My uncle and aunt just opened a subway franchise, and they are making a killing (its only couple of months old). I dont know what they had to do (I wouldnt ask them either way), but I was surprised how fast it became a sucess.
MustangSVT
Lifer
- Oct 7, 2000
- 11,554
- 12
- 81
Exactly.
So, this guy owns a restaraunt and is asking YOU for advice on opening another? Ummm... What exactly do you do for a living, LOLyourFace? Why would you be any more qualified to answer his questions than he is?
Damn hard to open one up.
People have tried to get a second one opened here for years. Ain't gonna happen.
People have tried to get a second one opened here for years. Ain't gonna happen.
It costs more to open a Krispy Kreme than it does to open a McDonalds
Mainly for you must open more than one store and prove to have the capital available to open more than one store.
I think you need to be worth several million to be a territory owner and need a lot of that worth to be liquid. Territories are very large, like entire states, so you need to be an already successful business person/entrepreneur to even be considered. If i find the info, i will post it.
oh noes! unless krispy kreme comes out with a low carb donut, the atkins kraze shall konsume them!!
[homer] mmmmm.... donuts [/homer]
[homer] mmmmm.... donuts [/homer]
- Oct 28, 1999
- 62,484
- 8,345
- 126
Not gonna happen. KK corporate has bought out just about every private KK franchise save for roughly three of them.
KK corporate didn't fully recognize how profitable the stores really are and are trying to keep the profits in house instead of scooping up small royalties off of the franchises.
Even on the off chance that you actually had the money to buy into the franchise, you would still go through an interview of sorts to prove that you were competent enough to actually open and run a store. It is their name afterall on the line. They just won't give it away to people.
The 2 million mentioned is actually pretty low. With that you aren't even considering labor costs...you've got management and operations crew on the clock months before opening. Plus you have have a whole slew of other costs that aren't factored in - marketing costs, accounting & wholesale systems to account for everything. Accountants to balance everything. IT staff to support the equipment and software in the store and the accounting office. Then you have delivery trucks running $50,000 or more a piece plus the insurance on everything.
It is NOT a small or simple business contrary to what many people may think.
Hell, the actual production equipment just to make the donuts runs upwards of 700,000 just for the cheap ones!
KK corporate didn't fully recognize how profitable the stores really are and are trying to keep the profits in house instead of scooping up small royalties off of the franchises.
Even on the off chance that you actually had the money to buy into the franchise, you would still go through an interview of sorts to prove that you were competent enough to actually open and run a store. It is their name afterall on the line. They just won't give it away to people.
The 2 million mentioned is actually pretty low. With that you aren't even considering labor costs...you've got management and operations crew on the clock months before opening. Plus you have have a whole slew of other costs that aren't factored in - marketing costs, accounting & wholesale systems to account for everything. Accountants to balance everything. IT staff to support the equipment and software in the store and the accounting office. Then you have delivery trucks running $50,000 or more a piece plus the insurance on everything.
It is NOT a small or simple business contrary to what many people may think.
Hell, the actual production equipment just to make the donuts runs upwards of 700,000 just for the cheap ones!
- Oct 28, 1999
- 62,484
- 8,345
- 126
The other problem (if you call it that) with signing on, is that you just don't sign on to do one store. You have to sign a multi-store agreement to put up a certain amount of stores (5-10) in a certain amount of time. Somewhere in the 5-7 year range if memory serves me right. If you don't put stores up fast enough, you pay penalties. And then, if you still don't put up stores fast enough you get your territory yanked from you. They either give it to someone else or corporate takes it and does it's own thing.
Let us star-trek fans unite and start a Krispy Klingon chain of restaurants...LOL
we could sell gakh donuts... (little donut strips that look like worms).. kinda cool actually!............NOT
we could sell gakh donuts... (little donut strips that look like worms).. kinda cool actually!............NOT
Freejack2
Diamond Member
- Dec 31, 2000
- 7,751
- 8
- 91
They just opened a Krispy Kreme about a half hour away from where we live. Went there last night. The line at 1am was insane. We were in line for 15minutes. However, It's about $2 cheaper per dozen here than in NYC or Mohegan Sun.
I remember e-mailing them a couple of years ago asking if they could e-mail me a donut or tell me when they were planning to open a KK in this area.
I remember e-mailing them a couple of years ago asking if they could e-mail me a donut or tell me when they were planning to open a KK in this area.
Rumpltzer
Diamond Member
- Jun 7, 2003
- 4,815
- 33
- 91
A friend in Taiwan was asking about opening a franchise in Taiwan after having Kispy Kremes here in the States. The market there is still open. The requirements, though, are astounding.
She decided against it.
Krispy Kreme Asia
She decided against it.
No way in hell.
1.) There's already a KK in Medford, by the Wellington T-stop on the Orange Line
2.) They're building a KK in the Pru
3.) Haverhill probably won't have a really high demand.
4.) Lots of capital involved and Mass probably has venture capitalists/businesspeople who have plans to develop already.
PS: to those who aren't living in mass/the greater new england area, krispy kremes are scarce, since it's mainly DD territory.
1.) There's already a KK in Medford, by the Wellington T-stop on the Orange Line
2.) They're building a KK in the Pru
3.) Haverhill probably won't have a really high demand.
4.) Lots of capital involved and Mass probably has venture capitalists/businesspeople who have plans to develop already.
PS: to those who aren't living in mass/the greater new england area, krispy kremes are scarce, since it's mainly DD territory.
The key point to why KK are so profitable(which I just realized) is that they are not just a retail store, they are also the supplier for all the super makets, convience stores, etc......in the area. This is a hugh PLUS.
- Oct 28, 1999
- 62,484
- 8,345
- 126
For many locations, wholesale IS their profit. It's not unusual to see a store net 2/3 of it's profit from wholesale. Fundraising (church, school, organizations) sales are also lumped in with that too, and are growing rapidly.
KK is also rolling out a new DSD product that you will start seeing soon, if not already. They are longer shelf life products like small powder sugar cake donuts and donut holes that are good for a couple days instead of just one or two. You will buy them pre-packaged at a grocery store or gas station like you would a little debbie or hostess cup cake.
TRENDING THREADS
-
Discussion Zen 5 Speculation (EPYC Turin and Strix Point/Granite Ridge - Ryzen 9000)- Started by DisEnchantment
- Replies: 25K
-
Discussion Intel Meteor, Arrow, Lunar & Panther Lakes + WCL Discussion Threads
- Started by Tigerick
- Replies: 23K
-
Discussion Intel current and future Lakes & Rapids thread- Started by TheF34RChannel
- Replies: 23K
-
-
News NVIDIA and Intel to Develop AI Infrastructure and Personal Computing Products- Started by poke01
- Replies: 411
Facebook
Twitter