Brinker Ups Franchise Stake

DALLAS-Brinker International is increasing the number of franchisees owning its restaurants from 20% to 30% of the nearly 1,700 units it operates under various chain names. The company also has agreements for the development of 268 franchise restaurants in its Chili’s, Macaroni Grill, Maggiano’s and On the Border concepts.

But don’t expect the company to switch all of its ownership rights anytime soon. “We still make more money by operating these restaurants as company-owned,” said Douglas Brooks, Brinker’s president and chief operating officer, during its first-quarter conference call. “It’s possible that over the longer term we could have a system that’s somewhat different.”

Brinker opened 43 units during the quarter, which ended Sept. 27. Ten were opened by franchisees and 33 are company owned. The majority of the new domestic restaurants, 35, are Chili’s, which boosted its presence in Florida and Texas. Management plans to open the same amount of stores during the current quarter.