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Dairy Queen doesn't have a strong enough brand name to pay for the right to use it. You'd be better off opening your own place with burgers, fries, and ice cream and save a boatload of money.
Theyre a 2.5 billion dollar company.....what are you talking about?
If I never see an advertisement for a company anywhere, ever, and can't tell you where a single store location is....then in my book, the franchise fee is not worth it.
If you have $1,150,000 to spare and insist on serving all-American food that can be found anywhere, why not open your own place with your own name on the sign and save hundreds of thousands of dollars?
By the way, there are plenty of "2.5 billion dollar" companies that are also on the verge of bankruptcy.
A $15 pizza costs less than $3 to make. $6 cheesestix and cookies cost a dollar. $3 2L sodas cost 75 cents. $2 20 oz sodas cost under 50 cents. I'm not sure on the chicken products but I'm sure they have similar margins. 100 pie (or chicken) hours are common most nights with 200 pie hours on Fri/Sat not being unheard of. No other food franchise with this low overhead can generate that kind of cash. Also keep in mind that many people order online and pick up in person thereby eliminating the need for an order taker or a driver.
Most of the in-store employees make $8-9/hr. Drivers (in Florida) make $5/hr when on the road and $8/hr while in the store. There's a $3 "delivery fee" of which $1.10 goes to the driver. Two or three assistant managers make $12/hr and the GM makes $45-$60k. A new franchise owner would want to be the GM, at least for the first few years. Only a few people in the store will be full-time so healthcare costs are minimal.
The store opens and closes with one manager, 2-3 drivers, and 2 inside people. The weekdays usually start with a $500-$1000 school lunch order. Everything slows down in the mid-afternoon. At 5-pm a couple more inside people clock in and then 8-15 drivers. On the busiest of nights there will be 20+ drivers. The day drivers get clocked out at the first sign of a lull, then the biggest rush whiner, then a bunch by 9-10pm. The last rush driver is there till about 11pm or whenever the deliveries are completely under control. Then the final 2-3 drivers handle things till closing (12:30-1:30).
Again, managing food and labor costs are the only major things the owner/GM have to worry about. The ordering and routing system is top notch. The national advertising is probably the best in its field. I honestly can't remember the last time I saw or heard a Dominos or Pizza hut ad. I certainly don't remember what it said. When picking a franchise to buy into, I know I would want it to be a household name that has a constant prime time advertising presence. Dairy Queen might be an old company, but they're not exactly buying Super Bowl ads these days.
Good projections but what happens when you are getting killed by Little Caesars selling $7 pizzas, suddenly your $15 pie is double the price......price war = low to no profits!
I don't know, but Subway is a cheap franchise. I used to know a couple who owned a Subway. They only hired 2 other people, so they worked their butts off but they were LOADED from it. $$$
If I never see an advertisement for a company anywhere, ever, and can't tell you where a single store location is....then in my book, the franchise fee is not worth it.
If you have $1,150,000 to spare and insist on serving all-American food that can be found anywhere, why not open your own place with your own name on the sign and save hundreds of thousands of dollars?
By the way, there are plenty of "2.5 billion dollar" companies that are also on the verge of bankruptcy.
There are million dollar companies that aren't close to bankruptcy either. Annual revenues of 2.5 billion is fairly substantial and nothing to slight like was being done earlier. The company is 75 years old not a startup tech company
I had a friend who owned 30 Dominos pizzas years ago. Bought some stores and then added a few more over the years. They were a cash cow, but they literally worked 24/7/365 trying to stay on top of the stores which had about a 50 mile radius. Dominos would get in a price war, advertise specials and then raise the food costs (which you were under obligation to buy from them).....it was an exercise in futility!
They sold the stores, made plenty of money but the parting words were: If I ever go in the pizza business again, it will certainly not be a franchise!
Also note: the "cash" in small businesses is gone these days......everyone uses debit/credit cards! Transaction fees exceed profits on small purchases! $2 slice of pizza, charged to a card might cost the pizza man $.75-.90 in CC fees!
I don't know, but Subway is a cheap franchise. I used to know a couple who owned a Subway. They only hired 2 other people, so they worked their butts off but they were LOADED from it. $$$
In a hot real estate market a small subway store can have $3000 a month rent. Do you realize how many $5 subs you have to make a day to just cover the rent? 3000/30 days = $100 a day/ $5 subs = the first 20 subs a day just to cover rent.
Assume costs for employees 5 @ $8 an hour (cost you $10+ with payroll taxes/workers comp) and you run 12 hrs a day/ 7 days and employees never work overtime/ just 8 hour shifts- 40 hrs each total.....$2000 week!
Food costs including waste: $4000 month
Utilities/CAM fee/Garbage- 2000 month
Employees........................8000 month
Rent................................3000 month
total................................17000 month in expenses......3400 sandwiches/ 113 a day before you make your first dollar in profit!
Assume you pay yourself $1000 a week for your time.....yeah, another 200 sandwiches a week! So now you need to make 4200 sandwiches a month, 140 a day just to cover your nut.....if nothing goes wrong!
Open 12 hours a day, you need to make almost 12 sandwiches an hour from open to close, one every 5 minutes non stop 365 days a year just to cover your costs!
Kind of skews the "loaded" part huh? Now also consider the "cheap franchise" or the #1 to own because every town USA has 5-10-20 locations!
Good projections but what happens when you are getting killed by Little Caesars selling $7 pizzas, suddenly your $15 pie is double the price......price war = low to no profits!
Little Caesars doesn't even offer delivery.
Plus, their pizzas are frozen and thus are not even marketed to those who are concerned with taste. That's like comparing a $35k truck with a $75k coupe. Neither is in a price war with the other. Same with LC and PJ's.
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