McAlister's Deli vs 5 & Diner Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of McAlister's Deli vs 5 & Diner including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
 
McAlister's Deli Franchise
5 & Diner Franchise
Investment $398,000 - $2,094,200$250,000 - $750,000
Franchise Fee $15,000 - $35,000$35,000
Royalty Fee 5%5%
Advertising Fee 3%-
Year Founded 19891987
Year Franchised 19941993
Term Of Agreement 10 years +5+5+515-20 years
Term Of Agreement 10 years +5+5+515-20 years
Renewal Fee -25% of current franchise fee


Business Experience Requirements
 
McAlister's Deli Franchise
5 & Diner Franchise
Experience
  • General business experience

  • Industry experience
  • General business experience
  • Marketing skills
  • Past management experience
    		•

    Financing Options
     
    McAlister's Deli Franchise
    5 & Diner Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/YesNo/No
    Start-up Costs No/YesNo/No
    Equipment No/YesNo/No
    Inventory No/YesNo/No
    Receivables No/YesNo/No
    Payroll No/YesNo/No

    Training & Support
     
    McAlister's Deli Franchise
    5 & Diner Franchise
    Training On-The-Job Training: 206 hours Classroom Training: 45 hours Ongoing training at franchisee's location
    Support Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet PlatformNewsletter, Meetings, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives
    Marketing Co-op Advertising Ad Templates Regional Advertising Social media SEO Website development Email marketing Loyalty program/appCo-op advertising, Ad slicks, National media
    Operations 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)

    		 20% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 50

    Absentee ownership of franchise is allowed. (100% of current franchisees are owner/operators)

    Expansion Plans
     
    McAlister's Deli Franchise
    5 & Diner Franchise
    US Expansion Yes-
    Canada Expansion NoNo
    International Expansion NoNo

    Company Overviews

    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.



    About 5 & Diner

    Kenneth E. Higginbotham opened the initial 5 and Diner eatery in Phoenix, Arizona in 1987. Eateries highlight a '50s subject, finish with jukeboxes, masters in poodle skirts and hula loop challenges. The menu incorporates top choices like ground sirloin sandwiches, sandwiches and plates of mixed greens. Breakfast is served throughout the day, and each 5 and Diner offers blue plate specials that incorporate messy joes, fish sticks and french fries, and spaghetti with meat sauce.

    5 and Diner eateries additionally have a pop wellspring that serves milkshakes, egg cremes, coasts and enhanced soft drinks.

    5 and Diner is a pioneer in the family-feasting eatery establishment portion, offering incredible sustenance and fun in a '50s themed environment. With another model outline made to bring out the exemplary roadside burger joint, 5 and Diner offers a solid venture open door for the single or multi-unit proprietor.

    5 and Diner Franchise

    Burger joints are the quintessential American experience - socially critical, offering buyers a dependable and agreeable place to eat. Their impact can be seen in many structures, including TV, films, books and fan clubs. This extraordinary interest and fascination makes owning a 5 and Diner eatery establishment an awesome venture.

    As a family-feasting eatery, 5 and Diner offers many advantages over other eatery sections including:

    Family Dining represents $33Billion in yearly deals and is balanced for development as shoppers request included esteem through sensible costs, menu assorted qualities and administration over numerous day parts*

    Higher saw esteem for the cash spent on eating out

    68% of buyers would be likely or greatly liable to visit a family eating eatery when they need a formal dinner at a reasonable price*

    The most appropriate eatery decision for breakfast.

    52% of purchasers would be likely or to a great degree liable to visit a family eating eatery for breakfast or early lunch on the weekend*

    The family feasting eatery fragment has set up itself as a main decision for late-night diners*

    half of customers show that late night hours are engaging or to a great degree appealing*

    Family and child inviting climate and menu choices