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Updated RecentlyMcAlister's Deli vs La Madeleine Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of McAlister's Deli vs La Madeleine 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 | $1,249,362 - $3,088,747 |
| Franchise Fee | $15,000 - $35,000 | $40,000 |
| Royalty Fee | 5% | 5% |
| Advertising Fee | 3% | 2.5% |
| Year Founded | 1989 | 1983 |
| Year Franchised | 1994 | 2011 |
| Term Of Agreement | 10 years +5+5+5 | Term of agreement not renewable |
| Term Of Agreement | 10 years +5+5+5 | Term of agreement not renewable |
| Renewal Fee | - | - |
Business Experience Requirements |
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| Experience | • Passionate about the la Madeleine brand and our food • $5 million net worth; liquid assets of $2.5 million • Dedicated to developing multiple restaurants in a given market • Excellent knowledge of the local retail real estate market • Resources to develop and operate at least three (3) bakery cafés in a given territory • Strong track record as a multi-unit restaurant operator • Cultural fit | |
Financing Options |
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| In-House/3rd Party | In-House/3rd Party | |
| Franchise Fees | No/Yes | No/No |
| 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 | • Ongoing field support • Store opening assistance • Continuous training • Extensive six-week training program for Operations Directors, General Managers, and Managers • Ongoing culinary development On-The-Job Training: 416 hours Classroom Training: 64 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 | Real Estate • Market evaluation and planning • Site selection assistance • LOI and contract negotiation assistance • In-house real estate resources • Identifying and securing local representation Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform |
| Marketing | Co-op Advertising Ad Templates Regional Advertising Social media SEO Website development Email marketing Loyalty program/app | • Grand opening assistance • Store opening and PR resources • Local marketing support • Creative support for national promotional events Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Email marketing Loyalty program/app |
| 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) | - |
Expansion Plans |
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| US Expansion | Yes | Yes |
| Canada Expansion | No | - |
| International Expansion | No | Yes |
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.
About La Madeleine
La Madeleine's serves handcrafted, crave-worthy country French-inspired dishes makes them a favorite with critics and guests alike. Their casual French home atmosphere and versatile menu makes them the perfect place for any meal or a special afternoon treat. La Madeleine guests are greeted with a friendly "bonjour" and an inviting ambiance where they can relax while enjoying time with friends and family. With a menu that satisfies cravings morning, noon, and night, it's no wonder guests keep coming back.
For experienced restaurateurs, la Madeleine presents an exciting, financially sound opportunity to share in a unique concept with great potential. At la Madeleine we pride ourselves on our handcrafted food and ambiance we share with our guests. But behind the scenes we work even harder to provide support to our franchisees to help them grow both their business and the la Madeleine brand.
We understand investing in the la Madeleine name and menu is just part of the equation for you. World-class operations and efficiencies are equally important and la Madeleine has those. Our commitment to you as a franchisee is to constantly work to find better, more efficient and more profitable ways to help you operate your la Madeleine franchise.
The total investment necessary to begin operation of a la Madeleine franchise is as follows:
- Traditional Café: $1,249,362 to $3,088,747 (excluding real estate and landlord allowances). This includes $43,630 that must be paid to the franchisor or their affiliates.
- Petite Café: $1,426,200 to $1,747,400. $390,983 to $1,718,012 (excluding real estate and landlord allowances). This includes between $20,000 and $43,630 that must be paid to the franchisor or their affiliates.
#125 in Franchise 500 for 2020.
#141 in Franchise 500 for 2021.