The food industry is one of the most profitable industries in the US, with the average market value pegged at $1.69 trillion. In 2020 alone, fast-food restaurants recorded an increase in sales by 20 percent thanks to the ever-growing demands for quick foods by the teeming workforce population. With jobs going remote and delivery services becoming readily available, the number is likely to increase soon.
As a smart investor looking to make good investments, you’re probably looking to take advantage of opportunities by making a foray into the industry. Doing that doesn’t necessitate you to start your own restaurant, rather opening an outlet of an already existing company will be better. This approach eliminates the stress of having to build a brand from scratch.
In this article, we shall examine what opening a Popeyes restaurant entails, especially with the recent popularity of the Popeye company. However, there’s a need to relay an overview of the restaurant giant from its early days to the present day.
History of Popeyes:
The first Popeyes branch opened in New Orleans in 1971, some 50 years ago when Al Copeland decided to start a chicken restaurant aimed at competing with KFC. History has it that the first venture failed, nevertheless, a year later, he would go on to open another restaurant named Popeyes Mighty Good Fine Chicken.
It didn’t take long for him to realize the benefits of franchising his idea. The first franchises of Popeyes Chicken were initially spread throughout Louisiana. However, in recent times, branches have erupted outside Louisiana and the US as a whole, with the company boasting over 2,700 locations worldwide.
Early 2017 saw the purchase of the company by Restaurant Brands International (RBI), a reputable fast-food holding company with operations in the States and Canada. This move is not surprising since Popeyes’ franchise profit generation is good.
RBI owns other famous restaurant brands such as fast food legends, Burger King, and Tim Hortons, the largest quick-service restaurant chain in Canada.
Popeyes as a Great Investment Opportunity:
In 2019, Popeyes Louisiana Chicken began making headlines for its new menu addition, the chicken sandwich. Lovers of the food were seen queuing in their numbers to get a bite of the tasty, spicy sandwich that became sold out nationwide. Hence, it is fair to say that Popeyes has a loyal fan base that any investor will kill for (please don’t).
It is common knowledge in business that a loyal fan base equals great income opportunities as you have an ever-present community willing to patronize you. This act is one of many reasons why a Popeyes franchise will be of maximum benefit to you as a businessperson. No businessman desires a poor investment; hence, so ensure you do your due diligence before investing.
Picking the right one of the many Popeyes franchises for sale will require you to hire a good real estate agent. Be smart enough to tell the crooks from the professionals.
The Cost of a Popeyes Franchise:
Having established that Popeyes is a lucrative franchise, let us now look at what the numbers say. It’s important for investors to carefully evaluate the figures of any business before becoming a part of it. Below are some facts about the franchise:
- An initial franchise fee of $50,000 is required to own a franchise of the company
- The initial franchise term is usually 20 years
- The total estimated initial franchise costs between $235,000 and $455,000 per location
You may be curious as to why there is a large window in the estimated costs. This large gap is due to the variations in real estate prices across different states and locations. Owning a Popeyes franchise in Los Angeles will require a higher cost than owning another in Colorado City. Popeyes for sale in California are likely to cost more than others due to the state’s popularity.
Away from the initial estimated costs, the franchises come with ongoing fees; about four percent of your profit goes to a marketing fund, and another five percent is for royalties. If you qualify for the Veterans Development Program or the Women and Minorities Development Incentive Program, you’re eligible to receive a reduction of the initial franchise of $50,000. In essence, all you’ll be required to pay is $27,550.
You are probably wondering what this part is all about. Well, the management of Popeyes wants to be assured that their brand name will not be endangered by giving you the license to use it. Hence, they need to verify that you’re able to manage a restaurant as well as turn in good profit. Read more about The Best Mexican food in San Antonio.
Popeyes requires prospective franchisees to have a net worth of at least $1 million per restaurant, of which $500,000 has to be in liquid assets. What this means is that Popeyes desires franchises with experience in the restaurant business. Making their popular chicken sandwich isn’t an easy task, so they need to be sure that you know your onions.
Nevertheless, lacking restaurant experience doesn’t take you off the list. Great knowledge of general business management and operations and a commitment to Popeyes is enough to get you approved. By great knowledge, I mean at least five years in the world of business.
Having met the requirements of owning a Popeyes franchise, the next thing to do is to begin the journey to ownership. However, there are a few things to do before starting a Popeyes franchise:
- Ensure that you have secured adequate financing for the process. You surely do not want to go deep in debt just to buy a franchise. From the numbers dictated above, it is best to secure at least $1 million prior to the start of the process.
- Get the required licenses and insurance policies required of the business. A business owner’s policy that covers property damage and general liability will suffice. There is also the need to acquire workman compensation insurance for your employees.
- Set your mind towards employing the best hands poised to take your business to the next level.
If you find that you are unqualified to own a Popeyes franchise, then you can explore other real estate investing options.
Becoming a Popeyes Franchise Owner:
After qualification, the next step to owning a Popeyes franchise is to contact Popeyes directly to inform them of your desire to own one. Ensure to contact their franchising department through its dedicated email address. Your reach-out email should contain details such as your name, phone number, net worth, and liquid assets.
It should also contain attestations to your previous restaurant/general business experience, your willingness to relocate, your location, and the number of franchises you would like to establish. Popeyes’ management has carefully stated the details required in such emails, thus, it is important to present all, else risk your application being labeled as incomplete.
Popeyes looks to partner with visionary individuals who are willing to develop thriving franchises. One may say that owning a Popeyes franchise requires you to be forward-thinking. Hence, do well to show them your capabilities and strengths. Since there are specific geographic locations in the US targeted by Popeyes, try to choose one of them as your base location.
The areas include Florida, South Dakota, Vermont, California, South Carolina, Oklahoma, Virginia, North Dakota, Maine, Missouri, Michigan, Wyoming, West Virginia, Texas, Nebraska, Montana, Kansas, North Carolina, and New Hampshire.
Get Started Now:
If you have started getting things in order, then you better do so now. The current economic climate allows you to take good advantage of such opportunities, especially for minorities. If you have things set up already and have met Popeyes’ franchise requirements, kindly send an email with the required specifications to Popeyes’ franchising office. Good luck!