Lennys Franchise Systems

What Lennys Franchise Systems does

Lenny's Franchise Systems operates and franchises the Lenny's Grill & Subs quick-service restaurant brand, founded in 1998 in Memphis, Tennessee. The system centers on a sub-and-grilled-cheesesteak menu, anchored by the Philly cheesesteak, and serves dine-in, drive-thru, and off-premise customers across approximately 70 locations in 14 states. The business model combines company-owned restaurants with franchised units, with revenue derived from restaurant-level sales, franchise royalties and fees, and brand-level marketing contributions. Digital and off-premise revenue is increasingly material, with delivery and digital orders reaching 37% of system sales in 2022, supported by a mobile app and the Punchh loyalty platform.\n\nSince being acquired by Gosh Enterprises in late 2019, the brand has been repositioned for multi-state growth. The company has opened a non-traditional in-store restaurant partnership with Walmart (first unit August 2021), reported a 48% AUV increase versus 2019 and Q3 2022 same-store sales of +12.8%, and announced a 100-store growth pipeline targeting Texas, Florida, North Carolina, and Georgia. Menu innovation, including a Korean BBQ Sub, a Mac & Cheese line, and the permanent South Philly Cheesesteak, is being used as a traffic and brand-refresh lever. Lenny's operates as a sister brand to Charleys Philly Steaks and BIBIBOP Asian Grill under the Gosh Enterprises portfolio, sharing back-office and supply chain infrastructure.

Name

Lennys Franchise Systems

Legal name

Lenny's Holdings, LLC

Website

https://lennys.com

Company type

Private

Founded year

1998

Operating status

Operating

Headcount range

251–500 employees

Short description

Lenny's Franchise Systems operates and franchises the Lenny's Grill & Subs QSR sub-and-cheesesteak brand, founded 1998 in Memphis, with ~70 locations across 14 states and a 100-store growth pipeline under owner Gosh Enterprises.

Ownership category

akta.pro rank

Headquarters

HQ city

Memphis

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Supply Chain, Technology or R&D, Marketing or Sales, Infrastructure

Revenue model

1. Restaurant Retail Sales (Company-owned): Direct revenue from company-owned restaurant locations selling hand-crafted deli subs, cheesesteaks, hot dogs, and beverages to consumer customers
2. Franchise Fees and Royalties: Revenue from franchisees through initial franchise fees and ongoing royalty payments based on store sales
3. Catering Services: Catering orders for events and groups, available through dedicated catering ordering system

Pricing tiers

Go-to-market motion1 record

Distribution channels6 records

Marketing channels9 records

Core offering

Lennys Franchise Systems operates the Lenny's Grill & Subs quick-service restaurant franchise, selling hand-crafted deli sandwiches with freshly sliced premium meats and cheeses and authentic grilled cheesesteaks on bread baked daily in restaurants. The business also offers catering for events, a Punchh-powered mobile loyalty program (Lennys Rewards), and omnichannel ordering via its website, branded mobile app, and third-party delivery platforms.

Product overview

Lennys Grill & Subs operates as a quick-service restaurant franchise offering a unified menu of hand-crafted deli sandwiches and grilled-to-order cheesesteaks. The core product portfolio centers on two main categories: Fresh-Sliced Deli Subs featuring premium meats and cheeses sliced to order, and Cheesesteaks & Hot Subs prepared fresh on the grill. The company extends its offering through Catering services for events, a Rewards loyalty program accessible via mobile app, and an online ordering platform. The business operates on a franchise model with locations across multiple U.S. states, with the brand emphasizing fresh-baked bread, quality ingredients, and neighborhood-oriented service.

Differentiator

Problem solved

Functional benefit

Products and services

• Cheesesteaks & Hot Subs Grilled-to-order hot subs including authentic Philly Cheesesteaks and chicken philly sandwiches made with quality ingredients on freshly baked bread, sold to general consumers through dine-in, takeout, delivery, and catering.
• Fresh-Sliced Deli Subs Hand-crafted deli sandwiches piled high with freshly sliced premium meats and cheeses, customizable with fresh toppings on white or wheat bread baked fresh daily, sold to consumers across all restaurant channels.
• Catering Services Catering services for events and groups offering a variety of sub sandwiches and menu items for large orders, ordered through a dedicated catering ordering system.
• Lennys Rewards Loyalty Program Mobile-based loyalty program powered by the Punchh platform that allows members to earn points on purchases, redeem for free food, and access exclusive deals and member-only promotions.
• Lennys Mobile App
• Lennys Franchise Opportunity

Quantifiable outcome

• 12.8% same-store sales increase in Q3 2022
• +3 more outcomes

Segments4 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration1 record

Feature2 records

Partnerships

Two partnerships are on record, tiered minor and core.

• Le Bonheur Children's HospitalminorStrategic or Co-development Partner · 1 January 2024Lennys partnered with Le Bonheur Children's Hospital for the 'Give from the Heart' campaign during the holiday season, demonstrating community engagement and charitable giving initiatives.
• WalmartcoreChannel Partner/ Reseller/ Distributor · 1 January 2021Strategic partnership placing Lennys locations inside Walmart stores. First location opened August 12, 2021 at the Walmart on 7235 Winchester Road in Memphis. Gosh Enterprises had prior experience with Walmart through sister brand Charleys. The partnership targets both Walmart customers (grocery shoppers) and employees, with plans for additional locations following viability studies for high-traffic areas.

Scale indicators8 records

Recent moves12 records

Expansion highlights5 records

Broad incumbents

• Subway: Subway is the largest sub QSR franchise in the world with tens of thousands of locations, serving the same core customer seeking a custom deli sub meal. Lenny's competes directly with Subway in nearly every market it enters, though Subway's scale and brand ubiquity place it in the broad incumbent role.
• Wawa: Wawa combines convenience-store retail with made-to-order hoagies and has steadily expanded from the Mid-Atlantic into the Southeast. As a broader convenience-food incumbent entering Southern markets, it competes with Lenny's for foot-traffic and a sub-shop afternoon occasion.

Direct peers

• Jersey Mike's Subs: Jersey Mike's is a fast-growing East Coast-origin sub franchise with similar product positioning around fresh-sliced meats and cheeses on freshly baked bread. The two compete directly for franchisees, real estate, and the same sub-shop consumer across Lenny's 14-state footprint and expanding markets.
• Firehouse Subs: Firehouse Subs is a sub QSR franchise known for hot, toasted subs and catering - the closest analog to Lenny's combined hot-sub and cold-deli model. The two go head-to-head in the same Southern and Southwestern markets that Lenny's is targeting.
• Jimmy John's: Jimmy John's is a national freaky-fast sub delivery concept that also emphasizes fresh bread and quick delivery - directly overlapping with Lenny's freshly baked bread positioning and its 37% off-premise mix. It represents one of the strongest competitive alternatives in the QSR sub space.
• Potbelly Sandwich Shop: Potbelly operates toasty sub and sandwich shops with similar made-to-order positioning and a focus on catering. As a public sandwich-shop chain, it is a closely comparable reference point for system economics and franchise/corporate unit economics for Lenny's.
• Charleys Philly Steaks: Charleys Philly Steaks is the sister brand under Gosh Enterprises, sharing corporate leadership and back-office. Both target the cheesesteak/hot-sub customer and overlap operationally; Charleys' larger footprint (1,000-store goal) provides operational benchmarking and shared infrastructure relevant to Lenny's growth.
• Which Wich: Which Wich is a customizable sandwich franchise with strong catering and digital ordering capabilities. Direct competitor on menu format, customization, and loyalty/ordering technology in the QSR sandwich space.
• Quiznos: Quiznos is a toasted-sub QSR franchise, similar in product but historically troubled by franchisee economics. It serves as a cautionary and competitive benchmark for sub-franchise unit economics relevant to Lenny's franchise model.

Emerging players

• Capriotti's Sandwich Shop: Capriotti's is a growing sub franchise with premium-product positioning similar to Lenny's fresh-sliced deli positioning. Although smaller in scale, it is emerging as a comparable niche sub franchise competing for the same franchisee and consumer segments in suburban markets.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat3 records

Key risks6 records

Key highlights7 records

Customer concentration

• YouTubeyoutube.com/user/lennyssubshops
• Facebookfacebook.com/LennysSubs
• Instagraminstagram.com/lennyssubs
• TikToktiktok.com/@lennysgrillsubs
• Xx.com/lennyssubs
• LinkedInlinkedin.com/company/lennys-grill-subs

Revenue estimate

Valuation estimate

Number of profiles

Profiles2 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Lennys Franchise Systems