Panda Express has a franchise fee of up to $25,000, with a total initial investment range of $370,700 to $1,552,600. Now, it's important that the franchisor is also making money. Complete the form below to get more information, including estimated costs to open and operate this franchise. How Much Does It Cost To Open A Panda Express Franchise In 2022? Panda Express has not made their profit data known, but the restaurant chains net income was around $8,000,000 in the year 2020. 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. This is an important factor to consider when choosing the right franchise to purchase. People love choices, and introducing a new option to the mix may be the ticket to getting them through the door. At the end of the year, Panda Express had 2,046 company-owned units. Their additional costs for the estimated total investment is on the higher end, especially in terms of rent, leasehold improvements, and insurance. 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? The lowest-paying job at Panda Express is a Cashier with a salary of $28,267 per year. What to Expect in a New Panda Express Restaurant. 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. Building requirement of food court should be 800 to 1000 sq ft with a minimum frontage of 24 ft, in line of 1,800 to 2,000 sq ft with minimum footage of 35 ft.if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[300,250],'businessmaza_com-large-leaderboard-2','ezslot_14',129,'0','0'])};__ez_fad_position('div-gpt-ad-businessmaza_com-large-leaderboard-2-0');if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[300,250],'businessmaza_com-large-leaderboard-2','ezslot_15',129,'0','1'])};__ez_fad_position('div-gpt-ad-businessmaza_com-large-leaderboard-2-0_1');.large-leaderboard-2-multi-129{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}. For those who enjoy Panda Express, the excitement that comes with discovering a restaurant has opened up closer to them will be obvious. 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To apply for a Panda Express, download our pre-built business plan below and visualize metrics like breakeven, payback, return on investment and more. Respect. Overall, the number of Panda Express units has been growing over the past three years, but at a decreasing rate. Not Sure What Franchise to Start? 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. Lets get into it. 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. So, if you want to start a franchise with a well-known brand, then Panda Express is the best option. On the low end of a Crumbl franchise the net profit is $33,260. We identify opportunities for growth and lead others to create the future we envision. At the beginning of the year, Panda Express had 1,979 company-owned units. Keeping your staff happy and treating them properly helps ensure they stay with your company longer. It has been around for over 30 years with no sign of stopping. Their menu consists of items that are inspired by traditional Chinese cuisines, such as orange chicken, Kung Pao chicken, teriyaki chicken, and Beijing Be. To own a Panda Express, your liquid assets would are estimated between $100,000 to $250,000. However, Taco Bell made over $260,000,000 in franchise and license fees, far more than any of the three aforementioned franchises. Please note that as of 2023 Panda Express doesnt offer any franchise. This is the upfront fee that must be paid when opening a Panda Express franchise. If its an Asian-American restaurant chain youre evaluating, Panda Express would be one of the top opportunities Id take a look at. Every business including Panda Express has its challenges. It is the leading casual fast food chain store specializing in American Chinese cuisine. Licensed franchisees will enjoy the benefit of a well-established brand and an extensive restaurant chain system. How much does it cost to open up a Panda Express? Airport Total; Average Gross Sales: $1,191,246: $713,553: Minimum Gross Sales: $184,872: $123,104: Median Gross Sales: $995,281: $528,794: . Panda Express has an initial franchise fee of up to $25,000, with a total upfront investment range of $426,700 to $2,404,000. At this point, Panda Express enjoys economy of scale and can negotiate with vendors to reduce the cost of ingredients. Im sorry we are crowded, but if you will wait, Ill buy you a drink. Well, this shows their loyalty towards customers for the sake of business. How much does it cost to open a Panda Express Franchise? 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. It has no overhead cost, much more affordable than franchising but the scope can be all over the world. The net change of Panda Express franchised units was +2 units. 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. Sorry. As mentioned above, they sell literally millions of pounds of the stuff every year. website for thousands of franchises available for your investment. Your email address will not be published. In 1983, together with Peggy Cherng, they opened Panda Express which was positioned as a fast-food version of Panda Inn. Answer They assure you to give good quality and hygienic food. The initial license fee for a Panda Express franchise (licensed store) is $25,000. This is the upfront fee that must be paid when opening a Panda Express franchise. 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). The two bakers fell in love and their love gave birth to this amazing Chinese food. When you have that kind of dedication, it can launch your business higher, as customer satisfaction will continue to grow. This is extremely long and, from that perspective, Panda Express isnt a good investment. We treat each other with respect and seek win-win relationships with Guests, business partners and our communities. 2017-2021 FranchisesAmerica.com brings advice and a directory of available franchise opportunities: it is your essential guide to buying a franchise in USA. If you want to set up a Panda Express franchise, then you will need to contact the company first. Unfortunately, this chain is not open for franchising at the time of writing. As with all business ventures, a franchise is not a guaranteed success. 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. Panda Express opened their first restaurant in a theme park location at Six Flags in Valencia, California. The restaurant serves bowls of chicken, fish, or beef, including their own version of orange chicken. The corporation requires that potential franchisees have a minimum of $500,000 of unencumbered liquid assets to even be eligible and if selected be able to pay a $45,000 fee to the franchisor. The global sales are about $1756713820. Panda Express offers extensive training programs to ensure each team members feels comfortable in their role. Initial Franchise Fee: $35,000 Total Investment: $343,200 to $695,200 Working Capital: $11,000 to $133,000 Royalty Fee: 6.0% The initial purchase price of any franchised business includes several fees. 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. Aside from the company's $45,000 startup fee, Business Insider estimates that opening one can cost anywhere from $1.2 million and $2.6 million. These types of restaurants are known to serve high-quality food in a casual setting. McDonalds and KFC are pretty common but I notice Panda is more popular in the airports Their current net growth score is 78. There is a minimum monthly payment of $4,000, even if that 8% is less than $4,000. Proactive. Gold's Gym. Note that this isnt the take-home pay of a franchisee. The first international Panda Express restaurant opened in Mexico City. How does this compare to other franchises in the food and beverage industry? A high total initial investment and operating costs really only makes it accessible to investors with a substantial net worth. Despite the fact that Panda Express is a major name in the industry, its revenues are relatively small compared to other franchises. It also has partnerships with some of the hospitals. Email franchisechatterblog@gmail.com, Your website and you have been instrumental in finding this franchise opportunity and I am overwhelmingly grateful. (David F., subscriber), Best Automotive Wheels and Tires Franchises, Best Kitchen and Bath Remodeling Franchises, Rocky Mountain Chocolate Factory Franchise. If youve been to a Panda Express then you know that they have an extensive menu. Very few people think about the franchise owner behind the restaurant, only the brand. Because of this, a new franchise owner can expect to draw in customers who have already tried Panda Express and enjoyed it, as well as those who have not yet tried it, but are curious. Also, a side note, if you are also in the Real Estate flipping business, and you happen to be a victim of a fire accident for your real estate property and looking for immediate help after fire, or even a victim of the Eugene fire, dont hesitate to check this franchise offering for your real estate property. Panda Express opened their 1,000th location in Pasadena, California. It originally started off as Panda Inn, a more upscale, sit-down restaurant. This does not include the donations from Panda Cares Foundation, the philanthropic arm of Panda Restaurant Group, Inc. and a 501(c) 3 nonprofit. Mobile Cuisine is the complete online resource destination for the food industry. This means that their restaurants are finding success and a positive rate growth indicates a well-balanced system. A company needs hard working, loyal employees in order to run at the optimum level. Now. They introduced Orange Chicken, which proved to be their signature dish, in 1987. It also has a vegetarian version of orange chicken with paneer for its Indian location. 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. Furthermore, the gross sales of Panda Express units detailed in the Item 19 of their FDD is relatively high. However, it is important to keep in mind that the financial information revealed in their income statement is fairly limited, so the following comparisons are based on revenues from royalties and license fees rather than restaurant sales. For a Panda Express chain of Chinese restaurants, you may need hundreds to millions of dollars before you can operate a franchise. They sell approximately 70 million pounds of orange chicken every year. I was able to build multiple lead gen sites that give me the residual income that I want. Total investment is estimated between $377,100 to $1,884,000 while Panda Express's franchise is expected to be $25,000. Franchise Disclosure Document (FDD) Database. Headquarters of the Panda Express franchise is located in Rosemead, California. 11 photos. Overall, Panda Express is a profitable business, making almost, Overall, Panda Express is able to retain about. To own a Panda Express, your liquid assets would are estimated between $100,000 to $250,000. They are currently charging $25,000 for this license and it is non-refundable. Think Panda Express is the right franchise for you, or are you interested in other franchise opportunities in the Food and Beverage industry? How much does a Panda Express franchise cost? Panda Express Franchise Review The franchisor assumes the data as supplied by them and their corresponding operations and Restaurant managers to be accurate. Total investment is estimated between $377,100 to $1,884,000 while Panda Express's franchise is expected to be $25,000. 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. Panda Express has a wide variety of items on their menu and a delicious fan favorite known as the orange chicken that brings back customers again and again. Start-Up Costs Jack in the Box Financial Requirements $50,000 Franchise Fee Per Location $1,500,000+ Minimum Net Worth Requirement $500,000+ Minimum Liquidity Requirement Estimated Initial Investment $1,697,000 Estimated Initial Investment (Low Range) $2,694,600 Estimated Initial Investment (High Range) Aside from actually running your business, you will also have to stay in compliance with your parent company, Panda Express. It features eight quality ingredients: thin strips of juicy all-white-meat chicken breast, diced Chinese sausage, red and green bell peppers, celery, fermented black beans, and whole dry chili peppers with a rich, spicy, and savory sauce. It started in 1983 by Andrew Cherng and Peggy Cherng. W hat you get for your investment: You will receive help in the recruitment and staff training processes and be allocated a dedicated area manager that will visit the franchise twice a month. According to their website, theyve sold over 80 million pounds of orange chicken since 2016. 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. Panda Express Franchise Benefits Panda Express Franchise Benefits your business in many ways. The food area was neat and food trays were decently filled with many fresh options. However, there are some cons with investing into a Panda Express franchise. Panda Express is a fast-food franchise restaurant chain that primarily serves American Chinese food. February 27, 2023. is a fast-food franchise restaurant chain that primarily serves American Chinese food. Subway franchisees pay 12.5% every week (8% royalties, 4.5% advertising). If you are willing to begin a Panda Express franchise you must invest a total of $1,415,350 (on average). The Asian restaurant chain won the 2021 Excellence in Food Safety Award for their efforts in ensuring food safety. This means that the restaurants that are opening are finding success and able to sustain themselves, as well as grow. They have maintained their standard for years. Even the worst performer is still making a net profit! The idea was to serve people the best American-Chinese cuisine and they never took their customers for granted. The net change of Panda Express corporate units was +53 units. The family business knows how to impress customers. Instead, this adjusted EBITDA is a profit margin that includes only all the costs described in the table below, namely: COGS, labor costs, rent and royalty fees. Panda Express opened their first baseball stadium restaurant in Angel Stadium. Last Updated: How much does a panda express franchise cost. How much you need to invest: Interested franchisees should make a total investment of 200,000 and pay franchise fees of 20,000. They have also established the Wok Smart menu in an attempt to provide healthier meal options to their customers. This article is based on hisFDD 2020.Panda Expressis a chain of fast food restaurant franchises that primarily serves American Chinese food. Growth. Please confirm by clicking on the Cancel Subscriptionbutton below. Use Our Free Financial Calculator, How Much Is a Chipotle Franchise? 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. The payment you would make will cover all types of expenditures that may incur during the opening of a Panda Express restaurant. This gives your restaurant instant credibility and a wider selection of potential customers. 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. Franchise Review: What the Total Cost (w/ Fees) to Open a Boiling Crab? The chain store was founded by Andrew Cherng, Peggy Cherng, and Master Chef Ming Tsai Cherng, Andrews dad, in 1983. This is very promising for prospective owners. At this time, they do not offer business loans to help cover other start-up costs, such as building rent and equipment purchases. They do not offer territory rights to franchisees. Panda Express has always had a strategy of opening in locations where there is a captive audience. The first Panda Express was located in Glendale Galleria in Glendale, Calif. 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