Little Sheep Hot Pot vs Gyu-Kaku Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Little Sheep Hot Pot vs Gyu-Kaku including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees

 
Little Sheep Hot Pot Franchise
Gyu-Kaku Franchise
Investment $500,000 - $1,200,000$1,200,444 - $2,526,540
Franchise Fee $50,000$50,000
Royalty Fee 6%4%-5%
Advertising Fee -1.5%
Year Founded 19991996
Year Franchised 20031997
Term Of Agreement --
Term Of Agreement --
Renewal Fee --


Business Experience Requirements

 
Little Sheep Hot Pot Franchise
Gyu-Kaku Franchise
Experience --

Financing Options

 
Little Sheep Hot Pot Franchise
Gyu-Kaku Franchise
  In-House/3rd PartyIn-House/3rd Party
Franchise Fees -/--/-
Start-up Costs -/--/-
Equipment -/--/-
Inventory -/--/-
Receivables -/--/-
Payroll -/--/-

Training & Support

 
Little Sheep Hot Pot Franchise
Gyu-Kaku Franchise
Training For our franchisees (two persons at most)

soup base and broth formulation and preparation

food preparation and presentation

management of the dining area and the kitchen

financial control

POS system

inventory control etc.

training workshops in various forms at irregular intervals to facilitate communication and learning for all of our franchisees.

On-The-Job Training: 304 hours Classroom Training: 46 hours Additional Training: At company-owned restaurants
Support After the grand opening of the franchised restaurant, we will visit its business and operation from time to time. Then, based on the inspections results, we will make proper suggestions and require corrections when necessary to enhance the franchisee's profitability. We will supply the Little Sheep proprietary soup condiments, designate some of the meat, food and beverage, constructive materials and equipment suppliers, and also assist franchisees with the purchase of dishware, uniforms, and some of the key materials as part of our franchising support.Purchasing Co-ops Newsletter Meetings/Conventions Grand Opening Security/Safety Procedures Site Selection
Marketing By establishing the System Marketing Fund (1% of total sales of each store, including the corporate affiliates and franchisees), we will consolidate all marketing resources for the most optimized result. It will continue to enhance the brand image through advertisement, promotion, PR event and brand image exposure in order to boost the restaurant's recognition and credibility. Moreover, we will also facilitate various marketing activities to support franchisee's own marketing programs.Co-op Advertising Regional Advertising Social media Website development Email marketing Loyalty program/app
Operations -Absentee Ownership Allowed Number of Employees Required to Run: 20

Expansion Plans

 
Little Sheep Hot Pot Franchise
Gyu-Kaku Franchise
US Expansion -Yes
Canada Expansion --
International Expansion -Yes

Company Overviews

About Little Sheep Hot Pot

Thank you for your interest in Little Sheep Hot Pot's franchise program.Little Sheep Hot Pot has made big progress since it embarked its journey in North America in 2005. At present, there are about 10 affiliate stores operating across Canada and United States. Based on its healthy dining concept, unique product and high quality control, Little Sheep Hot Pot has established its successful business model. Furthermore, its competitive advantages of product uniqueness, potential to grow and standardized operating system enable a good start of franchise. If you have any further inquiry about our franchise program, please contact us at your convenience. You can explore more information in our website www.littlesheephotpot.com and you are welcome to visit our stores.

Yum China Holdings, Inc. is China's leading restaurant company with a vision of making every life taste beautiful. From a single restaurant in 1987, the company now operates over 7,500 restaurants over 1,100 cities and towns spanning every province and autonomous region across mainland China.

About Gyu-Kaku

Gyu-Kaku System operates over 700 locations worldwide and has more than 10 years franchising experience in Japan.

Reins International USA has more than 8 years operating experience in the U.S. to modify the system for the U.S. market w/ 12 units.
Gyu-Kaku has been awarded the prestigious Hot Concept Award by the restaurant industry's premier trade publication, Nation's Restaurant News!
We like to think of it as the Oscars of the restaurant business. The Hot Concept Award is given each year by the editors of NRN to six emerging restaurant brands that have distinguished themselves as Hot Concepts: "fast-growing, financially proven overachievers that are on their way to becoming tomorrow's giants." Each winner must be a clearly defined concept that appeals to consumers and positions the company at the leading edge of foodservice.
The goal is to recognize brands for their innovation, successful business strategies and entrepreneurial spirit.

The initial franchise fee is $50,000. The estimated investment necessary to begin operation of a Gyu-Kaku franchise unit franchise range is $1,200,444 to $2,526,540. This includes $56,500 to $71,500 that is paid to the franchisor and its affiliates.
The franchisor may also offer you the optional right to execute an Area Development Agreement granting you a right to open one to four additional Outlets for an additional investment of $25,000 (for one additional Outlet) to $100,000 (for four additional Outlets), all of which must be paid to the franchisor.

"Entrepreneur

#240 in Franchise 500 for 2020.
#227 in Franchise 500 for 2021.