First Watch has officially become a billion-dollar brand, achieving revenues of $1 billion in 2024 for the first time in its 40+ year history. Backed by strong performance, disciplined strategy, and long-term vision, the nation’s leading daytime dining concept is now preparing to leverage scale, marketing, and innovation to fuel its next stage of nationwide expansion.
Building Strength Through 2024
Despite persistent macroeconomic headwinds, First Watch strengthened its operational base in 2024. The brand improved labor efficiency, boosted restaurant-level operating profit, reduced ticket times, decreased turnover, and raised customer experience scores — all while resisting the heavy discounting tactics common in the broader restaurant industry.
“Above all, we stayed true to who we are, which is a trait that has served us well through every environment,” said Chris Tomasso, CEO and President of First Watch.
The company’s revenues grew 13.9% year-over-year, reaching $1 billion. Adjusted EBITDA rose to $113.8 million (up from $99.5 million), and First Watch opened 50 new restaurants — including a record 25 in Q4 alone.
Growth Milestones
- 572 restaurants across 29 states by year-end 2024
- 489 corporate-owned, 83 franchised
- New units pacing to generate $2.6 million in third-year sales (20% above system AUV)
- Projected cash-on-cash returns north of 35%
- Restaurant-level operating profit of $49 million, up from $46.8 million last year
While same-store sales declined 0.3% due to softer traffic, profitability, efficiency, and guest satisfaction positioned First Watch to move into 2025 from a position of strength.
Chapter 3: National Marketing and Awareness
Historically, First Watch’s growth has been driven by word-of-mouth loyalty and strategic acquisitions, including The Egg & I in 2015. But as scale expands, so too does the opportunity to amplify brand awareness.
“First Watch recognizes our opportunity to raise brand awareness via smart targeted marketing efforts,” Tomasso told investors.
Armed with years of data and technology investments, First Watch will meaningfully scale marketing spend in 2025, focusing on targeted campaigns across digital and local media. Unlike traditional restaurant chains, First Watch will not rely on aggressive price promotions or broad national TV ads. Instead, the focus is on:
- Increasing frequency among loyal guests
- Attracting new customers in high-density markets
- Leveraging technology for personalized offers and measurement
- Building awareness alongside new unit openings
Innovation and Guest Experience
First Watch continues to strengthen its menu innovation and hospitality focus:
- Seasonal offerings like Parmesan Prosciutto Toast and premium fruit options
- Enhanced beverage lineup
- Return of complimentary coffee for waiting guests
- Expanded portions on popular dishes
- New guest-facing technologies in 2025: custom-built waitlist, dynamic nutrition tools, personalized offers
Tomasso emphasized that First Watch’s “invest-in-the-guest” philosophy remains central to its enduring relevance and value perception.
Looking Ahead to 2025
For 2025, First Watch expects:
- 59–64 restaurant openings, net of three closures
- Positive guest counts (flat to slightly positive)
- Same-store sales growth in the low single digits
- Marketing campaigns built around everyday value and brand storytelling
- Expansion into new markets including New England and Las Vegas
Scale also provides supply chain stability, helping First Watch navigate inflationary pressures on key commodities like eggs, bacon, and coffee without resorting to volatile pricing tactics.
“Every year presents unique challenges, but we approach them with a long-term view,” Tomasso said. “We control the controllables and use our scale to build a stronger tomorrow.”
About First Watch
First Watch is the leader in daytime dining, serving breakfast, brunch, and lunch at over 570 restaurants nationwide. With chef-inspired menus, seasonal specialties, and a culture of hospitality, the brand continues to set the standard for growth and innovation in the category.
Leave a Reply