Opening a Popeyes Franchise: An Overview
If you want to start a Popeyes restaurant in the United States, there are a few things you should know. Popeyes is one of the most successful franchises in the country, with a track record of success.
Popeyes is a Louisiana-based fast food restaurant chain with over 2,700 locations in North America.
It all began 50 years ago in New Orleans, Louisiana, when a small eatery and an ambitious concept evolved into a fad that swept the United States and eventually the globe.
That idea was simple: Popeyes served chicken like no one else. Fried chicken is Popeyes' mainstay, and the key to the chain's success. Popeyes' Louisiana-style fried chicken is cooked in trans fat-free oil and seasoned with a blend of 11 herbs and spices. The result is a crispy, juicy, and delicious product that has made Popeyes one of the top fast food chains in the world.
The famous chicken sandwich has aided in the brand's resurgence recently, and its status as a fast food restaurant has aided in its revival. Chicken fans lined up around the block at locations all across the United States to purchase the spicy sandwich, which was sold out worldwide only a few years ago.
Popeyes may be an excellent food franchise for you to consider, and its popularity has been growing steadily in recent years. However, does it meet your investment requirements? Let's look at it further.
Popeyes Franchise Cost and Requirements for 2022
The initial investment for opening a Popeyes Louisiana Kitchen franchise is between $423,800 and $2,620,800 for a new free-standing facility and between $383,500 and $1,254,800 for a new in-line facility. This includes a franchise fee of $50,000 per unit. These numbers exclude real estate. Popeyes Louisiana Kitchen has a royalty fee of 5% of Gross Sales and an advertising fund fee of 4% of Gross Sales. The Popeyes franchise term is 20 years with four 10-year renewal options.
How much does it cost to open a Popeyes franchise? (2022 Update)
To open a Popeyes restaurant, you must have $500,000 in liquid assets and a net worth of at least $1,000,000.
Popeyes prefers that you have previous experience in the restaurant industry, but it is not required. Popeyes also has a preference for multi-unit operators.
You will need to attend Popeyes' training program at their headquarters in Miami, FL.
The length of training is 6-10 weeks. Orientation and team member station training are the first two weeks of instruction. Franchisees will go through leadership training in the following 4-6 weeks, which includes modules on a restaurant general manager, an assistant restaurant general director, and a shift manager.
Opening a Popeyes franchise is a significant investment, but it can be a very rewarding one. Popeyes is one of the most popular fast food chains in the world, and its chicken sandwich is beloved by many. If you have the resources to invest in a Popeyes franchise, it could be a very profitable business venture.
Average Franchisee Profit
The average sales for a franchised freestanding Popeyes restaurant total $1,922,817 per year, and the average operating profit for such a restaurant comes to $460,418.
The median franchise revenue was $1,523,695 in 2020. The highest performer achieved $4,591,622 while the lowest grossed $490,084.
Income and Expense Breakdown
Below is a breakdown of Popeyes' average annual income and expenses for a franchised Popeyes restaurant:
Income:
Gross Sales – $1,922,817
Operating Profit – $460,418
Expenses:
Food Cost – $526,547
Payroll – $468,972
Rent – $246,348
Other Operating Expenses – $305,152
Total Expenses – $1,546,019
Profit Margin:
Operating Profit Margin – 23.8%
Net Profit Margin – 12.7%
As you can see, Popeyes is a very profitable franchise. With a 23.8% operating profit margin and a 12.7% net profit margin, Popeyes franchisees can expect to make a good return on their investment.
Why The Popeyes Franchise Opportunity?
Founded in 1972, Popeyes has great history and culinary tradition.
The rich Cajun and Creole flavor profiles that are clearly identifiable with Louisiana are the foundation of Popeyes' culinary history. They continue to draw on and commemorate this legacy to create delectable new menu items that the world desires.
Popeyes distinguishes itself with a distinct New Orleans style menu that includes spicy chicken, chicken tenders, fried shrimp, and other local favorites. With over 2,700 restaurants in North America, Popeyes has become one of the world's biggest fast-service chicken restaurants by serving unique and tasty cuisine.
Advantages of Popeyes Franchise
The average sales for a franchised freestanding Popeyes restaurant total $1,922,817 per year, and the average operating profit for such a restaurant comes to $460,418.
There are many advantages to opening a Popeyes franchise. Popeyes is a very popular and well-known brand, so you will have instant name recognition. Popeyes also has a strong track record of success, so you can be confident that your franchise will likely be successful as well. Popeyes also offers comprehensive training and support to all of its franchisees, so you can be sure that you will have all the resources you need to succeed.
Disadvantages of Popeyes Franchise
There are a few disadvantages to opening a Popeyes franchise. The initial investment is relatively high, so you will need to have significant financial resources to invest in a Popeyes franchise. Popeyes also requires all of its franchisees to attend training at their headquarters in Miami, FL, which can be costly and time-consuming.
Overall, Popeyes is a great franchise opportunity. If you have the financial resources to invest in a Popeyes franchise, it can be a very profitable business venture. Popeyes' strong brand recognition and track record of success make it a safe investment, and Popeyes' comprehensive training and support will give you the resources you need to succeed.
How much profit does Popeyes Franchise make per year?
Average Operating Profit – $460,418
Average Profit Margin:
Operating Profit Margin – 23.8%
Net Profit Margin – 12.7%
Top alternatives to a Popeyes franchise
-RISE RIGHTEOUS CHICKEN
-KFC
-Chick-fil-A
-Zaxby's
-Wingstop
-Raising Cane's
How much does it cost to buy a Popeyes franchise?
The initial investment for opening a Popeyes Louisiana Kitchen franchise is between $423,800 and $2,620,800 for a new free-standing facility and between $383,500 and $1,254,800 for a new in-line facility. This includes a franchise fee of $50,000 per unit. These numbers exclude real estate. Popeyes Louisiana Kitchen has a royalty fee of 5% of Gross Sales and an advertising fund fee of 4% of Gross Sales. The Popeyes franchise term is 20 years with four 10-year renewal options.
How much does a Popeyes franchise owner make?
What are the annual earnings from the Popeyes franchise? Typical sales from freestanding restaurants in the Popeyes franchise range from $1,942,817 to $3,090,817 annually, with a typical operating income of $460.4218.
How much does a Popeyes franchise make a year?
Average Operating Profit – $460,418
How many Popeyes franchises are there?
Popeyes is a Louisiana-based fast food restaurant chain with over 2,700 locations in North America.
What experience do you need to open a Popeyes?
You, or a member of your team, should have previous restaurant, preferably QSR Chicken, experience. Popeyes also has a preference for individuals with multi-unit experience. Popeyes Louisiana Kitchen requires that all of their franchisees attend training at their headquarters in Miami, FL. The training program is four weeks long and covers all aspects of running a Popeyes restaurant.
Conclusion: should you open a Popeyes franchise?
Popeyes may be an excellent food franchise for you to consider, and its popularity has been growing steadily in recent years. Is it right for you? Book a free franchise consultation with The Franchise Insiders to determine where a Popeyes franchise could fit into your portfolio and what other alternative franchises you might consider. Book a free consultation by clicking the link below.
Our unbiased franchise consulting services are free.
Contact us today to find the best franchise for your needs.
Jack Johnson
CEO - The Franchise Insiders
About the author:
Jack Johnson is a leading franchise consultant. Jack founded The Franchise Insiders in 2017, and together with his wife Jill, has assisted hundreds of individuals in realizing their goal of becoming a franchise owner over the last two decades by advising them on today's top franchises. The Franchise Insiders specializes in matching clients with the best franchise options across a variety of sectors, including low cost franchises, where they are regarded experts.
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