Red Hot & Blue vs McAlister's Deli Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Red Hot & Blue vs McAlister's Deli including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
 
Red Hot & Blue Franchise
McAlister's Deli Franchise
Investment $380,700 - $1,000,000$398,000 - $2,094,200
Franchise Fee $45,000$15,000 - $35,000
Royalty Fee 5%5%
Advertising Fee -3%
Year Founded 19881989
Year Franchised 19901994
Term Of Agreement 20 years10 years +5+5+5
Term Of Agreement 20 years10 years +5+5+5
Renewal Fee --


Business Experience Requirements
 
Red Hot & Blue Franchise
McAlister's Deli Franchise
Experience
  • Industry experience

  • General business experience
    		•

    Financing Options
     
    Red Hot & Blue Franchise
    McAlister's Deli Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/NoNo/Yes
    Start-up Costs No/NoNo/Yes
    Equipment No/NoNo/Yes
    Inventory No/NoNo/Yes
    Receivables No/NoNo/Yes
    Payroll No/NoNo/Yes

    Training & Support
     
    Red Hot & Blue Franchise
    McAlister's Deli Franchise
    Training -On-The-Job Training: 206 hours Classroom Training: 45 hours
    Support Newsletter, Meetings, Toll-free phone line, Grand opening, Field operations/evaluationsPurchasing 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 Ad slicks, National media, Regional advertisingCo-op Advertising Ad Templates Regional Advertising Social media SEO Website development Email marketing Loyalty program/app
    Operations 60% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 60

    Absentee ownership of franchise is NOT allowed. (80% of current franchisees are owner/operators)

    		 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
     
    Red Hot & Blue Franchise
    McAlister's Deli Franchise
    US Expansion -Yes
    Canada Expansion NoNo
    International Expansion NoNo

    Company Overviews

    About Red Hot & Blue

    We've attracted successful multi-unit franchisees and owners from such brands as Melting Pot, Papa Murphy's, Pizza Hut, Burger King, Hard Times Cafe, and Holiday Inn. Clearly, they know a winning system when they see it. � Exceptional sales-to-investment ratio � 20 Years as a National BBQ Chain in markets such as Texas, N. Carolina, and Washington, DC � Leader in the exploding BBQ Category � Multi-Award Winning, Nationally recognized Restaurants and Sauces

    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
    "Entrepreneur
    #72 in Franchise 500 for 2020.
    #47 in Franchise 500 for 2021.