Independent Operators

Beyond the balance sheet: why the future of franchising is proactive, not passive

At the upcoming Restaurant Innovation and Franchising Summit, industry experts will share strategies for moving beyond passive bookkeeping to maximize profitability through proactive unit economics, guest experience optimization and the identification of hidden financial leaks.

Image: Willie Lawless/ Networld Media Group

February 17, 2026

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The era of passive bookkeeping is over; the future of franchising belongs to those who can read between the lines of a balance sheet. At the upcoming Restaurant Innovation and Franchising Summit in San Diego, the session "The Money Map: Navigating Your Franchise to Peak Profit" pushes attendees to look past generic spreadsheets and treat their unit economics as a living narrative. Rather than simply crunching numbers, participants will learn to identify the "financial pulse" of their business, uncovering the microscopic details that often mask profit leaks. By focusing on these hidden levers, operators can move from reactive survival to proactive growth, ensuring that every cent is accounted for and every margin is maximized.

Beyond mere cost-cutting, this session emphasizes a holistic approach to profitability that balances fiscal discipline with the guest experience. Attendees will explore how to implement strategic cost optimizations that safeguard food quality while simultaneously elevating service standards. The conversation also bridges the gap between the back office and the front line, offering a roadmap for franchisors and franchisees to co-invest in technology and marketing. By fostering a culture of transparent communication and shared financial goals, the session aims to turn individual unit success into a scalable, sustainable engine for the entire brand.

Speakers at the session will include: Chris Cheek, chief development officer for Newk's Eatery; Carlos Verdugo, SVP of operations and development for Juice It Up and Brian Simowitz, president of Houston TX Hot Chicken. Joe Barbano, senior vice president of sales for Qvinci Software will moderate the panel.

We talked to two of the panels in email interviews to learn more about their thoughts on money management in restaurants.

Q: Most owners think raising prices is the only way to fix margins. What's one way a franchisee can uncover more profit from their existing menu without touching the prices?

Verdugo:To maximize profitability and protect your bottom line, price hikes should be a lever of last resort rather than a primary strategy. True margin growth is found in optimizing the value of your existing traffic. Choose optimization over inflation.

Price increases are often a short-term fix with long-term consequences for your transaction volume. Sustainable growth is achieved by perfecting the guest experience and maximizing every opportunity at the point of sale.

When the objective is to increase profit dollars without alienating your customer base, focus on two key metrics: average check and customer visit frequency.

Building average check: rather than asking guests to pay more for the same item, encourage them to see the value in a more robust purchase.

Suggestive selling and upselling: Train your team on the power of the "add-on." A simple, low-friction prompt — such as "Would you like to upgrade to a large for only $0.50?"—converts at a high rate.
Bundling: Create combo deals that offer perceived value to the customer while increasing the total cash flow per transaction.
Sampling: Use sampling as a low-cost marketing tool to drive trial of premium add-ons, turning a "standard" order into a "premium" one through taste-testing.

Increasing visit frequency: Consistent revenue is built on the backs of "raving fans," not one-time visitors.

Service and quality: Exceptional guest service paired with uncompromising product quality creates a psychological "lock-in" effect.
Communicate value: Regularly remind your customers of your unique value propositions to keep your brand top-of-mind.
Retention vs. erosion: While price increases often lead to a slow erosion of transaction counts, consistent quality and service convert casual users into loyal advocates who reward you with high-frequency visits.

Q: Beyond the usual suspects like labor and food costs, what is one 'hidden' financial leak you've discovered in a franchise that would surprise most owners?

Cheek: In addition to labor and COGS, franchisees lack the rigor needed in managing ongoing repair and maintenance expenses. This includes maintaining a strong understanding of expected costs for related items and services and actively pushing back on vendors who may attempt to capitalize on urgent needs with excessive pricing. Related to this, there is often the tendency to delay minor repairs which only become more expensive repairs over time.

The session will be held March 17 at 1:45 p.m. To register for the Restaurant Franchising and Innovation Summit, click here.