Global Franchise 10.2

valuable exposure to globally mobile consumers who often carry their brand preferences wherever they go. Capturing loyalty early If military bases offer stability, university campuses offer renewal. Across North America, campuses have become incubators for the next generation of QSR consumers – tech-native, health-conscious, and increasingly values-driven. These environments combine steady daily foot traffic, habitual purchasing behavior, and the opportunity to build brand loyalty at a formative age. Pepper Lunch views university campuses as central to its long-term growth strategy, capitalizing on both their density and demographic influence. “Up to 60% of our customer base is under 35,” says Troy Hooper, “making it very clear where there are opportunities, such as on or near university campuses.” By engaging young consumers where they study, socialize, and form daily routines, the brand establishes early connections that can evolve as its audience matures. “There actually are three distinct markets to follow,” Hooper explains. “The young crowd based around universities and the hyper- urban market; post-university 24- marked by consistent daily footfall, long dwell times, and limited direct competition. Subway’s investment in low- cost, space-efficient formats, some requiring as little as 400 square feet, has allowed franchisees to succeed within military and government sites where every inch counts. These venues not only ensure steady trade from a resident workforce and rotating personnel but also help brands demonstrate operational resilience in tightly managed environments. Japanese fast-casual brand Pepper Lunch also underscores the long-term potential of institutional environments. “There’s been a Pepper Lunch for the last seven or eight years at the U.S. military base in Guam, with a second store on its way,” explained global co-CEOTroy Hooper, who is leading the legacy brand’s North American expansion. From an investment standpoint, military bases offer a rare combination of low risk and high visibility.With built-in populations, extended operating hours, and dependable demand, they provide an ideal platform for stable, scalable growth. For franchisors, they serve as the ultimate testing ground, delivering operational consistency, minimal external disruption, and to 30-year-olds who have moved off campus or away from downtown areas; and maturing millennials relocating into the suburbs.” This progression, he adds, creates “brand affinity and longevity... a roadmap of white space to grow and mature with our customers over time.” For franchisors, this generational continuum offers a rare strategic advantage: the ability to follow consumers throughout their life stages without reinventing the brand every decade. Subway, for instance, is already capitalizing on this pattern. Its grab-and-go offerings and integrated digital platforms – interactive kiosks, upgraded apps, and enhanced loyalty programs – resonate with the fast-paced, mobile-first habits of Gen Z. In campus settings, such innovations position QSRs not just as convenient dining choices but as “QSR franchise investors are uncovering new opportunities in places once considered secondary” 30 GLOBAL FRANCHISE Issue 10.2