
McAlister's Deli
Sandwiches, salads, baked potatoes- 2023 Franchise 500 Rank
-
#48 Ranked #40 last year
- Initial investment
-
$394K - $2.2M
- Units as of 2022
-
516 14.2% over 3 years
If you are craving a delicious handcrafted sandwich or a thirst-quenching glass of sweet tea, you may want to head to McAlister’s Deli.
Known for its fantastic food and famous sweet tea, McAlister’s Deli is the go-to place for a delicious meal in a casual dining environment.
Continue reading for everything you need to know about becoming a McAlister’s Deli franchisee.
What is McAlister’s Deli?
Started in 1989, McAlister’s Deli is a fast-casual restaurant franchise known for its top-notch customer service. This franchise is well known for its vast menu, including handcrafted sandwiches, baked potatoes, soups, salads, desserts and world-famous sweet tea.
Offering more than just a sit-down dining experience, they also provide take-out services and catering options.
Consisting of more than 500 restaurants in 27 states, with the company’s headquarters in Atlanta, GA, this is an excellent franchise opportunity worth looking into.
Related: Franchisees and Licensees | What's the Difference? | Buying a Franchise | Entrepreneur.com
How do you start a McAlister’s Deli franchise?
There is a six-step process to be approved to open a McAlister’s Deli franchise. Continue reading to learn everything that is involved in becoming a McAlister’s Deli franchise owner:
1. Request more info
The first step is to contact McAlister’s Deli by filling out the inquiry form on their website for free info on this business opportunity.
2. Introductory call
Once the franchisor receives your franchise request, a team member will contact you to review your goals and ensure you meet the franchisee requirements. This is where they will also discuss whether you are interested in a single or multi-unit franchise opportunity.
3. Get to know the brand
During this step, you will talk to the sales team. They will review the franchise information in more detail, including franchisee requirements. This is the ideal time to ask any questions you might have.
4. Review the paperwork
This is the step where you will fill out the franchise application and review the Franchise Disclosure Document (FDD).
5. Final research
It is paramount that both the franchisor (Focus Brands Inc.) and the franchisee feel that this will be a good fit.
At this stage, applicants are encouraged to talk to existing franchise owners before committing to signing an agreement. The franchisor might also request that you attend an in-person interview before it is mutually decided whether to move forward.
6. Finalize the agreement
Once both parties have signed the franchise agreement, everything is completed – you are officially a McAlister’s Deli franchise member.
Related: Should You Buy a Franchise or Start Your Own Small Business? Ask Yourself These 5 Questions First.
What costs are associated with starting a McAlister’s Deli franchise?
Numerous costs and fees are associated with any franchise opportunity. To better understand the financial requirements of opening a McAlister’s Deli franchise, continue reading for a breakdown of the franchise costs:
- Initial franchise fee: $35,000.
- Total initial investment: $927,900 to $1,565,900.
- Minimum liquid capital: $425,000.
- Working capital: $25,000 to $50,000.
- Minimum net worth: $1,000,000.
- Royalty fee: 5.0%.
Related: Franchise Fees: The Money Question That Can Make or Break Your Franchise | Entrepreneur
What is McAlister’s Deli looking for in a franchisee?
There are a few characteristics that McAlister’s Deli is looking for when approving a franchisee. They are ideally looking for:
- Individuals that have previous restaurant business experience and the knowledge necessary to succeed.
- Someone who is a people person and realizes that superior customer service is the key to any successful restaurant franchise.
- Individuals with an entrepreneurial spirit, have big dreams and the work ethic to achieve them.
Related: 10 Franchises Reveal What They Look for in a Franchisee | Entrepreneur
What are the benefits of opening a McAlister’s Deli franchise?
There are numerous benefits when you take advantage of this business opportunity and open your McAlister’s Deli franchise.
Continue reading for a few of the benefits McAlister’s Deli restaurant owners can expect to receive.
Simple operations
Setting them apart from many other restaurant franchises is that they don’t require grills, fryers, early mornings, or late nights. This means franchise owners can save on equipment and utilities and have a better work-life balance.
Multiple ways to enjoy
McAlister's Deli offers customers numerous ways to enjoy their food, offering dine-in, takeout, online ordering, catering and a pick-up window for their convenience.
Building process
To help with the initial building process, you may receive help choosing the best McAlister’s Deli location. This can include real estate help with selecting the perfect site selection and help with the construction process as well.
Training
New franchise owners will partake in a classroom-based job training program to receive hands-on experience concerning the menu, business operations and diving into the basics of the hospitality industry.
Franchise support
When you open a new franchise, a specialized business consultant will be by your side every step of the way to ensure your business is running smoothly. You will also have a supply chain team to assist you in managing your spending.
Marketing support
With the help of a field marketing manager, you will participate in national marketing campaigns and create a local marketing plan. They will also assist you in promoting your business on social media.
Related: Why You Should Buy a Franchise Instead of Starting Your Own | Entrepreneur
Does McAlister’s Deli offer franchisees exclusive territory?
Yes. McAlister's Deli grants its franchisees the exclusive right to operate within a clearly defined geographic area. This eliminates the possibility of unnecessary competition between locations and encourages franchisees to invest in local marketing efforts and community engagement.
This exclusivity enables entrepreneurs to establish a solid local presence, bolster customer loyalty and develop a deep understanding of their market's unique needs and preferences.
In addition to these benefits, territory exclusivity allows for better resource allocation and streamlined operations. With a clear delineation of responsibilities, franchisees can optimize their supply chain and reduce the time and costs of managing multiple locations.
Moreover, McAlister's Deli's comprehensive support system ensures that franchisees receive the guidance they need to navigate the challenges of territory management.
By granting entrepreneurs the exclusive right to operate within a specific area, McAlister's Deli empowers its franchisees to focus on building a robust business that delivers exceptional customer experiences while reaping the benefits of a loyal and growing customer base.
What training does McAlister’s Deli provide?
Before opening your franchise, four managers for a traditional restaurant and two managers for an express restaurant must complete the management training program.
The management training program consists of in-person classroom training and takes approximately five to six weeks to complete. All required staff must complete the program to the franchisor’s satisfaction.
Once the franchisee receives the Certificate of Occupancy for their restaurant, the company will send them at least one representative to help prepare the restaurant for the grand opening.
Related: Will Train For Good | Franchise Training Program | Entrepreneur.com
What is the average income potential for a McAlister’s Deli franchise?
McAlister’s Deli has ranked multiple times in Entrepreneur’s Franchise 500 list, been awarded Newsweek’s Best Customer Services award and ranked in FranchiseTimes Top 500. When you open a McAlister’s Deli franchise, you know you are backed by a company that knows what they are doing.
In 2022, the average net sales per franchise was an astounding $1,922,992 showing just what a wise business investment this can be.
Related: Looking to Figure Out How Much You'll Make as a Franchisee? Consider These Factors. | Entrepreneur
What is McAlister’s Deli loyalty program?
When you open a franchise with McAlister’s Deli, you partner with a company that knows the restaurant industry and how to market it successfully.
Rewarding customers and increasing sales go hand-in-hand with their loyalty program. The program details are as follows:
- For every dollar spent, the customer receives ten points.
- When a customer reaches 500 points, they receive a complimentary beverage or a kid’s meal.
- With 1,000 points, the customer can choose a free side, cup of soup, or dessert option.
- When customers redeem 1,500 points, they can choose a free entree with a sandwich, salad, spud, or two options.
Related: Why Trust and Incentives Help Consumers With Better Brand Selection | Entrepreneur
Start a McAlister’s franchise today
If you are looking at getting into the restaurant franchise business and are looking for a franchise that is backed by excellent corporate support, is known for its superior customer service and offers a variety of healthy, fresh menu options, then opening a McAlister’s Deli franchise just might be for you.
Check out Entrepreneur’s other articles for more information about McAlister’s Deli and other franchise opportunities.
Company Overview
About McAlister's Deli
Industry | Food |
---|---|
Related Categories | Miscellaneous Sandwiches, Sandwiches |
Founded | 1989 |
Parent Company | Focus Brands |
Leadership | Mike Freeman, Chief Brand Officer |
Corporate Address |
5620 Glenridge Dr. Atlanta, GA 30342 |
Social | Facebook, Twitter, LinkedIn, Instagram |
Business Overview
Franchising Since | 1994 (2023-1994 years) |
---|---|
# of employees at HQ | 71 |
Where seeking |
This company is offering new franchisees throughout the US. This company is offering new franchisees worldwide. |
# of Units | 516 (as of 2022) |
|
Information for Franchisees
Here's what you need to know if you're interested in opening a McAlister's Deli franchise.
Financial Requirements & Ongoing Fees
Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
Initial Franchise Fee
|
$15,500 - $35,500 |
---|---|
Initial Investment
|
$393,500 - $2,187,450 |
Net Worth Requirement
|
$1,000,000 - $1,900,000 |
Cash Requirement
|
$425,000 - $930,000 |
Veteran Incentives
|
$15,500 off franchise fee |
Royalty Fee
|
5% |
Ad Royalty Fee
|
2% |
Term of Agreement
|
20 years |
Is franchise term renewable? | Yes |
Financing Options
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
Third Party Financing | McAlister's Deli has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll |
---|
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
On-The-Job Training | 250 hours |
---|---|
Classroom Training | 50 hours |
Ongoing Support |
Newsletter
Meetings & Conventions
Toll-Free Line
Grand Opening
Online Support
Security & Safety Procedures
Lease Negotiation
Field Operations
Site Selection
Proprietary Software
Franchisee Intranet Platform
|
Marketing Support |
Co-op Advertising
Ad Templates
National Media
Regional Advertising
Social Media
SEO
Website Development
Email Marketing
Loyalty Program/App
|
Operations
Additional details about running this franchise.
Is absentee ownership allowed? | No |
---|---|
Can this franchise be run from home/mobile unit?
|
No |
Can this franchise be run part time?
|
No |
# of employees required to run | 40 |
Are exclusive territories available?
|
Yes |
Interested in ownership opportunities like McAlister's Deli? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where McAlister's Deli landed on this year's Franchise 500 Ranking versus previous years.
Additional Rankings
Curious to know where McAlister's Deli ranked on other franchise lists? Find out below.
Sign Up for Our Franchise Newsletter
Stay up to date on the latest news and trends affecting the franchise industry.
Related Franchises
Are you eager to see what else is out there? Browse franchises that are similar to McAlister's Deli.
Related Franchise Content
Catch up on the latest franchise news, trends, and more.
Subway Struggles to Attract Multi-Unit Franchisees in the U.S., Announces Major Expansion in Another Country
Subway has been attempting to sign new franchisees to multi-unit deals to improve its ownership model. However, the franchisees it's looking for aren't taking the bait.
How to Effectively Utilize Video in Your Franchise Brand's Marketing Strategy
Knowing where to focus your effort will help you in many ways.
What Makes Scenthound a Top New & Emerging Franchise
Focusing on out what dogs and their owners actually need helped Scenthound CEO Tim Vogelcreate a successful franchise system.
How to Harness the Power and Money of a Crowd Through Crowdfunding
You don't have to be rich, succumb to ever-growing interest rates, run the risk of your bank collapsing or use your house as collateral to build a franchise. All you have to do is find the right crowd.
Woman Ties the Knot at White Castle Almost 30 Years After the Chain Gave Her Free Food as a Homeless Teen
Jamie West was just 12 years old when she ran away from the foster care system.
Franchise Ownership Made Easy: Best Practices for Managing and Growing Your Business
Using these tips, you can maximize the benefits of franchise ownership and take your business to the next level.