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Below is an in-depth analysis and side-by-side comparison of Pepe's Mexican Restaurants vs El Chico Cafe 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 | $1,550,000 - $2,530,000 |
Franchise Fee | $10,000 - $15,000 | $35,000 |
Royalty Fee | 4% | 5% |
Advertising Fee | - | - |
Year Founded | 1967 | 1940 |
Year Franchised | 1967 | 1969 |
Term Of Agreement | 20 years | - |
Term Of Agreement | 20 years | - |
Renewal 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 | -/- |
Start-up Costs | No/Yes | -/- |
Equipment | No/No | -/- |
Inventory | No/Yes | -/- |
Receivables | No/No | -/- |
Payroll | No/No | -/- |
Training & Support |
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Training | - | - |
Support | Newsletter, Meetings, Grand opening, Field operations/evaluations, Purchasing cooperatives | - |
Marketing | Co-op advertising, Ad slicks, National media, Regional advertising | - |
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) | - |
Expansion Plans |
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US Expansion | Yes | - |
Canada Expansion | No | - |
International Expansion | No | - |
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.
Since 1940, El Chico Cafe restaurants reflect over sixty years of changing tastes and styles and our guests’ preferences. We have taken care to preserve the heritage while updating the decor and adding exciting new tastes to our menu. The strength of El Chico comes from the simple fact that we have been in this business so long that we know how to improve traditional favorites and how to introduce our guests to the next level of great Mexican food through new product development.