Popeyes Louisiana Kitchen, more simply known as Popeyes, operates quick-service restaurants that offer a ‘Louisiana- style’ menu featuring spicy chicken, biscuits, fried shrimp and other quick-service menu items.
Popeyes was launched in 1972 and have been offering franchise opportunities since 1976. Their corporate headquarters are in Miami, Florida. A major name in the chicken restaurant industry, they have over 348 Canadian locations and also operate in the UK, France, Czech Republic, Poland, Romania, Spain and Switzerland. Total outlets are more than 4,000.
Popeyes at a glance:
You’ll need at least half a million dollars in liquid cash and a net worth of at least double that. You’ll also need access to some serious financing to cover start-up costs that can approach $4 million. Apart from that, you’ll also need previous experience at running multi-unit restaurants, permanent residence in the area where your restaurants are located and ‘consistent involvement in local community initiatives’. Lastly, as you may expect after all this, you’ll be expected to take a hands-on, active role in running the business. This is serious franchising. It is not an opportunity for passive investment.
Like all the major fast food brands, getting into a Popeyes chicken n’ biscuits franchise is not cheap. Expect to pay at least $470,000 to get started and be prepared for costs that could go as high as $3,875,000 depending on where the store is located and what kind of store it is – Popeyes restaurants may be a walk-in format, drive-thru, sit-down, takeout, delivery, or some combination of these types. Set-up costs therefore rank as moderate to very high.
The initial franchise fee is $50,000. Military veterans may be eligible for a $22,500 discount off this cost and a reduced royalty fee for the first six months of operation.
After opening, you are required to pay an array of ongoing fees and charges. They include:
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| Key Costs Guide | Low | High |
|---|---|---|
| Franchise fee | $50,000 | $50,000 |
| Real estate rent and improvements | varies | varies |
| Soft costs | $80,000 | $420,000 |
| Site works | $0 | $800,000 |
| Construction/build out costs | $100,000 | $1,600,000 |
| Signage and technology | $250,000 | $850,000 |
| Initial training | $17,200 | $24,200 |
| Opening inventory | $13,000 | $26,000 |
| Insurance | $9,000 | $19,000 |
| Utility deposits | $2,500 | $50,000 |
| Business licenses | $1,300 | $6,500 |
| Additional costs – first three months | $20,000 | $30,000 |
Yes. Average gross revenues for Popeye’s standalone restaurants was $1,821,000 in 2022, not so far from the industry high of $2.4 million. With a 10% net profit margin, this kind of performance would deliver net income of $182,000 per year, more than three times the average Canadian franchisee income of $60k per year (all franchises). Income therefore ranks as very good.
Low to moderate. The failure rate for a Popeyes franchise was lower than the industry average of 8% for quick-service restaurants in 2023. However, not all Popeyes outlets are doing well. Recently there have been notable franchise bankruptcies, including a 17 unit business that went bust in early 2024.
Franchisees are granted a geographic area within which the company will not open, nor license anyone other than the franchisee to open, a Popeyes restaurant during the term of the franchise agreement. The protected area is equal to the lesser of a one mile radius around the franchised restaurant, or an area surrounding the franchised restaurant encompassing a population (residential and workplace combined) of 50,000 people. Popeyes has the right to periodically reduce or modify the protected area to reflect population shifts. However, if it is less than a one-mile radius, the protected area will always include a population of at least 50,000 people.
Popeyes support for franchisees includes:
The chicken sandwich and quick-service restaurant industry is a staple of the Canadian economy, and it’s dominated by a handful of large players that includes Popeyes Louisiana Kitchen. This means you receive the backing of a major brand, very good profits, and the potential of a huge domestic market – which makes this a viable franchise opportunity. The only concerns are the high costs of entry and a failure rate that shows some vulnerability. If you can live with these issues, then a Popeyes restaurant business could be right for you.
It begins with an application. Start the process today.
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Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.
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