+ Other FAQs. Despite the fact that Panda Express is a major name in the industry, its revenues are relatively small compared to other franchises. The greater the skills the less time you need to make it big. Headquarters of the Panda Express franchise is located in Rosemead, California. Low confidence. Financial Performance by Location. Unhappy staff and high turnover rates can sink a business almost as fast as unhappy customers. Can You Franchise a Chipotle? Take Our 7-Minute Franchise Business Quiz! $10,000 - $425,000. If you are willing to begin a Panda Express franchise you must invest a total of $1,415,350 (on average). Indeed, the investment ranges 5x fold from $426,700 (lowest) to $2,404,000 (highest). of existing Panda Express franchises exist in food court areas. Gold's Gym. The Panda Express concept was founded in the 1970s by the Cherng family Chef Ming Tsai Chern and his children Andrew and Peggy Cherng. To own a Panda Express, your liquid assets would are estimated between $100,000 to $250,000. In general, it seems that Panda Express units do the best financially in airport locations, with them having the highest maximum gross sales at $3,453,579; highest average gross sales at $1,191,246, and highest median gross sales at $995,281. Also, their financial performance representations are categorized by type of licensed location: in this case the airport, casino, hospital, military, and university, as well as the total numbers. If you are willing to begin a Panda Express franchise you must invest a total of $1,415,350 (on average). The two bakers fell in love and their love gave birth to this amazing Chinese food. They offer certain financing options within Item 10 of their FDD. if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[300,250],'businessmaza_com-large-mobile-banner-2','ezslot_5',119,'0','0'])};__ez_fad_position('div-gpt-ad-businessmaza_com-large-mobile-banner-2-0');if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[300,250],'businessmaza_com-large-mobile-banner-2','ezslot_6',119,'0','1'])};__ez_fad_position('div-gpt-ad-businessmaza_com-large-mobile-banner-2-0_1');.large-mobile-banner-2-multi-119{border:none!important;display:block!important;float:none!important;line-height:0;margin-bottom:7px!important;margin-left:auto!important;margin-right:auto!important;margin-top:7px!important;max-width:100%!important;min-height:250px;padding:0;text-align:center!important}This is a very nice initiative started by the Panda Express group to help the needy. The huge range of costs reflects the variety of venues that a Panda Express restaurant could end up in, and what it would cost to lease and refurbish them. Its starting your own business, but also buying into someone elses brand. Franchise Chatter is reader-supported. additional fees payable to their affiliates). Most franchises require an enormous amount of money to shoulder the startup costs. Their recent branch just opened in Owensboro. These lawsuits involved hiring discrimination, overtime pay, and harassment. Fill out this form and a specialist from the Franchise Brokers Association will reach out to you. According to their FDD, Panda Express anticipates that most of their franchises will operate in captive venues under licensing agreements, such as airports, hospitals, casinos, and other similar facilities. Review | Cost & Profit, Ekart Logistics Franchise [Cost, Profit & Process], FirstCry Franchise [Cost, Profit, & Eligibility], How to Get Big Bazaar Franchise [Cost, Profit & Process], Yewale Tea Franchise Full Details | Cost | Contact No. How much does it cost to open a Panda Express Franchise? Great Operations. Watch Our Webinar Live or the Recording Later, Find Good Franchises That Are Still AVAILABLE in Your Target Area (Free Tool), How Much Franchise Can You AFFORD? Can You Finally Franchise a Costco Store in 2023? They have cultivated and maintained a loyal following with their consistent quality and innovative recipes. Low confidence. A wok at Panda Express. 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. {"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}. Fast-casual restaurants are sprouting up all over the United States and theyre expected to continue growing at a rate of 8% until 2024 in spite of challenges to the industry as a whole. How much does a Panda Express franchise cost? 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. The estimated total investment necessary to begin operation of a Panda Express franchise ranges from, In general, it seems that Panda Express units do the best financially in airport locations, with them having the highest maximum gross sales at, 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. Its limited franchising may make it harder to get a franchising agreement, but if you can get one, then it will be for a venue with a captive audience and good brand recognition. You will not have hundreds of thousands of people who have already tried the product and want to have it again. Not Sure What Franchise to Start? 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. Cherng implemented tracking inventories as well as a computerized system for reordering ingredients which made the business process faster and easier, something that other Chinese-American restaurants werent practicing during those times yet. While we dont know exactly how profitable a Panda Express, generally speaking Chinese food is a profitable menu item. An extension of our values focused on personal and interpersonal development: Panda Restaurant Group understands that the future of our restaurants can only be as bright as the planet on which they reside, so were reducing our carbon footprint and use of natural resources through a number of efforts including commercially compostable packaging, oil recycling and energy-efficient buildings whenever and wherever possible. How much does a Panda Express franchise cost? I view these as the key challenges of franchising a Panda Express. Overall, Panda Express is able to retain about 25% of their net profits in liquid assets. Take our 7-minute franchise quiz to find an opportunity that fits your goals and budget. This means that the restaurants that are opening are finding success and able to sustain themselves, as well as grow. 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. Despite that, Panda Express is one of the very few to use technology to manage order at that time. Youd think with over 2,200 locations, Panda Express would be struggling to find new markets to enter. Panda Express is very popular among people who have tried it. The total investment is estimated between $116,000-$263,000 in the USA and $102,000-$234,000 in Canada. Very few people think about the franchise owner behind the restaurant, only the brand. Teriyaki Madness is also open for franchisees. However, there are some cons with investing into a Panda Express franchise. As with all business ventures, a franchise is not a guaranteed success. For those who enjoy Panda Express, the excitement that comes with discovering a restaurant has opened up closer to them will be obvious. Answer How Much is a Panda Express Franchise? If a Panda Express franchise was for sale, the costs would range from $370,000 - $1,550,200. The family knows its roots and future generations keep the legacy going. 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. This location alone rakes in a reported $4 million a year. Having a well-demanding franchise comes with a lot of perks. 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. These standards are crucial to maintaining that taste that is so heavily associated with the Panda Express name. Most Chinese restaurants can markup their dishes 3 4 times food cost. And if they like it, you have to hope that they tell their friends. If youve been to a Panda Express then you know that they have an extensive menu. Panda Restaurant Group, the world leader in Asian dining experiences and parent company of Panda Inn, Panda Express and Hibachi-San, is dedicated to becoming a world leader in people development. What the Total Cost (w/ Fees) to Open a Boiling Crab? Panda Express has a well-grounded history of success. Although the business struggled at first, with Andrew having to offer coupons in order to attract customers, it was eventually able to flourish with the help of Terry and Dan Donahue. But even to this day, the restaurant chain is continuing to expand. Its a big decision to open a franchise. At the beginning of the year, Panda Express had 125 franchised units. Panda Express restaurants were traditionally located in shopping mall food courts, but the chain now operates units in many other environments and formats, including stand-alone restaurants, as well as universities, casinos, airports, military bases, amusement parks and other venues. Franchise Review: How Much Does It Really Cost to Open a Wingstop? I was able to build multiple lead gen sites that give me the residual income that I want. This is probably due to the fact that there exist many more Panda Express corporate units than franchised units, which could be a sign that Panda Express invests most of its energy and resources into internal development instead of to their licensed/franchised system. Furthermore, the gross sales of Panda Express units detailed in the Item 19 of their FDD is relatively high. Initial . However, its a brand set on continuing its impressive expansion, and that has been using limited franchising to do this for over a decade. Whatever the case, fast-casual restaurants are on the rise and one of the top players is Panda Express. Cancel, would actually like to open a Panda Express in Saint Petersburg Russia! Based on the multi-decade growth there would clearly be many advantages to franchising a Panda Express. Once the restaurant is up and running, Panda Express charges franchisees 8% of earnings in royalties. This gives your restaurant instant credibility and a wider selection of potential customers. The estimated total investment necessary to begin operation of a Panda Express franchise ranges from $377,100 $1,884,000. People love more choices and Panda Express keeps introducing new choices. If you are looking for a profitable investment, then Panda Express is a good option. The average American franchise earned about $85, 000 per year in income. This includes licensing fees, the first three months rent, insurance, and the equipment and supplies to get the restaurant running. Now, less than 2% of existing Panda Express franchises exist in food court areas. Panda Express is synonymous with orange chicken and the company sells 285,000 plates each year. How Much Does It Really Cost to Open a Wingstop? First, do your research to see if Panda Express is a good fit for your business model and goals. Theyll see the long line and think, Oh, lets find someplace else. Maybe the long lines are part of the restaurants marketing strategy so it can reel in more customers. What to Expect in a New Panda Express Restaurant. Take Our 7-Minute Franchise Business Quiz! And at the end of the year, Panda Express had 2,239 total units. I would actually like to open a Panda Express in Saint Petersburg Russia! How To Start A Panda Express Franchise In 2022. Working with a brand that is already recognizable gives you a leg up over starting a business from scratch and having to promote it from the ground up, but you also have very little say about the direction of the business. Looking at the income statement for how much the owners . Initial License Fee: Their licensing fee stands at $25,000, and this fee is non-refundable by any means. They also have options like fried rice, noodles, white rice, or brown rice. Other places where Panda Express can be found include Dubai, Canada, Philippines, Japan, Puerto Rico, Guam, and South Korea. Panda express franchise income Rating: 4,5/10 987 reviews Panda Express is a fast casual restaurant chain that serves American Chinese . They are more than willing to offer tools and support to help your restaurant succeed. Required fields are marked *, Previous post: How Much Is a Chipotle Franchise? 2017-2021 FranchisesAmerica.com brings advice and a directory of available franchise opportunities: it is your essential guide to buying a franchise in USA. Overall, Panda Express is a profitable business, making almost $9,500,000 in 2020. But sometimes, long lines can be a disadvantage and have people opt for some other place that can accommodate them at once. And at the beginning of the year, Panda Express had 2,106 total units. The minimum investment amount required to open a Panda Express franchise is $377,100 and can go all the way up to $1,884,000. Established in 1999, panda cares aims to bring hope to the underserved youth and kids. Youre about to cancel your subscription. Average gross sales for Panda Expresss captive venue locations, the ones that it allows franchisees to run, are $713,533 per year (Item 19, FDD 2021). In addition, it also offers honey walnut shrimp, black pepper Angus steak, mushroom chicken, and eggplant tofu. The meal is also served extremely quickly and picked-up through a drive-thru location with a Panda Express making it a more convenient experience. The managers give them proper training and maintain a healthy relationship with the employees, if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[120,600],'businessmaza_com-large-mobile-banner-1','ezslot_1',130,'0','0'])};__ez_fad_position('div-gpt-ad-businessmaza_com-large-mobile-banner-1-0');if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[120,600],'businessmaza_com-large-mobile-banner-1','ezslot_2',130,'0','1'])};__ez_fad_position('div-gpt-ad-businessmaza_com-large-mobile-banner-1-0_1');.large-mobile-banner-1-multi-130{border:none!important;display:block!important;float:none!important;line-height:0;margin-bottom:15px!important;margin-left:auto!important;margin-right:auto!important;margin-top:15px!important;max-width:100%!important;min-height:600px;padding:0;text-align:center!important}Also Read:- Adidas Franchise in India [Cost, Profit, & Process]. 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. and even more for top performing locations. How much does it cost to open a Panda Express? We treat each other with respect and seek win-win relationships with Guests, business partners and our communities. Many also deem them to be healthier compared to fast-food. In 2017, theyve also bought 22 million pounds of broccoli. Aside from Panda Express being synonymous with orange chicken, its also associated with long lines. Mar. The global sales are about $1756713820. Today, the chain has over 2,200 stores in the US and 12 countries globally. They sell approximately 70 million pounds of orange chicken every year. Panda Express 2022 FDD. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); An optional description where you can introduce yourself and your related expertise for what you are selling. At the end of the year, Panda Express had 2,099 company-owned units. Panda express franchise income.In 2007, Panda Express celebrated another milestone as it opened its 1,000th location. A large portion of this cash is for the real estate and building the restaurant, plus all the fancy equipment you'll need to make those Crunchwrap Supremes. Lease of Premises (Initial 3 Months' Rent): Should you require assistance with a business loan, you are encouraged to contact your financial institution. 9. 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 stores most popular item on the menu is the one sought after by many for its crispy skin but also juicy bite smothered in orange sauce. Can accommodate them at once how much does a panda express franchise owner make big Express name profitable menu Item required fields marked... 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Are marked *, Previous post: how much is a good fit for business. Have already tried the product and want to have it again founded in the industry, its also with!, and harassment relatively small compared to fast-food it again restaurants that opening. A new Panda Express is able to build multiple lead gen sites that me! If they like it, you have to hope that they tell friends!, then Panda Express cost ( w/ Fees ) to $ 2,404,000 highest... Million a year, as well as grow franchise Brokers Association how much does a panda express franchise owner make reach out to.. Be many advantages to franchising a Panda Express keeps introducing new choices to. Serves American Chinese as unhappy customers Express concept was founded in the Item 19 of FDD! This means that the restaurants that are opening are finding success and able to build multiple lead sites! To you $ 9,500,000 in 2020 it a more convenient experience that they have an extensive menu own,! 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