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Updated RecentlyMellow Mushroom Pizza vs Old Chicago Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of Mellow Mushroom Pizza vs Old Chicago including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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| Investment | $1,624,000 | $1,331,500 - $2,187,000 |
| Franchise Fee | $50,000 | $40,000 |
| Royalty Fee | - | 4% |
| Advertising Fee | 2% | 3% |
| Year Founded | - | 1976 |
| Year Franchised | - | 2000 |
| Term Of Agreement | 15 years +5 | - |
| Term Of Agreement | 15 years +5 | - |
| 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/- | -/- |
| Start-up Costs | No/- | -/- |
| Equipment | No/- | -/- |
| Inventory | No/- | -/- |
| Receivables | No/- | -/- |
| Payroll | No/- | -/- |
Training & Support |
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| Training | Your ownership group and senior management staff will train for three weeks at our Shroom University training facility in Douglasville, Georgia prior to opening. When your store opens our training staff will assist you for a week prior to opening, and for two weeks after the opening. Shroom University offers a comprehensive program designed to teach you about the Front of House, Back of House, and Administrative aspects of running a Mellow Mushroom. You and your managers will learn how to make food, place orders, hire and retain personnel & maintain your POS system and mine the data it collects. A special emphasis is given to teaching you proven methods of supervising your store to decrease food and labor costs and increase cash flow. Quality control systems are also shared with you at Shroom University, and you will be provided with several financial and cost management spreadsheets. | The Old Chicago training department will provide Franchisees, their management team, and staff, comprehensive training programs that combine both restaurant and classroom training. All Franchise management teams will receive seven weeks of in-store training at a designated Old Chicago training restaurant. On-The-Job Training: 350 hours |
| Support | Members of our operations team will visit your store(s) to ensure that our standards and practices are being upheld. These visits are also opportunities for us to continue to train your staff and help train any new employees. Our operations team will also help you implement new initiatives that are developed in conjunction with the marketing department. Our marketing team will advise you on coordinating local promotions and create collection-wide campaigns in which your store can participate. The marketing team will also provide you with designs for business cards, banners, stickers, magnets, and spec ads for use in your local market. | A set of comprehensive manuals are provided to an Old Chicago Franchisee upon the signing of the Operating Agreement. These manuals are designed for easy reference and serve as an authoritative source of information about Old Chicago standard operating policies and procedures. These manuals are frequently updated to reflect Old Chicago's response to the changing needs of today's guests. Purchasing Co-ops Meetings/Conventions Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software |
| Marketing | - | Old Chicago restaurants rely primarily on a Local Restaurant Marketing (LRM) program that allows each store to choose the marketing programs and promotions that match the needs of the individual store's market. Advertising and promotional materials are available at a reasonable cost to Franchisees that support a LRM program. As such we employ our own graphics designer to assist Franchise Partners with their LRM design needs. We also employ a marketing professional to consult with our Franchise Partners. Co-op Advertising Ad Templates National Media Regional Advertising Email marketing Loyalty program/app |
| Operations | - | - |
Expansion Plans |
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| US Expansion | - | Yes |
| Canada Expansion | - | - |
| International Expansion | - | - |
Company Overviews
About Mellow Mushroom Pizza
The Mellow Mushroom experience is unique in the restaurant industry. We have been operating outside the perimeters of traditional casual dining for over 30 years. As an owner, you are submersed into a world of boundless creativity. The brand allows for great expression and individuality. My Mellow Mushroom is successful because I serve Mellow Mushroom products in a restaurant that feels like it is my own. The atmosphere entices you to take pride in being a quality operator. Simply said, I want to be in my own Mellow Mushroom. It is the kind of place I want to hang out in. The culture and community are second only to the quality of food; and this is what sets us apart from other restaurants. There is no other Mellow like my Mellow.
Congratulations! You are on your way to owning your slice of the pie! Owning and operating a Mellow Mushroom is an exciting, life-altering journey.
The total investment necessary to begin operation of a Mellow Mushroom
restaurant franchise ranges from $1,624,000 to $2,391,000 if you lease
shell premises for the Restaurant, from $1,624,000 to $2,591,000 if you
lease premises for the Restaurant that must be retrofit, and from
$2,824,000 to $4,498,000 if you buy the real estate upon which you will
construct a new building for the Restaurant. This includes between
$78,000 and $88,500 that must be paid to the franchisor or affiliate. If
you want development rights, you must pay us a development fee equal to
$50,000 (the initial franchise fee for the first Restaurant) plus a
$25,000 deposit for each additional Restaurant’s initial franchise fee.
The total investment necessary to begin operation if you acquire
development rights is $1,649,000 to $4,523,000 (depending on your real
estate decision). This includes $78,000 to $113,500 that must be paid to
the franchisor or affiliate.
About Old Chicago
Opportunity Awaits
After 33 years of company growth, we are now offering a unique opportunity for a select number of entrepreneurs to take our proven brand into new markets.
Old Chicago is a leader in the casual dining pizza segment. We currently have territories available in many highly desirable markets, which presents an exceptional chance to establish our winning concept in choice locations.
WHY CHOOSE OLD CHICAGO?
Adaptable Site Requirements
Old Chicago's brand identity does not rely on a typical "box" to succeed. Our adaptive development strategy and flexible design allow stores to be constructed in many different types of sites, including prototype buildings, conversions/retro-fits, strip center end-cap locations, and non-traditional sites.
Sales Mix Advantage
With approximately 40% of historical system sales from our bar and drink business, Old Chicago's sales mix provides operators with a real opportunity to differentiate themselves from other casual dining concepts. Our high mix of bar sales is one of the main reasons why our stores experience exceptionally low Cost of Goods Sold (COGS). Our 60 company stores finished the year in 2008 with an average COGS of 25.6%.
Brand Strength & Versatility
Our brand has three decades of proven success and a loyal customer base in our existing markets. Old Chicago is a timeless concept that has that rare ability to appeal to a variety of consumers. Many casual dining concepts seem to copy each other in their menus and restaurant "feel". The Old Chicago concept is uniquely different.
Our bars have the rich, dark feel of a "freshly scrubbed joint". Our dining room areas with our new pizza bars really appeal to families and couples.
Broad Customer Appeal
Our bar area, along with our unique guest loyalty program -"The World Beer Tour" appeal to a younger, single customers. They create the high energy levels that have made our bars famous. With thirty beer varieties on tap, and another eighty varieties in bottles, we have created an exciting taste journey for our World Beer Tour members. No matter your age or occupation, there is a tremendous sense of accomplishment when your name goes on a plaque in your home store because you have completed the World Beer Tour.
The total investment necessary to begin operation of an Old Chicago
Restaurant franchised business is between $1,331,500 and $1,957,000.
This includes $98,250 and $135,250 that must be paid to the franchisor
or its affiliates.
The total investment necessary for an Area
Development Franchise includes the investment necessary to begin
operations of one Restaurant, plus a development fee of $50,000, plus an
initial franchise fee deposit of $20,000 multiplied by the number of
Restaurants (excluding the first Restaurant) which you must open.
The estimated total investment necessary to begin operation of an Old Chicago
Area Development Franchise is between $1,401,500 (for two
Restaurants) and $2,187,000 (for ten Restaurants). This includes between
$168,250 and $365,250 that must be paid to the franchisor or its
affiliates.
#299 in Franchise 500 for 2020.