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- đź’¸This Teriyaki Franchise Is The Next Big Thing!
đź’¸This Teriyaki Franchise Is The Next Big Thing!
Today we breakdown the profits and costs of a Teriyaki Madness Franchise
🔍 Today’s Breakdown: Teriyaki Madness
Teriyaki Madness is an fast casual restaurant that’s been around for years and has just started franchising. They serve Asian fusion food and compete with chains like Chipotle and Nick the Greek.
đź’µ What You Came For
Th numbers of an average Teriyaki Madness franchise
Revenue | $1,177,000 |
Profit | $140,000/year |
Startup Cost | $376,000-$976,000 |
Profit Margin | 11% |
Time to Break Even | ~4-5 years |
On paper, the numbers don’t look great. 4-5 years to breakeven? 12% margin? Not good. But, the caveat is that the company is super transparent. They have provided profit/loss statements of hundreds of locations. Their revenue numbers are amazing. The costs, not so great but it is super dependent on your state.
They have some stores that are doing up to 3 million revenue whilst others are barely hitting 700k. The brand is new, but it is consistent. Here are some PnLs
đź§® How the Money Flows
Based off of their PnL statements, this is what an average Teriyaki Madness will net you. I am assuming this owner is part-time involved when it comes to daily operations. (There is no such thing as passive ownership of restaurants)
Now keep in mind, if you are taking an SBA loan these numbers are not accounting for that. That is where things get interesting.
📦 Cost Breakdown
This sandwich franchise is a great opportunity for someone who wants to get into the food business, has cash on hand, and understands what comes with buying a food franchise. Keyword? Cash on hand.
Your startup costs come from:
Franchise fee (~$50K)
Equipment and store build (~$350k-$450k)
Operating cash (~100K)
Other fees (training, POS, etc.)
They also require you to have liquid $200k and a net-worth of 1 million
🤔 Would I Do It?
If I had the time to invest and good loan terms…yes.
I’ve tried the food and its’s actually great. I truly believe they will be a household name in the coming years amongst other fast casual chains like Chipotle, Daves Hot Chicken, and the Habit. Their pricing is competitive and you will feel like you get more than you paid for.
The branding is on point. From the buildout to the slogans to the advertising, its being executed well. This is reflected in the revenues as they stand above 1 million average unit volume.
Only issue is that with the build out cost, there is no way this will be profitable for somebody taking a large SBA loan. You will have to be there...every day.
👀 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!
âś… 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.