All Forums | General Discussion

Best Fast Food Franchise to Invest in?

...
Participants:
Search model icon
Views: 3726
Posts: 36
 
Prospect
Participation Meter
Joined: Mar, 2013
Posts: 116
Posted: #1
Just moved to Tampa.  Amazing city, love the cheap houses.  I'm ready to invest a fast food restaurant. Any recommendations? I love Checkers concept, also thinking Chipotle or Popoyes. My price range is around 200-300K up front and rest would be financed I hope. I'm currently working at dominoes was looking at this one hard but it's a tough one profit is like 20 percent of gross sales. 

Any input would be appreciated. 
 
Covers Linesmen
Participation Meter
Joined: Feb, 2003
Posts: 58255
Posted: #2
Look up bizbuysell and find an existing, profitable place vs starting one on your own.
 
Captain
Participation Meter
Joined: Mar, 2009
Posts: 5068
Posted: #3
 
All-Star
Participation Meter
Joined: Aug, 2009
Posts: 11172
Posted: #4
just based on what I love to eat. I'd say a potbelly or noodles and company would be a hit and most likely be the first of its kind in your area.
 
Captain
Participation Meter
Joined: Feb, 2008
Posts: 9021
Posted: #5
Agree with Wall, though businessesforsale is a better site. You should be able to get in with a 2.5 ratio to the SDE (seller's discretionary earnings), meaning that you'd be paying $250 k for a business providing an owner's benefit of 100k, but clearly with financing you could buy a 500/200 k type place. Carrying costs would reduce the 200k obviously and the ratio will begin to climb above 2.5 around that point as well. You'll also need to educate yourself in the adjustments from net income to SDE and certainly do your due diligence prior to purchase.
 
Captain
Participation Meter
Joined: Sep, 2007
Posts: 8156
Posted: #6
Chick-Fil-A
 
Covers Linesmen
Participation Meter
Joined: Feb, 2003
Posts: 58255
Posted: #7
I would look at an even lower ratio than 2.5, more like 1.5 to 1, the lower the better.

So buisnessforsale, I will check it out. I scan bizbuysell all the time.
 
Prospect
Participation Meter
Joined: Mar, 2013
Posts: 116
Posted: #8
I've looked in to starting my own but I like a company with a proven model.  
 
MVP
Participation Meter
Joined: Aug, 2007
Posts: 16348
Posted: #9
Quote Originally Posted by esplanade:

Agree with Wall, though businessesforsale is a better site. You should be able to get in with a 2.5 ratio to the SDE (seller's discretionary earnings), meaning that you'd be paying $250 k for a business providing an owner's benefit of 100k, but clearly with financing you could buy a 500/200 k type place. Carrying costs would reduce the 200k obviously and the ratio will begin to climb above 2.5 around that point as well. You'll also need to educate yourself in the adjustments from net income to SDE and certainly do your due diligence prior to purchase.
impressive jargon
 
Captain
Participation Meter
Joined: Feb, 2008
Posts: 9021
Posted: #10
Quote Originally Posted by nc1capper:

impressive jargon




No expert in the restaurant industry and probably wouldn't touch anything in the food sector, but in the areas where I have been involved, nothing sells for 1.5x the true SDE, unless it is a turnaround, asset sale, or a business generating a very low owner benefit. So yeah, you could find a business spinning off a benefit of 50k for $75,000, but a business producing 200k for $300,000 is very very rare and likely would be in a marginal field like MMJ or XXX products. If you've looked at any number of opportunities and have any ability to dissect financials, you realize that the attempt of the seller/broker to add back all depreciation is quite inappropriate and skews the true SDE ratio. While it's obviously true that a lower ratio is better (all things being equal) all things are very seldom equal.
 
Captain
Participation Meter
Joined: Dec, 2004
Posts: 7738
Posted: #11
Definitely trust the business advise of an Internet moderator...
 
Captain
Participation Meter
Joined: Jan, 2003
Posts: 5532
Posted: #12
Quote Originally Posted by CountNo_Account:

Definitely trust the business advise of an Internet moderator...



 
Veteran
Participation Meter
Joined: May, 2010
Posts: 3158
Posted: #13
This might help...

https://www.entrepreneur.com/franchises/categories/ffq.html

Seems to be a pretty complete list. My biggest question would be how strong is corporate. How stable is the mother company. Are they selling franchises primarily to A. grow and increase market share, or B. bring in cash quickly

Suggest reviewing the prospectus for any company you seriously consider a franchise with.

Last thought... If it is fast food you go with... Make sure it is food you will eat regularly. I would suggest at least once a week you be your own customer. I know corporate has people to be customers, but it would be your restaurant...


 
Covers Linesmen
Participation Meter
Joined: Feb, 2003
Posts: 58255
Posted: #14
Quote Originally Posted by CountNo_Account:

Definitely trust the business advise of an Internet moderator...


Ya never know what someone might be able to offer in the way of advice or experience.

But for sure nobody is paying for counsel here..


 
All-Star
Participation Meter
Joined: Oct, 2008
Posts: 11316
Posted: #15
too much capital requried for a brick and mortar your best bet is a creative concept and a food truck.  If that fails i think buffalo wild wings is a solid one or Popeyes chicken.  AFC enterprises $AFCE which owns Popeyes among others has been killing it the last year
 
MVP
Participation Meter
Joined: Jul, 2006
Posts: 19693
Posted: #16

I'm not saying it's the best franchise, but Peyton Manning, I'm sure, has some decent financial advisors. You know those commercials he does for Papa Johns?

He's got 21 franchises in the Denver area.

Again, I'm not saying it's the best, I'm just sayin'....................

 
Captain
Participation Meter
Joined: Dec, 2009
Posts: 5755
Posted: #17
Have you ever thought about Avon or Tupperwear? Just kidding.

I think a large percentage of people these days are more health conscious than people twenty to thirty years ago. Look at customer trends before making a decision. Think about what will the country and the world be like twenty years from now

I would personally think Subway if looking at fast food. Besides fast food there are possibilities such as smoothie franchises and gym franchises (anytime fitness, Snap Fitness, etc)

From what I heard companies will only allow one franchise in a certain mileage radius. Jump on something where it is needed and wanted.

Remember:
Customers and location, location, location.
 
All-Star
Participation Meter
Joined: Sep, 2002
Posts: 12927
Posted: #18
I don't know anything about the business side of franchising, but ...

Self Serve Frozen Yogurt.  These are big in California. Not sure how big they are elsewhere.

Basically, you serve yourself frozen yogurt, put on your toppings from a bar, then pay be weight.  Fat people love it because they can eat huge sundaes and still think it is healthy.  And skinny people like it because they can have a small serving,

You only need two people working.  One person to man the register and one to tidy up the topping bar.
 
All-Star
Participation Meter
Joined: Oct, 2008
Posts: 11316
Posted: #19
Quote Originally Posted by thorpe:

I don't know anything about the business side of franchising, but ...

Self Serve Frozen Yogurt.  These are big in California. Not sure how big they are elsewhere.

Basically, you serve yourself frozen yogurt, put on your toppings from a bar, then pay be weight.  Fat people love it because they can eat huge sundaes and still think it is healthy.  And skinny people like it because they can have a small serving,

You only need two people working.  One person to man the register and one to tidy up the topping bar.


so true 16 handles is killing it ny
 
All-Star
Participation Meter
Joined: Oct, 2008
Posts: 11316
Posted: #20
and miami and LA basically anywhere where there is a large population of young hot girls they eat most of the frozen yogurt
 
Rookie
Participation Meter
Joined: May, 2010
Posts: 682
Posted: #21
Quote Originally Posted by EricLinny:



EricLinny is a and a piece of garbage.
 
All-Star
Participation Meter
Joined: Oct, 2009
Posts: 14252
Posted: #22
pizza, everyone loves pizza and ever more when theyre buzzed or drunk, great profit margin on a bread base and toppings as well
 
Veteran
Participation Meter
Joined: Jul, 2010
Posts: 2665
Posted: #23
Quote Originally Posted by Vickerman:

Just moved to Tampa.  Amazing city, love the cheap houses.  I'm ready to invest a fast food restaurant. Any recommendations? I love Checkers concept, also thinking Chipotle or Popoyes. My price range is around 200-300K up front and rest would be financed I hope. I'm currently working at dominoes was looking at this one hard but it's a tough one profit is like 20 percent of gross sales. 

Any input would be appreciated. 

Someone like you who admits they spat on peoples food has no business owning a business.

You belong 6 feet under, You are an abomination towards humanity.

 

Take that money, donate it to a charity then hang yourself.

 
Hall of Fame
Participation Meter
Joined: Jun, 2009
Posts: 23141
Posted: #24
Los Pollos Hermanos
Keep Calm and Bet 6 Play Over Parlays
 
 
Captain
Participation Meter
Joined: Jan, 2005
Posts: 6840
Posted: #25
Quote Originally Posted by mafioso:

Someone like you who admits they spat on peoples food has no business owning a business.

You belong 6 feet under, You are an abomination towards humanity.

 

Take that money, donate it to a charity then hang yourself.


I second this 
All Forums | General Discussion
About Us
Contact Us
Careers
Our Team
Brand
Testimonials
Betting Guides
Sportsbook Reviews
Sports Betting News
Podcasts
Responsible Gaming
Betting Sites
Canada Betting Sites
Canada Casinos
Best Betting Apps
Contests
Streak Survivor
King of Covers
Office Pools
The Covers community has
810,221
lifetime members worldwide
Covers 30 Years Logo Established in 1995,
Covers is the world
leader in sports
betting information.
Site Map Help Privacy Terms of Service youtube logo facebook logo twitter logo instagram logo linkedin logo google news logo
Covers is verified safe by: Evalon Logo GPWA Logo GDPR Logo GeoTrust Logo Evalon Logo
Copyright © 1995 - 2026 CS Media Limited All Rights Reserved.

If you choose to make use of any information on this website including online sports betting services from any websites that may be featured on this website, we strongly recommend that you carefully check your local laws before doing so.It is your sole responsibility to understand your local laws and observe them strictly.Covers does not provide any advice or guidance as to the legality of online sports betting or other online gambling activities within your jurisdiction and you are responsible for complying with laws that are applicable to you in your relevant locality.Covers disclaims all liability associated with your use of this website and use of any information contained on it.As a condition of using this website, you agree to hold the owner of this website harmless from any claims arising from your use of any services on any third party website that may be featured by Covers.