Thursday, September 18, 2014

How Much Does It Cost to Buy a Restaurant Franchise?

How much will it cost for a franchise of your favorite restaurant?When looking into becoming a restaurant franchisee, one of the most frequently asked questions is how much does it cost. For being such a common question, it doesn’t really have a straightforward answer. Restaurant franchise costs widely vary depending on company, location, etc. Some of the biggest restaurant franchises in the world come with some pretty big price tags, but don’t be discouraged just because one company’s franchise costs may be out of your reach. There are plenty of other franchises out there that may be more attainable.

To give you an idea of how big of an investment you might be looking at, here’s a list of fees associated with ten popular restaurant franchises:

Total Costs:
Buying an existing restaurant: 25% down payment, rest paid off within seven years
Building a new restaurant: $45,000 initial costs plus about $955,708-$2,290,146

Krispy Kreme:
Initial Costs: $25,000-$50,000
Total Investment: $933,000-$1,888,250

Initial Costs: $135,000
Total Investment: $550,000-$650,000

Initial Costs: $250,000
Total Investment: $500,000-$600,000

Steak ‘n Shake:
Initial Costs: $40,000
Total Investment: $955,000-$1,835,000

Initial Costs: $15,000
Total Investment: $116,200-$262,850

Jet’s Pizza:
Initial Costs: $20,000
Total Investment: $370,000 or more

Cottage Inn Pizza:
Initial Costs: $15,000
Total Investment: $99,000-$160,000

Little Caesars:
Initial Costs: $15,000-$25,000
Total Investment: $265,000-$681,000

Domino’s Pizza:
Franchise Fee: $0-$25,000 for Internal Franchisees, $25,000 for external franchisees (Internal franchisees have experience as a general manager of a Domino’s restaurant for at least a year, external franchisees do not. Minorities and honorably discharged veterans are eligible to receive a reduced franchise fee.)
Total Investment: $119,950-$461,700

Friday, September 5, 2014

Pizza by the Numbers

One Word: Yum.
Everyone loves pizza, why not invest in a pizza franchise?

Thinking of becoming a restaurant franchise, but aren’t sure which one is right for you? Pizza franchises are definitely a popular way to go. Americans just can’t seem to get enough pizza. Over three billion pizzas are sold every year in the United States alone. Pizzerias are also responsible for some pretty staggering statistics about the food and restaurant industry:

  • 94% of Americans eat pizza regularly.
  • About 350 slices of pizza are eaten every second in the United States.
  • Pizzerias make up 17% of all restaurants in America and are responsible for 10% of all sales in the food industry.
  • The top 5 days for pizza sales are: Super Bowl Sunday, New Year’s Eve, Halloween, the day before Thanksgiving, and New Year’s Day.
  • Saturday is the most popular night for pizza sales.

A few other interesting facts about pizza sales:

  • 36% of all pizza orders include pepperoni.
  • The most popular size for pizza is 14 inches in diameter.
  • 80% of all Italian cheese produced in America is Mozzarella.
  • 61% of Americans prefer regular thin crust pizza, 14% prefer deep dish crusts, and 11% like extra thin crusts.
  • 62% of Americans like meat toppings on the pizza, 38% prefer vegetable toppings. Women are twice as likely as men to order vegetable toppings.