McAlister's Deli vs IHOP Franchise Comparison

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

Start-Up Costs and Fees
 
McAlister's Deli Franchise
IHOP Franchise
Investment $398,000 - $2,094,200$414,866 - $3,374,043
Franchise Fee $15,000 - $35,000$40,000 - $50,000
Royalty Fee 5%4.5%
Advertising Fee 3%3.5%
Year Founded 19891958
Year Franchised 19941960
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
IHOP Franchise
Experience
  • General business experience
    		• -

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

    Training & Support
     
    McAlister's Deli Franchise
    IHOP 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
    IHOP Franchise
    US Expansion Yes-
    Canada Expansion No-
    International Expansion No-

    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 IHOP

    The IHOP restaurant chain has been serving a wide variety of breakfast, lunch and dinner selections for more than 57 years. IHOP enjoys a rich heritage and almost universal awareness. Our brand has been built upon the strenght of our franchisees, vendors partners and dedicated employees. IHOP restaurants are franchised and operate by Glendale, California based IHOP Corp. There are over 1,280 IHOP restaurants in the U.S. and Canada.

    The total investment necessary to begin operation of an IHOP franchise at a non-traditional venue is as follows:
    • Full-Service Program: $693,266 to $3,374,043
    • IHOP Limited-Service Program: $414,866 to $1,427,418
    This includes Initial Fees of $39,000 to $79,480 per Full-Service Restaurant and $23,500 to $48,480 per IHOP Limited-Service Restaurant to be developed which must be paid to the Franchisor or an IHOP Affiliate.

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