Swig Projects 500 Franchise Units and 70 Corporate-Owned Stores

Estimated read time: 3 minutes and 44 seconds

GETTIN SWIGGY WITHI

Swig Has 250 Units in the Pipeline Across Seven Markets (Read More)

SWIGGY: The Utah-based specialty beverage chain, Swig, aims to scale its operations across the US with a franchising program. The brand has already entered into partnerships in Florida, North Carolina, South Carolina, Tennessee, Arkansas, Missouri, and Idaho, with 250 units in the pipeline.

• Franchise Playbook: Swig has built a unique and complex franchise playbook that emphasizes quality over quantity and takes a disciplined approach to growth.

• Omnichannel Approach: The brand aims to take an omnichannel approach to franchising, focusing on supporting the right operators and avoiding watered-down partnerships.

• Sunbelt Expansion: Most of Swig's growth will be felt in the Sunbelt, with corporate development in Texas and franchise development in Florida, North Carolina, South Carolina, and Arkansas.

• Continued Growth: Swig plans to double its number of open locations in 2024, with a mix of corporate and franchised locations.

🧠 EDITOR’S THOUGHTS

SUGAR HIGH: Swig's partnership with Savory Fund and a majority acquisition by Larry H. Miller Company have helped drive the brand's growth. The company plans to have 500 committed franchise units and 70 corporate-owned stores by the end of this year. Then, next year in 2024, they expect to double their open locations to 20-25 corporate-operated sites and 40-45 franchise-operated sites. Location List Here

📝 SWIG CHEAT SHEET

• Average Price Point: $1.1M - $1.3M

• Average Cap Rate: 5.00% - 5.25%

• Lease Type: Absolute NNN or Ground Lease

• Rent Increases: 10% Every Five Years

• Base Term: 10 Years plus Three 5-Year Options

• Average Rent: $50,000 - $65,000

• Lot Size Requirement: 30,000 SF (0.7 Acres)

• Building Size: 650 SF

TRIPLE NET TENDIES

🧠 Thought Leader: Kyle Matthews shares why all signs point to an increase in transaction volume next year.

👂 Ear Hustle: Edward Otocko shares how to capitalize on the car wash investment market.

💎 Web Gem: Rahul Chhajed shares why rental increases matter.

NET LEASE NUGGIES

• Chewy is diving deeper into pet health with Vet locations. The online pet retailer is entering the veterinary care space with the launch of Chewy Vet Health, its first pet health practice. Starting with a location in South Florida, Chewy plans to open more practices throughout 2024. The services offered will include routine appointments, urgent care, and surgery. Chewy aims to address industry pain points and provide convenient, transparent, and trustworthy access to veterinary care. This move complements Chewy's existing health offerings such as pet pharmacy, tele-triage services, and insurance plans. With a focus on innovation and customer satisfaction, Chewy is expanding its customer-forward thinking to the veterinary industry. (Read More)

• Cousins Maine Lobster expands in Chicago, adding food trucks and restaurants. Brothers Yunus and Thameem Shahul, successful franchisees, have signed a deal to open five food trucks and two brick-and-mortar restaurants in the Chicago area. After discovering Cousins Maine Lobster at a food truck event in New York in 2018, the Shahul brothers were inspired to join the brand. With 73 employees and impressive profits, they attribute their success to partnering with a well-run brand that serves quality seafood. (Read More)

• Online grocery sales in the U.S. rose over 5% in November compared to the same month last year, reaching $8.1 billion. All three online grocery methods contributed to the year-over-year growth, with delivery experiencing an 8.6% sales increase, pickup growing by 1.6%, and ship-to-home sales rising 7.6%. Mass retailers outperformed supermarkets, attracting 42% of households for grocery purchases. Mass retailers, such as Walmart, benefited from economic realities and omnichannel strategies, while supermarkets experienced a decline in their customer base. Overall, online sales accounted for 11.7% of total weekly grocery spending in November. (Read More)

BEAST TWEETS x POSTS

🐦 John Andreini: November Macro Summary.…

🦅 Landon Dory: The pharmacy conversion has started..…

🦢 Real Estate Ranger: Since commercial loans have balloon payments, debt management is extremely important.…

🦆 Jason Miller: ALDI opened 11 new stores across 10 states this month.…

VISUAL OF THE DAY