PrimoHoagies' New CFO Deploys Operator Playbook to Boost Franchisee Profits

PHILADELPHIA, PA – May 12, 2026 – In an increasingly competitive quick-service restaurant (QSR) landscape, PrimoHoagies is sharpening its financial strategy with a clear focus on a critical stakeholder: the franchisee. The award-winning Italian specialty sandwich brand is rallying behind a new financial vision implemented by Chief Financial Officer Alex Chu, who joined the company in October 2025. His approach marks a significant shift, prioritizing franchisee profitability as the central pillar of the brand's growth and resilience.

Since stepping into his role, Chu has moved to fortify the financial infrastructure supporting PrimoHoagies' approximately 125 locations. Instead of focusing on a single, top-down financial snapshot, his strategy is built on three practical pillars designed to empower individual restaurant owners: creating clearer visibility into performance, strengthening discipline around controllable costs, and ensuring all growth is sustainable and franchisee-first.

A New Financial Blueprint for Franchisees

At the core of Chu's strategy is the belief that a healthier franchise system is built from the ground up, starting with the success of each individual unit. His initial work has centered on demystifying financial performance for operators. PrimoHoagies is actively streamlining the process for franchisees to share and analyze their profit-and-loss (P&L) statements. The goal is to provide a unified platform where operators, whether they own one store or dozens, can better understand where their money is going and benchmark their performance against anonymized, system-wide data.

"My role is to help cut through the noise, identify what truly impacts profitability and give operators the tools, benchmarks, and support they need to run stronger restaurants," said Chu in a recent company statement. By improving access to this comparative data, the brand can identify best practices from its top performers and offer targeted, effective support to franchisees who need it most.

The second pillar of this strategy directly confronts the economic headwinds facing the entire restaurant industry. Chu is emphasizing practical tools to manage the costs operators feel most acutely: food, labor, and waste. This includes initiatives to identify and reduce controllable waste, curb overpreparation, and develop more sophisticated labor models and staffing guides. This focus is particularly timely, as the QSR industry continues to grapple with significant cost pressures. Industry reports from 2024 showed average year-over-year labor cost increases of around 6.3%, a trend that has continued to squeeze margins. Chu’s approach aims to give franchisees tangible methods to protect their bottom line.

Finally, the strategy extends beyond cost-cutting to fostering smart, profitable sales. This includes encouraging the use of PrimoHoagies' owned ordering channels to retain more revenue and ensuring that all development decisions are rigorously vetted for their long-term financial viability.

The Operator's Perspective in the C-Suite

What makes Chu’s approach particularly noteworthy is the perspective he brings to the CFO role. His career is a rare blend of high-level corporate finance and ground-level operational experience. Having worked for major franchise systems like Arby's, Wingstop, and Orangetheory Fitness, he also grew up in the restaurant business, working in his grandmother’s restaurant after she immigrated from Hong Kong.

Most critically, Chu previously served as president of a 50-unit Arby's franchisee organization. He has been in the operator's seat, managed payroll, worried about food costs, and navigated the day-to-day challenges of running a multi-unit restaurant business. This background provides a level of empathy and understanding that is often missing in a corporate finance department.

"At the heart of franchising is helping people become better business owners," Chu stated. "That is what drew me to PrimoHoagies: an amazing product, compelling unit economics, and a leadership team committed to protecting franchisee returns."

This operator-centric mindset is being woven into the fabric of the company's financial planning. "Alex has brought tremendous financial discipline and operator empathy to PrimoHoagies at a pivotal stage in our growth," noted Angela Coppler, Senior Vice President of Development. "He understands what franchisees need because he has been in their seat."

Navigating a Crowded Market with Data and Discipline

PrimoHoagies operates in the fiercely competitive premium sandwich segment. The brand's strategy under Chu appears designed to create a key differentiator: a franchise system built for maximum operator resilience. While competitors like Jersey Mike's and Potbelly Sandwich Shop report impressive Average Unit Volumes (AUVs) of $1.2 million and $1.3 million respectively, PrimoHoagies is carving out its niche with a focus on robust unit economics and a slightly more accessible entry point.

According to its 2025 Franchise Disclosure Document, PrimoHoagies' AUV for 88 franchised restaurants open for the full 2024 calendar year was $880,000, with an initial investment ranging from approximately $382,000 to $668,000. By focusing intensely on P&L visibility and cost discipline, the brand is equipping its franchisees to maximize profitability within that AUV, creating a stable financial foundation that is less susceptible to market volatility. The message is clear: success isn't just about top-line sales, but about what the owner takes home.

This disciplined approach is crucial as the brand, recognized by USA Today as a "Best Sandwich Shop" for three years running, continues its expansion.

Balancing Ambitious Growth with Profitability

With approximately 125 restaurants currently open across 11 states and more than 40 new units in the development pipeline, PrimoHoagies is on a clear growth trajectory, with a stated goal of surpassing 300 locations in the coming years. However, the leadership team insists this expansion will not come at the expense of franchisee health.

Chu’s franchisee-first financial perspective aligns perfectly with this broader development strategy, which prioritizes what the company calls "financially healthy growth over unit count alone." Every decision, from market selection to franchisee approval, is being viewed through the lens of long-term profitability for the operator.

Nicholas Papanier Jr., Owner and CEO of PrimoHoagies, underscored the value of this integrated approach. "Alex's impact has been felt quickly across the organization," he said. "He brings the financial expertise of a CFO, the development mindset of a growth leader, and the real-world perspective of a franchise operator. That combination is exactly what PrimoHoagies needs as we continue building a stronger, more sophisticated franchise system. We are focused on growing the right way."

As PrimoHoagies enters its next phase of expansion, Chu's leadership is central to its mission of building a system that can weather economic pressures while preserving the quality and entrepreneurial spirit that have defined the brand for over three decades. The strategy serves as a compelling case study in how corporate leadership can directly empower the small business owners who form the backbone of the franchise model.