Togo’s Takes Next Step on Evaluating New Pay-First Method

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Togo’s Takes Next Step on Evaluating New Pay-First Method
Togo’s Takes Next Step on Evaluating New Pay-First Method
20 Franchise locations sign up to be part of next phase of focus on streamlined operations and increased profitability

Togo’s is well positioned in the $22 billion US sandwich industry. Its big, fresh, and meaty sandwiches are also the best quality. As part of the next step in improving its operations for the future, the company is implementing a pay-first assembly line method of operations in various franchisee locations. Over 20 franchisees volunteered to be part of testing. Of these, 10 locations will be selected along with two corporate locations.

“From April to July, we tested the pay-first model at our corporate location in downtown San Jose,” said COO Nader Garschi. “In October, we will begin testing in select stores. If everything goes well, we plan to roll out the pay first system-wide in 2018.”

The franchise is also making point-of-sale improvements to improve service for both customers and operators. 

"Pay-first is the cornerstone of our store of the future 3.0 concept,” said President Glenn Lunde. “In everything we do, we are measuring the impact on labor, speed of service and operational simplicity.”

Pay-first is one of Togo’s three strategic priorities in 2017. This enhancement and the three priorities are part of a larger operational strategy that includes an improved menu and store appearance, improved off-site sales capabilities and more streamlined catering orders.

Start-up costs to open a Togo’s range from $274,000 to $508,700. The company charges a $30,000 franchise fee with a 5% royalty. For more information, click here.

 

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