What is Sales and Marketing Strategy of FAT Brands Company?

FAT Brands Bundle

Get Full Bundle:

	5 FORCES	$15	$10
	BCG	$15	$10
	CANVAS	$15	$10
	4P's MIX	$15	$10
	PESTLE	$15	$10
	SWOT	$15	$10

TOTAL:

ADD TO CART

What is FAT Brands' Sales and Marketing Strategy?

FAT Brands Inc. is a global restaurant franchising company that has grown significantly since its founding in 2017. The company has expanded its portfolio through strategic acquisitions and innovative co-branding initiatives.

The company's growth trajectory includes a recent spin-off of Twin Hospitality Group Inc. in early 2025, which is expected to provide capital for further expansion. FAT Brands operates over 2,300 units globally and has a development pipeline for an additional 1,000 to 1,100 locations.

FAT Brands' sales and marketing strategy focuses on expanding its brand portfolio and increasing unit-level economics. A key initiative is co-branding, exemplified by the August 2025 launch of a Round Table Pizza and Fatburger location in California. This approach aims to enhance revenue per square foot and optimize real estate utilization. The company's overall strategy involves continuous brand acquisition and integration, alongside efforts to maximize synergies across its diverse restaurant concepts, as detailed in its FAT Brands PESTEL Analysis.

FAT Brands primarily utilizes a franchise-centric approach to expand its global presence. This business model focuses on generating revenue through royalties and franchise fees, with a strategic aim to become nearly 100% franchised. The company is actively refranchising its company-owned locations to accelerate this transition.

Franchise-Centric Expansion

FAT Brands' core sales strategy revolves around its franchise model, minimizing capital expenditure and operational risk. This allows for rapid scaling of its diverse portfolio of brands.

Strategic Refranchising Efforts

The company is actively refranchising its company-owned locations, including the 57 Fazoli's sites. This move is part of a broader initiative to achieve a nearly 100% franchised system by fiscal Q4 2024.

Aggressive Acquisition and Development Pipeline

FAT Brands has a history of aggressive expansion through acquisitions, completing 11 such deals, with significant activity in 2021. This has bolstered its unit count and development pipeline, with over 250 new franchise agreements signed for 2025, targeting 1,000 locations.

Co-Branding Initiatives

A key element of the FAT Brands marketing strategy is the acceleration of co-branding. This approach combines multiple brands under one roof to enhance revenue per square foot and extend operating hours.

The company's growth strategy is further amplified by its focus on co-branding, a tactic designed to maximize revenue and customer reach. This has led to successful integrations like Fatburger and Buffalo's Express, with over 100 locations globally, and new ventures such as Fatburger and Round Table Pizza co-branded restaurants. In Q2 2025 alone, FAT Brands launched 18 new locations, including three co-branded Marble Slab Creamery and Great American Cookies stores. Furthermore, a development deal was signed for 40 additional Fatburger outlets in Florida over the next decade. Despite these expansion efforts, the company experienced a 3.4% decline in same-store sales and a 1.8% decrease in system-wide sales in Q1 2025, indicating a challenging market environment. This strategic evolution is a key part of the Brief History of FAT Brands.

Key Sales Channel Performance Indicators

While the franchise model drives expansion, recent performance metrics show mixed results. The company is navigating market dynamics to sustain growth across its diverse brand portfolio.

• 33 Hot Dog on a Stick company-owned locations remain.
• 92 restaurants opened in 2024.
• Over 250 new franchise agreements signed for 2025.
• Targeting 1,000 locations for development in 2025.
• 23 new locations opened in Q1 2025.
• 37% increase in new locations in Q1 2025 over Q1 2024.
• 18 new locations launched in Q2 2025.
• 4.8% system-wide sales growth in Q1 2024.
• 3.4% decline in same-store sales in Q1 2025.
• 1.8% decrease in system-wide sales in Q1 2025.

FAT Brands SWOT Analysis

• Complete SWOT Breakdown
• Fully Customizable
• Editable in Excel & Word
• Professional Formatting
• Investor-Ready Format

GET TEMPLATE ➔

FAT Brands employs a multi-faceted marketing strategy, blending digital innovation with traditional outreach to bolster its portfolio of 18 restaurant brands. This approach aims to cultivate brand recognition, attract new customers, and ultimately drive sales across its diverse offerings.

Digital Engagement

The company actively utilizes content marketing, optimized website design, and dedicated mobile applications. E-commerce solutions and direct communication channels like email marketing and SMS are also key components of their digital marketing initiatives.

Loyalty Programs & App Success

Loyalty programs are central to customer retention. For example, Great American Cookies and Marble Slab Creamery saw an 8% sales increase via their new app, with digital sales representing 25% of Great American Cookies' revenue and boosting customer loyalty by 40%.

Traditional & Connected Media

Beyond digital, the company incorporates connected TV (CTV) advertising and traditional print media for its promotional campaigns, ensuring a broad reach for its marketing efforts.

Data-Driven Strategy

A core element of the FAT Brands marketing strategy is its reliance on data. CMO Jenn Johnston views data as a critical guide for building a powerful marketing operation, informing strategic decisions.

Guest Experience Focus

In 2025, a portfolio-wide guest experience program is being launched to enhance brand loyalty. This initiative leverages technology platforms like Olo to create a unified view of guest data, enabling personalized marketing based on preferences and purchase history.

Brand Identity Emphasis

For 2024, the marketing mix prioritizes reinforcing the core identities of each brand. This means highlighting beloved menu items to remind customers of what they love about each concept, rather than solely focusing on new product innovation.

Strategic Initiatives and Financials

Notable innovations include strategic co-branding efforts designed to improve the guest experience and optimize operational efficiency. In terms of advertising spend, expenses decreased by $1.5 million in Q1 2025 compared to Q1 2024, totaling $11.1 million, with fluctuations tied to advertising revenues.

• Leveraging Olo for a unified guest data platform.
• Focusing marketing on core brand identities in 2024.
• Implementing a portfolio-wide guest experience program in 2025.
• Utilizing both digital channels and traditional media for outreach.
• Strategic co-branding to enhance operations and market presence.
• Advertising expenses were $11.1 million in Q1 2025.

FAT Brands PESTLE Analysis

• Covers All 6 PESTLE Categories
• No Research Needed – Save Hours of Work
• Built by Experts, Trusted by Consultants
• Instant Download, Ready to Use
• 100% Editable, Fully Customizable

GET TEMPLATE ➔

FAT Brands positions itself as a diversified restaurant portfolio operator, emphasizing 'Fresh. Authentic. Tasty.' (FAT) across its 18 distinct brands. This strategy allows for broad market appeal and risk mitigation by covering various dining segments from fast casual to casual dining.

Diverse Brand Portfolio

The company operates 18 restaurant concepts, offering a wide range of cuisines and dining experiences. This diversification caters to varied consumer preferences and strengthens its overall market presence.

Core Message of Growth and Support

FAT Brands focuses on acquiring, managing, and expanding its brand portfolio. It provides franchisees with comprehensive support, aiming to deliver enjoyable dining experiences to customers.

Brand Consistency and Identity

While each brand maintains its unique identity and taglines, a dedicated design team ensures visual consistency across all platforms. This approach supports individual brand recognition while reinforcing the parent company's operational excellence.

Premium and Value Offerings

The company balances its portfolio with both premium and value-oriented concepts. For example, Fazoli's is positioned as a value-driven option, making it accessible to a wider customer base.

FAT Brands leverages its significant scale, with approximately $600 million in purchasing power, to benefit franchisees through reduced cost of goods. This financial advantage allows for greater investment in brand awareness and visibility, a key component of the Revenue Streams & Business Model of FAT Brands. The company also demonstrates agility by adapting its operational strategies and store designs to meet evolving consumer demands, such as the increased preference for online and to-go orders.

Target Audience Appeal

The brand appeals to a broad audience by offering a mix of price points and dining experiences. This strategy ensures relevance across different economic segments and consumer needs.

Franchisee Support

Providing comprehensive resources and support to franchisees is central to the business model. This focus on franchisee success is crucial for the expansion and growth strategy.

Adaptability to Market Trends

FAT Brands actively adapts to shifts in consumer behavior, such as the rise of digital ordering and off-premise dining. This responsiveness is key to maintaining competitive advantage.

Leveraging Scale

The company's substantial purchasing power of $600 million translates into cost savings for franchisees. These savings can be reinvested into marketing and operational improvements.

Brand Differentiation

Each brand within the FAT Brands portfolio maintains a distinct identity and market positioning. This allows for targeted marketing efforts and a unique customer proposition for each concept.

Strategic Acquisitions

A core element of the FAT Brands business model involves strategic brand acquisitions. This approach fuels portfolio expansion and diversification, contributing to the company's overall growth trajectory.

FAT Brands Business Model Canvas

• Complete 9-Block Business Model Canvas
• Effortlessly Communicate Your Business Strategy
• Investor-Ready BMC Format
• 100% Editable and Customizable
• Clear and Structured Layout

GET TEMPLATE ➔

Key campaigns for FAT Brands are intrinsically linked to their overarching business model, focusing on portfolio expansion and brand optimization. A significant strategic thrust involves converting existing locations of underperforming brands into more successful concepts, a tactic aimed at cost-effective growth and market penetration.

Portfolio Optimization Through Conversion Campaigns

A prime example is the planned conversion of two-thirds of Smokey Bones locations into Twin Peaks restaurants. This strategic move, with the majority of conversions scheduled for 2025 and 2026, is designed to accelerate the growth of Twin Peaks, their fastest-growing concept, at a reduced cost compared to new construction.

Brand-Specific Collaborative Campaigns

Individual brands within the FAT Brands portfolio frequently launch targeted marketing campaigns. These often feature collaborations and limited-time offers to stimulate customer engagement and boost sales figures.

Notable Brand Collaborations and Promotions

In 2024, Johnny Rockets partnered with Eggo for a unique chicken and waffle sandwich, marking a significant menu innovation. Marble Slab Creamery and Great American Cookies collaborated with March of Dimes in September 2024 to support NICU Awareness Month.

Anniversary and Heritage-Focused Campaigns

Fatburger celebrated Pepsi's 125th anniversary in 2024 with a special 1.25 lb. burger and commemorative merchandise. Round Table Pizza's recent advertising campaigns have emphasized its founder's original tagline, 'Share a Little Pizza with Someone You Love,' to foster customer connection.

These diverse campaigns underscore a multifaceted approach to marketing, aiming to enhance brand visibility, drive immediate sales, and cultivate lasting customer loyalty. The success of digital initiatives, such as the 8% sales increase through new apps for Great American Cookies and Marble Slab Creamery, and digital sales contributing 25% to Great American Cookies' revenue, highlights the effectiveness of these targeted efforts. Co-branding is a key takeaway, proving beneficial for enhancing guest experiences, optimizing operations, and improving unit profitability, aligning with the company's broader Growth Strategy of FAT Brands.

Pretzelmaker Rebranding

In 2023, Pretzelmaker launched a significant rebranding campaign, introducing a new visual identity and the tagline 'Bite-Sized Fun, Full-Sized Flavor.' This initiative was designed to align with the brand's increasing focus on online and to-go order demand.

Digital Sales Growth

Digital sales initiatives have shown considerable success. For instance, Great American Cookies and Marble Slab Creamery experienced an 8% rise in sales via their new app, with digital channels contributing 25% of Great American Cookies' overall revenue.

Co-Branding Benefits

Co-branding has emerged as a crucial element in the company's strategy. This approach enhances the overall guest experience, maximizes operational efficiencies, and accelerates the profitability of individual units.

Johnny Rockets & Eggo Collaboration

A notable 2024 campaign for Johnny Rockets featured a collaboration with Eggo, introducing a chicken and waffle sandwich. This partnership marked the first time Eggo Waffles were incorporated into a fast-casual restaurant's menu.

Fatburger & Pepsi Partnership

Fatburger celebrated Pepsi's 125th anniversary in 2024 by offering a limited-time 1.25 lb. burger and exclusive merchandise. This campaign aimed to leverage brand anniversaries for promotional activities.

Round Table Pizza's Emotional Appeal

Round Table Pizza's recent advertising efforts have focused on its founder's original tagline, 'Share a Little Pizza with Someone You Love.' This strategy aims to strengthen emotional connections with its established customer base.

FAT Brands Porter's Five Forces Analysis

• Covers All 5 Competitive Forces in Detail
• Structured for Consultants, Students, and Founders
• 100% Editable in Microsoft Word & Excel
• Instant Digital Download – Use Immediately
• Compatible with Mac & PC – Fully Unlocked

GET TEMPLATE ➔