61–70 of 233 posts
> At $4.2m per store, Chick-fil-A’s average revenue is the highest of any fast-food chain in America, dwarfing both direct competitors (KFC; $1.2m) and bigger brands (McDonald’s; $2.8m) Wow, I did not know this. Why is that?
Fewer stores targeting higher revenue areas, often where they are exclusive local operator. It's like Mac vs PC. You can get higher revenue per store if you limit your market size.
I have myriad issues with the personal ethics of the owners of Chick-fil-A - but their model does make sense to me. They're clearly not just wanting to sell their brand - they're wanting to own their brand. The 10k is just a token - It's maybe more than you have in your clearing account, but a figure that most people could likely produce and is just an indicator that "you're serious" Important part is that they put y…
https://www.nbcnews.com/feature/nbc-out/u-k-s-first-chick-fi...
Earlier quoted context omitted.
150-250k a year for a 60hr a week job as the “owner”.
Not sure if you are implying this is not such a great deal but that's what it sounded to me. Maybe from the perspective of a tech person in silicon valley that's not great. But in comparison with pretty much any other job out there this is stellar.
$150k-$250k/year is a fairly nice ROI for even $2M (though taking on loans or investment changes the math), but the calculation gets a little murkier when you factor in additionally needing to work 60 hours/week, six days/week to keep it coming in.
Put another way, if you already have access to $2M, $150k-$250k/year might not seem all that attractive when compared to what you've done prior to that.
I always found franchise initial startup costs to be predatory, as they get paid either way regardless of whether the franchisee actually succeeds. In my opinion they should be abolished and franchisors should only rely on royalties, so that they have an incentive to help the franchisee succeed if they want to make money.
I actually don’t see it that way. Often a franchise will vet the owner, provide setup assistance, provide location recommendations, train employees, etc. That doesn’t occur in all cases, but arguably most franchises do this and it’s part of the initial fees.
I always found franchise initial startup costs to be predatory, as they get paid either way regardless of whether the franchisee actually succeeds. In my opinion they should be abolished and franchisors should only rely on royalties, so that they have an incentive to help the franchisee succeed if they want to make money.
Given how much it costs to open the restaurant itself, it seems like the franchise fee (for most franchises) is an odd thing to focus on. If I'm going to be spending $1.6M-$2.3M just to build a Taco Bell location, I'm honestly not going to be too concerned about the $30k franchise fee I need to pay corporate up-front. It's a drop in the bucket. Regardless, corporate is always incentivized to help their franchisees su…
Earlier quoted context omitted.
A predatory option can be present with a choice to join it. People can choose to not take such a deal but those who did, they got the worse of the deal by large margins. Even if they did choose that option, doesn't mean that deal was fair to them.
I can't really follow your logic there. In my mind for something to be predatory it should be your pretty much only option while promising you the world, an end to your tough situation. If you have a choice and you end up worse off, you just got into a bad deal is all. The deal is fair because both parties thought it was a good deal, no one was forced or desperate. There was no scam involved either (everyone got what…
I always found franchise initial startup costs to be predatory, as they get paid either way regardless of whether the franchisee actually succeeds. In my opinion they should be abolished and franchisors should only rely on royalties, so that they have an incentive to help the franchisee succeed if they want to make money.
It is fried chicken after all - hardly a challenging item to cook, but to perfect it as a recipe, scale and process for "Nextgrid's artisan non franchised fried chicken" will take probably more than $10k and worse of all will take a lot of time in which you will be paying rent and salaries.
Earlier quoted context omitted.
Given how much it costs to open the restaurant itself, it seems like the franchise fee (for most franchises) is an odd thing to focus on. If I'm going to be spending $1.6M-$2.3M just to build a Taco Bell location, I'm honestly not going to be too concerned about the $30k franchise fee I need to pay corporate up-front. It's a drop in the bucket. Regardless, corporate is always incentivized to help their franchisees su…
A franchise is barely above MLM. Local "owner" is really an employee, takes on the risk and gets minimal profits.
My biggest takeaway from this is that Wendy's standards are surprisingly high. Why do they require a net worth of $5 million when most seem to top out at $1 million? Is it a way of ensuring a lower closure rate as people with $5 million net worth are less likely to go bankrupt and shut down the restaurant?