Published On: December 22nd, 2022 / Categories: Blog /
Are you interested in opening a food and beverage franchise? If yes, then you must consider Panda Express as one of your choices. Panda Express is one of the most well-known American-Chinese fast-food franchise restaurant chains in the country. Licensed franchisees will profit from a well-known brand and a vast restaurant chain network. They are also into serving their customers something unique and new cuisines on the table. Perhaps it is something you are interested in, you should definitely read the blog to get more insights on it.
What is the Panda Express?
Panda express is found by the Cherng family in the 1970s. In the beginning, it was started as a Panda Inn restaurant. In the initial days of the business, they struggled a lot to get their customers, but later as they started offering more coupons and offerings to their customers they started to grow more as they moved ahead in their business. They succeeded in extending the scope of their restaurant idea into food courts, resulting in the development of the well-known fast food restaurant Panda Express.
Is Panda Express a Franchise For Sale?
Are you interested in starting a Panda Express restaurant? If so, there is an appreciable opportunity for you.
A Panda Express Franchising Opportunity is available and it’s easy to get started. All you need to do is research the options and choose the one that best suits your business goals.
Panda Express restaurants are known for their delicious food and engaging atmospheres. They’re perfect for busy businesses looking to increase their foot traffic and boost profits.
There are many types of Panda Express franchises, so you can find one that corresponds perfectly with your business goals. There are also different pricing structures and growth potential, so it’s important to consider all of these factors before making a decision.
Facts That Nobody Told You About Panda Express
In 1993, Panda Express opened its 100th location.
Prior to COVID-19, the business’s net profit had climbed by up to 25% from 2019 to that time.
Panda Express initially had difficulties, but Peggy Cherng modified the restaurant’s operating systems to guarantee the greatest cuisine and services.
There are no particular requirements from the team as such. They expect to have employed a high-potential candidate to operate their stores in their respective locations.
How much does a Panda Express franchise cost
From $377,100 to $1,884,000 is the estimated annual cost required to open a Panda Express franchise. The Panda Express franchise or license fee is $25,000.
How much does it cost to franchise a Panda Express in the United States?
Panda Express franchise can cost anywhere from $377,100 to $1,884,000.The amount of money that needs to be invested depends on the specific Panda Express franchises that are being purchased.
Panda Express Franchise Price and Costs
Panda Express Franchise Fee
Panda Express Franchise Cost
$377,100 – $1,884,000
Term of Agreement
Is the franchise term renewable?
Is the Panda Express franchise worth the Cost and Profit?
Yes, the Panda Express business is worth the investment as there are high demands for food services, and will generate much more profit competitively.
Pros & Cons of Panda Express
The variety in selling the food items is more so more people try buying multiple things and this helps their sale growth yearly.
Even though they are not franchising, they are constantly opening their stores in multiple places. Their growth is immense and continues to grow even now.
The total initial investment and operational costs are high
Panda Express should build in their already existing location. Panda Express is not allowed to build its own unit in any other locations.
You may not be able to own the franchise, instead, you can work as an employee such as a licensee or manager or a CEO.
How much do Panda Express franchise owners make?
The salary of the Panda Express owner can go up to 15% of their sales or at times even a little more based on the location of their operation. The typical executive salary at Panda Express is $215,085 annually.
What is Panda Express franchise profit?
Panda Express expects to make a franchise profit margin of 25% in liquid assets annually.
Panda Express Training to Franchises
Panda Express provides comprehensive training and support to franchisees, including classroom training, on-the-job training, and ongoing support. The training program covers everything from food preparation and customer service to business management and marketing. Franchisees also receive ongoing support from a dedicated franchise manager who provides comprehensive training and support to franchises and their staff members.
Financing for Panda Express franchises
Financing a Panda Express franchises can be challenging, as it requires a significant upfront investment. Most franchisees use a combination of personal savings, loans, and other financing options to fund their investment. Panda Express offers financing options to qualified candidates, including third-party lenders that specialize in franchise financing. It’s important to do your research and explore all of your financing options before making a commitment.
What are Panda Express franchise reviews?
On the basis of data provided by Panda Express, it has been noticed that they were more operational in airport locations. They run the best at airports as they have recorded the highest gross sales of $3,453,579; compared to any other locations.
They are ideally not a franchise, but they have established their restaurants in more than 1500 places and they own it on their name with their license.
Panda Express Rankings
Panda Express ranked #47 in the food and restaurants and delivery and has made it to rank #14721 globally.
Franchise Deck Analysis and Overview
The performance of Panda Express restaurants tends to be better in locations with more active Panda Express restaurants and greater brand recognition than in less developed areas.
The geographic diversity of the Panda Express Restaurants for whose results are presented here is rather low; captive venue Panda Express Restaurants are spread over 33 states, with about 27% of them developed in California and Texas. Therefore there are very particular when it comes to choosing any location as they would want to expand their business.
They chose places like universities, hospitals, and airports where they know that people would buy food at any cost when hungry when they cannot step out of the property. They have been very smart with regard to making sure their recoup of investment is more than their investment rate.
Not disclosed in FDD, but the average revenue is $28 million
Not disclosed in FDD
The Franchise Deck rating for Panda Express’s is 3.7/5.0.
Conclusion: Is Panda Express a good franchise Investment?
If you chose to work with Panda Express as a franchise it will be highly beneficial for you. You can even know why by looking at the answers to all the above topics. They have maintained their high standards in delivering good quality and quantity food to their customers. They generate profit and have plans for expansion in the future as well. If you are associated with them, then there is a high chance for you to earn in this sector.
Though there is a disadvantage of not having this brand on your name, even being their employee and serving the customers as you have always wanted to do would be very satisfying for you. Hence, if you are really planning to invest your time and money in this, go for it! This is the chance for you to look up and envision your thoughts and dedicate your time to Panda Express!
Wish to explore more franchise opportunities in the Asian Food category,
The initial cost required to open a Panda Express ranges from $370,000 to $1.8 million depending on the size and location of the restaurant. This investment covers everything from equipment and inventory to real estate and construction costs. In addition to the initial investment, franchisees are required to pay ongoing royalties, which are typically a percentage of the restaurant’s gross sales. For Panda Express, the ongoing royalty fee is 5% of gross sales.
In addition to the initial investment and ongoing royalties, franchisees are responsible for ongoing expenses such as rent, utilities, insurance, and payroll. These expenses can vary depending on the location and size of the restaurant, as well as local labor and real estate costs.
2. Can you make money owning a Panda Express?
Unfortunately, as they are not a typical franchise, you will have to be their employee and not an owner. Panda Express is a food chain offering license opportunities mainly to its employees as business partners.
3. Are Panda Express franchises profitable? How do Panda Express franchises make money?
As it is a food chain restaurant franchise, they have multiple stores which helps them make money at various locations.
Panda Express franchises can be profitable for franchisees who are able to successfully manage their restaurants and attract customers. As with any business, success depends on a variety of factors, including location, competition, and local market conditions.
Panda Express franchises make money primarily through the sale of food and beverages to customers. Franchisees pay an initial investment fee and ongoing royalties to the franchisor, but the majority of their revenue comes from the sale of menu items. Franchisees must also manage their expenses, including rent, utilities, labor costs, and inventory, in order to maximize their profits.
Panda Express provides franchisees with training and support in areas such as food preparation, customer service, and business management, which can help franchisees maximize their profitability. Additionally, the Panda Express brand is well-established and recognized, which can help franchisees attract customers and drive sales.
4. Does Panda Express franchise? Can I buy a Panda Express franchise for sale?
Yes, Panda Express offers franchising opportunities to qualified candidates who meet their requirements. However, owning a Panda Express franchise requires a significant upfront investment, as well as ongoing royalties and fees. It’s important to carefully research and consider the costs and benefits of owning a franchise before making a commitment. You can visit the Panda Express website or contact their franchising department for more information on the requirements and application process.
Panda Express is extremely selective while giving franchises, they are willing to offer franchises to the current or past managers of panda express restaurants.