Is Waffle House A Franchise Available For Sale & Cost Analysis

Waffle House franchise has more than 65 years of restaurant management experience. Their objective has always been to deliver cooked-to-order food, including waffles, the brand’s specialty, in a welcoming environment. 

Waffle House franchise restaurants are open 24 hours a day, seven days a week, thus guests report that their doors are unlocked. The chain has an excellent reputation in the market and today has over 2100 units. 

What is the Waffle House?

The classic yet modest bright yellow sign coupled with black letters simplifies the process of recognizing a Waffle House: a breakfast franchise that operates around the clock. The origins of this diner-style fast food restaurant may be traced back to 1955, when two neighbours, Joe Rogers Sr. and Tom Forkner, launched the first Waffle House in Georgia. 

Since 1955, Waffle House restaurants have provided an unrivalled blend of delicious food and exceptional service. For the past 56 years, this has made it a treasured symbol of the South. Waffle House restaurants offer a one-of-a-kind dining experience in which customers are frequently greeted by name and can interact socially with other customers and their servers. All cuisine is created fresh, cooked to order, and served on actual china in a kitchen visible from the front.

Owning a restaurant in this flourishing and lucrative industry may appear to be the ideal investment. However, this privately held company does not make it easy to gain access through the backdoor. In fact, unless you already have connections, becoming a franchisee is nearly hard because as per their website, Waffle House, Inc. fails to offer franchise opportunities to the general public. 

Waffle House Statistics 

• There are more than 1,900 Waffle House restaurants across 25 states. The states which fail to have a single restaurant are California, Hawaii, Iowa, Massachusetts, Minnesota, Nevada, New Jersey, Oregon, South Dakota, Vermont, Wisconsin, Alaska, Connecticut, Idaho, Maine, Michigan, Nebraska, New Hampshire, New York, Rhode Island, Utah, and Washington. 

• The number of locations in Georgia alone is 439. 

• The number of locations in Atlanta is 263, which is a home to the original Waffle House founded in 1995. Roughly 80,000 customers are served daily in these locations.

• Waffle House’s record label has 40 songs

Is Waffle House Franchise Opportunity?

Because Waffle House is not currently open for franchising, there is limited data available regarding the same; but with an estimate, you should be prepared for if you want to apply as a franchise owner with Waffle House.

Some Waffle House restaurant franchises are still available for purchase. An entrepreneur gets a profitable concept by becoming a franchisee. Because all of the processes are well-established and proven, the business is simple to run.

Aside from franchising, you may be wondering what else you can do to become a member of the Waffle House family. According to the brand’s website, you may come out on top of a Waffle House stock. When you buy a firm’s stock or share, you can become a part owner of the company.  As a result, you are entitled to share in the advantages of any valuation increases or dividends.

Facts That Nobody Told You About Waffle House

• There are more Waffle Houses in Atlanta when compared to any other city in the USA. 
• The first Waffle House was opened in 1955 on the account of Labour Day. 
• The company was named after the biggest earner of their original menu containing 16 items. 
• There is also a Waffle House museum.
• The company is known to serve 145 waffles every minute.
• They have their own music records and produce music videos and WaHo-themed songs. 
• The company was known as Waffle and Steak in Indiana. 
• The company has served more than 2.5 billion eggs since 1955. 
• A Waffle House Index is used by FEMA for determining the severity of a natural disaster. 

Waffle House Franchise Information
Industry Type	Food Franchise Opportunities
Sub Category	Breakfast franchise Opportunities
Year Established	1955
Company Name	Waffle House, Inc.
Founder/Management Head	Joe Roger Sr.
Franchising Started	1955
Franchise Expansion Plan	United States and Canada
Number of Units	2100+
Number of Franchise Units	More than 1800
Social Media Handles	Facebook
	Twitter
	Youtube
	Instagram
Company Office location	Norcross, GA

Waffle House Franchise Requirements

The Waffle House restaurant franchise is well-known for its secret menu. According to our understanding, they do not require any prior experience.  Starting a Waffle House franchise simply requires an initial investment, and you must consider factors such as real estate expenses, licence charges, equipment prices, and so on.

Waffle House has neither rigorous policies nor stringent rules. 

However, their investment costs are somewhat substantial, and no information on financial assistance is accessible. To learn everything you need to know about the franchise, read the Franchise Disclosure Document issued by the franchisor.

How much does a Waffle House franchise cost

The estimated total cost required to launch a Waffle House franchise is somewhere between $600,000 and $1,000,000. Waffle House does not openly offer franchises, and new franchises typically go to persons who are already employed by the firm or who are already well familiar with it.

 As a result, additional information on the precise costs of launching a Waffle House franchise is difficult to be discovered. 

How much does it cost to franchise a Waffle House in the United States?

The total investment required to open a Waffle House restaurant in the United States ranges between $0.6 and $1 million.

Waffle House Franchise Initial and On-going Franchise Cost
Waffle House Franchise Fee	$37,500
Waffle House Franchise Cost	$600,000-$1,000,000
Royalty Fee	6%
Term of Agreement	3 years
Is franchise term renewable?	Yes

Waffle House Franchises Training and Operations 

Every year, all the locations of Waffle House are accessible around-the-clock. The majority of the restaurants in the chain had jukeboxes, which typically played 45-rpm singles. CDs are also occasionally played. Waffle Records, the record company owned by Waffle House, has released music. All of musical output, from “Saturday Night At My Place” by Gary Garcia from 1995 to “They’re Cooking Up My Order” by Alfreda Gerald from 2006 are released by Waffle House.

 The songs are on standard CDs that Waffle House produces and sells exclusively; however, the restaurant company has released a CD of a few of the songs available for purchase.

Orders are called in by the servers using a specific dialect of diner slang, and the menu advises using some of the same terms when ordering multiple meals.Waffle House also asserts that its brand-name waffles, pork, grits, ham, T-bone steaks, and pork chops are among the most popular foods sold worldwide.

On Valentine’s Day, Waffle House accepts reservations and offers for candlelight services.

Pros & Cons of owning a Waffle House Franchise

Pros

• Healthy and Affordable Menu
• An iconic Legend
• Recognized Brand
• Open Twenty-Four Seven
• Expanding Menu

Cons

• High-cost Investment
• Menu Selection
• Locations

How much do Waffle House franchise owners make?

Since Waffle House does not disclose its financial information, an estimate of Average Unit Volume (AUV) can be made using data from the sector and what Waffle House franchise does disclose an estimated Average per Unit Volume revenue (AUV) for a Waffle House franchise in 2021 was $655,897.

Initial midpoint investment	% Profit margin of average franchise sales	Estimated profits	Time to recoup investment
$800,000	10%	$65,589	14.5 years
$800,000	15%	$98,384	10.5 years
$800,000	20%	$131,179	8.5 years

What is Waffle House franchise profit?

From above table the average Waffle house franchise profit is $65,000 to $ 135,000.

Waffle House operates over 2,100 locations worldwide. A franchise owner of Waffle House can earn up to $1 billion in gross revenue each year from sales. They did not disclose the exact amount of franchise profit.

What are Waffle House franchise reviews?

Waffle House is well-known, particularly in the southern United States. It is a regional landmark where anyone may have breakfast at whatever time of day. Waffle House already has built itself with a classic diner atmosphere that everyone seems to appreciate, so when you run a Waffle House, you will not have to work as hard to get the name out there because it is already recognized a timeless classic restaurant for its customers.

Waffle House is regarded as a less expensive option to its competitors. IHOP, for example, charges $6.79 for a plate of waffles, whereas Waffle House charges mere $3.70 for a waffle. Everything else at Waffle House is similarly around $11. 

Although the name suggests a waffle shop, you may get everything from scrambled eggs and omelettes with hash browns to sausage and bacon to pancakes, along with hamburgers, pork chops, and T-bone steaks. 

With this pricing, you may sell the Waffle House in your area as being more reasonable than other well-known breakfast franchises.

Franchise Deck Analysis and Overview

One of the most popular restaurant chains in the United States is Waffle House. The company has over 2,000 restaurants in the country and is estimated to be worth over $3 billion. Waffle House was founded in 1955 in Atlanta, Georgia and is known for its classic waffle dishes and affordable prices.

The company has been successful over the years because of its simple business model. Waffle House restaurants are simple and efficient operations. They are designed to serve customers quickly and cheaply. The company’s philosophy is “it’s all about the waffles.”

Waffle House selects the best places, therefore you must have a prime location to create your store. However, a prime location implies a costly lot to rent or buy, which may result in additional costs. It is therefore important to choose wisely. Waffle House has long been known to open 24 hours a day, seven days a week.

Is the Waffle House Franchise Profit Worth the Franchise Cost?

A Waffle House franchise would sell for $223,004 based on the median multiple of.34 and the average unit volume of $655,897 in 2021;  Compared to the midpoint investment of $800,000, this is much less. 

Although Waffle House is a well-known franchise, obtaining one may be very expensive and challenging. Instead, it is advised to explore the various alternatives mentioned above.

Competition Analysis of Waffle House Franchise
Waffle House Franchise	Cost to Franchise	Franchisee Fees	Royalty + Ad fees	Expected Profit	Recoup of Capital	FD Rating
IHOP	$1,152,954-$6,089,550	$15,000	4.5%+ 3.5%	$59M	10-20 years
Denny’s	$305K-$2.33M	$10,000-$30,000	4.5-7%+3-3.25%	$411,855	10-18 years
Waffle Cabin	$92K-$230K	$23,500	5%+
Steak ‘n Shake	$1,208,000-$1,687,000	$25,000	5.5%+3%	$1,403,587

The Franchise Deck rating for the Waffle House franchise is 3.8/5.0.

Conclusion 

There fails to exist much statistics to prove the profitability of a Waffle House, but the annual sales of a billion dollars of the company should be a solid indication that it is worthwhile. However, if you are picked to operate a branch, you should also consider the expense of franchising this breakfast franchise.A Waffle House restaurant franchise may become everyone’s go-to spot after a night out with family or friends, attracting customers even beyond midnight, which equals greater revenue.

Another factor to consider is the difficulty of running a restaurant that is open 24 hours a day, seven days a week. If an oven fails at 2 a.m., you can get a call from the night manager. Many breakfast establishments are only open between 6 to 2 giving you a break; that’s not the case with Waffle House. 

Entrepreneurs who want to open a franchise in thebreakfast food  franchise opportunities categories can look at 

1. IHOP
2. Denny’s
3. Waffle Cabin
4. Steak and Shake franchise
5. First Watch Franchise
6. Wendy’s Franchise
7. Black Rifle Coffee Franchise

Frequently Asked Questions (FAQs)

1. Is the Waffle House franchise profitable?

Although there is not much data available concerning profits, several research has proved Waffle House franchises as a profitable investment for potential franchisees. 

2. Can you make money owning a Waffle House?

Yes, a person can easily make money owning a Waffle House franchises. 

3. Is a Waffle House a franchise?

Yes, Waffle House is a franchise but a person is required to have connections to become a franchisee according to their website.

4. How much is Waffle House franchise?

An initial investment required to open a Waffle House Franchises is $600,000- $1,000,000. 

5. How do Waffle House franchises make money?

Waffle House franchises make a good amount of money through their sales. Their waffles are the most popular and profitable dish on the menu. Sandwich melts, burgers, eggs, pies, and chili are also available. Despite its reputation as a breakfast establishment, Waffle House does not provide pancakes.