Flynn Group is adding another brand to its portfolio. And the move marks a shift in strategy for the nation’s largest franchise operator.
The San Francisco-based Flynn Group, which operates nearly 3,000 restaurants under seven franchise brands, on Thursday announced it has signed on to open 160 new 7 Brew Drive Thru Coffee locations. 7 Brew, which recently opened its 500th location, has been among the nation’s fastest growing chains for the past two years.
The coffee chain ended 2024 with 321 units, a 78% increase over the prior year, and sales of more than $502 million, an increase of 163%, according to the Top 500 Restaurant Chains by Technomic, a sister brand of Restaurant Business.
“7 Brew has tapped into an area of demand that is really quite astounding,” said Greg Flynn, founder, chair and CEO of Flynn Group. “It’s coffee, but not coffee the way we grew up with Starbucks. It’s coffee-based energy drinks that are exciting and appealing to younger people.”
For Flynn Group, 7 Brew joins a portfolio that includes Applebee’s, Arby’s, Taco Bell, Panera Bread, Pizza Hut, Wendy’s, and the Planet Fitness brand (the latter is Flynn’s only non-restaurant franchise brand).
Flynn could not disclose where those 160 new 7 Brew units will be grown. Currently, 7 Brew is in 35 states.
But, with the decision to grow with 7 Brew, Flynn is also launching a new division called Flynn Growth that will be dedicated to scaling younger, innovative brands with “breakout potential.”
For 25 years, Flynn said his group has focused on mature brands with great success.
In the past, he said, “I always thought trying to pick winners was very risky. We’ve always chosen to wait and see who the winners actually are.”
Now, however, the group is on solid ground and Flynn feels ready to take some risks. Lauren Leahy, Flynn Group’s chief transformation officer, will lead the effort.
7 Brew is hardly a startup, Flynn noted, but it’s “less demonstrated.”
The coffee brand was founded in 2017 in Rogers, Arkansas, and has grown rapidly with small, modular “stands” serving espresso-based coffees, Chillers, tea, energy drinks, sodas and more.
Flynn Growth, meanwhile, will look for more young, innovative brands to further diversify the portfolio. And, he said, perhaps those less-established brands could benefit from Flynn’s operational and real estate expertise.
John Davidson, CEO of 7 Brew, said in a statement, said he was proud to welcome one of the world’s premier franchise operators to the family. “Together with Flynn Group, we are excited to bring kindness in a cup and a daily jolt of positivity to more communities across the United States.”
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