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Food & Beverageabout 2 months agowww.nrn.comAuntie Anne's

Auntie Anne’s, Cinnabon, and more to join Texas-based Favor delivery app

GoTo Foods expands its Texas presence with Favor delivery app partnership, enhancing franchisee profitability.

Auntie Anne’s, Cinnabon, and more to join Texas-based Favor delivery app
Photo: www.nrn.com
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Auntie Anne’s, Cinnabon, and other GoTo Foods brands are now partnering with the Favor delivery app in Texas, adding over 550 locations. This strategic expansion aims to provide franchisees with better delivery profitability and lower commission costs compared to larger delivery platforms.

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Why It Matters

The partnership with Favor may enhance unit economics for franchisees of Auntie Anne's and other GoTo Foods brands, as they could experience reduced delivery commission costs, improving their overall profitability.

Auntie Anne’s, along with four other brands from GoTo Foods—Cinnabon, Jamba, McAlister’s Deli, and Schlotzky’s—will soon be added to the Favor delivery app in Texas. This expansion will make more than 550 locations of these brands available for delivery, representing one of Favor's largest multi-brand integrations to date. This partnership aims to enhance customer access and improve delivery profitability for the franchisees.

Favor operates in 400 cities across Texas, offering standardized delivery fees of around $6 along with a service fee and driver tips. GoTo Foods intends to maintain its presence on other major food delivery platforms such as DoorDash, Uber Eats, and Grubhub, but highlights Favor as a competitive alternative. The switch to Favor is expected to yield lower commission costs for franchisees, providing them with greater pricing flexibility—an essential factor in optimizing delivery order profitability.

Mike Freeman, the EVP and president of brands for GoTo, emphasized the strategic significance of this partnership by stating, “This partnership reflects how we think about growth and innovation across our business. We’re focused on building strategic partnerships that improve the guest experience, strengthen franchisee economics and support sustainable long-term growth across our brands.”

This move not only signals robust growth for GoTo Foods but also indicates a healthy system as brands adapt to changing consumer preferences towards delivery services. The emphasis on localized operations with Favor, a delivery service solely focused on Texas, suggests a strategy aimed at reinforcing customer loyalty and enhancing franchisee profitability in a competitive market.

Investors and operators may want to watch the effectiveness of this partnership in reinforcing GoTo's market presence in Texas and its potential impact on franchisee performance in the coming months.

Source

www.nrn.com

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