How To Buy A Fast Food Restaurant
One top performing Chick-fil-A restaurant reported sales of over $17 million in 2021, more than double the average per unit sales volume for the chain, according to Chick-fil-A's 2022 franchise disclosure document. Additionally, the average McDonald's restaurant logs about $4 million in yearly sales.
how to buy a fast food restaurant
Insider compiled a list of some basic financial requirements for becoming a franchise owner of 12 of the biggest fast-food chains in the US, listed in alphabetical order. The below values are based on "traditional" franchise locations, meaning they are stand-alone restaurants as opposed to units in airports, malls, universities, or other buildings.
Startup costs*: $1.36 million and $2.45 million. For new restaurants, the bulk of those costs cover signs, seating, equipment, and decor, according to the chain's franchise disclosure report for 2022.
Ongoing fees: The base rent varies as it depends on when the restaurant opened along with the acquisition and development costs. The rent for most new McDonald's restaurants ranges between 10% of total gross sales to $15.75% for new restaurants that have opened since January 1, 2020.
Additionally, there are numerous monthly and annual fees franchisees must pay, including a monthly service fee equal to 4% of gross sales and more than $11,000 in annual fees for support and maintenance of restaurant software and equipment such as payment processing systems and kiosks.
Ongoing fees: The advertising fee is 4% of gross sales and covers both national and local advertising. The royalty fee is 4% or 6% of gross sales, depending on the type of restaurant.
No matter your previous work experience, if you are looking to buy a fast food restaurant then you will need to combine the skills of sales, marketing and technological aptitude for this career. According to market research, there were more than 247,191 fast food restaurants in the United States in 2018, which is expected to grow. In order to stand out among these competitors, you will need to employ a team of professional, courteous and skilled staff. Consider what kind of fast food you would like to offer, as well. For example, recent trends in fresh and low-calorie options may be a smart plan for the health-conscious. Do some research of your location and what could give your business an edge.
Before you begin looking at local fast food restaurants for sale, do some networking with fast food managers for any advice they could offer. Make a projection of sales and growth over the next few years to see if this is an industry you could make a difference in. The restaurant industry faces its own challenges, but those who create profitable companies understand their abilities and know their public. Once you buy a fast food restaurant, you could join the ranks of successful fast food pioneers.
Since there are so many fast food franchises available, startup costs vary widely from about $200,000 to over $2 million. Many fall around $300,000 to $500,000, including everything from the initial franchise fee to other startup costs like restaurant equipment. Many also charge royalties or a monthly service fee.
Fast food franchises are quick-service restaurants that use a franchise system to grow. Independent operators run their own locations, connected to the larger brand. READ MORE: See our Franchise Guide The Fast Food Restaurants Industry in 2022The fast food industry is still popular even with supply and worker challenges. Fast food joints continue to offer cost-effective and convenient options that customers value.
Restaurants are sweeping the nation. Did you know that there are over 200,000 fast-food restaurants in the U.S.? These fast-food type restaurants are considered limited-service restaurants (LSR), which is a booming sector on its own. However, during COVID-19, all restaurants, big and small, experienced a huge decline. But, it was the fast-food restaurants that managed to stay afloat during the crisis.
The first thing to consider when shopping for restaurants is the type of cuisine offered. From the get-go, you should decide which style of food you wish to serve and only look at businesses that already offer that cuisine. If not, then you will have to think about rebranding the business and remodeling the interior.
Consumers expect consistency when it comes to dining out. Between the taste of the food, the friendless of staff, and the level of cleanliness, your customers should have the same experience time after time.
Do you want to buy your own fast-food business with no franchising strings attached? If so, let your research begin here at businessesforsale.com. Offering a one-stop-shop for aspiring entrepreneurs to search, find, and close their next business deal. Browse through our extensive marketplace of businesses for sale, and purchase your very own fast-food restaurant.
To better understand the capital required to acquire and launch a fast-food franchise, The Hustle spoke with more than a dozen franchise owners and analyzed data from franchise disclosure documents filed by 22 of the largest domestic chains.
Fancy McDonald's for its world-famous fries and Wendy's for the never-frozen cheeseburgers? While many fast-food-frequenting folks swear by their favorite drive-thru joint, have you ever wondered which restaurant continues to steal the heart of the majority and bridges the gap between our polarized population? YouGov, a firm that specializes in online research, has been keeping track of the most popular dining brands in America based on more than 1,500 interviews across multiple demographics taken between October 2021 and December 2021.
With thousands of locations across America, Panda Express is the top-ranking Asian dining brand in the country, according to the 2018 QSR 50 Ethnic Segment Report, which gathers the best restaurant brands in the country and segments them into categories.
Illinois has elected to participate in the SNAP Restaurant Meals Program (RMP) starting late Spring of 2022. RMP allows specific qualifying SNAP households to utilize their SNAP Benefits to purchase hot meals at participating restaurants.
Your restaurant is eligible to apply to participate in the SNAP Restaurant Meals Program if it resides in Dewitt County, Franklin County or Cook County with the following zip codes (60619, 60620, 60628 and 60617) AND meets certain criteria. Illinois will be rolling the program out to selected areas over a period of time.
The VicLANES data used in this analysis included 2547 participants from 49 census collector districts in metropolitan Melbourne, Australia. The outcome of interest was the total frequency of fast food purchased for consumption at home within the previous month (never, monthly and weekly) from five major fast food chains (Red Rooster, McDonalds, Kentucky Fried Chicken, Hungry Jacks and Pizza Hut). Three measures of fast food access were created: density and variety, defined as the number of fast food restaurants and the number of different fast food chains within 3 kilometres of road network distance respectively, and proximity defined as the road network distance to the closest fast food restaurant.
Multilevel multinomial models were used to estimate the associations between fast food restaurant access and purchasing with never purchased as the reference category. Models were adjusted for confounders including determinants of demand (attitudes and tastes that influence food purchasing decisions) as well as individual and area socio-economic characteristics.
Although we found an independent association between fast food purchasing and access to a wider variety of fast food restaurant, density and proximity were not significant predictors. The methods used in our study are an advance on previous analyses.
Fast food consumption has been associated with increased risk of adverse health outcomes including increased body weight [1, 2] and diabetes [1]. Evidence from the US showed that recent increases in the rates of fast food consumption [3, 4] have coincided with growth in the number of fast food restaurants [5].
Despite increases in both consumption and availability of fast food the potential link between the two remains largely unexplored with only Jeffery and colleagues in the U.S. [6] and Turrell and Giskes [7] in Australia undertaking detailed investigation on this. These studies found no statistically significant link between greater access to fast food and increased fast food purchasing. Unfortunately, these studies have several methodological problems. First, Turrell and Giskes [7] assessed density and proximity using access measures created from the centroid of a study area which leads to 'aggregation error' [8] because the area-level variable may not be an accurate measure of individual exposure. Second, both studies did not ask questions about the consumption or purchasing of particular fast food brands but defined the exposure variable with more specificity, resulting in a lack of congruence between exposure and outcome variables. For example, although Turrell and Giskes created specific categories of takeaway stores for the exposure variable, the outcome variable related to purchasing was asked as a general question and could not be specifically matched to any of the exposure categories. Third, studies of access to fast food restaurant and purchasing are hampered by confounders [9, 10] because they failed to account for the fact that the association between fast food restaurant accessibility and purchasing may be a function of demand for fast food driving supply rather than supply (or accessibility) influencing demand (i.e. endogeneity). For example, Subramanian et al. have argued that fast food chains may open in areas because of the taste preferences of local residents [9] and previous research has supported an association between taste preferences and fast food consumption among adolescents [11]. Prior research has also indicated that food preferences and other attitudes such as convenience and health may influence food choices [12, 13]. Therefore, to extend Subramanian et al.'s argument, it is also plausible that the attitudes of local residents may also influence the location of fast food restaurants. In addition, a key to the success of major fast food chains has been their ability to target populations based on demographic and socio-economic criteria [14]. Isolating an independent association between fast food access and purchasing requires methods that account for these potential confounders. 041b061a72