Unlike many other fast-casual restaurants, Raving Brands is 100% franchised. "We have put together a franchisee system that is unmatched," Kraetsch says. The company counts the former CFO of Wendy's International as a franchisee, as well as the founder of Hooter's and Ray and Mike Eddy, a team of brothers that owned 69 McDonald's restaurants.

While Kraetsch contends it is the quality of the food that sets Raving Brands and its concepts apart from the competition, the way the company handles its real estate also differs from the norm. In almost every instance, Raving Brands executes the leases for its restaurant concepts and then assigns them to franchisees. "We take on a lot of risk in leasing space 12 months out and then waiting for franchisees," Kraetsch says.

Kraetsch stresses Raving Brands' involvement in real estate is a key strategy in the company's business model. It is so involved in site selection that brokers are hired to work with its franchisees. "We approach these brokers not just as one brand, but as a very large company with many brands," Kraetsch says. "We want to dominate by putting several concepts together in one retail project." For example, the company will situate a Moe's Southwest Grill on one end-cap of a retail center and put a Mama Fu's on the other end and perhaps a Planet Smoothie or a PJ's Coffee somewhere in the middle. "With multiple restaurants we can have the position of a junior anchor by taking 8,500 sf rather than just one restaurant of 2,500 sf," Kraetsch says.

Because Raving Brands is seeking space that every fast-casual concept wants--high visibility, end-cap space with patios and high-traffic counts--it is important to leverage the presence of several concepts to get the best space and competitive rental rates. "This is a key factor in allowing us to have a competitive advantage," Kraetsch contends. And, the real estate approach helps Raving Brands' franchisees because many own more than one concept.

Raving Brands emphasizes real estate almost as much as it focuses on food quality. "If the food's not 'brag-able' it's not going to work, but the ultimate success starts with real estate decisions," Kraetsch says.