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Below is an in-depth analysis and side-by-side comparison of Pepe's Mexican Restaurants vs Moe's Southwest Grill including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $207,000 - $652,000 | $457,400 - $911,500 |
Franchise Fee | $10,000 - $15,000 | $30,000 |
Royalty Fee | 4% | 5% |
Advertising Fee | - | 2% |
Year Founded | 1967 | 2000 |
Year Franchised | 1967 | 2001 |
Term Of Agreement | 20 years | 20 years |
Term Of Agreement | 20 years | 20 years |
Renewal Fee | - | Then-current franchise fee |
Business Experience Requirements |
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Experience | - | |
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/Yes | No/Yes |
Start-up Costs | No/Yes | No/Yes |
Equipment | No/No | No/Yes |
Inventory | No/Yes | No/Yes |
Receivables | No/No | No/Yes |
Payroll | No/No | No/Yes |
Training & Support |
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Training | - | On-The-Job Training 125 hours Classroom Training: 22.6 hours |
Support | Newsletter, Meetings, Grand opening, Field operations/evaluations, Purchasing cooperatives | 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 slicks, National media, Regional advertising | Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app |
Operations |
Franchisees required to buy multiple units/master licenses; 25% of all franchisees own more than one unit Number of employees needed to run franchised unit: 10 Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators) |
65% of all franchisees own more than one unit Number of employees needed to run franchised unit: 15 Absentee ownership of franchise is allowed. (80% of current franchisees are owner/operators) |
Expansion Plans |
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US Expansion | Yes | Yes |
Canada Expansion | No | No |
International Expansion | No | Yes |
Pepe's concept began in 1954 as a taqueria in Chicago. Pepe's Incorporated has been franchising Pepe's Mexican Restaurants since 1967. Pepe's prepares and serves a full menu of Mexican food items for dining-in or carryout. It also operates a 57,000 square foot U.S. commissary where it produces food products for its franchised restaurants and its branded product program. The branded product program sells food products to schools, factories, and office cafeterias, as well as the U.S. Military for use at military bases in the United States and abroad.