Latest / Franchise Conversations with Fexingo: Buying, Running, and Scaling Franchise Businesses / How Top Franchisees Use Secret Menus to Drive Traffic
Transcript
- Lucas: Luna, I want to talk about something that drives franchise operators crazy in the best way: secret menus. Luna: You mean the off-menu combos that customers order by name, even though they're not on the board? Lucas: Exactly. And the interesting part is, these menus are almost never created by corporate. They're invented by franchisees, sometimes by customers, and then they spread on TikTok or Instagram. A well-executed secret menu item can boost same-store sales by 10 to 15 percent at a single location. Luna: But isn't there a risk? Franchisors usually have strict rules about what you can sell. Lucas: Huge risk. And that's what makes the tactic fascinating. If you get it right, you build a loyal following and drive foot traffic. If you get it wrong, you get a nastygram from the franchisor's legal team. So let's look at a real example: a Subway franchisee in Columbus, Ohio, named Derek. Back in early 2025, he started promoting an unofficial 'Hawaiian BBQ' sub on his store's Instagram. He used leftover ingredients — teriyaki glaze, pineapple, bacon — that he already had in stock. Luna: So zero incremental food cost. That's smart. Lucas: Right. He priced it at $7.99, which was about a dollar more than the standard sub. Within three weeks, the Hawaiian BBQ was accounting for 12 percent of his daily sandwich sales. His overall revenue jumped 15 percent year-over-year for that month. But then corporate caught wind. They sent a field consultant to observe, and Derek got a warning letter saying he was violating the approved menu. Luna: What did he do? Lucas: He didn't fight it. He pulled the Instagram post, but he kept selling the sub to customers who asked for it by name. He just stopped advertising it. And he kept a low profile. Within two months, two other Subway franchisees in the region had started selling their own off-menu items. It became this sort of quiet rebellion. Luna: It's like a grey market within the franchise system. But not all franchisors are that tolerant. Lucas: Some embrace it. Starbucks famously has a massive secret menu — the Pink Drink, the Butterbeer Frappuccino — that originated from baristas and customers. Starbucks corporate eventually made the Pink Drink an official menu item. So there's a path to legitimacy if the item catches on. Luna: But you can't rely on that. Most franchisees are better off using a limited-time offer framework. That way you're still technically within the approved menu, just rotating items in and out. Lucas: That's exactly the smarter play. Instead of an unapproved permanent item, run a 'secret' special for two weeks. Use a QR code on the receipt that leads to a hidden menu page. That gives you traceable data and plausible deniability. The franchisor sees it as a promotional test, not a menu violation. Luna: And you can gauge real demand before investing in formal approval. If the item is a hit, you have evidence to present at the franchisee advisory council. Lucas: Right. There's a pizza chain in the Midwest — I won't name them — where one franchisee created a 'Peter Piper Pickle' pizza after a TikTok trend. It had dill pickles, ranch, and mozzarella. He sold 200 pies in one weekend just by posting a video. His food cost was maybe 22 percent because pickles are cheap. Corporate initially pushed back, but when they saw the sales data, they authorized it as a regional LTO. Luna: The key is picking the right ingredients. You want something that uses existing inventory, has high perceived value, and generates social media engagement. Lucas: Let's talk about the social media piece, because that's where the magic happens. The secret menu thrives on exclusivity and discovery. When a customer orders an off-menu item and it's good, they feel like an insider. They post about it. That's organic marketing you can't buy. Luna: And it often reaches a younger demographic that might not otherwise visit. Gen Z loves the hunt for hidden items. Lucas: There's a data point from a 2025 survey by Sense360: 34 percent of consumers aged 18 to 34 have ordered a secret menu item at a chain restaurant in the past year. That's a huge chunk of the market. Luna: But if you're a franchisee, how do you know which item to test? You can't just throw spaghetti at the wall. Lucas: You look at your own sales data. What are the most common customizations? At a McDonald's, for example, a lot of customers order a McDouble with Mac sauce. That's essentially a Big Mac without lettuce. Some franchisees started offering a 'McBig Mac' — two McDoubles with Mac sauce — and it sold like crazy. Luna: So you're mining the POS data for hidden demand. Lucas: Exactly. Another tactic is to look at what competitors are doing regionally. If a local independent pizzeria is killing it with a Buffalo chicken ranch pizza, you can create a similar item using your approved ingredients and branded toppings. You're not copying the recipe; you're translating the concept into your system. Luna: And you're staying within the approved supply chain. That's important because using unapproved vendors is a fast track to termination. Lucas: Absolutely. The secret menu has to use items you already buy from the approved distributor. Otherwise you're risking your franchise agreement. Derek the Subway guy used only ingredients that were already in his walk-in. Luna: What about training? If you suddenly offer an off-menu item, your staff needs to know how to make it consistently. Lucas: That's a challenge. The best approach is to create a simple one-page cheat sheet with a photo and ingredient list. Keep it to one or two ingredients different from an existing item. If it requires a new cooking method, it's probably too complex. Luna: And you need a way to price it without confusing the POS system. You can't just make up a new button. Lucas: Most franchisees use a modifier on an existing item. For example, the Hawaiian BBQ sub at Subway was rung up as a 'Cold Cut Combo with modifications' and a $1 upcharge. The POS just sees a customized sandwich. That's clean and audit-friendly. Luna: And if the item takes off, you have a case for making it official. Some franchise systems have a formal process for new menu item proposals. Lucas: Right. The best franchisees treat the secret menu as a testing lab. You run a two-week test, collect the data on units sold, food cost, and labor impact. If the numbers work, you present it to the franchisee association. That's how the McRib actually became a recurring item — it started as a regional test. Luna: I think there's also a psychological element. Customers love feeling like they're getting something special. The secret menu creates a sense of intimacy with the brand. Lucas: It's essentially a loyalty program without the points. You're rewarding the customer who pays attention. And that generates word of mouth that no amount of paid advertising can match. Luna: You know, speaking of things that generate word of mouth, I think this conversation is a good example of the kind of practical, actionable content that listeners tell us they value. And if today's episode moved your thinking forward in some small way, there's a simple way to show support. Lucas: Yeah, we keep the show ad-free by design, and listener support is what makes that possible. The ask is minimal: if this was worth a coffee to you, you can find us at buy me a coffee dot com slash fexingo. That's it. Luna: No pressure, no perks, just a way to keep these conversations going. And we appreciate everyone who has chipped in. Lucas: Alright, back to secret menus. One more tactic I want to mention: the 'secret menu' can also be a digital-only menu. Some franchisees create a separate online ordering page with a hidden URL, then share it in local Facebook groups. That way, the item never appears on the physical menu board. Luna: So it's invisible to corporate auditors unless they go looking online. That's clever. Lucas: And it's trackable. You can see exactly how many orders come through that link. One franchisee I spoke with in Texas runs a 'Thursday Night Special' that changes every week. He posts the link in a private neighborhood group. He does about 50 extra orders every Thursday, all at full margin. Luna: The key takeaway seems to be: test small, use existing ingredients, and keep it under the radar until you have proof of concept. Lucas: Exactly. The secret menu is a franchisee's tool for innovation within a rigid system. It's not about breaking rules; it's about finding creative ways to serve customers while staying compliant. Done right, it's a low-risk, high-reward growth lever. Luna: And if you end up with a cult hit like the Pink Drink, you might even get corporate to thank you. Lucas: That's the dream scenario. Next episode, let's talk about something more controversial: how franchisees are using AI to dynamically price menu items in real time. Luna: Oh, that'll stir up some franchisee-franchisor tension. I'm in.