Salad and Go Franchise in 2024: Costs, Fee & FDD
Discover why Salad and Go is capturing attention with its affordable, health-conscious drive-thru model. Explore the brand’s growth potential and learn what makes it a unique investment opportunity for future franchise expansion.
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Salad and Go is a fast-casual restaurant concept that offers a unique take on healthy, affordable meals, focusing primarily on fresh salads and wraps served through a convenient drive-thru model. Founded by Roushan Christofellis and Tony Christofellis in 2013, Salad and Go set out with a mission to make nutritious food more accessible to the masses without the typical price tag of other health-focused restaurants. The company’s emphasis on speed, affordability, and quality has made it a disruptive force in the fast-food industry, tapping into the growing trend of health-conscious dining.
At its core, Salad and Go offers a menu of hearty salads, wraps, and drinks such as organic lemonade and cold brew coffee, all priced under $6, making healthy eating affordable for a wider demographic. The simplicity of the menu doesn’t sacrifice variety, as customers can customize their salads with a range of proteins, toppings, and dressings. The brand appeals to busy individuals who want to maintain a balanced diet but need the convenience of a quick service model. Their target market is largely health-conscious consumers, young professionals, and families who value nutrition but also affordability and speed.
Currently, Salad and Go operates dozens of locations, primarily in states like Arizona and Texas, and they continue expanding rapidly. Their drive-thru-only model, paired with walk-up service at select locations, has helped them stand out. While their primary focus remains within the U.S., the brand has seen increasing interest nationwide, with locations serving hundreds of customers daily. They have capitalized on a niche by offering premium products at a fraction of the price of competitors, becoming a favorite among loyal customers.
One of the most notable aspects of Salad and Go is its commitment to sustainability and local sourcing. They prioritize fresh, locally grown produce and ensure that their meals remain affordable without compromising quality. Their efficient, compact locations help reduce overhead costs, which contributes to their ability to keep prices low. Overall, Salad and Go has positioned itself as an innovative leader in the health-driven, quick-service restaurant space.
Salad and Go Franchise Insights
- Salad and Go is primarily a drive-thru-only restaurant, allowing it to serve busy customers quickly while maintaining a focus on healthy, fresh food.
- With locations concentrated in Arizona and Texas, Salad and Go has been growing rapidly, signaling strong market demand for affordable, health-conscious dining.
- The small physical footprint of their stores reduces overhead costs, allowing for a more profitable business model even with low pricing.
- Customers can fully customize their salads and wraps with various proteins and toppings, providing a personalized dining experience in a fast-casual setting.
How much does it cost to open a Slad and Go franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a Salad and Go franchise. While it is not currently possible to become a franchisee of Salad and Go, you can still see the costs to open up a new Salad and Go location. These financial commitments, including equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening a Salad and Go location involves several key costs. As Salad and Go does not produce an up to date Franchise Disclosure Document (FDD), we can estimate the costs for a Salad and Go based on public filings and analysis. The costs to open up a new Salad and Go location are estimated to be between $335,000 to $873,000. The lower costs are expected for smaller location conversions and the higher costs are expected for new and larger locations.
Below are the estimated investment cost range to open a new Salad and Go:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Franchise Fee (estimate) | $20,000 | $40,000 |
| Real Estate/Leasehold Improvements | $150,000 | $400,000 |
| Equipment and Signage | $100,000 | $250,000 |
| Initial Inventory | $10,000 | $25,000 |
| POS System and Technology Setup | $5,000 | $15,000 |
| Training Expenses | $5,000 | $10,000 |
| Marketing (Opening/Local) | $10,000 | $30,000 |
| Insurance | $2,000 | $5,000 |
| Licenses and Permits | $2,500 | $7,500 |
| Working Capital (3-6 months) | $25,000 | $75,000 |
| Miscellaneous/Additional Expenses | $5,000 | $15,000 |
| Total | $335,000 | $873,000 |
Required Capital
For a concept like Salad and Go, the estimated financial requirements based on similar-sized food and beverage franchises are as follows:
- Required Capital (estimate) Typically, $350,000 to $900,000 in capital would be needed to cover initial startup costs, including real estate, equipment, and working capital. This range can vary depending on location and market conditions. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid Assets (estimate) Franchise systems similar in size to Salad and Go generally require potential franchisees to have $100,000 to $250,000 in liquid assets to cover initial expenses and maintain operational flexibility.
- Net Worth (estimate) For a business of this size, the required net worth is often between $500,000 to $1,000,000. This helps ensure the franchisee has enough financial stability to sustain the business in its early stages.
These figures are estimates based on similar franchise models and may vary if Salad and Go were to franchise.
How much does a Salad and Go franchise owner make?
While Salad and Go is not currently franchising in the U.S., it helps to know how much a potential Salad and Go franchise owner would make for if and when they decide to franchise. Calculating the salary of a hypothetical Salad and Go franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a potential Salad and Go franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
Salad and Go Revenue & Gross Sales
Based on recent estimates, Salad and Go locations achieved an estimated average revenue of $1.73 million per store, highlighting the brand’s growing consumer demand for healthy, affordable meals. This impressive financial performance emphasizes the potential for strong revenue generation in a competitive market.
Which key factors impact the average revenue performance of Salad and Go franchisees?
The strong performance of Salad and Go’s U.S. locations, with average gross sales revenue estimated at $1.73 million, can likely be attributed to several key factors. The drive-thru model aligns perfectly with the increasing demand for convenience and fast service, while still delivering fresh, healthy meals at an affordable price. The brand’s commitment to sourcing local ingredients and offering a simplified, customizable menu has resonated with health-conscious consumers who are also price-sensitive. Additionally, Salad and Go’s compact store layout and low overhead costs enable them to maximize profitability while expanding into new markets rapidly. These elements together have driven higher customer loyalty and consistent sales growth.
Salad and Go Franchise Operational Costs
When opening a food and beverage concept similar to Salad and Go, key primary ongoing operational costs include:
- Food and Beverage Inventory Regular restocking of fresh ingredients, beverages, and other consumables, with costs fluctuating based on seasonality and sourcing.
- Labor Costs Salaries for employees, including managers, kitchen staff, and front-line workers. This also includes benefits and payroll taxes.
- Lease or Rent Monthly rent for the store location, which can vary widely depending on the market and square footage.
- Utilities Costs for electricity, water, gas, and waste management are ongoing and crucial to daily operations.
- Marketing and Advertising Ongoing local marketing efforts, digital ads, and community engagement to maintain customer awareness and drive foot traffic.
- Franchise Fees (if applicable) If franchised, there would be ongoing royalty fees and contributions to the brand’s marketing fund.
- Maintenance and Equipment Regular upkeep of kitchen equipment, POS systems, and general store maintenance to ensure smooth operations.
- Insurance Liability, property, and workers’ compensation insurance are mandatory costs for ongoing protection.
- Technology and Software POS systems, customer loyalty programs, and any other tech subscriptions required to run the business efficiently.
These costs will vary depending on location, scale, and market conditions, but they form the core of ongoing expenses.
Salad and Go Franchise Fees
Since Salad and Go is not currently a franchise, it does not have any franchise fees. Salad and Go operates as a wholly corporate-owned chain, meaning all its locations are owned and managed by the company rather than individual franchisees. This corporate structure allows Salad and Go to maintain full control over its operations, ensuring consistent quality, service, and menu offerings across all locations. By managing all aspects in-house, the brand is able to execute its business strategies uniformly and preserve its strong identity without the complexities of franchise management.
Salad and Go Franchise Earnings
Salad and Go’s estimated average revenue per store stands at $1.73 million, a strong indication of the brand’s ability to generate significant earnings through its efficient business model. With a focus on drive-thru convenience, affordable pricing, and a health-conscious menu, Salad and Go taps into a growing market demand for fast, nutritious options. The combination of low overhead costs, compact store layouts, and streamlined operations helps maximize profitability, despite offering high-quality meals at a lower price point compared to competitors.
This revenue performance reflects the brand’s strategic advantage in serving a broad customer base, from busy professionals to families looking for quick, healthy meals. As the demand for convenient yet healthy food continues to rise, Salad and Go’s consistent financial results demonstrate the strength of its model and potential for long-term profitability, should it expand into franchising.
How to Open a Salad and Go Franchise
Salad and Go is not a franchise, which means it does not offer franchising opportunities to individuals. Instead, all Salad and Go locations are owned and operated by the corporate entity. This corporate ownership model allows Salad and Go to maintain direct control over its operations, ensuring consistency in food quality, customer service, and overall brand experience across all its locations. As a result, it is not possible to become a franchisee of Salad and Go.
However, if you’re interested in becoming a general manager at a Salad and Go location, here are the steps typically involved:
- Starting Position Many employees begin in entry-level roles, such as team member or kitchen staff. This allows them to gain hands-on experience with daily operations and Salad and Go’s service standards.
- Demonstrating Leadership Show strong leadership skills, commitment to the company’s values, and a high level of performance. Taking initiative and assuming additional responsibilities will help demonstrate your ability to lead.
- Internal Promotion Salad and Go prioritizes promoting from within. As you progress, you can move into roles like shift lead or assistant manager, which serve as stepping stones to the general manager position.
- Training Programs The company offers training programs designed to develop management skills, including operations, team management, and financial oversight.
- Experience and Tenure Typically, general manager candidates have experience working in multiple roles within the company. This depth of experience, along with demonstrated success, is essential for promotion.
- Application and Selection Once you have the necessary experience and qualifications, you can apply for open general manager positions. The selection process evaluates performance, leadership, and alignment with Salad and Go’s values.
By following these steps, dedicated employees can advance to general manager positions, benefiting from Salad and Go’s focus on internal career development.
Pros & Cons to Opening a New Salad and Go Location
Pros
High Demand for Healthy Fast Food: The rising consumer demand for healthy, affordable meals makes each new location a strong opportunity for growth in both urban and suburban markets.
Drive-Thru Efficiency: The streamlined, drive-thru model allows Salad and Go to serve customers quickly and reduce overhead costs, making it a cost-effective and scalable business model.
Consistent Branding and Control: With corporate ownership, Salad and Go ensures all locations maintain consistent quality, service, and operational standards, protecting the brand’s reputation and customer loyalty.
Cost-Effective Expansion: The company’s small-format stores reduce real estate and construction costs, allowing for quicker openings and profitability.
Loyal Customer Base: With affordable, high-quality menu offerings, Salad and Go enjoys a growing base of repeat customers, which supports long-term revenue growth.
Cons
Limited Menu Variety: The simplicity of the menu may limit the appeal to customers seeking more diverse options, potentially capping growth in certain markets.
Operational Complexity with Fresh Ingredients: Managing a business reliant on fresh, locally sourced ingredients can create logistical challenges, particularly around consistent supply and waste reduction.
Market Saturation Risk: As the brand expands, there is a risk of over-saturating certain regions, which could impact revenue growth in closely located stores.
Labor Management: With a focus on efficiency and speed, finding and retaining quality staff capable of maintaining the brand’s high service standards may be a challenge, especially in competitive labor markets.
