Houlihan's vs McAlister's Deli Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Houlihan's vs McAlister's Deli including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
 
Houlihan's Franchise
McAlister's Deli Franchise
Investment $1,600,000 - $4,300,000$398,000 - $2,094,200
Franchise Fee $40,000$15,000 - $35,000
Royalty Fee 4%5%
Advertising Fee -3%
Year Founded 19721989
Year Franchised 19941994
Term Of Agreement 20 years10 years +5+5+5
Term Of Agreement 20 years10 years +5+5+5
Renewal Fee $5K-


Business Experience Requirements
 
Houlihan's Franchise
McAlister's Deli Franchise
Experience
  • Industry experience
  • General business experience
  • Must live in same market being developed

  • General business experience
    		•

    Financing Options
     
    Houlihan's Franchise
    McAlister's Deli Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/YesNo/Yes
    Start-up Costs No/YesNo/Yes
    Equipment No/YesNo/Yes
    Inventory No/YesNo/Yes
    Receivables No/YesNo/Yes
    Payroll No/YesNo/Yes

    Training & Support
     
    Houlihan's Franchise
    McAlister's Deli Franchise
    Training -On-The-Job Training: 206 hours Classroom Training: 45 hours
    Support Meetings, Field operations/evaluations, Purchasing cooperativesPurchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform
    Marketing Co-op advertising, Ad slicks, Regional advertisingCo-op Advertising Ad Templates Regional Advertising Social media SEO Website development Email marketing Loyalty program/app
    Operations Franchisees required to buy multiple units/master licenses

    Number of employees needed to run franchised unit: 78

    Absentee ownership of franchise is allowed. (80% of current franchisees are owner/operators)

    		 Franchisees required to buy multiple units/master licenses; 95% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 40

    Absentee ownership of franchise is allowed. (66% of current franchisees are owner/operators)

    Expansion Plans
     
    Houlihan's Franchise
    McAlister's Deli Franchise
    US Expansion YesYes
    Canada Expansion NoNo
    International Expansion NoNo

    Company Overviews

    About Houlihan's

    Houlihan's has been known for exceptional food at an affordable price since we entered the casual dining segment in 1972. Our menu features a great mix of contemporary pop American cooking - classic dishes reinvented in a fresh modern way and brought to the table with simple, stylish plating and presentations. And then there's the bar. It's always the best place to feel the great energy of Houlihan's. Our bar strategy unites pop culture, trendy premium brands, the newest drinks and vendor insights for a winning combination, resulting in an enviable liquor mix.

    To help us more quickly expand to new markets and trade areas, Houlihan's is seeking sophisticated restaurant operators with experience building out entire markets. At this time, we are not pursuing single-site franchise agreements.

    Our ideal candidate to become a franchise market developer is a successful full-service, multi-unit operator with expertise in one or more large markets (e.g. the top 75 MSAs in the United States). We are seeking entrepreneurial organizations that can thrive in our flexible franchise environment, while having access to growth capital and capital reserves, but experiencing growth constraints with their current restaurant concept(s).

    About McAlister's Deli

    Founder Don Newcomb's goal when he launched McAlister's Deli in 1989 was to create a 'gourmet deli with Southern charm.' The restaurants serve more than 90 different menu items, including sandwiches, salads, super-stuffed baked potatoes, appetizers, desserts and kid's meals. Customers make their selections at the counter, receive their appetizers and drinks and then sit wherever they choose, while roving servers bring their food and drink refills. McAlister's has grown to more than 350 franchised units.

    The total investment necessary to begin operation of a franchised McAlister’s Deli Restaurant (“Traditional Restaurant”) ranges from $927,900 to $2,094,200. This includes $35,000 to $35,400 that must be paid to the franchisor or their affiliates.
    The total investment necessary to begin operation of a franchised McAlister’s Express Restaurant (“Express Restaurant”) is $398,000 to $607,850. This includes $15,000 to $15,400 that must be paid to the franchisor or their affiliates.
    Veteran Incentives  $5,000 off franchise fee
    "Entrepreneur
    #72 in Franchise 500 for 2020.
    #47 in Franchise 500 for 2021.