McAlister's Deli vs Palapas Restaurants Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of McAlister's Deli vs Palapas Restaurants including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
Investment |
$398,000 - $2,094,200 | $750,000 - $2,000,000 |
Franchise Fee |
$15,000 - $35,000 | $30,000 |
Royalty Fee |
5% | 5% |
Advertising Fee |
3% | - |
Year Founded |
1989 | - |
Year Franchised |
1994 | - |
Term Of Agreement |
10 years +5+5+5 | - |
Term Of Agreement |
10 years +5+5+5 | - |
Renewal Fee |
- | - |
Business Experience Requirements |
Experience |
General business experience | - |
Financing Options |
|
In-House/3rd Party | In-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 |
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 |
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
#72 in Franchise 500 for 2020.
#47 in Franchise 500 for 2021.
About Palapas Restaurants
Palapas Restaurant y Cantina is perched atop the Seascape Village and has been
an institution in Aptos since opening its doors in 1990. Owners Mark and
Kay Holcomb designed the space and menu with the goal of bringing home
their beloved experiences vacationing on the coast of Mexico with their
family throughout the 80s and 90s. Today we aim to capture that nostalgic vacation feeling while highlighting the natural beauty and bounty native to our own locale. This value is
present in our locally sourced, fresh seafood, our commitment to local
small purveyors, and even our design, which is built to offer an ocean
view of the sparkling Monterey Bay from every single table.
Palapas brings the ambiance of tropical Mexico to the Monterey Bay
area in a very unique way. In addition to featuring authentic
traditional dishes of Mexico, our menu offers the fish, shellfish and
sauces of the coasts of both Mexico and California.
All of our dishes are prepared "A La Cocina Fresca”- "in the fresh
kitchen method” a Spanish phrase that means exactly what it implies…
freshly made sauces, handmade corn tortillas and fresh local seafood and
produce prepared daily.
In addition to creating a menu with many exiting choices, we’re
committed to offering our customers healthy dishes with absolutely no
use of any lard or animal fat in their preparation.
We use rice-bran oil specifically for frying. Contains no trans fat!