Primo Hoagies is making its mark along the Eastern Seaboard
while introducing new products and technology.
By Kat Zeman, Knighthouse Media
Primo Hoagies is on the move. Famous for its Philadelphia-style hoagies, the brand is positioning itself to take a bigger bite out of the Eastern Seaboard.
The fast-casual food chain restaurant already has more than 100 locations in seven states including Pennsylvania, Delaware, New Jersey, Maryland, South Carolina, Florida and Virginia. The company is expanding into Georgia this year and has plans to move into North Carolina and other states along the Eastern Seaboard in the near future.
“We are expanding our brand,” says Rocco Fiorentino, who took over as president and CEO of Primo Hoagies Franchising in 2017. “And we have our eye on the Eastern Seaboard.”
The sandwich franchise has seen its sales increase by 9 percent in the first two quarters of this year. Fiorentino attributes that growth to new products, a customer loyalty program and partnerships with third-party delivery service providers. 
On the franchising side, Primo Hoagies has started to take off as well. Founded in 1992 by Richard Neigre in South Philadelphia, the brand started franchising in 2002. “Over the past 15 years, the development has been sporadic, between two to 10 new units per year,” Fiorentino says. “Our goal is to be more consistent and control our growth.”
In the past year, Primo Hoagies sold 10 franchises and expects to have four of them operational this year. The company’s goal is to open between 10 to 30 new franchises per year. “Percentage-wise, that’s a good growth rate for us, about 20 to 25 percent,” he says.
Oozing Flavor
As Primo Hoagies continues to expand, the brand has new products and projects on the horizon. After six months of testing, the sandwich chain introduced a Philly Cheesesteak to its menu.
Made with high quality extra lean loin tail and oozing melted American cheese, the sandwich will be offered at all new Primo Hoagies locations and eventually retrofitted into its existing restaurants. “We use ‘grill-less’ technology,” Fiorentino says. “I can’t give out our secret, but it’s a great product.”
Aside from the cheesesteak, Primo Hoagies has an extensive menu featuring multiple award-winning “specialty hoagies” made with crispy Italian bread and gourmet quality meats and cheeses. It also offers a variety of “healthy alternative” hoagies and low carb wraps. A new chicken wrap has been added to the menu this year as well.
“Our product is of the highest quality,” Fiorentino says. "When a new customer bites into our sandwich, it practically smacks them in the face. They don’t expect that flavor profile.”
High-Tech Moves
Cashier-less ordering kiosks are becoming more popular at fast food restaurants like McDonald’s and Wendy’s. But Primo Hoagies is taking this one step further.
It is testing a self-ordering kiosk that uses AI and facial-recognition technology to order, pay and log into the chain’s customer loyalty program. “Once it recognizes your face, your whole profile will come up,” Fiorentino says. “You can replicate a previous order. You can put your credit card on file. We are anticipating a higher average check for the kiosks. We see that people tend to order more when they are scrolling through a kiosk.”
The kiosk is being slated for testing at Primo Hoagies’ corporate store in Sicklerville, New Jersey. Once inhouse testing is complete, the kiosk will be available to consumers. Fiorentino expects it to happen in August.
Furthermore, Primo Hoagies is in the process of upgrading its POS software and hardware. “The software is important because it will integrate our system with all third-party delivery services like Grub Hub,” Fiorentino says. “And it will prompt our employees to upsell additional items like snacks, chips and beverages.”
In addition, the company is introducing digital menu boards this year. Going forward, all of its new stores will have them. Existing stores have already been retrofitted.
Alive and Well
Entrepreneurs interested in opening a Primo Hoagies franchise must have at least $75,000 in liquid assets and a net worth of $300,000. The company charges a franchise fee of $35,000 per location. It also collects an ongoing royalty fee of 6 percent and a 2 percent ad fund charge.
The initial investment, including build-out cost and franchising fee, ranges between $165,000 to $296,000 depending on location. An average Primo Hoagies shop is roughly 1,600 square feet and includes seating space for up to 24 people. Financing is available through Benetrends Financial and third-party lenders.
“Franchising is an amazing opportunity for people who want to be in business for themselves,” Fiorentino says. “And we are in a great category. The sandwich category is alive and well.”
Primo Hoagies has an extensive start-up program and offers its franchisees ongoing support. It will help with site selection, store design, facility built-out and the grand opening. New franchisees will undergo a three-week training course at the company’s corporate store in New Jersey.
Ongoing support consist of field visits and access to a CRM platform. “We have field consultants that conduct visits and produce a detailed evaluation report,” Fiorentino says. “In previous years, we’ve done them twice a month, but we’re trying to get it down to once a month or once a quarter – unless otherwise needed. With today’s technology, we can maintain operations without having to visit the stores as often as we have in the past.”
Primo Hoagies is looking for dedicated entrepreneurs with some business experience who can build and manage a team. “We’re not necessarily looking for someone who can make a great sandwich,” he adds. “We want someone who believes in our system and is willing to follow it.” The company is especially interested in entrepreneurs that want to open more than one location.
