Penn Station is Actively Targeting the Tar Heel State

Over the last 35 years, Penn Station has seen rapid expansion since its humble beginnings in Cincinnati, Ohio and grown to more than 310 locations.

With most of the brand’s growth coming the past two years from legacy franchisees, Penn Station enjoyed a successful 2019 in terms of growth. The brand has also set its sights on expanding into less developed markets. Last year, Penn Station identified the following markets as key areas for development: Richmond, VA; Kansas City; Detroit, MI; and Pittsburgh, PA.

North carolina expansion

Penn Station also identified North Carolina as a key target market for development in 2019 and 2020. According to Penn Station’s Director of Development and Franchising Greg Goddard, the brand is actively looking to expand in Raleigh, Charlotte and Greensboro.

Goddard stated, “Franchisees who have been in the system for many years see the continued growth and opportunities within the brand. Most of our 2018 and 2019 growth came from larger franchisees who have achieved scale and continued to march forward with a strong return on investment by adding new units. We expect that trend to continue with these legacy franchisees in 2020, but at the same time, are poised for strong growth in key target markets as well.”

Penn Station already has a presence in the greater Raleigh, Charlotte and Greensboro areas, and it’s looking to solidify that presence further and bring its fresh-cut fries and freshly-grilled sandwiches to even more consumers in the Tar Heel State.

**Currently, there are three Penn Station locations in the Greensboro region and six in the greater Raleigh, and six in the greater Charlotte area. Ideally, the brand would like to develop two – four more locations in Greensboro and 10-12 more in Raleigh. “Because Penn Station already has locations in the North Carolina market, it makes sense to continue to develop there,” Goddard said.

“We are at about 20% - 30% market penetration right now, which is a great kick-off point for us. The stores in Greensboro, Charlotte, and Raleigh have done well, so we know the Penn Station** product is well-received **in those markets; it’s just about finding the right multi-unit operators to build out the brand. We already have brand recognition in North Carolina, and increasing our penetration in each of these markets, and building upon the current success, would further entrench our brand in the Carolina’s, making it even more of a household name.”

Charlotte market growth

In addition to developing more locations in the Greensboro and Raleigh areas, Penn Station has also set its sights on development in Charlotte.

With an estimated population of 872,498, the Charlotte metropolitan area—also known as Metrolina—is the perfect opportunity for Penn Station to expand its customer base. According to CLTure, a local media outlet in Charlotte, the city is now the 16th largest in the United States, topping popular cities like Austin, Texas; Jacksonville, Florida; Denver; and San Diego.

Specifically, Penn Station is looking to add approximately 25 locations in Charlotte, according to Goddard. “Expanding and developing a solid presence in Charlotte, North Carolina is a no-brainer solely based on the city’s population,” he said. “There’s a huge influx of people and the population increases each year, making it a perfect place to grow the Penn Station brand in. Our brand has already resonate well with Charlotte’s consumer and there’s clearly demand, and opportunity, for more Penn Station Restaurants.”

Penn Station is always looking for new franchisees. The brand is specifically looking to attract multi-unit operators to supplement its growth goals in North Carolina, especially in Greensboro, Raleigh and Charlotte as noted above. Goddard stated Penn Station’s *comprehensive support system***s including site selection, design and construction, IT, operations and training, marketing and financial reporting, as reasons to join the brand.

“Through these tried-and-true systems developed by experienced operators, franchisees are able to maximize their return on investment and enjoy a prosperous career with Penn Station.”

In terms of financing, the ideal candidate should have at least $100,000 in liquid capital and a new worth of at least $200,000.