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Entrepreneur: Start & Grow Your Business

Pepe's Mexican Restaurants

Mexican restaurant

Background

Founded: 1967 Franchising since: 1967
Pepe's concept began in 1954 as a taqueria in Chicago. Pepe's Incorporated has been franchising Pepe's Mexican Restaurants since 1967. Pepe's prepares and serves a full menu of Mexican food items for dining-in or carryout. It also operates a 57,000 square foot U.S. commissary where it produces food products for its franchised restaurants and its branded product program. The branded product program sells food products to schools, factories, and office cafeterias, as well as the U.S. Military for use at military bases in the United States and abroad.
1325 W. 15th St.
Chicago, Illinois 60608
Phone:
(312)733-2500


Franchisor is a privately-held company with 12 employee(s); 12 employee(s) in franchise department.

Franchise Growth
Year U.S. Franchises Canadian Franchises Foreign Franchises Company Owned
2009 50 0 0 0
2008 -- -- -- --
2007 50 0 0 0
2006 50 0 0 0
2005 48 0 0 0

Where Seeking Franchisees
In the U.S. Illinois, Indiana

Exclusive territories available.

Special Programs
Pepe’s is actively involved in donating food products to various charitable organizations in the Chicagoland area. It also collects toys for disadvantaged youth and donates them to local charities.

Costs and Fees

Total investment: $145.1K-316K
Franchise fee: $15K
Ongoing royalty fee: 4%
Term of agreement: 20 years, renewable
Express/kiosk option available

Type of Financing Available
In-House Third Party
Franchise Fee No Yes
Startup Costs No Yes
Equipment No Yes
Inventory Yes Yes
Accounts Receivable No Yes
Payroll No Yes

Qualifications
Business Experience:
  • General business experience

Operations
  • 25% of all franchisees own more than one unit
  • Number of employees needed to run franchised unit: 10
  • Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators)

Training and Support

Training
  • Available at headquarters: 2 weeks
  • At franchisee's location: 2 weeks

Ongoing Support
  • Newsletter
  • Meetings
  • Grand opening
  • Field operations/evaluations
  • Purchasing cooperatives

Marketing Support
  • Co-op advertising
  • Ad slicks
  • National media
  • Regional advertising

Rankings

Franchise 500® rank:
#482 (2007);