Wouldn’t it be great to own a business that has willing-to-wait-in-line decision-makers who have their wallets out?
Of course it would, and for franchise owners, it just doesn’t get any better than that.
That said, you do have to select the best location possible.
Not the 2nd best location. The best one. The one that’s usually more expensive to secure. That way, your franchise business looks like the one pictured above, with a high vehicle count.
With that in mind, let’s get into the franchise I’m referring to in this post.
A Taco Bell Franchise?
Correctamondo. Taco Bell.
Now, you may argue that a franchise opportunity requiring an upfront investment of $525,100 – $2,622,400 is out of reach for most people. I agree. Even so, please don’t be mad at me if it’s out of reach for you, personally. I had to write this, because it’s an opportunity worth looking into.
So, if you have a net worth of $1,500,000, access to $750,000 of liquid cash, and live in an area that Taco Bell is looking to expand in, now is the time to pull the trigger. But why? 3 Reasons.
1. Steady customer traffic
Scroll up and look at the image at the beginning of this post. Do you see the vehicles driving by? Good. And the ones in the parking lot? Great. Now let’s add the cars and trucks you can’t see that are in the Taco Bell drive-through lane. Are you starting to “see” what I’m getting at? There are always customers!
In a nutshell, when you’re a Taco Bell franchisee, you’re operating a business with steady customer traffic. I’m talking about customers who are dining in, taking their food to-go, ordering from the drive-thru or ordering online for delivery! That means you have multiple streams of revenue coming in all day.
2. Mexican food is hot
According to Upserve Restaurant Insider, 1 out of 10 restaurants offer Mexican food. That’s huge! In addition, 4.5 billion tacos were consumed. (2016)
3. Revenue is up
A fast food franchise that’s open and busy 7 days a week is going to have great numbers. And Taco Bell does.
In fact, according to Statista, Taco Bell’s average sales per unit reached approximately $1.5 million in 2017. Better yet, Taco Bell turned in same-store sales growth of 6 percent in Q4 (2018), year-over-year-its best in seven quarters, or nearly two years. And they just hired a new CEO.
What Today’s Consumers Want
In addition to the popularity of Mexican food, there’s something else that’s worth noting.
It’s the lack of time today’s consumers have. As in not enough of it. That means of lot of consumers…your customers, tend to opt for convenience. And fast food franchises are the king’s of convenience.
“Wait, Joel. Aren’t people eating healthier?”
Yes and no.
While there’s no question consumers say they want to eat healthier foods, they can’t always do so. It really depends on where they are location-wise when they’re hungry.
For example, when I’m running around doing errands…basic life stuff…and I’m hungry, the part of the city I’m in almost always dictates what I’m going to eat. Furthermore, the ease of entering a fast food establishment is a major part of my decision.
Case in point: if I’m attempting to choose between McDonald’s or Taco Bell, unless I’m obsessed with a specific menu item-and I must have it now, I’ll almost always opt for the establishment that’s easier to enter and/or exit via car. Can you relate?
Note: Taco Bell, for awhile, was known as the go-to place for late-night partiers. Not anymore. Now, it’s quickly becoming known as a place that serves high-quality fast food.
As a matter of fact, I recently visited the newly-opened Taco Bell located about a mile or so from The Castle. I ordered a chicken burrito, and a soft taco. Both were very good, and I experienced no intestinal issues.
When it comes to the profit side of a fast food franchise business, figure on making 5-8% of your revenue.
So, if you’re fast food franchise business is doing $1.5 million in sales annually, you should be able to pocket $100k-120k.
Of course a large percentage of fast food franchise owners own more than one franchise. So if you own 3 Taco Bell franchises, you should be able to make over a quarter of a million dollars a year. And don’t forget the tax advantages that most small business owners enjoy. (Talk to your accountant)
Important! You don’t have to believe my figures. That’s because franchisees will give you their own numbers. But you need to know how to ask them for their financials. There’s a right way and a wrong way to do it.
Solid Reasons To Buy A Taco Bell Franchise
The upshot of all this is I just gave you 3 solid reasons to buy a Taco Bell franchise right now.
Do you feel those reasons are compelling enough?
Have you visited a Taco Bell lately?
Maybe you should.
If you want to buy a Taco Bell franchise, fill this form out
Finally, I do have one concern about Taco Bell, and it has to do with store design.
So, the location I visited was brand new. It was built from the ground-up.
On a positive note, the building’s exterior has an upscale feel to it.
But when I went inside, the interior didn’t have the same upscale feeling.
For one, it was a lot smaller inside than I thought it would be.
Secondly, and you may think this is weird, the way the inside was set up, it felt like a different brand than was portrayed on the outside. Something was missing. Maybe it was the small, narrow walk-up ordering area. It needs to be wider. Moreover, there needs to be more terminals. I think I only saw two of them. That makes the restaurant look low-volume. Is it because customers aren’t coming inside to order?
Given these points, what do you think about Taco Bell?
How to Use a Franchise Opportunity Website
The 10 Commandments of Franchise Research
What You Need To Know About Franchise Consultants/Brokers