Founded in 1983, First Watch has quietly and steadily expanded to approximately 500 locations across 29 states. The success is, in part, attributable to the ever-growing popularity of breakfast as a restaurant category.
Although the brand still lags behind one of its oldest (1969) and most formidable (600+ stores in 49 states) competitor Cracker Barrel, it is definitely on our radar screen as a fast-scaling MULO (multi-location) company. Last year, they brought in about $1.2B in sales, which was a 7 percent increase over the prior year. By contrast, Cracker Barrel is at $3B.
Why is breakfast having a moment?
Three main trends and realities are driving the popularity of the morning meal.
- Consumers’ lifestyles have changed radically post-pandemic, and remote work has enabled diners to enjoy meals at all times of day. In addition, the “brunch culture” has boomed, with consumers often gathering with friends and family for a daytime treat.
- People are more health-focused today than ever and morning options check those boxes.
- Breakfast is highly cost-effective for restaurant operators. Tables turn over relatively quickly, and meal favorites are usually more profitable to prepare than lunches and dinners. Staffing is often less of an issue because workers’ hours are limited to daytime. (Locations usually close at 2:30pm.)
First Watch reinvents its seasonal menu continuously to build consumer appeal. Additionally, the company prides itself on made-from-scratch options.
Chris Tomasso heads up the company. His experience at Cracker Barrel and Hard Rock Cafe, as well as his previous role as CMO, make him uniquely qualified to scale the brand.
