Schlotzsky’s Deli is renowned for its inventive sandwich franchise chain, each of which is cooked from scratch with premium, fresh ingredients and served on freshly baked sourdough bread. 

From 2021 to 2028, the fast-casual restaurant industry is anticipated to expand at a CAGR of 10.7%.In 2020, the market for sandwiches was estimated to be worth $154.2 billion, and by 2028, that figure is expected to rise to $207.2 billion. From 2021 to 2028, the fast-casual restaurant market in the US is anticipated to expand at a CAGR of 10.4%. The statistics are from Globenewswire.

 

What is Schlotzsky’s Deli?

Schlotzsky’s Deli is a fast-casual restaurant chain that focuses on serving soups, salads, and sandwiches.  Schlotzsky’s Deli is renowned for its inventive sandwich concoctions, each of which is cooked from scratch with premium, fresh ingredients and served on freshly baked sourdough bread.

Is Schlotzsky’s Deli Franchise an Opportunity?

Yes, a Schlotzsky’s Deli franchise can be an excellent business opportunity for those looking to open and run their sandwich shop under a well-known brand.

Schlotzsky’s Deli Franchise Review and Information
Industry Type	Food Franchise Opportunities
Sub Category	Food and Sandwich Franchise Opportunities
Year Established	1971
Company Name	Schlotzsky’s Deli
Founder/Management Head	Keith Reagan
Franchising Started	1976
Number of Units	323
Number of Franchise Units	323+
Social Media Handles	Facebook
	Twitter
	Instagram
Company Office location	Atlanta, Georgia, United States

Schlotzsky’s Deli Franchise Requirements

The following criteria must be met 

1. Financial prerequisites

You must have a minimum net worth of $500,000 and $200,000 in liquid assets.

2. Experience

Prior work at a restaurant or a store is preferred but not necessary.

3. Business savvy

You need to be able to manage funds, marketing, and personnel as well as possess excellent business abilities.

4. Territories

Schlotzsky’s Deli is looking for franchisees who are interested in creating several locations in a particular market or territory.

How much does a Schlotzsky’s Deli franchise cost?

An initial capital outlay of $353,550 to $831,600 is needed to launch a Schlotzsky’s Deli franchise. This includes a $40,000 franchise fee for initial training and support services, as well as recurring royalties and marketing costs.

Franchise Initial and On-going Franchise Cost
Franchise Fee	$35,500
Franchise Cost	$522,570-$1,635,380
Royalty Fee	6%
Advertising Fee	4%
Term of Agreement	Term and conditions
Is franchise term renewable?	Yes,
Renewable Franchise Fees	50% of Initial Franchise fees

Schlotzsky’s Deli Training for Franchises

1. Operations

Franchisees will be trained in all facets of restaurant administration, including food preparation, inventory control, patron relations, and staff supervision.

2. Marketing and advertising

Schlotzsky’s Deli offers training on the business’s marketing and advertising initiatives as well as suggestions for publicizing the restaurant and cultivating a devoted clientele.

3. Financial management

Franchisees will gain knowledge about managing their restaurant’s finances, including budgeting, accounting, and financial reporting.

4. Safety and Compliance

Schlotzsky’s Deli offers instruction in workplace safety, food safety, and compliance with health standards.

 

What is Schlotzskys Deli Franchise Term of Agreement and Renewal?

Franchise Agreement

Typically, a Schlotzskys Deli franchise deal has a 10-year initial term. Franchisees can choose to renew their contract for up to two further terms of ten years each.

Renewal Option

The current renewal price is $7,500, which covers the expense of reviewing the renewal application and revising the franchise agreement. The renewal procedure normally starts several months before the current agreement’s expiration.

Does Schlotzsky’s Deli provide Financial Assistance to Franchises?

Franchisees are not given direct financing by Schlotzsky’s Deli. However, the business could be able to help franchisees get funding from outside lenders.

Pros & Cons of Owning a Schlotzsky’s Deli Franchise

Pros of Owning a Schlotzskys Franchise

1. Brand recognition

Schlotzsky’s Deli is a well-known company with a solid reputation and a committed clientele, which can draw clients and increase revenue.

2. Complete training and support

To assist franchisees in succeeding, the company offers franchisees comprehensive training and ongoing support, which includes help with site selection, restaurant design, and marketing.

3. Multiple revenue streams

Multiple revenue streams are available at Schlotzsky’s Deli franchises, including dine-in, takeout, and catering, all of which can boost sales and profitability.

4. Proven business model

It is a franchise business model that has been successfully implemented over a long period and the company is constantly inventing and enhancing to keep ahead of market trends.

Cons of Owning a  Schlotzskys Franchise

1. High initial outlay

The range of the initial outlay needed to launch a Schlotzskys Deli franchise is from $353,550 to $831,600. 

2. Ongoing fees

Franchisees must continue to pay ongoing royalties and advertising expenses, which over time can become a sizable expense.

3. Limited menu and price control

Franchisees are required to adhere to Schlotzsky’s Deli’s menu and pricing policies, which may restrict their capacity to make free-standing business decisions.

4. High level of competition

The quick-service restaurant sector is characterized by high levels of rivalry, and franchisees may encounter challenging competition from eateries operating in the same market.

 

How much do Schlotzsky’s Deli franchise owners make?

It’s critical to understand the kind of profit margin you may anticipate as an owner if you’re thinking about buying a Schlotzsky’s Deli franchise. Schlotzsky’s estimates that the typical unit makes a gross profit of $237,000 annually. In other words, after expenses, the typical owner keeps a little over $200,000.

What is Schlotzsky’s Deli franchise profit?

Schlotzsky’s Deli franchise has had an average gross sales volume of $878,497. It’s crucial to remember that this number is an average and might not accurately represent the success of any specific franchise location.

With a profit margin of 20 to 25%, you can make anywhere in the range of $165,000 to $203,500.

What are Schlotzsky’s Deli franchise reviews

Positive comments on the franchise

• The reviews from franchise owners of Schlotzskys Deli appear to be positive. Many commend the firm’s effective marketing initiatives and support network, which they claim make running the business much simpler.

Negative evaluations of the franchise

• A few franchisees have complained that the company is challenging to work with and that their franchising fees are excessive.

Schlotzsky’s Deli Franchise Rankings

1. Entrepreneur’s Franchise 500

Schlotzsky’s Deli has appeared on this list for many years, most recently in 2021.

2. Franchise Times Top 200

On the Franchise Times Top 200 list for 2020, Schlotzskys Deli came in at number 225.

3. QSR Magazine

Schlotzskys Deli has received praise from QSR Magazine, a prestigious journal covering the quick-service restaurant sector, for its innovative marketing strategies and menu offerings.

4. National Restaurant Association (NRA)

Schlotzskys Deli has been a member of the NRA for a long time and has been honored by it for its commitment to environmental sustainability and food safety.

Schlotzsky’s Deli Parent Company

Focus Brands

Focus Brands, the parent company of Schlotzskys Deli, is a global franchisor and operator of several well-known restaurant brands. Focus Brands was established in 2001 and is headquartered in Atlanta, Georgia. Focus Brands’ portfolio also includes Cinnabon, Moe’s Southwest Grill, Auntie Anne’s, Carvel, and Jamba Juice, in addition to Schlotzsky’s Deli.

Franchise Deck Analysis and Overview

The required startup capital to open a Schlotzskys Deli franchise is $311,500. One-half of this sum—$150,000—must be paid in cash when the franchise agreement is signed. You can get the remaining $161,500 financed through outside sources like lenders or relatives and friends. A $30,000 franchise fee is also required by Schlotzsky Deli in addition to the initial investment.

Franchise Success and Failure Rate

The below table will highlight the franchise’s success and failure rate for the last 3 years. This will supplement your decision-making process.

Year	Format	Start	End	Change
2019	Franchise Owned	327	316	+11
Company Owned	25	23	+2
2020	Franchise Owned	316	303	+13
Company Owned	23	24	+1
2021	Franchise Owned	303	298	+5
Company Owned	24	25	+1

Competition Analysis of Franchise
Brand	Cost to Franchise	Franchise Fees	Royalty + Ad fees	Expected Profit	Recoup of Capital	FD Rating
Schlotzskys DeliFranchise	$522,570-$1,635,380	$ 35,500	6%	$878,490	4-5 years	4.0/5.0
Subway Franchise	$229,050-$522,300	$15,000	8%	$454,877	7.3 years	4.5/5.0
Jimmy John’s Franchise	$355,900-$671,400	$30,000-$35,000	6%	$280,000	6-7 years	4.0/5.0
Jersey Mike’s Franchise	$144,668-$786,233	$ 18,500	6.5%	$1,049,047	7-8 years	3.6/5.0
Jason’s DeliFranchise	$1,126,105-$1,576,444	$17,500	4%	$2,080,645	5-6 years	3.9/5.0

The Franchise Deck rating for the Schlotzskys franchise is 4.0/5.0

 

Conclusion 

Yes, It is profitable to have a franchise with Schlotzsky’s Deli. it can be a fulfilling and successful venture. With the information in this article, you can now begin the process of starting your very own shop.

Is the Schlotzsky’s Deli franchise worth it?

Yes but, The value of a Schlotzskys Deli franchise is determined by the franchisee’s specific circumstances and ability to successfully operate the business. Before making a decision, potential franchisees should carefully evaluate the opportunity and seek professional advice.

Entrepreneurs who want to open a franchise in the  soups, salads, and sandwiches  franchise opportunities categories can look at 

1. McDonald’s Franchise
2. Cheba Hut Franchise
3. Domino’s Franchise
4. Pizza Hut Franchise
5. Dunkin’ Donuts Franchise
6. Subway Franchise 
7. Wendy’s Franchise
8. Jimmy John’s franchise
9. Texas Roadhouse Franchise
10. Arby’s Franchise
11. Charleys Philly Steaks Franchise 
12. Firehouse Subs Franchise
13. Jersey Mike’s franchise

Frequently Asked Questions (FAQs)

1. Is Schlotzsky’s Deli Franchise Open?

Schlotzskys Deli is now open for Business/Franchise. It has over 300 franchise locations in the United States, with the majority of them open seven days a week. The hours of operation at each location may differ depending on the franchise and its location.

2. Is the Schlotzsky’s Deli Franchise profitable?

Yes, Schlotzskys Deli franchise can be a Profitable business. To maximize profits, invest in marketing, employee training, and quality control. A Schlotzsky’s Deli franchise can be a profitable investment with a well-executed plan of action.

3. Can you make money by owning a Schlotzsky’s Deli?

Yes, with a successful business plan and a commitment to quality, it is possible to make money by owning a Schlotzskys Deli franchise. Your profitability will be determined by local market conditions and competition, as well as effective marketing strategies, staff training, and quality control.

4. Is Schlotzsky’s Deli a franchise?

Yes, Schlotzsky’s Deli is, indeed, a franchise. The company has been in business for over 40 years and currently has over 350 locations throughout the United States.

5. How much is a Schlotzsky’s Deli Franchise?

The cost of opening a Schlotzskys Deli franchise varies depending on size and location but typically ranges between $300,000 and $600,000. The initial franchise fee, build-out costs, equipment, supplies, and start-up working capital are all included.

6. How do Schlotzsky’s Deli franchises make money?

Schlotzskys Deli franchises make money primarily through the sale of food, beverages, and merchandise. Catering services, online ordering, and other marketing opportunities are also revenue generators.