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Below is an in-depth analysis and side-by-side comparison of Ranch One vs El Pollo Loco including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $170,400 - $461,000 | $900,000 - $1,755,000 |
Franchise Fee | $30,000 | $40,000 |
Royalty Fee | 6% | 2%-3%-4% |
Advertising Fee | 4% | - |
Year Founded | 1993 | 1975 |
Year Franchised | 1993 | 1980 |
Term Of Agreement | 10 years | 20 years |
Term Of Agreement | 10 years | 20 years |
Renewal Fee | 75% of then-current fee | - |
Business Experience Requirements |
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Experience | We require a minimum of five years of experience as an owner/operator within the restaurant industry. You must also live in the area of development in order to manage the restaurant on a daily basis. | |
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/No | No/No |
Start-up Costs | No/No | No/No |
Equipment | No/Yes | No/No |
Inventory | No/No | No/No |
Receivables | No/No | No/No |
Payroll | No/No | No/No |
Training & Support |
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Training | K-Tec is a 5-day training all Kahala franchisees receive and is the companion to brand specific in-store training. It introduces participants to the Kahala culture, level of support provided, and the roles and responsibilities for supporting franchisee and franchisor success. It provides exposure to basic business concepts such as customer service, profitability, quality assurance, inventory, purchasing and distribution plus: *A four week Manager Training Program *A new restaurant opening *Manuals and documentation *New product roll-outs *Staff technical training | * Seven weeks pre-opening training for franchisee and restaurant managers * Franchise training consultants offering ongoing training programs for crew and management * Complete restaurant-opening support |
Support | When you join the Ranch 1 team, you receive the support provided by an organization that clearly knows what it's doing. Ranch 1 has developed an effective, systematic process to get our franchisees up and running quickly. That support includes: *Real estate guidelines. *Architectural, construction and engineering assistance. *A comprehensive training program. *A national purchasing program and equipment selection. *Ongoing advertising and marketing support. *Continued operational support and assistance. *Ongoing product research and development. *Quality control reviews and evaluations. | Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations |
Marketing | Co-op advertising, Ad slicks, National media, Regional advertising | Has a proven history of successful marketing Is aligned with award-winning advertising agencies Utilizes a strategic approach to building a strong brand Is focused on driving traffic and sales profitably We provide a full array of targeted advertising tools and marketing plans to build awareness and drive customers into our restaurants through: Innovative marketing and advertising campaign Development and execution of bilingual promotional strategies Product innovation to fuel sustained growth Support for grand openings Marketing plans tailored to each market's needs Effective communication and support of franchisees' needs Access to El Pollo Loco's online LSM toolkit (at franchisees disposal) |
Operations |
35% of all franchisees own more than one unit Number of employees needed to run franchised unit: 8 Absentee ownership of franchise is allowed. (90% of current franchisees are owner/operators) |
Franchisees required to buy multiple units/master licenses; 40% of all franchisees own more than one unit Number of employees needed to run franchised unit: 25 Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators) |
Expansion Plans |
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US Expansion | - | Yes |
Canada Expansion | No | No |
International Expansion | Yes | No |
Ranch One® is a regarded mark among the speedy administration eatery class. Famous for offering just premium quality items for over two decades, individuals perceive the quality connected with Ranch One and will probably be rehash clients as a result of it.
Ranch1 is spreading its wings. Known as "The Best Grilled Chicken on Earth", zone designers and establishment administrators can now take an interest in a ground-floor development opportunity that offers awesome deals to-venture proportions and a portion of the best unit financial matters in the business.
-Thorough preparing projects and bolster materials
- Prototype store configuration arrangements and details for self-creating franchisees
- On-going operational support
- Continual item and menu advancement
- Marketing and publicizing bolster materials
As a component of Kahala Corp's arrangement of imaginative brisk serve eateries, Ranch1 is upheld by a forceful duty ensured to put it at the highest point of the fast food pecking request. The basic operation, highlighting restrictive formulas is set apart by rapid administration, a tactile driven environment in which visitors can see, smell and hear sustenances sizzling on open barbecues, and a captivating menu of uniquely arranged dishes offering an engaging and wonderful contrasting option to ordinary quick nourishments.
In 1975, Juan Ochoa opened a roadside chicken stand in Guasace, Mexico, he called El Pollo Loco. Ochoa served chicken the same way his mother did, hand-marinating using an old family recipe and flame-broiling. The stand quickly grew in popularity, and over the next four years, Ochoa's family opened 85 restaurants in Northern Mexico. The chain moved into the United States in 1980 with the first restaurant opening on Alvarado Street in Los Angeles, California. El Pollo Loco featured an authentic recipe of fresh chicken marinated in
special herbs, spices and citrus juices, and then fire-grilled to
perfection. The restaurant quickly became a local favorite. Over the years, El Pollo Loco has added tacos, burritos and salads to its menu, all featuring the Ochoa family's chicken. In 1995, the chain entered into a joint venture with Foster's Freeze to offer soft-serve treats at El Pollo Loco restaurants. Today, the tradition continues with signature dishes that satisfy
consumers’ desire for flavorful food that fits well with today's active
lifestyles. We're currently fire-grilling marinated chicken in about 400
company and franchise-owned El Pollo Loco restaurants.
Franchise fees apply to new and existing franchisees with
multi-unit development agreements in new markets through March 31, 2018.
The initial franchise fee has been cut to $30,000 for the first
restaurant and $20,000 for each additional restaurant. The standard
franchise fee is $40,000, and $30,000 for secondary units. The initial
franchise fee for any restaurant opened in the calendar year ahead of
the year in their development schedule will be cut by 50%. And any
restaurants opened beyond the multi-development agreement will be
eligible for a zero dollar initial franchise fee. Royalty fees have also
been reduced for the first time in three years: 2% for the first year,
3% in the second year, and 4% in the third year. The standard royalty
fee is 5%.