Good Times Restaurants Inc. (GTIM): Business Model Canvas [Dec-2025 Updated]

You're looking for the real story behind Good Times Restaurants Inc.'s (GTIM) strategy, and honestly, it's a tightrope walk between two very different concepts: the chef-driven Bad Daddy's Burger Bar and the quick-service Good Times. As a seasoned analyst, I can tell you the model hinges on balancing high-quality inputs-like their all-natural beef-against a cost structure where payroll alone hit 34.2% of restaurant sales in Q3 2025, even as total revenues reached $37.0 million. To see exactly how they are managing this dual-brand play, from their key supplier partnerships to their menu innovation like the Birria Burger, check out the full Business Model Canvas breakdown below.

Good Times Restaurants Inc. (GTIM) - Canvas Business Model: Key Partnerships

You're looking at the external relationships that keep Good Times Restaurants Inc. running, especially as the company navigates sales pressures-Total Revenues for the Fiscal 2025 third quarter were $37.0 million, down 2.4% year-over-year. These partnerships are critical for brand reach and cost management, particularly with commodity prices being a known risk.

Dual-brand franchisee for Good Times and Taco John's in Wyoming.

This arrangement leverages existing franchisee infrastructure for the Good Times brand outside its core Colorado market. Good Times Restaurants Inc. franchises or owns 30 Good Times Burgers & Frozen Custard restaurants, and two of these locations in Wyoming operate under a dual-brand concept with Taco John's. Franchise and other revenues, which include these arrangements, were $156 thousand in Q3 Fiscal 2025, down from $208 thousand in the prior year's third quarter.

Third-party licensee operating the Bad Daddy's Charlotte Airport location.

Licensing provides a presence in high-traffic, non-traditional venues without direct operational overhead. Good Times Restaurants Inc. licenses the Bad Daddy's Burger Bar brand to a third-party licensee for the restaurant at the Charlotte Douglas International Airport. The company licenses or owns 40 Bad Daddy's Burger Bar restaurants across seven states.

Key suppliers for 100% all-natural beef and chicken products.

Supply chain agreements directly impact the cost structure, which is a major focus given recent margin pressures. Good Times Restaurants Inc. sources 100% of the food and paper supplies for its Good Times restaurants, and the majority for Bad Daddy's, from US Foods. The contractual terms for key commodities are structured differently:

The company enters annual contracts with its chicken and other miscellaneous suppliers.

Technology vendors for new POS systems and mobile app development.

Upgrading technology is key to efficiency, especially as the company works to improve unit-level economics. One recent franchisee acquisition involved installing the brand's next-generation point-of-sale system. The broader restaurant POS system market was valued at $2,554.9 million in 2025. While specific vendor names aren't public for GTIM's current deployment, the focus remains on systems that offer features like inventory tools and reporting.

The company's technology focus includes:

• Installation of next-generation point-of-sale systems in acquired units.
• The need for mobile workflows and integrated payment processing, common in the 2025 POS landscape.
• The general risk associated with supply chain constraints and the current inflationary environment.

Local craft breweries for Bad Daddy's full-bar offerings.

Partnerships with local craft breweries support the Bad Daddy's Burger Bar concept, which is positioned as a full-service specialty burger bar. The concept specifically focuses on a selection of craft beers. These local relationships help differentiate the menu and support the high-energy atmosphere appealing to a broad consumer base.

Finance: draft 13-week cash view by Friday.

Good Times Restaurants Inc. (GTIM) - Canvas Business Model: Key Activities

You're looking at the core actions Good Times Restaurants Inc. takes to run its two distinct restaurant concepts. This is where the rubber meets the road, turning strategy into daily operations, so let's look at the numbers from the latest reports, specifically Q3 Fiscal Year 2025.

The primary activities revolve around the physical operation and continuous improvement of both the Bad Daddy's Burger Bar and Good Times Burgers & Frozen Custard brands.

Restaurant Operations Footprint (As of Q3 FY2025)

Driving sales and margin through product development is a constant key activity, especially given the sales pressures noted in the third quarter.

Menu Innovation and Product Strategy

• Introduce and reintroduce limited-time offers (LTOs) like the Birria Burger at Bad Daddy's in Q3 FY2025.
• Leverage successful seasonal items, such as the smash patty burgers at Bad Daddy's, which provided favorable margins in Q1 FY2025.
• Test new, high-impact LTOs at Good Times, where the Fried Ice Cream LTO was cited as the most successful new product in several years by units sold.
• Roll out new builds and offerings, including the Elote Street Corn Dip and Churro Shake in Q2 FY2025.

Marketing execution is critical for brand relevance, particularly for the quick-service concept facing steeper same-store sales declines.

Brand Campaign Execution

• Executing the new Good Times 'Colorado Native Burgers' brand campaign, which was slated to launch heavily across outdoor, social, and streaming video advertising following the Q3 report.
• Shifting marketing efforts to social and digital media, with tests on connected TV and video streaming showing promising results in Q2 FY2025.

Controlling costs is a major focus, as input inflation (especially ground beef) has been a significant headwind, forcing management to focus on operational efficiency to protect unit economics.

Controlling Restaurant-Level Costs

The focus on cost control shows different results across the two concepts, reflecting their different operational structures.

• Bad Daddy's Cost Discipline: Achieved a restaurant-level operating profit margin of 14.4% in Q3 FY2025. Food and beverage costs improved, falling 60 basis points year-over-year to 30.6% of sales in Q3 FY2025.
• Good Times Margin Management: Restaurant-level operating profit margin compressed to 11.2% in Q3 FY2025, impacted by higher beef, egg, and labor costs. This was down from 8.6% of sales in Q1 FY2025.
• Overhead Reduction: Combined General and Administrative (G&A) expenses were $2.2 million, representing 5.9% of total revenues in Q3 FY2025, a decrease of 120 basis points year-over-year. Management expects full-year G&A to run between 6% and 7% of revenues for fiscal 2025.

They are definitely working hard to keep overhead in check. Finance: draft 13-week cash view by Friday.

Good Times Restaurants Inc. (GTIM) - Canvas Business Model: Key Resources

You're analyzing the core assets Good Times Restaurants Inc. relies on to operate its dual-brand strategy. These resources are what the company uses to create and deliver its value propositions.

The most tangible resources are the restaurant locations themselves, split across two distinct concepts. As of the third fiscal quarter of 2025, Good Times Restaurants Inc. operated a portfolio that included:

• Bad Daddy's Burger Bar: 40 company-owned restaurants.
• Good Times Burgers & Frozen Custard: 30 restaurants, which includes owned, operated, and franchised locations, concentrated primarily in Colorado.

These physical assets are supported by the company's financial standing as of the end of Q3 2025. Honestly, the balance sheet shows a relatively lean position, which is something to watch given the current sales environment.

The Good Times brand possesses a unique, non-replicable resource: the proprietary recipes for fresh, small-batch frozen custard. This is a core differentiator for that concept, tying directly into its value proposition of quality, made-from-scratch offerings.

Beyond the physical and financial, the human capital is a critical resource. Good Times Restaurants Inc. depends on its experienced multi-unit leadership and corporate team to manage operations across both concepts, which have different service models-Bad Daddy's being full-service/full-bar and Good Times being primarily drive-thru. The recent hiring of Jason Murphy as the new Senior Director of Marketing is an example of acquiring specific expertise to bolster this resource base.

The company-owned real estate is another key asset, though the exact valuation isn't always broken out separately from total restaurant assets in every filing. Still, owning the land or buildings, where possible, provides a degree of stability against rising lease costs. The recent amendment to the credit agreement in October 2025, which allowed for the closure and lease termination of two Bad Daddy's locations, shows management actively managing this real estate footprint to improve unit-level economics.

Here's a quick look at the leadership structure mentioned:

• Chief Executive Officer: Ryan M. Zink
• New Senior Director of Marketing (Hired Q3 2025): Jason Murphy

Finance: draft 13-week cash view by Friday.

Good Times Restaurants Inc. (GTIM) - Canvas Business Model: Value Propositions

You're looking at how Good Times Restaurants Inc. (GTIM) separates its two concepts to capture different parts of the market. It's a dual-brand strategy, and the value proposition for each is distinct, which is key to their overall structure.

Bad Daddy's Burger Bar delivers the chef-driven, gourmet experience. This concept is positioned as full-service, offering specialty gourmet burgers and a full bar, all within a high-energy atmosphere. For fiscal third quarter 2025, which ended July 1, 2025, this segment was the primary revenue driver, contributing the maximum revenue out of the two brands, even though its same-store sales saw a 1.4% decrease year-over-year for that quarter.

The Good Times concept is built on quick-service efficiency, focusing on all-natural burgers and their signature frozen custard. This brand is deeply rooted regionally. The company operates or franchises 30 Good Times restaurants, primarily in Colorado, celebrating its heritage, which started in Boulder 37 years ago (as of 2024). They are even leaning into this with a new marketing push entitled 'Colorado Native Burgers' to focus heavily on those Colorado roots.

Quality ingredients are a core pillar, especially for the Good Times brand, which is known for featuring 100% all-natural beef and chicken. However, you have to watch the costs here; for the third fiscal quarter of 2025, food and packaging costs represented 31.3% of restaurant sales for the combined entity. Beef prices were noted as significantly elevated over the prior year during the second fiscal quarter of 2025.

Convenience is addressed differently across the portfolio. Bad Daddy's Burger Bar is a full-service concept, while Good Times leans into speed. You see modernization efforts to enhance this convenience; for instance, the Good Times brand is launching a fresh website and matching mobile app redesign as part of its new campaign. Furthermore, all company-owned Good Times locations were upgraded with digital menu boards by September 2024.

Here's a quick look at the operational scale and recent performance metrics for these value propositions as of late 2025:

The commitment to the distinct value proposition is clear in the unit counts and the focus of recent operational changes. You can see the difference in the performance, too; the 9.0% drop in Good Times SSS for Q3 2025 definitely contrasts with the 1.4% drop at Bad Daddy's.

The core value differentiators Good Times Restaurants Inc. is pushing include:

• Chef-driven, gourmet burgers and full bar at Bad Daddy's.
• Quick-service, all-natural burgers and signature frozen custard at Good Times.
• Focus on high-quality ingredients, including 100% all-natural beef.
• Convenience features like drive-thru and new app-based ordering integration.
• Strong regional heritage, with Good Times being a Colorado native brand.

For Bad Daddy's Burger Bar, sales for restaurants open at least 18 months averaged $2.6 million for fiscal 2024. The company ended Q3 FY2025 with $3.1 million in cash.

Finance: draft 13-week cash view by Friday.

Good Times Restaurants Inc. (GTIM) - Canvas Business Model: Customer Relationships

You're looking at how Good Times Restaurants Inc. (GTIM) connects with the people buying their food, which is critical when same-store sales are showing pressure. For the fiscal 2025 third quarter ended July 1, 2025, the customer relationship strategy was clearly being tested, with company-owned Bad Daddy's restaurants seeing same store sales decrease 1.4% and Good Times restaurants decreasing 9.0% compared to the prior year's third quarter. Year-to-date through Q3 2025, the declines were 1.2% for Bad Daddy's and 4.4% for Good Times. Still, the focus on the in-restaurant experience at Bad Daddy's Burger Bar seems to maintain a better operational margin; for the second fiscal quarter of 2025, their restaurant-level operating profit was 13.6% of sales, or approximately $3,400,000.

The company is actively trying to drive repeat business and engagement. For instance, during the fiscal month of March 2025, Good Times Restaurants Inc. featured its signature Bad Ass Margarita at a promotional price of $8. This kind of targeted pricing is a direct lever on customer purchasing behavior. Furthermore, Good Times is investing in digital touchpoints; management announced plans to launch a new brand campaign, 'Colorado Native Burgers,' which will include a fresh website and matching mobile app redesign, showing a commitment to digital customer interaction going forward.

The relationship management is segmented by concept, reflecting the different service models. Bad Daddy's aims for a high-touch, full-service dining experience, which is inherently people-driven. This is supported by the fact that Good Times Restaurants Inc. finished Q3 2025 with total restaurant-level operating profit of $4,970,000 across both concepts, showing that direct, on-site service execution is a major driver of profitability, even if sales were soft. Honestly, in this business, the people working the floor are the relationship itself.

Here's a quick look at the sales performance for the two concepts in the third quarter of fiscal 2025:

The company's focus on digital modernization, including the website and mobile app redesign, is a direct effort to enhance the customer relationship outside the four walls of the restaurant, which is important when general industry data suggests that more than 70% of loyalty program members prefer to engage via mobile app. The goal is clearly to use these digital tools to support the in-store experience and drive repeat visits, which is the core of the GT Rewards program, even if specific participation numbers aren't public.

Good Times Restaurants Inc. (GTIM) - Canvas Business Model: Channels

You're looking at how Good Times Restaurants Inc. gets its product-whether it's a gourmet burger from Bad Daddy's or a frozen custard from Good Times-into the customer's hands. This is all about the physical and digital pathways they use.

Company-owned and franchised physical restaurant locations.

Good Times Restaurants Inc. operates a dual-brand system across physical locations. As of the first quarter of fiscal year 2025, Good Times Restaurants Inc. owned, operated, and licensed 40 Bad Daddy's Burger Bar restaurants. Separately, the company owned, operated, and franchised 30 Good Times Burgers & Frozen Custard restaurants primarily in Colorado. The company's total revenues for the fiscal third quarter ending July 1, 2025, were reported at $37.0 million.

Here's a look at the recent sales performance by brand, which reflects the volume moving through these locations:

Drive-thru windows for the Good Times quick-service concept.

The Good Times brand is structured as a regional quick-service concept, meaning the drive-thru is a core component of its service delivery, supporting high-volume transactions for items like 100% all-natural burgers and fresh frozen custard. While specific drive-thru revenue percentages aren't broken out, the operational focus on kitchen execution and menu condensing suggests optimizing this throughput channel is key for Good Times.

Third-party delivery platforms and app-based ordering.

Good Times Restaurants Inc. utilizes third-party and app-based ordering to reach customers beyond the physical footprint. This channel is critical for capturing off-premise dining occasions, especially for the Bad Daddy's brand, which features a more complex, chef-driven menu.

• The company is focused on improving kitchen execution and consistency, which directly impacts off-premise order quality.
• Menu engineering efforts, like the success of smash patty burgers, are designed to work across all service methods.

Outdoor, social, and streaming video advertising for new campaigns.

The marketing channel mix is actively being adjusted to align with modern consumer viewing habits. The company is shifting advertising spend away from traditional radio. Specifically, management noted a shift toward:

• Social media advertising.
• Digital advertising.
• Connected TV (CTV) ads.
• Outdoor advertisements.

A new brand campaign, titled 'Colorado Native Burgers,' is set to launch following the third quarter results, emphasizing the company's Colorado roots.

Full-service dining rooms and bars at Bad Daddy's.

Bad Daddy's Burger Bar is positioned as a full-service concept, relying on the in-restaurant experience. This channel includes the dining room and a full bar focusing on local and craft beers. The profitability of this channel is closely monitored:

• Bad Daddy's Restaurant-level operating profit in the second fiscal quarter of 2025 was approximately $3.4 million, representing 13.6% of sales.
• In the first fiscal quarter of 2025, the operating profit margin for Bad Daddy's was 12.6% of sales ($3.3 million).

The success of beverage offerings, such as the $8 Badass Margaritas and Zero Proof cocktails, directly contributes to the revenue stream through this full-service bar channel.

Finance: draft 13-week cash view by Friday.

Good Times Restaurants Inc. (GTIM) - Canvas Business Model: Customer Segments

You're looking at the distinct customer groups Good Times Restaurants Inc. serves across its two primary brands as of late 2025. The segmentation clearly divides between the fast-casual and the full-service casual dining experiences.

Quick-service customers seeking better-quality fast food (Good Times) are targeted by the Good Times Burgers & Frozen Custard brand. This segment seeks convenience coupled with higher-quality ingredients, such as 100% all-natural burgers and fresh frozen custard desserts. For the fiscal 2025 third quarter ended July 1, 2025, the Good Times brand experienced same store sales that decreased by 9.0% compared to the prior year quarter. Year-to-date for the same period, same store sales for Good Times decreased by 4.4%. In the second fiscal quarter of 2025, company-owned Good Times restaurant sales were $9.3 million, an increase of approximately $500,000 over the prior year second quarter.

Casual dining patrons wanting gourmet burgers and craft beer (Bad Daddy's) are served by Bad Daddy's Burger Bar. This concept targets a broader base looking for a chef-driven menu, gourmet signature burgers, chopped salads, and a full bar featuring local and craft beers in a high-energy setting. For the fiscal 2025 third quarter, company-owned Bad Daddy's restaurants saw same store sales decrease by 1.4%. Year-to-date through Q3 Fiscal 2025, Bad Daddy's same store sales decreased by 1.2%. In the second fiscal quarter of 2025, Bad Daddy's chain sales were $24.8 million, a decrease of $1.6 million compared to the prior year period.

The regional focus for the quick-service concept is heavily concentrated. Good Times Restaurants Inc. owns, operates, and franchises 30 Good Times Burgers & Frozen Custard restaurants primarily in Colorado as of the third quarter of fiscal 2025. As of July 2023, the chain operated 31 locations, with 29 in Colorado and 2 in Wyoming.

The casual dining brand, Bad Daddy's, shows a clear geographic strategy. While the first location started in Charlotte, NC, in 2007, the brand is noted as expanding Southeast US market focus, which includes states like NC, SC, GA, AL, TN, and OK. This brand appeals to a broad consumer base, suggesting a wider demographic reach than the more localized QSR brand.

The overarching customer base for Good Times Restaurants Inc. consists of families and individuals looking for convenient, quality meals, segmented by the service style they prefer. The Q1 Fiscal 2025 results showed Bad Daddy's same-store sales increased by 1.5% while Good Times same-store sales were unchanged, indicating different immediate customer traffic patterns across the segments in that period.

Here's a quick look at the recent performance metrics for these two distinct customer segments:

The Q1 2025 results showed Bad Daddy's margins improved due to menu engineering efforts like the Smash Patty Burgers, which suggests this customer segment is responsive to premium, higher-profitability menu items. Conversely, Good Times margins declined in Q1 2025 due to elevated staffing costs.

• Good Times Q1 2025 Same Store Sales: 0% (unchanged).
• Bad Daddy's Q1 2025 Same Store Sales Increase: 1.5%.
• Good Times Q2 2025 Same Store Sales Decline: 3.6%.
• Bad Daddy's Q2 2025 Same Store Sales Decline: 3.7%.

Finance: draft 13-week cash view by Friday.

Good Times Restaurants Inc. (GTIM) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive Good Times Restaurants Inc.'s operations, which is key for understanding margin pressure, especially with the recent commodity and labor inflation trends we've seen.

The cost structure for Good Times Restaurants Inc. is heavily weighted toward direct operating costs, as you'd expect for a multi-brand restaurant operator. For the third quarter of fiscal 2025, the company reported total revenues of $37.0 million.

Here is a breakdown of the key variable costs as a percentage of restaurant sales for Q3 2025:

Labor remains the single largest cost component, coming in at 34.2% of restaurant sales for Q3 2025, which was an increase of 150 basis points from the prior year quarter. Food and packaging costs were also a significant driver, set at 31.5% of sales for the period.

General and administrative (G&A) expenses are managed separately from direct restaurant costs. For the full fiscal year 2025, Good Times Restaurants Inc. is targeting G&A expenses to run between 6% and 7% of full-year revenue. To give you a concrete look at a recent quarter, combined G&A expenses for Q3 2025 were actually reported at 5.9% of total revenues, or $2.2 million.

Capital allocation for physical assets focuses on maintaining and upgrading the existing footprint. The plan for capital expenditures (CapEx) includes specific investments in the Good Times brand:

• 10 Good Times units slated for remodel during fiscal 2025.
• Ongoing maintenance CapEx is generally budgeted at roughly 1% of sales.
• Q3 2025 CapEx incurred was $200,000 related to restaurant remodel and signage projects.

The company is prioritizing finishing this round of Good Times remodels while being more reserved on special project CapEx to accumulate cash reserves.

Good Times Restaurants Inc. (GTIM) - Canvas Business Model: Revenue Streams

You're looking at how Good Times Restaurants Inc. brings in its money as of late 2025. The revenue picture is dominated by direct restaurant sales from its two distinct concepts, Bad Daddy's Burger Bar and Good Times Burgers & Frozen Custard.

Total Revenues for Q3 2025 were $37.0 million, which was a 2.4% decrease compared to the fiscal 2024 third quarter. This top-line figure is the sum of sales from both brands plus smaller revenue sources like fees.

The primary revenue driver is the company-owned restaurant operations. Bad Daddy's Burger Bar, positioned as a full-service dining specialty burger bar, generated the maximum revenue segment-wise. The Good Times brand, operating as a quick-service drive-thru concept, contributes the remainder of the core restaurant sales.

Here is the breakdown of the primary revenue components for the third quarter of fiscal 2025:

The structure of the revenue streams reflects the dual-brand strategy. While Bad Daddy's is the larger revenue generator, the company also relies on its established Good Times brand, which has a significant footprint in Colorado. The franchise and licensing fees are a smaller, but important, component of the total revenue picture.

You should also note the performance metrics that impact these sales figures:

• Same store sales for company-owned Bad Daddy's restaurants decreased 1.4% for the quarter.
• Same store sales for company-owned Good Times restaurants decreased 9.0% for the quarter.
• Year-to-date same store sales decreased 1.2% for Bad Daddy's and 4.4% for Good Times.
• The company owned and/or licensed 40 Bad Daddy's restaurants across seven states.
• The company owned and/or franchised 30 Good Times restaurants, with 28 in Colorado.

Sales from alcohol and bar service at Bad Daddy's locations are embedded within the $26.5 million restaurant sales figure, as Bad Daddy's is the full-service concept where bar service is expected. No separate dollar amount for alcohol sales was reported for the quarter.