For the most popular fast food franchises, start-up costs range from $10,000 to well over $1 million , and monthly fees, which are typically calculated as a percentage of gross sales, generally hover around the 5 percent mark, but can be as much as 50 percent.
On average, the cost to open a restaurant is between $100 and $800 per square foot, with costs varying based on location, concept, size, materials, new or existing location, and equipment.
Chick-fil-A is among the most successful fast-food chains in the U.S., and it’s also one of the cheapest to open.
In the food business, the margins are small, leaving no room for error. The same Franchise Business report suggests the top brands can earn in the neighborhood of $200,000 to $250,000, but the profit, after all expenses, for an average fast food franchise is around $82,000 annually.
While there are not any industry barriers, poor business acumen, no management, and lack of financial planning among first-time restaurateurs are some of the primary reasons why restaurants fail .
In total, McDonald’s estimates that the average total startup investment ranges from $1,013,000 to $2,185,000, with franchisees netting an estimated annual profit of roughly $150,000 .
Average Salaries for Restaurant Owners. On average, restaurant owners can see salary ranges from $24,000 a year to $155,000 a year. That’s quite a broad range.
Here are some rough estimates: A sit-down coffee shop typically costs between $200,000 and $375,000 to set up. A large drive-through shop can cost between $80,000 and $200,000. A small kiosk may cost between $25,000 and $75,000.
You can count on the following monthly operating costs for your restaurant. Rent and utilities (electricity, water, internet, cable, and phone): 5% – 10% of revenue. Food cost: 25% – 40% of food sales. Labor cost: Roughly 30% of revenue including management salaries of 10% Insurance varies by provider and type.
Despite its success, Chick-fil-A charges a franchise fee of just $10,000 to open a new restaurant, and the company told Business Insider it doesn’t require candidates to meet a threshold for net worth or liquid assets. That’s cheaper than every major fast-food chain in the US.
The total investment necessary to begin operation of a traditional McDonald’s franchise ranges from $1,008,000 to $2,214,080 . This includes an initial franchise fee of $45,000.00 that must be paid to the franchisor.
Cheapest Fast Food Options in 2020 Tacos – Jack in the Box . All American Cheeseburger – Checker’s/Rally’s. Cheesy Nachos – Taco Bell . Small Frosty – Wendy’s . Whopper Jr. Chicken Sandwich – Jack in the Box . BK Stacker – Burger King . Checkerburger or Rallyburger – Checker’s/Rally’s.
According to the franchise information group, Franchise City, a Chick-fil-A operator today can expect to earn an average of around $200,000 a year. This calculation is based on the average restaurant’s earnings and the percent gross that operators take (via Washington Post).
How to Start a Restaurant Choose a Restaurant Concept and Brand. Form Your Menu Items. Write a Restaurant Business Plan. Obtain Funding. Choose a Location and Lease a Commercial Space. Permits and Licenses. Find an Equipment and Food Supplier. Design a Restaurant Layout.
Chick – fil-A worth $4.5 billion, report says.