🍟 9/1/2022 – Two Fast-Casual Brands With Fresh Financials

FRANCHISES OF THE WEEK

1) Aloha Poke

Fast Facts  

Background

  • Founded in 2016, franchising since 2019
  • Based in Illinois; 13+ locations open as of January 1st 2022
  • A fast-casual poke restaurant concept

Fees + Investment

  • Royalty: 5%
  • Brand Fund: 1%
  • Franchise Fee: $35,000
  • Initial Investment: $140,900 – $388,270

Financial Performance

  • The below table represents the average performance of 6 affiliate locations that have been open for an average of 51 months

The Wolf’s Take 🍟

There’s a lot of reasons I like this franchise. Here’s a few of them:

  1. Consumers are willing to pay for healthy food – hence the solid margins you see above. Aloha Poke’s meals are free of artificial ingredients!
  2. According to Food Business News, 20% of Americans aka ~65M people expressed a desire to eat more seafood if it was more convenient
  3. According to Technomic, 45% of millennials and 50% of Gen Z’s feel that customization of their dining experience is important – Aloha Poke offers that!

Bonus: the vibes also look sweet in these restaurants. Check out Aloha Poke if you’re looking for a ~fresh~ concept!

Resources


2) Teriyaki Madness

Fast Facts  

Background

  • Founded in 2003, franchising since 2005
  • Based in Denver; 101 + locations open as of January 1st 2022
  • Fast casual restaurant specializing in asian cuisine

Fees + Investment

  • Royalty: 6%
  • Brand Fund: 3%
  • Franchise Fee: $45,000
  • Initial Investment: $346,400 – $768,760

Financial Performance

  • The below table contains gross sales information for 36 franchisees that: 
    • Have been in operation for at least 2 years
    • Have had no change of ownership within that 2 year period
    • Owned locations between 1,350 – 3,000 square feet
    • Were in traditional locations without a drive through
    • Are not currently for sale 

The Wolf’s Take 🍟

I love the fact that Teriyaki Madness is a fast-casual brand built around asian cuisine. The market has an incredibly high volume of franchises that specialize in Mexican, mediterranean, salads, sandwiches, etc. 

But when it comes to asian cuisine, there’s no big player outside of Panda Express. It’s no surprise that the fractional franchise platform FranShares is building 25 of these locations for their first fund!

The average unit volume looks solid, and beyond that table, they also display 36 profit and loss statements for each location. Including screenshots of all 36 would’ve made this newsletter unbearably long, but I did do the dirty work of calculating the average “Operating Income” of the 36 P&L’s.

Note: Teriyaki Madness defines operating income as Gross Profit less payroll and labor

expenses, occupancy expenses, and direct operating expenses. It does not include interest, depreciation, amortization, business taxes, and other costs and expenses that must be deducted from Total Sales figures to obtain net income.

It comes out to $123,690 – a 10.65% margin after royalties – which is in line with top performing food franchises!

If you’re an aspiring restauranteur, Teriyaki Madness is in the sweet spot with over 100 locations open (solid proof of concept), but still plenty of available territory left!

Resources


FROM THE POD

Dr. Grace Huxtable-Mount – The Learning Experience

Here’s a quick background on Dr. Grace:

  • Born in the Bahamas
  • Became a US citizen in 2001
  • PhD in educational leadership 
  • Owns four education franchises 
  • Building 3+ more and owns the real estate on 2
  • Started with ZERO network or financial head start

She is a true role model for us all! If you want to hear our conversation, listen here!

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