First Watch Restaurants

First Watch Restaurants was founded on October 1, 1983, in Pacific Grove, California, by Ken Pendery and John Sullivan. The brand was created around premium, made to order breakfast and lunch, and its name comes from a nautical term for the first work shift of the day. Restaurants operate exclusively from 7:00 AM to 2:30 PM. Headquarters moved to Bradenton, Florida, in 1986. As of December 28, 2025, First Watch operated over 633 locations in 32 states, including 560 company owned and 73 franchise owned units. The company has been publicly traded since its October 2021 IPO and has a long term target of 2,200 locations. Its market is full service breakfast, brunch, and lunch, a category that has outpaced general family dining growth for the past decade. This overview is independently produced and has no promotional relationship with First Watch Restaurants or an affiliated entity.

The full service restaurant industry produces hundreds of billions in annual U.S. revenue, while breakfast, brunch, and lunch have become resilient growth categories. Morning and midday occasions can be more resistant to recessions than dinner because average checks are lower, and weekend brunch has become an established social habit across age groups. Demand for fresh, made to order food, remote and hybrid work schedules, and millennial and Gen Z preferences for food quality and ingredient transparency support elevated casual concepts. First Watch uses fresh, seasonal ingredients and says it does not use heat lamps, microwaves, or freezers in food preparation. Its seven and a half hour operating day can help align employee schedules with daytime hours, which the company credits with better hiring and retention than restaurants with evening service. The premium daytime segment remains fragmented outside a handful of national operators, leaving room for expansion into new markets.

The initial franchise fee is $40,000. Total initial investment ranges from $1,210,150 to $2,028,800, with costs affected by real estate, construction complexity, local construction labor, and kitchen equipment. The 2022 Franchise Disclosure Document reported $939,950 to $1,770,300, while other validated sources reported $750,000 to $1,300,000 or more for build out, equipment, pre opening costs, and working capital, depending on format and geography. Prospective franchisees should expect liquid capital of $200,000 to $250,000 and minimum net worth of approximately $1 million to $1.5 million. Historical royalty terms were approximately 4% to 5% of gross sales paid monthly. Advertising fund contributions were up to 3% monthly, or cooperative advertising fees were 2% of gross sales. First Watch began offering franchises in 2008, but was not offering new U.S. franchises in 2023 and 2025 as it focused on company owned growth and reacquiring franchised units. The company has not announced direct franchisee financing programs. Candidates historically considered conventional bank loans, SBA programs, investor partnerships, and equipment leasing. PeerSense is not a lender.

First Watch uses one primary format: a full service restaurant open from 7:00 AM to 2:30 PM, seven days per week. The model avoids dinner service while concentrating staff and resources on breakfast and lunch. Locations require a full kitchen team for fresh, made to order food and front of house employees for table service. Historical training lasted approximately 8 weeks, including 75 classroom hours and 400 hours of hands on training. The corporate training facility was in Florida, and new managers received cultural immersion training in Sarasota, Florida. Corporate support included site selection, lease negotiation, marketing, and operating technology. First Watch has said that company ownership supports consistent food and service standards. During the two years ending in April 2025, it repurchased 64 franchised locations, including 16 franchise owned restaurants and development rights in North and South Carolina for $49 million in April 2025. The company is therefore oriented toward company owned expansion rather than adding franchise units.

Since the October 2021 IPO, public filings and earnings reports have provided additional company financial information. The company attributed the decline to higher food, beverage, packaging, and labor costs. A franchise attorney and accountant should independently review these figures before any investment.

Since the October 2021 IPO, First Watch has added 250 restaurants. It opened 50 restaurants across 19 states in fiscal year 2024 and 64 across 23 states in fiscal year 2025. The 2025 openings included Massachusetts, Idaho, and Nevada. The Las Vegas, Nevada opening in September 2025 marked entry into the 32nd state. As of December 28, 2025, the system had 633 restaurants, compared with 584 in Q1 2025. The 2025 and 2026 development pipeline included over 120 planned projects. The fiscal year 2025 plan called for 59 to 64 net new restaurants, including 55 to 58 company owned and 7 to 9 franchise owned locations. The long term target is 2,200 locations. First Watch differentiates its operations through no freezer, no microwave, and no heat lamp food preparation, a daytime format, and a workplace culture named number one Most Loved Workplace in America by Newsweek and the Best Practice Institute in 2024. Acquisitions include The Good Egg in Arizona in 2014 and The Egg and I Restaurants chain in May 2015, which operated 114 locations across twenty states.

Historically, the ideal franchise candidate was an experienced multi unit operator or hospitality professional with the financial capacity for a $1.2 million to over $2 million full service restaurant investment. The concept requires hands on management, especially during the opening period, and the training program included approximately 8 weeks, 75 classroom hours, and 400 hands on hours. Because First Watch is emphasizing company owned growth and reacquiring franchise units, new territories and development rights are more limited than in earlier periods. The company entered Massachusetts in 2025 with an opening in Hanover and plans for downtown Boston, along with entries into Idaho and Nevada. Historically, it worked with multi unit operators able to develop several locations in a defined territory. The $49 million Carolina transaction, which included development rights, shows that territorial rights can have separate value. First Watch has not announced international franchise expansion and evaluates cross border opportunities individually based on local regulations and supply chain feasibility. Candidates should review current Franchise Disclosure Document terms, territory availability, and agreement structure with the franchising team and an independent franchise attorney.

First Watch offers a daytime dining concept with public company financial reporting, a current base of 633 units, and a long term target of 2,200 locations. The PeerSense Franchise Performance Index score is 45, rated Fair. That assessment reflects the limited franchise unit base and the company’s preference for company owned expansion over new franchise development. PeerSense provides independent due diligence data, including SBA lending history, the Loan Activity Score, location maps with Google ratings, Franchise Disclosure Document financial data, and comparison tools for franchise costs, royalty structures, and operating performance. Investors considering First Watch should weigh the public financial record, operating model, current franchise availability, and capital requirements against their own financial capacity and investment objectives.