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Taziki's Mediterranean Cafe Franchise ProfileFood Franchises > Casual Dining |
What Are the Initial Investment Requirements for a Taziki's Mediterranean Cafe Franchise?
To open a Taziki's Mediterranean Cafe franchise, you will need to prepare for an initial investment ranging from $468,000 to $831,000. This includes a franchise fee of $35,000. It's essential to have a cash requirement that falls within this range, alongside a net worth requirement of $500,000 to $1,000,000. Understanding these financial commitments is crucial for aspiring franchisees to ensure they are adequately prepared to embark on this business journey.
What Are the Financial Performance Metrics for Taziki's Mediterranean Cafe Franchise?
Taziki's Mediterranean Cafe franchises have shown promising financial performance, with an average annual revenue of approximately $1,230,944 per unit. The median annual revenue stands at $1,127,140, while the lowest recorded revenue is $465,528 and the highest reaches $2,570,024. These figures highlight the potential for profitability but also emphasize the importance of market conditions and operational efficiency in achieving these results.
What Are the Ongoing Fees for Taziki's Mediterranean Cafe Franchisees?
Franchisees of Taziki's Mediterranean Cafe should be aware of the ongoing fees that come with ownership. A royalty fee of 4% on gross sales is required, along with a marketing fee of 1%. These fees contribute to the overall operational costs and must be factored into the financial planning of franchisees to maintain profitability while benefiting from the brand's marketing and support initiatives.
How Long Does It Take to Break Even with a Taziki's Mediterranean Cafe Franchise?
The breakeven time for a Taziki's Mediterranean Cafe franchise is estimated to be around 18 months, with an investment payback period of just 12 months. This relatively quick payback period can be attractive to potential franchisees, as it suggests a faster return on investment compared to many other franchise opportunities. However, achieving this breakeven point will require effective management and a strong customer base.
Taziki's Mediterranean Cafe Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Taziki's Mediterranean Cafe Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2018 | 2019 | 2020 |
|---|---|---|---|
| Total Units | 82 | 87 | 91 |
| Net Change YoY | 5 | 4 | |
| Franchised Units | 63 | 70 | 74 |
| Net Change YoY | 7 | 4 | |
| Corporate Units | 19 | 17 | 17 |
| Net Change YoY | -2 | 0 |
Company Background
Taziki's Mediterranean Cafe is a fast-casual restaurant chain that specializes in Mediterranean cuisine, offering a diverse menu featuring fresh ingredients and bold flavors. Founded in 1998 in Little Rock, Arkansas, Taziki's has grown significantly, with a focus on healthy, wholesome dishes that cater to a variety of dietary preferences. The restaurant's inviting atmosphere and commitment to quality have made it a popular choice among diners looking for nutritious and delicious meals.
Franchise Opportunity
Investing in a Taziki's Mediterranean Cafe franchise presents an exciting opportunity for aspiring entrepreneurs. With a low initial investment range of $468,000 to $831,000 and a franchise fee of $35,000, franchisees can tap into a thriving market. The brand's strong presence and growing customer base make it an appealing option for those looking to enter the food service industry. Taziki's provides comprehensive support to help franchisees succeed, from training to ongoing operational assistance.
Financial Performance
Taziki's Mediterranean Cafe boasts impressive financial metrics, with an average annual revenue per unit of $1,230,944 and a median revenue of $1,127,140. The franchise has shown resilience with a breakeven time of just 18 months and a payback period of 12 months on investment. These figures highlight the potential for profitability, making Taziki's an attractive option for investors seeking a solid return on their franchise investment.
Royalty and Marketing Fees
Franchisees of Taziki's Mediterranean Cafe are required to pay a royalty fee of 4% of gross sales, along with a marketing fee of 1%. These fees contribute to the brand's national marketing efforts and support franchisee growth. The structured fee system ensures that franchisees benefit from a strong brand presence while also enabling them to invest in local marketing initiatives to drive customer engagement.
Growth and Expansion
Taziki's Mediterranean Cafe has experienced steady growth, increasing its number of franchised units from 63 in 2018 to 74 in 2020. The brand's expansion strategy focuses on entering new markets and enhancing its presence in existing areas. With a commitment to maintaining high operational standards and a strong support system for franchisees, Taziki's is well-positioned for continued growth in the competitive food service landscape.
Community Engagement
Taziki's Mediterranean Cafe places a strong emphasis on community involvement and giving back. The brand actively participates in local events and initiatives, fostering relationships with customers and creating a sense of community around its restaurants. This commitment not only enhances brand loyalty but also aligns with Taziki's mission of providing wholesome food that brings people together, making it a beloved choice among patrons who value community-oriented businesses.
Frequently Asked Questions
The initial investment for a Taziki's Mediterranean Cafe franchise ranges from $468,000 to $831,000. This includes the franchise fee, equipment, and other startup costs.