Casey’s General Stores is a well-known convenience store chain in the United States that was founded in 1959 in Iowa. The company has since expanded and now operates over 2,200 stores across 16 states in the Midwest, offering a wide range of products including groceries, prepared foods, and gasoline. Casey’s has also developed a successful franchise program of Gas Station and General Store, which has allowed individuals to own and operate their own Casey’s store in their local community.
In the United States, there are approximately 153,000 convenience stores as of 2021. The convenience store industry generates over $648 billion in annual sales. The industry has experienced steady growth over the past decade, with an average annual growth rate of 2.7%. The average convenience store size is approximately 2,800 square feet. In-store sales make up about 80% of the average convenience store’s revenue, with the remaining 20% coming from fuel sales.
Key drivers of growth in the convenience store industry include increasing demand for fresh and healthy food options, the adoption of technology to enhance the customer experience, and expansion into new geographic markets. The industry is highly competitive, with major players including 7-Eleven, Circle K, and Speedway.
What is the Casey’s?
Casey’s is a convenience store chain in the United States, known for its pizza and other prepared foods, as well as fuel and other convenience items. The company is headquartered in Ankeny, Iowa, and has over 2,200 locations across 16 states in the Midwest.
The company has been franchising since 1984 and currently operates over 2,200 stores in 16 states in the US. Overall, Casey offers a strong franchise opportunity for individuals interested in the convenience store and pizza industry. However, it is essential to carefully evaluate the costs, potential profitability, and risks before making a decision to invest in the franchise.
As a franchisee, individuals can benefit from the company’s brand recognition, established operational systems, and ongoing support to help them succeed in their business venture.
Is Casey’s a Franchise Opportunity?
Yes, Casey offers franchise opportunities for those interested in owning and operating their own convenience store. Franchisees are provided with support in areas such as site selection, store design, training, and ongoing operational assistance.
Casey’s has multiple formats of the franchise, like Gas station, General Store, and Convenience Store format.
Facts That Nobody Told You About Casey’s
- Casey’s was founded in 1959 in Boone, Iowa as a single convenience store.
- The company’s pizza is a popular menu item and is made from scratch in each store.
- Casey’s is known for its commitment to local communities, often donating to local schools, organizations, and charities.
- The company has been listed on the Fortune 500 list in recent years.
- Casey’s has continued to expand its presence, with plans to reach 3,000 stores by 2025.
Casey’s Franchise Review and Information
|Industry Type||Restaurant Franchise Opportunities|
|Sub Category||Convenience Stores|
|Company Name||Casey’s General Stores, Inc.|
|Founder/Management Head||Donald Lamberti and Kurvin C. Fish|
|Employees at Company H.O||9,000+|
|Franchise Expansion Plan||Nationwide expansion|
|Number of Units||2,239 (as of April 2021)|
|Number of Franchise Units||2,128 (as of April 2021)|
|Social Media Handles|
|Company Office location||Ankeny, Iowa|
Casey’s Franchise Requirements
- Strong business acumen and leadership skills
- Experience in retail, restaurant, or other related fields
- Minimum liquidity of $300,000 and a minimum net worth of $1,500,000
- Ability to secure financing for an estimated total investment of $2,000,000 to $3,500,000
- Willingness to participate in a rigorous training program
How much does Casey’s General Store Franchise Cost
- Initial franchise fee of $40,000
- Real estate and leasehold improvements cost can range from $400,000 to $2,000,000
- Equipment and inventory costs can range from $500,000 to $1,500,000
- Additional costs for training, insurance, legal fees, and other expenses can range from $60,000 to $300,000
- Ongoing royalties of 5% of gross sales and a marketing fee of 3% of gross sales
|Casey’s Gas Station Franchise Price and Cost|
|Casey’s Franchise Fee||$30,000|
|Casey’s Franchise Cost||$2,000,000 – $4,000,000|
|Term of Agreement||20|
|Is franchise term renewable?||Yes|
|Renewable Franchise Fees||50% of the then-current franchise fee|
How much do Casey’s franchise owners make?
The income of Casey’s franchise owner can vary depending on various factors such as location, sales volume, operating costs, and other business expenses. However, according to the latest fdd, the average income of a Caseys franchise owner makes a revenue of #2.7 million for a year.
What is Casey’s franchise profit?
The profitability of a Casey franchise can depend on many factors, such as location, competition, local market conditions, and operating costs. However, it’s important to note that individual franchisee earnings can vary significantly from this average figure depending on various factors.
I will analyse project Casey’s franchises profit and years to recoup the investment (ROI).
|AUV||Estimated Annual Profit (12.5%)||Estimated Annual Profit (15%)||Estimated Annual Profit (18%)|
|$ 2,760,000||$ 345,000||$ 414,000||$ 496,000|
|Recoup mid-point$ 1,860,000||5.39 years||4.49 years||3.75 years|
The estimated Casey’s franchise profit is in the range of $345,000 to $496,000 and it will take 3.75 to 5.39 years to recoup the investment.
Casey’s Training to Franchises
Two people who have been chosen, such as you and your store manager, should receive training. Before a new outlet is opened, training is conducted. The company will only waive the training requirement if they determine that your prior experience qualifies you for one; otherwise, training is required for both you and your store manager. In one of their training locations in Medford, Oregon, or Portland, Oregon, training lasts approximately 120 hours over the course of around three weeks. They will choose a training location. Your travel to, from, and within Oregon, as well as your lodging and meals during the training session, are your responsibility. If more training is necessary, they will charge you somewhere around $40 per hour.
Casey’s Operations to Franchises
How is Casey’s Territory Granted to Franchises
A protected trade area is granted to the franchisee, which is typically a 2-3 mile radius.
What is the Franchise Term of Agreement and Renewal?
The initial term of the franchise agreement is typically 20 years, with the option to renew for additional 5-year terms.
Does Casey’s provide Financial Assistance to Franchises?
Casey’s does not provide direct financing, but it may be able to assist in identifying potential lenders and financial resources.
Pros & Cons of Owning a Casey’s Franchise
Pros of owning a Casey’s General Store
- Established a brand with a loyal customer base
- Comprehensive training and support programs
- Diverse revenue streams with the potential for growth
- Strong franchisor-franchisee relationship
- Ability to operate in small towns and rural areas
Cons of Owning a Casey
- High initial investment costs
- Ongoing royalty and advertising fees
- Strict operational and branding standards
- Limited geographic availability
- Intense competition in the convenience store industry
What are Casey’s franchise reviews
Casey’s franchise has generally positive reviews from franchisees of general store or gas station, with many citing the company’s strong brand recognition, comprehensive training and support, and potential for high profits as critical factors in their success.
Casey’s Franchise Rankings
Casey has received several awards and recognitions over the years, including being named one of Forbes’ “Best Employers for Diversity” in 2021 and ranking #28 in Entrepreneur’s Franchise 500 list in 2021.
Franchise Deck Analysis and Overview
If you are thinking about becoming a franchisee, Casey Hawkins appears to be a profitable business to run. From the restaurant’s architecture and dining environment to its food and beverage selection, Casey’s Grill Bar restaurants are perfectly situated to connect with its primary target Demographic, adults 34-54, which is in line with the makeup and projected growth trend of the Canadian population.
But whether it’s a gathering to watch the big game or just a night out with friends, folks 19 to 34 will also feel at home at a Casey’s especially in their vibrant bars. Its franchise fee is considerably lower than those of other franchises in the US. On the other hand, if you take into account its profit and investment recovery, this brand can unquestionably be a profitable franchise business for you.
Potential Risks to consider before investing in a Casey’s franchise
As with any franchise opportunity, there are potential risks to consider before investing in a Caseys franchise. These may include the initial franchise cost, ongoing royalty and advertising fees, potential competition from other convenience stores, and the need to maintain a high level of customer service and operational efficiency.
Is the Casey’s Franchise Profit Worth the Cost?
Based on industry estimates and the company’s financial disclosures, the estimated Casey franchise profit is in the range of $150,000 to $300,000 per year. Whether or not this is worth the franchise cost, which can range from $300,000 to $1.3 million depending on the size and location of the store, ultimately depends on individual factors such as market demand, competition, and operational efficiency.
Casey’s Franchise Success and Failure Rate
The below table will highlight the Caseys franchise success and failure rate for the last 3 years. This will supplement your decision-making process.
Competition Analysis of Casey’s Franchises
|Casey’s||Franchisee Fees||Royalty + Ad fees||Expected Profit||Recoup of Capital||FD Rating|
|Casey’s||$30,000||7.5%||$512,500 – $738,000||5-7 years||4.6/5.0|
|7-Eleven Franchise||$10,000 – $1,000,000||20%||–||–||4.1/5.0|
|Circle K Franchise||$20,000 – $35,000||4.5%||$50,000 – $100,000||2-3 years||4.2/5.0|
|Speedway Franchise||$20,000 – $30,000||4%||$60,000 – $90,000||2-3 years||4.0/5.0|
|Wawa Franchise||$30,000||4.5%||$100,000 – $200,000||2-3 years||4.3/5.0|
|Sheetz Franchise||$50,000||3.5%||$150,000 – $300,000||3-4 years||4.2/5.0|
The Franchise Deck rating for the Casey franchise is 4.6/5.0.
Conclusion: Can You buy Casey’s General Store franchise?
It ultimately depends on individual circumstances and factors such as location, competition, and management. However, the fact that Casey’s has a relatively low franchise failure rate and a solid track record of financial success for both franchisees and the company-owned stores suggests that it could be a promising opportunity for the right candidate with sufficient capital and business acumen.
Entrepreneurs who want to open a franchise in the supermarkets categories can look at
- 7-Eleven Franchise
- Circle K Franchise
- Speedway Franchise
- Wawa Franchise
- Dollar General Store Franchise
- Whole Foods Franchise
- Target Franchise
- Five Below Franchise
- Sheetz Franchise
- Lululemon franchise
- Board And Brush franchise
- QC Kinetix Franchise
- Gatsby Glass Franchise
Frequently Asked Questions (FAQs)
- Is Casey’s franchise profitable?
Based on the information available, the Caseys franchise can be profitable. The profitability depends on various factors such as location, operating costs, revenue, and competition.
- Can you franchise Casey’s Gas Station?
Yes, it is possible to make money owning a Casey Gas Station franchise. The franchisee’s profitability depends on various factors such as location, local competition, operating costs, and revenue.
- Is Casey’s a franchise?
Yes, Casey’s stores is a franchising businesses and are franchises. It offers franchise opportunities for qualified individuals who meet their requirements.
- How much is Casey’s franchise?
The estimated cost to open a Casey franchise ranges from $2,200,000 to $5,000,000. This cost includes the franchise fee, equipment, inventory, and other startup costs.
- How do Casey’s franchises make money?
Casey’s franchises make money through the sale of prepared food, gasoline, and other products from their convenience stores. They generate revenue through product sales and services offered at their locations, and the profitability depends on various factors such as location, operating costs, and revenue.