1979
40
$553,950
$35,000
$1,313,600
No
Broken Yolk Cafe is a beloved American restaurant chain specializing in breakfast, brunch, and lunch, renowned for its high-quality, scratch-made dishes and vibrant, community-focused atmosphere. Founded in 1979 in San Diego, California, the brand has grown to over 40 locations across the United States, with plans for further expansion. Known for its signature Eggs Benedict and a diverse menu that blends classic American breakfast favorites with Tex-Mex influences, Broken Yolk Cafe offers a unique dining experience that attracts a loyal customer base. The franchise model is designed for scalability and profitability, making it an attractive opportunity for investors seeking a proven concept in the thriving breakfast and brunch segment.
Proven Success: With a revenue of $110 million in 2024 and a strong presence in multiple states, Broken Yolk Cafe has demonstrated consistent growth and profitability.
Brand Recognition: The brand's commitment to quality and community has earned it accolades such as "Best Breakfast" from The San Diego Union-Tribune and San Diego Magazine.
Operational Support: Franchisees receive comprehensive training and ongoing support in operations, marketing, and site selection, ensuring a smooth and successful business launch.
Market Demand: The breakfast and brunch market continues to thrive, with consumers seeking high-quality, convenient dining options.
Established Year:
Broken Yolk Cafe was founded in 1979 in San Diego, California. Originally a single breakfast and brunch location, it has grown over the decades into a recognizable brand in the U.S. casual dining market.
Founders:
The brand as we know it today was significantly expanded by John Gelastopoulos, who acquired the original location in 1993. Under his leadership, the cafe began its franchising journey in 2007, transforming into a scalable and franchise-ready business model.
Franchise Units:
Broken Yolk Cafe currently operates over 40 locations across multiple states, including California, Arizona, Nevada, Texas, and Idaho. The brand is actively expanding and has territories available for new franchisees.
Ownership & Corporate Structure:
The company is privately held under BYC Franchising LLC, which manages franchise development, support, marketing, and operations for all units.
Brand Journey & History:
Started as a single local cafe in San Diego, focusing on quality breakfast and brunch items.
Gained recognition for signature dishes like Eggs Benedict, specialty omelets, and Tex-Mex breakfast items.
Expanded regionally and later nationally through franchising beginning in 2007.
Established a reputation for fresh, scratch-made meals and a community-focused dining experience.
Market Presence in the USA:
Broken Yolk Cafe is positioned in the full-service breakfast and brunch segment of the restaurant industry.
Strong presence in California and expansion into western and southwestern states.
Known for attracting a loyal customer base due to consistent quality, variety, and family-friendly atmosphere.
Industry Category:
Full-Service Restaurants (FSR) specializing in breakfast, brunch, and lunch.
Competes in the fast-casual and casual dining sector, focusing on high-quality, freshly-prepared meals rather than fast-food options.
Other Key Information:
The brand emphasizes community engagement, often participating in local events and charitable initiatives.
Its operational model supports scalability, making it suitable for single-unit and multi-unit franchisees.
Awards and media recognition have helped strengthen brand credibility and consumer trust.
Broken Yolk Cafe offers a robust support system to its franchisees, including:
Pre-Launch Support: Assistance with site selection, lease negotiations, and store design.
Training: A comprehensive four-week training program covering operations, customer service, and management.
Marketing Support: Pre-opening social media campaigns, grand opening promotional tools, and ongoing corporate advertising.
Ongoing Assistance: Continuous support in areas such as purchasing, real estate, and operations to ensure long-term success.
Business Experience:
The ideal franchisee has a background in restaurant management, hospitality, or multi-unit operations.
Prior experience in the foodservice industry is highly advantageous, but motivated entrepreneurs with strong business acumen can also succeed.
Experience in customer service, team management, and operational oversight is important to maintain the brand’s high-quality standards.
Financial Capability:
Franchisees should have a minimum net worth of $1.5 million and liquid assets of at least $500,000 to ensure they can cover startup costs, working capital, and other operational expenses.
Ability to invest in single-unit or multi-unit franchise opportunities, depending on the territory and personal investment goals.
Passion & Commitment:
A strong enthusiasm for the foodservice industry and a genuine passion for delivering an exceptional dining experience.
Franchisees must be committed to maintaining the high-quality standards and community-focused atmosphere that define Broken Yolk Cafe.
Entrepreneurial Mindset:
Should be goal-oriented and proactive, capable of overseeing daily operations, handling challenges, and driving growth.
Must have a long-term vision for their franchise location(s), including employee development, customer retention, and local marketing strategies.
Location Preference:
Franchisees should be willing to operate in available territories across the United States where the brand is seeking expansion.
Ideal candidates may prefer urban or high-traffic suburban locations with strong market potential for breakfast and brunch.
Leadership & Community Engagement:
Should be a people-oriented leader, able to motivate staff and create a welcoming environment for customers.
Engaging with the local community through events, promotions, or partnerships is highly encouraged, aligning with Broken Yolk Cafe’s brand values.
Other Qualities:
Adaptability and resilience in managing a restaurant business.
Commitment to brand guidelines and operational procedures to ensure consistent quality across all franchise locations.
Strong marketing and networking skills to grow local presence and customer loyalty.
| Financial Category | Details / Range |
|---|---|
| Franchise Fee | $35,000 (multi-unit) / $45,000 (single-unit) |
| Total Investment Required | $464,900 – $1,313,600 |
| Minimum Cash Required | $553,950 |
| Royalty Fee | 4% of gross sales |
| Advertising Fee | 1% of gross sales |
| Working Capital | $40,000 – $90,000 |
| Infrastructure / Build-Out Cost | Included in total investment (varies by location & size) |
| Marketing Budget | Part of ongoing advertising fee; initial marketing support included in franchise package |
| Expected ROI | Varies by location; detailed in Franchise Disclosure Document (FDD) |
| Break-Even Time | Typically 2–3 years depending on location and operational efficiency |
| Revenue Streams | Dine-in sales, catering, merchandise, special events |
| Financing Options | Some financing may be available through third-party lenders or SBA loans |
