McAlister's Deli vs Shoney's Restaurants Franchise Comparison

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

Start-Up Costs and Fees
 
McAlister's Deli Franchise
Shoney's Restaurants Franchise
Investment $398,000 - $2,094,200$568,000 - $2,800,000
Franchise Fee $15,000 - $35,000$25,000 - $35,000
Royalty Fee 5%2.5-3.5%
Advertising Fee 3%-
Year Founded 19891968
Year Franchised 19941971
Term Of Agreement 10 years +5+5+5-
Term Of Agreement 10 years +5+5+5-
Renewal Fee --


Business Experience Requirements
 
McAlister's Deli Franchise
Shoney's Restaurants Franchise
Experience
  • General business experience

    • Solid business experience Multi-unit management Proven expertise in retail (food and beverage a plus) Previous franchise experience advantageous


    Financing Options
     
    McAlister's Deli Franchise
    Shoney's Restaurants 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/No
    Payroll No/YesNo/No

    Training & Support
     
    McAlister's Deli Franchise
    Shoney's Restaurants Franchise
    Training On-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 Platform-
    Marketing Co-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; 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
     
    McAlister's Deli Franchise
    Shoney's Restaurants Franchise
    US Expansion Yes-
    Canada Expansion NoNo
    International Expansion NoNo

    Company Overviews

    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.



    About Shoney's Restaurants

    Since 1947, Shoney’s has been known for authentic southern dishes that are available for breakfast, lunch, supper and to-go.
    Today, after completing an extensive revitalization program that includes a focus on freshly prepared, innovative menu items, beautifully redesigned restaurants with flat screen TV’s and modern furnishings and the commitment to give back to the communities we serve, Shoney’s truly is better than ever.
    Shoney’s is a Nashville-based company with more than 140 restaurants located in 16 states. Each restaurant strives to give back and be a pillar to the community, which is the hallmark of Shoney’s culture. We support local schools, sports teams, the military, firefighters, police, EMTs and more.
    From San Antonio, Texas to Dover, Ohio and every location in between, our restaurants are committed to partner with the communities we serve.

    Grow with us! Make Shoney’s a part of your future and invest in a business you’ll be proud to own.