🔍 Today’s Breakdown: Sourdough and Co
💵What You Came For
The numbers of an average Sourdough and Co franchise
Average Revenue | $885,000/year |
Average Profit | $200,000/year |
Margin | 24% |
Like other sandwich shops, Sourdough and Co has a healthy margin on it’s food at 24%. The amazing thing of being a franchisee for this brand is that they only have a 5% royalty. In comparison, Jersey Mikes and Subway are almost at 12%.
This means when you do $885,000 in revenue, Sourdough and Co keeps only around 40k of that where as other sandwich brands would take 90k. This gives franchisees healthy margins and a lot of freedom to expand.
I recently did an in depth interview with a friend of mine who opened one. We talked about how he contacted the brand, got great loan terms, found an amazing contractor to build out the spot, and how much he is taking home from his first ever store as of now. You can find the podcast in my community here:
📦 Cost Breakdown
Sourdough and Co says that their buildout cost ranges from 250k to 450k. This is mostly incorrect because I personally know someone who has opened one of these and he can confirm, it’s going to be over 400k no matter what you do.
Good news is, 400k is really cheap nowadays to start a restaurant and will only have to put 70-90k down and rest will be loan. We discussed how the loan works more in the interview you can find in our Skool community.
🤔 Would I Do It?
Most likely— but only with the right expectations. This is a hands-on, owner-operator business that depends heavily on employee management. To maximize returns, you need to be involved, and hiring great instructors is the single biggest factor in success. In my view, it’s a solid business if you want to be active, but not ideal as a passive investment.
👀 What’s Next
Next week I’m looking at a franchise that is changing the game in the cake and baking industry! This one’s numbers will SHOCK you….make sure you are subscribed and share this newsletter with friends who might also be interested!
🎤Interview
I interviewed a Sourdough and Co owner who just transitioned from tech to business ownership and he held nothing back. Find the interview in my community here:
https://www.skool.com/the-money-inside-8676/about
✅ Want Me to Keep Digging?
I send these out every week. Real numbers, no fluff. If you liked this, forward it to someone else who’s thinking about quitting their 9-to-5.
