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First Watch, the Bradenton-based leader in the daytime dining sector, has announced a strategic shift in its consumer engagement model, headlined by a new partnership with TikTok GO and a refined approach to regional expansion. During its third-quarter earnings call on Tuesday, the company detailed its plans to integrate online-to-offline services via TikTok’s latest discovery feature, aiming to convert digital engagement into physical foot traffic across its rapidly growing domestic footprint. This move comes as the chain navigates a complex macroeconomic environment characterized by fluctuating interest rates and shifting consumer habits, even as it continues to outperform many of its peers in the full-service restaurant category.
Leadership and Strategic Vision under Chris Tomasso
The strategic direction of First Watch is anchored by the long-term leadership of CEO Chris Tomasso, whose tenure with the company spans nearly two decades. Having served as the Chief Marketing Officer from 2006 to 2015 before elevating to the CEO role in June 2018, Tomasso’s background is deeply rooted in brand positioning and consumer psychology. By 2027, Tomasso will have spent as much time at the helm of the company as he did leading its marketing efforts, providing a rare level of executive continuity in the volatile casual dining sector.
Tomasso’s professional pedigree includes a significant stint as the Vice President of Marketing at Cracker Barrel and over a decade with Hard Rock International, where he became the youngest Vice President in that company’s history. This extensive experience in "lifestyle brands" has informed First Watch’s current strategy: viewing the restaurant not just as a place to eat, but as a destination that fits into the digital lives of modern consumers. Tomasso emphasized that the brand’s "seasonal DNA" and commitment to quality are particularly well-suited for storytelling on emerging social platforms where visual appeal and authenticity drive user interaction.
The Digital Frontier: Testing TikTok GO
In a bid to capture a larger share of the younger, digitally native demographic, First Watch will begin testing TikTok GO in the fourth quarter of 2024. TikTok GO, an in-app feature officially introduced by the social media giant in May, is designed to facilitate local discovery by surfacing businesses, restaurants, and attractions directly within the user’s feed. As one of the first restaurant brands invited to participate in the initial rollout, First Watch is positioning itself at the forefront of "social commerce" in the hospitality industry.
The feature allows users to browse videos, search for specific cuisines, or explore location pages to find dining options. Once a user identifies a First Watch location of interest, the app provides details on availability and the ability to complete bookings or find directions without leaving the platform. With TikTok boasting approximately 200 million active monthly users in the United States, Tomasso views this relationship as a "progressive way" to reach fresh audiences. This initiative complements the brand’s existing investments in paid social media, online video, connected TV (CTV), and influencer marketing, creating a closed-loop system intended to flip high-level brand awareness into tangible transactions.
Third Quarter Financial Performance and Market Metrics
For the third quarter of 2024, First Watch reported a 10.7% increase in total revenues, reaching $349.9 million. Systemwide sales also saw a robust climb, rising 10.9% to $391.2 million. Despite these gains in the top-line figures, the company reported a modest same-store sales growth of 1.0%. This figure represents an .1% growth on a two-year stack, a metric that accounts for the difficult comparisons faced against a high-performing 2023.
The company’s traffic metrics showed a decline of 1.9% for the quarter. However, management clarified that this was partially offset by a 3.6% increase in menu pricing. The negative traffic was attributed in part to "strategic sales transfer." As First Watch opens more locations in existing markets—a strategy known as "fortressing"—some traffic naturally shifts from older units to newer, more convenient locations. While this can result in negative comparable traffic for individual stores, it often results in higher overall market share and better service for the customer base.
The quarter’s "mix" (the combination of items customers choose to order) was slightly negative. This was driven by two primary factors: a high redemption rate for the brand’s annual email marketing campaign and the introduction of a lower-priced Limited Time Offer (LTO), the "Godfather Breakfast Bowl." The bowl, featuring Italian pork sausage, eggs, grits, and lemon-dressed arugula, was priced competitively to drive trial, which successfully increased volume but slightly lowered the average check per person.
CFO Transition and Capital Management
The earnings call also served as a platform for Ashlee Weisser, who was promoted to Chief Financial Officer in June 2024. Weisser previously served as the Senior Vice President of Financial Planning and Analysis and brings significant industry experience, including her time as CFO of Maple Street Biscuit Company. Her expertise is seen as vital as First Watch balances aggressive growth with the realities of high capital costs.
Weisser noted that while the company has not yet seen a significant pullback in developer activity, First Watch is remaining flexible regarding its long-term development pipeline. The company opened 16 new locations across 11 states in the third quarter alone, bringing the total store count to 681 (601 company-owned and 80 franchised). Looking ahead, the brand expects to open a net of 60 new restaurants in 2026. However, it plans to slightly taper this growth to 55 openings in 2027. This adjustment is a proactive response to current interest rates and the rising cost of capital, ensuring that the company maintains a healthy balance sheet while continuing to expand.
Diversified Marketing: The Return to Linear TV
While the TikTok partnership represents the cutting edge of First Watch’s strategy, the brand is also finding success in more traditional channels. Tomasso revealed that as part of its 2024 media testing, the company experimented with local linear television in one of its largest markets—an area where building brand awareness had historically proven difficult.
The results of the television test were surprisingly positive. The broad reach and efficient Cost Per Thousand (CPM) of linear TV provided a high-value complement to the company’s targeted digital investments. Following the success of the first trial, First Watch expanded the television campaign to a second market, where early reactions have been similarly encouraging. This hybrid approach—combining the viral potential of TikTok with the mass-market reach of television—allows First Watch to engage with a multi-generational customer base, from Gen Z "foodies" to older demographics who remain loyal to traditional media.
The "Fortressing" Strategy and Competitive Landscape
A key component of First Watch’s growth is its "fortressing" strategy, which involves saturating high-potential markets to secure prime real estate, often referred to as "A sites." Many of these locations are second-generation builds, allowing the company to convert existing restaurant spaces into First Watch units with lower capital expenditure than ground-up construction.
Tomasso addressed the competitive landscape of the "breakfast/brunch" segment, noting that since First Watch went public in the fall of 2021, the industry has seen more contraction than the "hyper-growth" many predicted. While competitors have struggled to maintain pace, First Watch has solidified its position as the "undisputed leader" in the daytime dining category. The company’s ability to open the equivalent of a regional-sized brand every year—even with a moderated target of 55 stores—widens its lead over smaller players who lack the scale and supply chain advantages of a national leader.
New restaurant performance remains a bright spot for the company. Two of the top three opening-week performances in the brand’s history occurred in the third quarter of 2024, specifically in Attleboro, Massachusetts, and Jackson, Tennessee. These results demonstrate that the First Watch concept resonates across diverse geographies, from the Northeast to the South.
Future Outlook: The Path to 2,200 Locations
The long-term roadmap for First Watch remains ambitious, with a stated goal of reaching more than 2,200 stores across the continental United States. The company is already developing sites slated for debut in the second half of 2028, indicating a robust multi-year pipeline. Management remains confident in their financial underwriting targets, noting that stores opened in 2024 and 2025 continue to outperform the existing comp base.
As First Watch prepares for its first-ever Investor Day in Boston next week, the focus will likely remain on how the company can leverage its digital innovations and operational efficiencies to drive shareholder value. By integrating tools like TikTok GO and optimizing its physical presence through strategic market saturation, First Watch is attempting to redefine the "daytime dining" experience for a new era of consumers.
The brand’s evolution from a niche breakfast spot to a national powerhouse illustrates the power of a clear identity. In a landscape where many full-service chains are struggling to find their footing, First Watch’s blend of traditional operational excellence and forward-thinking digital marketing suggests a resilient path forward. The upcoming discussions in Boston are expected to provide further clarity on how the brand will navigate the transition from a high-growth "disruptor" to a mature, dominant market leader.
