Denny's vs McAlister's Deli Franchise Comparison

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

Start-Up Costs and Fees
 
Denny's Franchise
McAlister's Deli Franchise
Investment $305,000 - $2,404,695$398,000 - $2,094,200
Franchise Fee $10,000 - $30,000$15,000 - $35,000
Royalty Fee 4.5%-7%5%
Advertising Fee 3%-3.5%3%
Year Founded 19531989
Year Franchised 19841994
Term Of Agreement 20 years10 years +5+5+5
Term Of Agreement 20 years10 years +5+5+5
Renewal Fee $10K for 10 years-


Business Experience Requirements
 
Denny's Franchise
McAlister's Deli Franchise
Experience
  • Industry experience
  • General business experience
  • Operations experience

  • General business experience
    		•

    Financing Options
     
    Denny'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/NoNo/Yes
    Payroll No/NoNo/Yes

    Training & Support
     
    Denny's Franchise
    McAlister's Deli Franchise
    Training On-The-Job Training: 91 hours Classroom Training: 16 hours Additional Training: At existing Denny's restaurantsOn-The-Job Training: 206 hours Classroom Training: 45 hours
    Support Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet PlatformPurchasing 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 Templates National Media Regional Advertising Social media Website development Email marketing Loyalty program/appCo-op Advertising Ad Templates Regional Advertising Social media SEO Website development Email marketing Loyalty program/app
    Operations 44% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 80

    Absentee Ownership Allowed

    		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
     
    Denny's Franchise
    McAlister's Deli Franchise
    US Expansion YesYes
    Canada Expansion NoNo
    International Expansion YesNo

    Company Overviews

    About Denny's

    In 1953, Harold Butler opened Danny's Donuts, a Lakewood, California, stand that served coffee and doughnuts 24 hours a day. The following year, the stand grew and its name was changed to Danny's Coffee Shops. Five years later, there were 20 shops in the chain, and the company changed its name to Denny's. Denny's locations serve breakfast, lunch and dinner choices 24 hours a day. Denny's New & Emerging Markets incentive program is designed to help us recruit exceptional new franchisees to seize valuable market share in new & emerging markets. Under the program, new franchisees can save up to $1 million by developing 4 new restaurants in new & emerging markets. The estimated savings include reduced: initial fees, royalty rate, marketing fees, market planning fee, store design fees, NRO training, and MGIP (development fees). With a flexible, cost-effective prototype & best-in-class systems, Denny's is positioned for sustained franchise growth.

    The total investment necessary to begin operation of a Denny’s franchise is from $1,330,525.50 to $2,404,695.50 for a Denny’s Heritage facility; from $305,000 to $826,000 for a nontraditional Denny’s, including The Den; and from $1,025,528.50 to $1,659,695.50 for Denny’s within a Travel Center (these numbers exclude real estate). This includes the initial franchise fee of $10,000 to $30,000 and the New Restaurant Opening fee of $0 to $36,000, for a total of $10,000 to $66,000, which must be paid to the franchisor or affiliate.

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    #59 on Franchise Rankings.com
    #83 on Franchise 500 for 2021  Not on Franchise 500 for 2020


    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
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    #72 in Franchise 500 for 2020.
    #47 in Franchise 500 for 2021.