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Message
re: Chick-Fil-A Operator Income
Posted on 3/20/17 at 1:46 pm to dabigfella
Posted on 3/20/17 at 1:46 pm to dabigfella
quote:
hat gross $5M combined annually, so I dont think its insane that the chick fil a near my home in houston between buffalo speedway & Kirby with 2 drive thru lines packed all day long nets $200k/mo which is just $6k/day
He is talking about the salary/income for the actual operator/owner, not the store as a whole.
This post was edited on 3/20/17 at 1:48 pm
0
Posted on 3/20/17 at 1:47 pm to dabigfella
So the subway and burgerking alone, excluding all other revenue from the truck stop, grosses you personally, not the stores, $5M a year?
If that's the case with all your other revenue streams, you'll be worth a billion in no time.
If that's the case with all your other revenue streams, you'll be worth a billion in no time.
Posted on 3/20/17 at 1:53 pm to tiger rag 93
Not quite, but I've posted pics on here of my house with my rolls and bentley, so I do fine. That's not the point. The point is that when you say no stores net that, you have no clue what you're talking about. The margins on soft drinks alone are through the roof, ask your dad what the margins on some syrup and a plastic cup are. The coca cola freestyle machine costs $500/month to lease and nets many times its price daily in a good location. What's the markup on a $7 subway footlong? It's up there, the problem with franchises is the fees from the parent company are high, and the fact you have to buy everything from the parent company eats away at your margins big time. Regardless there are plenty of stores doing $500k/mo in sales at high margins, alot more than you think thats why new age concepts like chipotle don't even sell franchises bc they want to keep the profits for themselves. Starbucks does the same as well, the old franchisee model where the franchisee takes all the profits is a thing of the past as most hot new concepts dont sell stores.
Posted on 3/20/17 at 1:55 pm to dabigfella
We aren't talking about store net. I realize lots of stores net that. We are talking about take home income for the operator.
Posted on 3/20/17 at 1:57 pm to dabigfella
quote:
Well I'm telling you I have a store with 2 fast food places, a burger king and a subway, that gross $5M combined annually, so I dont think its insane that the chick fil a near my home in houston between buffalo speedway & Kirby with 2 drive thru lines packed all day long nets $200k/mo which is just $6k/day.
Yeah we've already established that the average annual revenue of a chick-fil-a store is about $4 million a year which I believe is easily tops in per store revenue in the fast food industry. That's not my ultimate question though.
Posted on 3/20/17 at 1:59 pm to elposter
Look its all about location, you can pay $15-25k/mo in rent and be on the hard corner of a major street or you can put it wherever. You can't say all chick fil a are equal. I'm heading out of the office now ill pass by this one and snap you pics of how busy it is, its on my way home. When you combine the power of the front counter + 2 drive thru lines, Im telling you no way this store doesn't net $5k/day. Of course chick fil a wastes 52 sundays closed annually so adjust those numbers a tad.
This post was edited on 3/20/17 at 2:03 pm
Posted on 3/20/17 at 2:04 pm to dabigfella
No one is disputing the store netting 5K a day. Good lord. Are you even reading the posts?
Posted on 3/20/17 at 2:06 pm to elposter
I've heard operators net around 5% of gross revenue in CFA's, which $4 million would net your $200,000 in your OP.
$4 million annually is only around $14k per day though. That seems a little low for a CFA, but I've never worked in fast food so maybe it's not.
$4 million annually is only around $14k per day though. That seems a little low for a CFA, but I've never worked in fast food so maybe it's not.
Posted on 3/20/17 at 2:06 pm to dabigfella
quote:
thats why new age concepts like chipotle don't even sell franchises bc they want to keep the profits for themselves. Starbucks does the same as well, the old franchisee model where the franchisee takes all the profits is a thing of the past as most hot new concepts dont sell stores.
Yeah Chick-Fil-A appears to be a hybrid / more of the new model. It's not a traditional franchise in that the operators don't really own anything. Apparently Chick-Fil-A chooses the locations and owns the property and equipment. The operator has barely any upfront investment costs (just $5000) but the trade off is Chick-Fil-A takes the majority of the revenue off the top. They really seem more like Chick-Fil-A employees although I know that they are not considered employees but individual business owners.
I work with a hotel owner and it's still more traditional in that industry where the franchisee truly owns the real estate, is responsible for virtually all of the costs, equipment, etc. The brand (Hilton, Marriott, etc.) doesn't have nearly the investment/risk/cost and in turn they charge a more modest franchise fee in exchange for the "name brand" and marketing that the owner gets.
Posted on 3/20/17 at 2:10 pm to elposter
Then thats a shite model if that is the case. I only have burger king and subway and aside from buying materials from the parent co its all yours and the margins are significant, so I'd look into one of those if that's the case. There is no sense in doing all the work and taking all the risk for 5%, you have no idea how big a PITA it is dealing with nothing but minimum wage employees. I at times want to sell everything and move into real estate development or something else but the money is too good. The problem is you have to rely on the most unreliable people to help you get there.
Posted on 3/20/17 at 2:12 pm to dabigfella
Let me know when you're ready to train an understudy to take over some of the biz; I'm in.
Posted on 3/20/17 at 2:18 pm to elposter
Goodness DBF, stop gloating and actually ask what is answered.
CFA "Operators" are basically just store managers that own nothing but a profit % and run the store. They supposedly pay $5,0000, do a couple of years of training, and then get to keep the profit after the Franchise costs and their expenses.
I have heard $180-300k depending on the store. I would bet some stores do over $300k, while I could see smaller towns doing $180k. That's still really good obviously.
DBF, to be really helpful what do you think the cost of labor for a store like a CFA is a year?
If there are 20 employees working 18 hours a day avg $12/ hour for 6 days a week for 52 weeks that is $1.4 mil? Right? So obviously not that high, my hours and number of employees are obviously way off as 1.4 mil is 35% of 3.9 mil so that's breaking even.
CFA "Operators" are basically just store managers that own nothing but a profit % and run the store. They supposedly pay $5,0000, do a couple of years of training, and then get to keep the profit after the Franchise costs and their expenses.
I have heard $180-300k depending on the store. I would bet some stores do over $300k, while I could see smaller towns doing $180k. That's still really good obviously.
DBF, to be really helpful what do you think the cost of labor for a store like a CFA is a year?
If there are 20 employees working 18 hours a day avg $12/ hour for 6 days a week for 52 weeks that is $1.4 mil? Right? So obviously not that high, my hours and number of employees are obviously way off as 1.4 mil is 35% of 3.9 mil so that's breaking even.
Posted on 3/20/17 at 2:21 pm to elposter
If you ever get around to owning one can you start suggesting Chic-Fil-A not have god awful coffee?
Posted on 3/20/17 at 2:22 pm to Eric Nies Grind Time
I regret I have but one upvote to give
Posted on 3/20/17 at 2:25 pm to Eric Nies Grind Time
quote:
If you ever get around to owning one can you start suggesting Chic-Fil-A not have god awful coffee?
Isn't it amazing that a restaurant that successful can have such bad coffee? They recently supposedly revamped it too and it still sucks.
Posted on 3/20/17 at 2:26 pm to baldona
DBF stop gloating? Never. I swear he must have a 3 inch dick for all the bullshite he spews to make up for it,
Posted on 3/20/17 at 2:30 pm to baldona
whine some more baldona, I didn't know the model was different than other franchises. I've never once looked into owning a chick fil a but apparently their model is different than all the others.
Im sitting in the drive thru at one right now, you want to me to ask the manager at the window for the details????
Im sitting in the drive thru at one right now, you want to me to ask the manager at the window for the details????
Posted on 3/20/17 at 2:33 pm to dabigfella
There was no need for you to even post in this thread. You gave no effort to address the question asked and then when called out you just talked about how much money your stores make. Then you post a picture of your rented RR. Try harder over on the OT.
Posted on 3/20/17 at 2:34 pm to elposter
It is mind boggling how bad it is. No telling how many times I have skipped out on Chic Fil A because I did not want to make a second trip for coffee.
I would gladly pay an extra dollar. Can't they just go get whatever beans Dunkin Donuts uses or something?
I would gladly pay an extra dollar. Can't they just go get whatever beans Dunkin Donuts uses or something?
Posted on 3/20/17 at 2:34 pm to tiger rag 93
LOL I love playing around with you guys and my rental car.
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