The Panda Express concept was founded in the 1970s by the Cherng family Chef Ming Tsai Chern and his children Andrew and Peggy Cherng. However, there are some cons with investing into a Panda Express franchise. Because their market is not yet saturated, you are sure to find customers that are pleased to have one of their favorites now in their neighborhood. Overall, Panda Express is a profitable business, making almost, Overall, Panda Express is able to retain about. Other potential costs include inventory, equipment, insurance, employee training, business licenses, rent, landscaping, signage, etc. At the end of the year, Panda Express had 1,979 company-owned units. Theyve had billion-dollar revenues in the previous years as well. Panda Express opened its first location in 1983 and has been growing steadily ever since. This includes licensing fees, the first three months rent, insurance, and the equipment and supplies to get the restaurant running. If you cant wait for the day that Panda Express will accept franchise operator applicants, check out Teriyaki Madness. Panda express franchise income Rating: 4,5/10 987 reviews Panda Express is a fast casual restaurant chain that serves American Chinese . It takes a lot of blood, sweat, tears, and money, so making sure youre buying into the best franchise for you is of the utmost importance. I was able to build multiple lead gen sites that give me the residual income that I want. Out of all the roles listed, restaurant managers and general managers bring in the most pay per hour, with hourly rates of $18.82 and $18.92, respectively. It is estimated that opening a Panda Express location and operating it for the first three months will cost between $360,000 and $1,545,000. How much you need to invest: Interested franchisees should make a total investment of 200,000 and pay franchise fees of 20,000. There will be conferences and trainings that you will be encouraged to attend to ensure you are meeting guidelines and standards.You will also be required to pay royalty fees to Panda Express for the use of their products and name. If you want to set up a Panda Express franchise, then you will need to contact the company first. Every business including Panda Express has its challenges. Panda Express has a franchise fee of up to $25,000, with a total initial investment range of $370,700 to $1,552,600. Whether through sharing good food with guests or providing opportunities for professional and personal growth with associates, all are embraced in a genuine family environment that is uniquely Panda. Panda Express has a positive growth for years now, by 2018 their rate growth was 78. . With a franchise, the food is expected to taste the same regardless of the location. Below is a chart that showcases the most important of the financial information given by Panda Express their average gross sales by location, median gross sales by location, minimum gross sales by location, and maximum gross sales by location. Being a part of the Panda Express franchise family means youre in good hands knowing that the company is continuously growing. Since 1983, they have opened over 1,000 locations in the United States, and have even gone international. 3 (Fri.), 11 a.m. EST, Top Pick Franchises Mar. Whenever youre at the food court or drive-thru, youre bound to see a long line of people queuing to order at any given time. Panda Express is a fast-food franchise restaurant chain that primarily serves American Chinese food. And at the beginning of the year, Panda Express had 2,106 total units. On top of securing your license, you must also find a place to house your restaurant, utilities to run your restaurant, equipment, product, and personnel. Panda Express is currently enjoying a positive net growth, meaning that more of their restaurants are opening than closing. Giving the employees the salary they deserve and keeping them happy and safe in their work is important as well. Here are some of the biggest advantages of this restaurant. It is important to note that these financial representations only showcase the figures for gross sales, there is no information on the net profit of the average franchisee. Panda Express believes in treating its employees rightly. This Asian-American chain has been around since 2003 and has over 150 branches all over the United States. In fact, given the high initial investment for a Panda Express franchise, one possible implication is that there might be a high operating cost, which could eat into even the high gross sales of Panda Express. Considering Panda Express commitment to running a tight ship, I bet theyve found a way to reduce their food costs even further beyond mom-and-pop Chinese restaurants that can markup food by 3x 4x. The company website states: Panda Restaurant Group operates all of our restaurants with the exception of select locations in airports, universities, military bases, hospitals, casinos, amusement parks and stadiums. Click here to get a new food business case study with revenue numbers delivered each week. While we dont know exactly how profitable a Panda Express, generally speaking Chinese food is a profitable menu item. Lets dive in! If you are looking for a business opportunity that is not only scalable but can also give you great rewards, then I invite you to check it out. The initial licensing fee for taking on a Panda Express restaurant is $25,000 (Item 6, FDD 2021). With a high investment cost of $1,415,350 and annual sales of $616,240, investing in a Panda Express franchise may not seem like a great investment. At this point, Panda Express enjoys economy of scale and can negotiate with vendors to reduce the cost of ingredients. Use Our Free Financial Calculator, How Much Is a Chipotle Franchise? At the end of the year, Panda Express had 138 franchised units. According to their website, theyve sold over 80 million pounds of orange chicken since 2016. If there are 10 people in a room, 8 out it 10 would be preferring Chinese food over any other food. Becoming a part of the Panda Express community is a big choice, but, when done right, can mean the start of a whole new career, and life. It has been around for over 30 years with no sign of stopping. Cashier $14.25 per hour. The chain offers a wide variety of menu items like orange chicken, sweet fire chicken breast, grilled teriyaki chicken, honey walnut shrimps, fresh salads, etc. Working with Panda Express, you can choose your territory and open your first store in an area that has a need or a craving for their product. Initial Franchise Fee: $25,000 Total Investment: $426,700 to $2,404,000 Working Capital: $60,000 to $110,000 Royalty Fee: 8.0% In this article were looking at Panda Express and the financial performance of its stores disclosed in its Franchise Disclosure Document to assess whether you should invest in Panda Express franchise. Answer If you are willing to begin a Panda Express franchise you must invest a total of $1,415,350 (on average). There are many factors and decisions that go into it, as well as a lot of startup costs that will need to be secured. Need help? Panda Express created the dish to symbolize good fortune for the year ahead. It is a competitive advantage. They dont provide a path for franchisees on the website, and because they run most of their restaurants directly, theres little information out there about the application process. The group has raised over $50 million for charity. Retrieved June 28, 2015. Panda Express maintains the right to terminate or not renew a franchise license, in the event they are unhappy with the franchisees performance or compliance. $10,000 - $425,000. We identify opportunities for growth and lead others to create the future we envision. $25,000 is the initial fee for a Panda Express franchise (licensed store). In 2019, Statista reported Panda Express as the number 3 leading fast-casual restaurant. Take Our 7-Minute Franchise Business Quiz! For franchisees with established relationships with the brand and multiple stores, there may be room to negotiate, and the company has gone as low as $7,500, but this fee wont be negotiable for new franchisees. Panda Express opened their first restaurant in a theme park location at Six Flags in Valencia, California. By purchasing a franchise of a company that already has a strong following, you are opening yourself up to their customer base. Compared to other franchises, Panda Express lacks transparency in regards to their financial statements as they give no indication of the revenue they make from their company-owned units. How much do Denny's franchise owners earn? Looking at the income statement for how much the owners . Youre about to cancel your subscription. Becoming a part of the Panda Express community is a big choice, but, when done right, can mean the start of a whole new career, and life. You will have to entice them to come in and try your product and hope that they like it. You can also check out the best Korean Barbeque Restaurant in Lynwood, WA. Great Operations. Please contact me at 847-490-4648 OR 847-942-6451 at your earliest convenience. Amounts paid to Panda Express are non-refundable. However, the military locations outperform airport locations for total gross sales at $39,026,818 and the casino locations outperform for minimum gross sales at $420,343. The major differences between costs including location and size of restaurant space. Its a big decision to open a franchise. additional fees payable to their affiliates). Total investment is estimated between $377,100 to $1,884,000 while Panda Express's franchise is expected to be $25,000. Despite the fact that Panda Express is a major name in the industry, its revenues are relatively small compared to other franchises. Franchising itself brings several advantages, including training and support from the franchisor, a well-recognized brand and its marketing power, a tested business model, and a business that will be easier to sell when you are ready to retire. Panda Express Requirements and Fees If you do not have the liquid capital to purchase the franchise license outright, they will set up payment terms with you. Our Panda Express franchise review, available to premium subscribers, also digs into the details for a better comparison. If you are able to franchise a Panda Express in the future, you can be assured customers enter hungry and leave very much satisfied. One style to ostend the potential revenues or profits generated from a Panda Express franchise investment is to review the franchisor'southward Detail xix within their FDD. With new franchisees opening up restaurants in desirable markets, this appears to be a company that will be around for a long time. This does not include the donations from Panda Cares Foundation, the philanthropic arm of Panda Restaurant Group, Inc. and a 501(c) 3 nonprofit. It was also around this time that theyve opened their 1,000th branch in Pasadena, California. 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