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Updated RecentlyMcAlister's Deli vs Krieger's Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of McAlister's Deli vs Krieger's including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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| Investment | $398,000 - $2,094,200 | $450,000 |
| Franchise Fee | $15,000 - $35,000 | $30,000 |
| Royalty Fee | 5% | 5% |
| Advertising Fee | 3% | - |
| Year Founded | 1989 | 1991 |
| Year Franchised | 1994 | 2002 |
| Term Of Agreement | 10 years +5+5+5 | 15 years |
| Term Of Agreement | 10 years +5+5+5 | 15 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 | No/Yes |
| Start-up Costs | No/Yes | No/Yes |
| Equipment | No/Yes | No/Yes |
| Inventory | No/Yes | No/Yes |
| Receivables | No/Yes | No/Yes |
| Payroll | No/Yes | No/Yes |
Training & Support |
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| Training | On-The-Job Training: 206 hours Classroom Training: 45 hours | - |
| 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 Platform | Newsletter, 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/app | Co-op advertising, Ad slicks, Regional advertising |
| 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) |
85% of all franchisees own more than one unit
Absentee ownership of franchise is allowed. (90% of current franchisees are owner/operators) |
Expansion Plans |
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| US Expansion | Yes | Yes |
| Canada Expansion | No | No |
| International Expansion | No | No |
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
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#72 in Franchise 500 for 2020.
#47 in Franchise 500 for 2021.