What it takes to open these restaurants


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The food-service industry is a massive business. Restaurant sales have been steadily increasing and are projected to continue growing exponentially in the coming years. In 2019, restaurant revenue is estimated to reach $863 billion, according to a recent study. Now is the perfect time for an aspiring entrepreneur such as myself to become directly involved in the industry by becoming a restaurant owner, which is exactly what I one day plan to do. I have interest in one day owning a franchise with three different restaurant brands: Subway, Perkin’s, and Cici’s.

Subway is a chain of sandwich establishments which as of 2019 has the most locations of any restaurant in the world with 42,998. Subway serves up delicious and nutritious food, making it a very popular and well-known brand which in 2018 reported 10.41 billion dollars in revenue. Subway is a logical choice for me to invest in, as I have experience working at one and I know what it takes to keep it up and running . The requirements to open a Subway are much less intimidating than many other restaurant chains. The initial investment to own a Subway is anywhere between $150,000 to $350,000. Once you have your location up and running, the average revenue per store is about $420,000 a year. The company then takes about 8 percent of your profits annually to finance advertisements and certain other costs.This leaves a good profit margin for franchisees!

Perkins Restaurant and Bakery is a casual dining chain which currently has about 366 locations nationally. They are known for their all day breakfast and extremely popular baked goods such as pies and muffins. There are only a few Perkin’s in the state, making it a unique and emerging option for aspiring Indiana franchisees such as myself. The cost to open a Perkin’s is estimated to be around $500,000. The initial investment is indeed larger than what it takes to open a Subway. However, the average revenue of a Perkin’s is also much larger, coming in at about $640,000. Perkin’s royalty fees come in at about 5 percent, considerably lower than Subway.

My number one choice if and when I franchise a restaurant is Cici’s. It is the restaurant which got me interested in business ownership in the first place. I became passionate about their affordable dining options after frequently visiting their Kokomo location and enjoying the delicious pizza, pasta, and especially warm cinnamon rolls. When the Kokomo Cici’s went out of business, I started doing some research and came across the franchising section of the Cici’s website. What I found out was that it will cost an aspiring entrepreneur between 1 and 2 million dollars to open a Cici’s. This might seem high, but you must also consider that the average net sales at a Cici’s is 1.5 million dollars. Also, Cici’s has a lower royalty fee at about 3 percent of gross sales. One more thing to consider is that Cici’s has been making a comeback as of late, with same store sales increasing by seven percent over the past two years. Now is the perfect time to become a Cici’s franchisee. 

Subway, Perkin’s, and Cici’s each are strong brands with bright futures which I predict will produce exponential growth. If you are interested in becoming a business owner, I would recommend considering any and all of the three companies.

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