spread the love
Schlotzsky's Deli is known for its inventive sandwich franchises, all made from scratch using premium, fresh ingredients and served on freshly baked sourdough bread.
From 2021 to 2028, the fast casual restaurant industry is expected to grow at a CAGR of 10.7%. In 2020, the sandwich market was valued at US$154.2 billion and by 2028, this figure is expected to grow to US$207.2 billion.
The sandwich market accounted for 29.5% of the global fast casual restaurant business in 2020. The United States is the fast casual restaurant industry's largest market with projected 2020 sales of over $47.5 billion. From 2021 to 2028, the fast-casual restaurant market in the US is expected to grow at a CAGR of 10.4%Globenewswire.
Table of contents
What is Schlotzsky's Deli?
A fast-casual restaurant chain called Schlotzsky's Deli focuses on serving soups, salads, and sandwiches.
Schlotzsky's Deli is known for its inventive sandwich preparations, all made from scratch using premium, fresh ingredients and served on freshly baked sourdough bread.
Is Schlotzsky's Deli Franchise A Chance?
And, a Schlotzsky's Deli franchise can be an excellent business opportunity for those looking to open and operate their own sandwich shop under a well-known brand.
| Schlotzsky's Deli Franchise Review and Information | |
| industry type | Opportunities for grocery franchises |
| subcategory | Grocery and sandwich franchise opportunities |
| year founded | 1971 |
| Company Name | Schlotzsky's Deli |
| Founder | Keith Reagan |
| started franchising | 1976 |
| Number of Units | 323 |
| Number of franchise units | 323+ (2022) |
| Social-Media-Handles | |
| registered office | Atlanta, Georgia, USA |
Schlotzsky's Delicatessen Franchise Requests
The following criteria must be met
- Financial requirements
You must have a minimum net worth of $500,000 and $200,000 in cash and cash equivalents.
- Experience
Previous work in a restaurant or shop is preferred but not required.
- Business sense
You must be able to manage finance, marketing and human resources and have excellent commercial skills.
- territories
Schlotzsky's Deli is looking for franchisees interested in creating a number of locations in a specific market or area.
How Much Does a Schlotzsky's Deli Franchise Cost?
An initial investment of $353,550 to $831,600 is required to start a Schlotzsky's Deli franchise. This includes a $40,000 franchise fee for initial training and support services, as well as recurring royalties and marketing expenses.
| FranchiseInitial and ongoing franchise costs | |
| franchise fee | 35.500 $ |
| franchise costs | 522.570 $ bis 1.635.380 $ |
| license fee | 6% |
| advertising fee | 4% |
| Terms of Use | General terms and conditions of business |
| Is the franchise term renewable? | And, |
| Renewable Franchise Fees | 50% of initial franchise fees |
Schlotzsky's Deli Training on franchise
- The operation
Franchisees are trained in all facets of restaurant management, including meal preparation, inventory control, customer relations and staff supervision.
- Marketing and Advertising
Schlotzsky's Deli provides training on the company's marketing and promotional initiatives, as well as suggestions on how to publicize the restaurant and cultivate a loyal customer base.
- financial management
Franchisees gain knowledge of managing their restaurant's finances, including budgeting, bookkeeping, and financial reporting.
- security and compliance
Schlotzsky's Deli offers training courses on occupational safety, food safety and compliance with health standards.
What is the Term and Renewal of Schlotzsky's Deli Franchise?
Franchisevertrag
Typically, a Schlotzskys Deli franchise agreement has an initial term of 10 years. Franchisees have the option of extending their contract for up to two additional terms of ten years each.
extension option
The current renewal price is $7,500, which covers the cost of reviewing the renewal application and revising the franchise agreement. The renewal process usually begins a few months before the current contract expires.
Does Schlotzsky's Deli provide financial support to franchises?
Franchisees do not receive direct funding from Schlotzsky's Deli. However, the company may be able to help franchisees obtain financing from outside lenders.
Pros and cons of owning a Schlotzsky's Deli franchise
Benefits of owning a Schlotzskys franchise
- brand perception
Schlotzsky's Deli is a well-known business with a solid reputation and an engaged clientele that has the ability to attract customers and increase sales.
- Complete training and support
To help franchisees be successful, the company offers franchisees extensive training and ongoing support that includes help with site selection, restaurant design, and marketing.
- Multiple sources of income
There are multiple revenue streams available at Schlotzsky's Deli franchises, including dine-in, take-away, and catering, all of which can increase sales and profitability.
- Proven business model
The long-running successful business model is the Schlotzskys Deli franchise model, and the company is constantly inventing and improving to stay ahead of market trends.
Disadvantages of owning a Schlotzskys franchise
- High acquisition costs
From $353,550 to $831,600 is the range of initial expenses required to start a Schlotzskys Deli franchise.
- Ongoing Fees
Franchisees must continue to pay ongoing royalties and advertising expenses, which can become significant expenses over time.
- Limited menu and price control
Franchisees must adhere to Schlotzsky's Deli's menu and pricing guidelines, which may limit their ability to make independent business decisions.
- High level of competition
The quick service restaurant sector is characterized by a high level of rivalry, and franchisees can face challenging competition from restaurants operating in the same market.
How much do Schlotzsky's Deli franchisees make?
It's important to understand what kind of profit margin you can expect as an owner when considering purchasing a Schlotzsky's Deli franchise. Schlotzsky estimates that the typical unit has gross profits of $237,000 annually. In other words, after expenses are deducted, the typical owner keeps just over $200,000.
What is the profit of Schlotzsky's deli franchise?
In 2020, Schlotzsky's deli franchise had average gross sales of $878,497. It's important to remember that this number is an average and may not accurately reflect the success of a particular franchise location.
With a 20-25% profit margin, you can make anywhere from $165,000 to $203,500.
What are Schlotzsky's Deli Franchise Ratings?
Positive comments about the franchise
- Reviews of Schlotzsky's Deli franchisees appear to be positive. Many praise the company's effective marketing initiatives and support network, which they claim makes running the company that much easier.
Negative reviews of the franchise
- Some franchisees have complained that the company is difficult to work with and that their franchise fees are excessive.
Schlotzsky's DeliFranchise-Rankings
Schlotzsky's Deli has appeared on this list for a number of years, most recently in 2021.
Schlotzsky's Deli was ranked #225 on the Franchise Times Top 200 list for 2020.
:Schlotzsky's Deli was recognized for its innovative marketing strategies and menu offerings by QSR Magazine, a renowned publication for the quick service restaurant industry.
Schlotzsky's Deli is a long-time member of the NRA and has been recognized by the NRA for its commitment to environmental sustainability and food safety.
Focus brands
Focus Brands, the parent company of Schlotzskys Deli, is a global franchisor and operator of several well-known restaurant brands. Founded in 2001, Focus Brands is headquartered in Atlanta, Georgia. In addition to Schlotzsky's Deli, the Focus Brands portfolio also includes Cinnabon, Moe's Southwest Grill, Auntie Anne's, Carvel and Jamba Juice.
Franchise Deck Analysis and Overview
The seed capital required to open a Schlotzskys Deli franchise is $311,500. Half of that amount—$150,000—must be paid in cash when the franchise agreement is signed. You can finance the remaining $161,500 through outside sources such as lenders or relatives and friends. In addition to the initial investment, Schlotzsky Deli charges a $30,000 franchise fee.
Franchise Success and Failure Rate
The table below shows the franchise success and failure rate for the last 3 years. This complements your decision-making process.
| Year | Format | Start | End | Change |
| 2019 | franchise owner | 327 | 316 | +11 |
| company owned | 25 | 23 | +2 | |
| 2020 | franchise owner | 316 | 303 | +13 |
| company owned | 23 | 24 | +1 | |
| 2021 | franchise owner | 303 | 298 | +5 |
| company owned | 24 | 25 | +1 |
| Competitive Analysis ofFranchise | ||||||
| Marke | franchise costs | franchise fees | Royalties + Ad Fees | Expected Profit | recovery of capital | FD rating |
| Schlotzsky's DeliFranchise | 522.570 $ | 35.500 $ | 6% | 878.490 $ | 4-5 years | 4.0/5.0 |
| U-Bahn-Franchise | 222.050 $ – 506.900 $ | 15.000 $ | 8% | 454.877 $ | 7.3 years | 4,5/5,0 |
| Jimmy Johns Franchise | 355.900 $ – 671.400 $ | 30.000 bis 35.000 US-Dollar | 6% | 280.000 $ | 6-7 years | 4.0/5.0 |
| Jersey MikesFranchise | 194.035 $ bis 954.611 $ | 18.500 $ | 6,5 % | 1.049.047 $ | 7-8 years | 3,6/5,0 |
| Jason's DeliFranchise | 1.020.759 $ bis 1.554.891 $ | 17.500 $ | 6% | $2.080.645 | 5-6 years | 3,9/5,0 |
The franchise deck rating for the Schlotzskys franchise is 4.0/5.0
Diploma
Yes, it pays to have a franchise with Schlotzsky's Deli. it can be a fulfilling and successful endeavor. With the information in this article, you can now start launching your own store.
Is the Schlotzsky's Deli franchise worth it?
Yes, but the value of a Schlotzskys Deli franchise is determined by the specific circumstances and the franchisee's ability to successfully operate the business. Before making a decision, prospective franchisees should carefully evaluate the opportunity and seek professional advice.
Entrepreneurs who want to open a franchiseCheck out the Soups, Salads, and Sandwiches franchise categories
- McDonald’s-Franchise
- Cheba Hut Franchise
- Dominos Franchise
- Pizza Hut-Franchise
- Dunkin‘ Donuts-Franchise
- U-Bahn-Franchise
- Wendys Franchise
- Jimmy Johns Franchise
- Texas Roadhouse-Franchise
- Arbys Franchise
- Charleys Philly Steaks Franchise
- Firehouse Subs-Franchise
- Jersey Mikes Franchise
Frequently Asked Questions (FAQs)
- Is Schlotzsky's Deli franchises open?
Schlotzsky's Deli is now open for business/franchise.
Schlotzsky's Deli has over 300 franchised locations across the United States, most of which are open seven days a week. Hours of operation at each location may vary by franchise and location.
- Is that from Schlotzsky Deli Franchise Profitable?
And, Schlotzsky's Deli franchise can be a profitable business. To maximize profits, invest in marketing, staff training, and quality control. A Schlotzsky's Deli franchise can be a profitable investment with a well-executed plan of action.
- Can you make money by owning a Schlotzsky delicatessen ?
And, with a successful business plan and a commitment to quality, it is possible to make money by owning a Schlotzskys Deli franchise. Your profitability will be determined by local market conditions and competition, as well as effective marketing strategies, staff training and quality control.
- Is Schlotzsky's Deli das Franchise?
And, Schlotzsky's Deli is indeed a franchise. The company has been in business for over 40 years and currently has over 350 locations across the United States.
- How much does a Schlotzsky cost? Deli-Franchise?
The cost of opening a Schlotzskys Deli franchise varies by size and location, but typically ranges from $300,000 to $600,000. The initial franchise fee, expansion costs, equipment, consumables, and seed capital are all included.
- How does Schlotzsky work? Deli Franchises Make Money?
Schlotzsky's deli franchises make money primarily from the sale of groceries, beverages, and merchandise. Catering services, online orders and other marketing opportunities are also revenue generators.