Advice for Buying a Restaurant and Selling a Restaurant

Restaurant Brokers Weigh in on Top 40 Restaurant Franchises based on Satisfaction with Brand

Posted by Robin Gagnon on Sep 21, 2017 12:18:22 PM

Chain Restaurants just published a recent survey of more than 4,300 franchisess across 100 brands.  Theiy were searching for franchisee satisfaction.  Then they ranked the best and published their Top 40 Restaurant Franchises list. 

What do the restaurant brokers think?  Well , I for one, would have appreciated a ranking from first to last rather than just an alphabetized list.  I would also like more clarity on what the survey asked.  The article cites part of the reason for landing on the top 40 list was the ability of these brands to deliver an, "intense focus on company culture."Is culture enough however?  For these restaurant brokers, looking at a list of concepts ranging from emerging brand Dicks Wings & Grill with only 23 units to Zaxby's with 946 units is a very wide range.  Is the culture great because the brand is so small that there's immense individualized attention? Conversely, is the culture great because a large brand has the money and payroll to keep a team in place to make everyone "feel good" even if they are not making money. 

 

What about the store development costs and return on investment?  This list showns startup investment costs for these restaurant franchises ranging from a low of $45,000 for Happy and Healthy Concepts to a whoppping $3 million for Buffalo Wings & Rings,  Both are "Happy franchisees" and I want to know more about the difference between what makes each investor and franchisee of these brands make the list. 

What do you think?  The survey respondents totaled more than 4,300 franchisees from almost 100 foodservice brands.  Franchise Business review analyzed 18 months of data before naming their Top 40 Food and Beverage Franchises for franchisee satisfaction.  

Looking at this data another way, if "almost 100" foodservice brands were included and the ultimate list was 40 brands, was this a self-serving survey since the brand had almost a 50% chance of landing in the top?  Without ranking, we don't know if one of the restaurant franchieses listed below was number 40 out of 100 which is not that super great. On the other hand, they did throw in everything from soup to nuts (or Zoup! to Biggby Coffee) so that's a positive.  

The list is below and it was published in an article by Chain Restaurants written by Peggy Carouthers.  Let the restaurant brokers know what you think about the list. 

These are the year's Top 40 franchisees in alphabetical order:

    Bahama Buck's
  • Startup Investment: $223,346 – $720,825
  • Cash Requirement: $90,000
  • Total Units: 89
    Biggby Coffee
  • Startup Investment: $220,000
  • Cash Requirement: $70,000
  • Total Units: 254
    Billy Sims Barbecue
  • Startup Investment: $169,000 – $433,000
  • Cash Requirement: $60,000
  • Total Units: 59
    Buffalo Wings & Rings
  • Startup Investment: $1,224,000 – $3,085,000
  • Cash Requirement: $300,000
  • Total Units: 57
    Captain D's
  • Startup Investment: $771,000 – $1,003,000
  • Cash Requirement: $350,000
  • Total Units: 522
    Checkers & Rally's
  • Startup Investment: $96,414 – $1,501,265
  • Cash Requirement: $250,000
  • Total Units: 855
    Dick's Wings & Grill
  • Startup Investment: $237,500 – $772,500
  • Cash Requirement: $100,000
  • Total Units: 23
    Donatos Pizza
  • Startup Investment: $449,000 – $667,000
  • Cash Requirement: $449,000 – $667,000
  • Total Units: 152
    East Coast Wings & Grill
  • Startup Investment: $658,875 – $1,133,502
  • Cash Requirement: $250,000
  • Total Units: 35
    Fazoli's Restaurants
  • Startup Investment: $883,000 – $1,399,000
  • Cash Requirement: $250,000
  • Total Units: 334
    Fuzzy's Taco Shop
  • Startup Investment: $335,000 – $1,035,000
  • Cash Requirement: $250,000
  • Total Units: 112
    Golden Corral Buffet & Grill
  • Startup Investment: $2,120,644 – $6,170,713
  • Cash Requirement: $500,000
  • Total Units: 482
    Ground Round Grill & Bar
  • Startup Investment: $450,000 – $2,200,000
  • Cash Requirement: $350,000
  • Total Units: 27
    Happy & Healthy Products, Inc.
  • Startup Investment: $45,000 – $90,000
  • Cash Requirement: $45,000 – $90,000
  • Total Units: 65
    Hungry Howie's Pizza
  • Startup Investment: $251,375 – $495,850
  • Cash Requirement: $100,000
  • Total Units: 548
    Hwy 55 Burgers Shakes & Fries
  • Startup Investment: $191,255 – $385,155
  • Cash Requirement: $125,000
  • Total Units: 137
    Jamba Juice
  • Startup Investment: $201,000 – $619,300
  • Cash Requirement: $350,000
  • Total Units: 953
    Jason’s Deli
  • Startup Investment: $905,891
  • Cash Requirement: $905,891
  • Total Units: 261
    Kona Ice
  • Startup Investment: $120,225 – $143,025
  • Cash Requirement: $20,000
  • Total Units: 941
    LaRosa’s Pizzeria
  • Startup Investment: $800,000 – $1,000,000
  • Cash Requirement: $500,000
  • Total Units: 66
    Lenny’s Sub Shop
  • Startup Investment: $188,216 – $396,146
  • Cash Requirement: $75,000
  • Total Units: 96
    Marco’s Pizza
  • Startup Investment: $221,592 – $546,592
  • Cash Requirement: $221,592 – $546,592
  • Total Units: 682
    Mooyah Burgers & Fries
  • Startup Investment: $412,750 – $620,000
  • Cash Requirement: $250,000
  • Total Units: 98
    Nothing Bundt Cakes
  • Startup Investment: $392,875 – $545,475
  • Cash Requirement: $150,000
  • Total Units: 168
    Penn Station
  • Startup Investment: $293,102 – $593,027
  • Cash Requirement: $300,000
  • Total Units: 310
    Pizza Factory
  • Startup Investment: $156,000 – $643,500
  • Cash Requirement: $90,000
  • Total Units: 109
    Planet Sub
  • Startup Investment: $182,500 – $402,000
  • Cash Requirement: $100,000
  • Total Units: 58
    Scooter’s Coffee
  • Startup Investment: $334,000 – $514,000
  • Cash Requirement: $100,000
  • Total Units: 167
    Smoothie King
  • Startup Investment: $225,650 – $426,185
  • Cash Requirement: $100,000
  • Total Units: 907
    The Häagen-Dazs Company
  • Startup Investment: $154,158 – $542,408
  • Cash Requirement: $154,158 – $542,408
  • Total Units: 206
    The Honeybaked Ham Co. and Cafe
  • Startup Investment: $299,200 – $468,200
  • Cash Requirement: $100,000
  • Total Units: 405
    The Wendy’s Company
  • Startup Investment: $300,000 – $3,000,000
  • Cash Requirement: $2,000,000
  • Total Units: 6,564
    Toppers Pizza
  • Startup Investment: $291,666 – $527,152
  • Cash Requirement: $150,000
  • Total Units: 99
    Tropical Smoothie Cafe
  • Startup Investment: $198,050 – $478,550
  • Cash Requirement: $125,000
  • Total Units: 541
    Uno Chicago Grill
  • Startup Investment: $736,000 – $1,850,500
  • Cash Requirement: $750,000
  • Total Units: 196
    Wings Etc.
  • Startup Investment: $300,000 – $780,000
  • Cash Requirement: $300,000 – $780,000
  • Total Units: 40
    Wingstop
  • Startup Investment: $346,775 – $733,249
  • Required net worth $1,200,000; $600,000 liquid
  • Total Units: 1,056—21 are corporate-owned stores, and the rest are franchise
    Zaxby’s
  • Startup Investment: $352,000 – $664,300
  • Cash Requirement: $300,000
  • Total Units: 946
    Zoup!
  • Startup Investment: $321,400 – $609,400
  • Cash Requirement: $321,400 – $609,400
  • Total Units: 87

To see our restaurant franchises for sale, check out the link in this paragraph or the graphic below. 

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Topics: buying a restaurant