Runza

Runza is a family owned quick service restaurant chain built around a distinctive Midwest product and a long regional history. Sally Everett and her brother, Alex Brening, founded the company in 1949 after opening a carhop stand near Pioneers Park in Lincoln, Nebraska. Sally adapted her family’s bierock recipe into the Runza® sandwich. The name may have come from terms such as “krautrunz” or “runsa” and was adjusted for trademark purposes. The scratch made sandwich has remained central to the franchise model. Sally’s son, Donald Everett Sr., joined the business full time in 1964. He opened the second Runza® restaurant in 1966 at 56th & Holdrege in Lincoln, Nebraska, and formally purchased the trade name to incorporate Runza® Restaurants. Leadership remains with the Everett family across three generations. Donald Everett Jr. is President of Runza Restaurants, while his sisters Dawn (Everett) Amend and Renee (Everett) Sjulin serve as Purchasing Director and Vice President. The corporate headquarters is in Lincoln, Nebraska, under the parent company Runza National. Runza began franchising in 1979, reached 20 locations by 1983, had 80 locations in “Runza® land” by 2008, and had more than 90 locations as of 2023. Technomic’s Top 500 Chain Restaurant Report for 2025 listed 91 U.S. units in 2024, the year Runza marked 75 years in business. Locations are concentrated in Nebraska, Iowa, Colorado, Kansas, and South Dakota. Current expansion plans include South Dakota, Colorado, Iowa, Wyoming, Kansas, and Missouri, with a preference for communities relatively close to existing restaurants. This approach supports local brand recognition and operating efficiency for the franchise system.

Runza operates in the limited service restaurant industry, within the larger quick service restaurant market. The global limited service restaurant segment was estimated at $871.02 billion in 2025 and is projected to reach approximately $1.436 trillion by 2034, with a compound annual growth rate of 5.71% from 2025 to 2035. The United States limited service restaurant market was estimated at $97.85 billion in 2025 and is projected to reach $133.71 billion by 2030 at a compound annual growth rate of 6.45%. The United States quick service restaurant market is projected to reach $330.56 billion in 2025, compared with $311.54 billion the previous year, and is expected to reach $436.07 billion by 2029 at a compound annual growth rate of 7.2%. Consumer demand for convenience and speed supports drive through service and mobile ordering. About 65% of quick service restaurant visitors use mobile order ahead applications, including nearly 90% of people ages 18 to 24. Another 63% of quick service restaurant customers favor mobile ordering, and 78% of brands reported higher digital orders in 2022 than in the prior year. Delivery sales in the limited service sector increased by more than 20% through third party platforms. In 2024, 44% of limited service restaurants planned to install self service kiosks. Runza’s homemade positioning, fresh ingredients, hand pressed burgers, and scratch made bread may appeal to customers seeking higher quality within quick service dining. The brand also has strong engagement with Millennials and Gen Z, especially people who grew up in Nebraska. Its partnership with Nebraska Athletics gives it exposure among University of Nebraska Lincoln students.

The initial franchise fee for a 10 year term is $30,000. A 10 year renewal option is available for $15,000, subject to specific terms. The current fee is higher than the 2019 fees of $25,000 for traditional units and $20,000 for non traditional units. The estimated initial investment ranges from $956,800 to $3,291,800. The amount depends largely on whether the franchisee owns or leases real estate, which building model is selected, whether the restaurant is drive through only or includes full service dining, and other site specific development and construction costs. Prospective franchisees and their partners must show at least $500,000 in liquid assets and a minimum net worth of $1,000,000. Ongoing charges include a royalty of 5% of gross sales and a required contribution of 1% of gross sales to the Brand Building Fund, also called the Advertising Production Fund. That fund covers creative development, television and radio production, overhead, and public relations projects. The current average local advertising spend is less than 2% of sales. Participation in cooperative advertising is required when a cooperative has been established in the territory. Runza does not offer direct financing. It may, however, own real estate and lease it to the franchisee, which can change the cash needed at the outset. The initial franchise agreement lasts 10 years and includes an option for renewal.

A Runza restaurant is built around homemade quality food and fresh ingredients. Employees prepare the signature sandwiches by hand, from scratch, and bake them fresh each day. Beef is ground and seasoned in the restaurant, onions and cabbage are mixed there, burgers are hand pressed on site, and bread is made from scratch every morning. The menu also includes burgers, salads, chicken sandwiches, ice cream, cookies, and “frings,” which combine fries and onion rings. Franchisees and customers often praise the burgers, homemade ranch, and onion rings. The seasoning used in the Runza® sandwich filling remains secret, including from store owners. The labor model involves working with young employees and gives owners opportunities to coach, mentor, and create positive memories within the company’s family oriented culture. Runza strongly recommends owner involvement in daily operations, although it does not require it. The company considers candidates who are fully committed to Runza as their career and gives preference to people with recent foodservice experience. The training program begins with a three week, full time, hands on management course at Runza® Headquarters in Lincoln, Nebraska. This program also helps the company evaluate a candidate’s fit as a franchisee and operator. A mandatory six month in store training program at an approved location follows. It covers restaurant preparation, including hiring and training staff. Training for one manager through both Runza® University and the in store program is included in the franchise fee. Corporate support comes from more than 33 employees with experience in Personnel, Marketing, Maintenance, Products, Operations, and Bookkeeping. Franchisees also receive operations manuals and training CDs. For a new restaurant opening, Runza® National provides one field representative for one week at no additional cost. Further assistance is charged at the current rate. Runza currently accepts applications within a 200 mile radius of Lincoln, Nebraska, and in select locations along Colorado’s northern front range. It is also seeking candidates in South Dakota, Colorado, Iowa, Wyoming, Kansas, and Missouri. Franchisees must own at least 51% of the business. If the franchisee hires a general manager rather than serving in that role, Runza® National requires 10% ownership to be assigned to the perpetual general manager. Franchisees work with the Development Team on site selection and then with an architect on site specific plans for Runza® approval. Corporate assistance extends to permitting, general contractor selection, and restaurant construction.

Written support for that representation is available upon reasonable request. A franchisee must account for the 5% royalty, the 1% Brand Building Fund contribution, local advertising of up to 4% of gross sales, labor, food costs, rent, and other operating expenses. Unit growth from 20 locations in 1983 to 80 in 2008, more than 90 in 2023, and 91 in 2024, together with 75 years of operation, indicates sustained market acceptance.

Runza has expanded at a deliberate pace since its founding in 1949. The system grew to 20 locations by 1983, 80 by 2008, more than 90 by 2023, and 91 U.S. units in 2024, when the company celebrated 75 years of operation. This slow and steady approach is intended to give headquarters the ability to provide hands on support to each restaurant while maintaining consistency and franchisee satisfaction. Runza is seeking franchisees for 10 Nebraska cities, 3 Iowa cities, 4 Kansas locations, and 1 Colorado location. It also has broader expansion interest in South Dakota, Colorado, Iowa, Wyoming, Kansas, and Missouri, with a preference for communities near existing Runza® restaurants to support brand recognition and supply chain efficiency. A new restaurant in Glenwood, Iowa, was projected to open with franchisees Ethan Hall and Scott Fredericksen as co owners. The project was announced in October 2022 as the 89th location and was expected to open in early 2024. Runza continues to introduce products and promotions. In 2023, it worked with local ice cream company 402 Creamery on a limited time Chili & Cinnamon Roll ice cream flavor, extending its long running “odd pairing” tradition. In 2024, an April Fool’s promotion for a breakfast Runza® sandwich received enough positive response that one location produced 350 sandwiches. The sandwich included scrambled eggs, ham, green peppers, onions, American cheese, cream cheese, and Runza® seasonings. The promotion raised $1,600 for the “Feed the Need” fundraiser. Runza launched the Runza® Rewards mobile app in 2021. It also continues promotions such as “Temperature Tuesdays,” launched in 2010, and “Today’s Temperature is Today’s Price,” first launched in 1986. The signature Runza® sandwich remains a central point of differentiation because it is made from scratch each day, along with hand pressed burgers and fresh baked bread. Family leadership across generations and the Nebraska Athletics partnership support recognition among Millennials and people who grew up in Nebraska, including University of Nebraska Lincoln students. Since 2018, Runza has donated nearly $260,000 through its “Feed the Need” fundraiser for youth hunger and food insecurity. It also supports the Alzheimer’s Association and the Teammates Mentoring program. The company competes with quick service hamburger chains including McDonald’s, Wendy’s, Burger King, and Culver’s. Culver’s is described as the most comparable competitor because of its emphasis on quality. The brand’s digital app, selective territory expansion, and focus on fresh preparation are part of its response to current market conditions.

The ideal Runza franchise candidate is described as an owner operator with full and unwavering commitment to the brand. The source ends while introducing this candidate profile, so it does not provide additional requirements or characteristics beyond that description.