Penn Station's measured growth strategy focuses on creating the best possible business opportunity for its franchisees, with a primary focus on supporting unit owners. The brand's commitment to logistics, support systems, and increasing brand awareness benefits franchisees in various ways. *originally published in 1851 Franchise on 2018-12-14. [Read the original](https://1851franchise.com/how-penn-stations-measured-growth-strategy-promotes-franchisee-success-2708659).* ## Story When Penn Station launched its first East Coast sub shop in Cincinnati, Ohio, its unique, piping-hot offering was its key difference-maker. Now, more than 30 years later, the brand’s food quality remains, but it is its targeted franchise offering and growth strategy that gives Penn Station an unparalleled advantage in the quick-service restaurant industry. Over the years, Penn Station has carefully and strategically extended its footprint to more than 15 states thanks to a primary focus on creating the best possible business opportunity for its franchisees. Penn Station is uniquely focused on the success of its unit owners in a way nearly every other concept in its segment cannot claim; of its more than 300 locations, only one unit is company-run. Franchisees reap the benefits of this investment in their success in a myriad of ways, namely in the brand’s commitment to logistics, focus on support systems and efforts to increase brand awareness. - The brand’s commitment to logistics includes support for site selection and logistical needs pertaining to design and construction. - Penn Station provides IT know-how and operations and training models for franchisees to employ. - The brand educates owners on marketing methods and financial reporting requirements. - Franchisees also benefit from existing pipelines for inventory and resources and a readily available support team capable of handling any issue that may arise. Greg Goddard, Director of Development and Franchising at Penn Station, explained that a lack of company-owned stores means the brand’s success is predicated by that of its franchisees. “When our franchisees execute, that means prosperity for the brand as a whole,” Goddard said. “Our infrastructure is designed and structured to support franchisees to the fullest in every aspect of the business.” Goddard explained that Penn Station’s growth philosophy has propelled the brand to consistently strong average unit-level economics and as a result, a large network of multi-unit operators. The brand approaches development carefully and deliberately, unlike many other concepts that constantly install new units wherever the real estate is available. “Quality over quantity is the name of the game for us,” Goddard said. “We are focused on growing in a way that will hopefully find the most success for our franchise owners, so we evaluate every territory we are considering methodically, weighing a variety of attributes such as logistics, operational support, analytical data, real estate, and brand awareness. With this in mind, our existing locations should typically spark development in nearby markets, creating a ripple effect of growth. As part of this measured development approach, Penn Station’s comprehensive support assists franchisees with site selection and logistical needs pertaining to design and construction, provides IT know-how and operations and training models for franchisees to employ, and educates owners on marketing methods and financial reporting requirements. Franchisees also benefit from existing pipelines for inventory and resources and a readily available support team capable of handling any issue that may arise. “- We provide franchisees with numerous tools, and for those many franchisees who either utilize them explicitly or even enhance them, we often see greater success and operational excellence. Penn Station’s selective growth strategy extends to franchisee recruitment as well. The brand takes extensive measures to attract top-tier franchisees that are in it for the long haul with the brand, including the institution of an enhanced variable royalty program that puts royalties owed on a sliding scale from zero to eight percent in an owner’s first five years. “Our enhanced variable royalty program acts as an incredible incentive for entrepreneurs exploring our franchise opportunity,” Goddard said, explaining the system allows for increased cash flow, and as a result, promotes accelerated growth. “We’ve refined our franchise system so anyone that enters our system can make a strong-performing business enterprise out of it,” he added. Goddard also noted that over 70 percent of Penn Station franchisees are multi-unit operators, which speaks volumes about the dividends the brands development approach pays its owners. ## Entities - 1851 Franchise (publication) - Restaurants (sector) - unit expansion (topic) - franchise growth (topic) - franchisee support (topic) - Penn Station (company) - logistics support (topic) --- Originally reported by 1851 Franchise (https://1851franchise.com/how-penn-stations-measured-growth-strategy-promotes-franchisee-success-2708659). Summarized by Burnaze (https://burnaze.com/article/7851dfc1-026b-4fae-9471-411dafc5c487).