Week 3: Teriyaki Madness & The Dog Stop
Fast casual asian cuisine + a dog services brand
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DISCLAIMER: DO NOT CONSIDER ANYTHING WRITTEN BELOW AS INVESTMENT ADVICE. IF YOU DECIDE TO PURCHASE A FRANCHISE, YOU MUST DO YOUR OWN RESEARCH, AND REALIZE ANY INVESTMENT MAY GO TO $0.00.
To franchise owners,
Today’s edition highlights Teriyaki Madness, a restaurant serving up fresh grilled asian cuisine, and The Dog Stop, a near one stop shop for dog owners.
Let’s get the breakdowns below! 👇
DISCLAIMER: DO NOT CONSIDER ANYTHING WRITTEN BELOW AS INVESTMENT ADVICE. IF YOU DECIDE TO PURCHASE A FRANCHISE, YOU MUST DO YOUR OWN RESEARCH, AND REALIZE ANY INVESTMENT MAY GO TO $0.00.
Teriyaki Madness
Background
Based out of Denver, Colorado
Founded in 2003, franchising since 2005
Restaurants typically need 1,400 - 2,000 square feet of space
Serves bowls with fresh grilled meat with teriyaki sauce, and your choice of white rice, brown rice, fried rice or noodles, and steamed or stir-fried veggies
Number of Units
78 locations as of 2020, +85.7% growth over the last 3 years
Source: Entrepreneur.com
Fees, Expenses (2020 FDD)
Initial franchise fee: $45,000
Royalty Fee: 6% of gross sales
Brand Development Fund: 3% of gross sales
Initial Investment (2020 FDD)
Traditional Location: $322,755 - $845,435
Leasehold improvements make up $120k-$329k of the range
Furniture, fixtures, & equipment make up $51k-$126k of the range
Financial Performance (2020 FDD)
2019 Franchisee Performance:
Median Gross Sales: $1,183,295
Average Gross Sales: $1,154,170
Note: The above statistics were based off of 15 franchised Teriyaki Shops that were open for at least 2 years, were larger than 1,350 square feet, were in traditional locations, and haven’t had a change of ownership for the last 2 years.
2019 Franchisee Operating Income Statement:
Note: Operating income is defined by Teriyaki madness as Gross Profit less payroll and labor expenses, occupancy expenses, and direct operating expenses.
The Wolf’s Take 🍟
Teriyaki Madness willingly displayed franchisees income statement, which is rare to see. There were multiple incomes statements provided, but the one you see above is the top performing pure franchisee (there were examples of affiliate locations making as high as $420k in operating income prior to paying royalties).
Outside of the numbers, I like that this is a fast-casual brand built around asian cuisine. There’s a gluttony of fast casual brands for mexican, mediterranean, salad houses, etc. but not yet for asian food, which makes this a differentiator. If you’re interested in fast casual concepts, this is one to look into.
Recent Press
The Dog Stop
Background
Based out of Pittsburgh, Pennsylvania
Founded in 2009, franchising since 2013
Each location offers grooming, daycare, boarding, training/in-home services, and a pet retail store
Number of Units
21 units as of 2020
Source: Entrepreneur.com
Fees, Expenses (2020 FDD)
Franchise Fee: $49,500
Royalty: 6% of gross sales
Brand Development Fund: 2% of gross sales
Initial Investment (2020 FDD)
The investment section shows two ranges, 1) for if you lease your equipment, and 2) if you purchase equipment and furnishings outright from the start.
Leased Furnishings, Fixtures, & Equipment: $195,200 - $586,425
Purchased Furnishings, Fixtures, & Equipment: $259,700 - $738,150
Financial Performance (2020 FDD)
Performance of 8 franchised locations, open the full year 2019:
The Wolf’s Take 🍟
The chart above doesn’t include every operational expense (it excludes costs such as cell phones, employee food and drink, etc.) but covers the vast majority of what it costs to run a Dog Stop franchise.
There’s varying performance amongst the locations, but there’s some good signs of potential ROI in the data of Pinhook, Trussville, and USC. I’d be curious to dive into the demographics of each of these locations to see if there’s a correlation.
Overall, the pet industry is on FIRE these days and is primed for growth over the next decade. Covid only accelerated this trend, as people purchased “pandemic puppies” to combat boredom and loneliness.
Given the impressive suite of offerings The Dog Stop has to offer (it’s the only concept I’ve seen that combines daycare, grooming, training, and retail), this franchise could be an answer to the surplus of pets in need of care nationwide.
Recent Press
The Dog Stop Is Set To Open For Business in Deerfield, Illinois
The Dog Stop Accelerates Franchise Growth With Investor Partnership
That’s it for this week’s Franchise Breakdowns. Feel free to reply with any questions or feedback, or leave a comment. If someone sent this your way and you haven’t subscribed yet, you can also do that below. Thanks and see you next week!
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