I wish I had the money to pop one of these in downtown Oceanside CA, there’s a few vacant spaces, historic area, a ton of tourists, right near a major, massive marine corps base, right on the beach
@@RyanPineda hey Ryan’s social media manager 😉, do you have a channel of side hustle, or is it embedded in this channel? Appreciate your team as it help me make $15k net this year.🙏
The owner is not straight forward the 8.5% of gross revenue for corporate is equivalent to 30% to 40% of profits. So if you profit yearly 500k to 800k the corporate are taking from your profits around 255k to 320k that’s a lot for a starter franchise. Assuming that the numbers he mentioned are correct and they do sales gross revenue around 3 million yearly and profit margins are 30%.
Can’t forget it’s the Vegas location which performs well. As soon as more locations open up and don’t perform (if) that top line revenue number will be significantly lower in average. Hot chicken is extremely trendy and highly competitive too. Especially with this recession people might not be looking to spend $10 on a chicken sandwich.
I don’t think he was being intentionally deceptive. In fact the 8.5% of gross revenue is smack dab in the middle of the industry average for franchises which is typically between 4 - 12% of gross revenue. Companies like McDonald’s or Wendy’s can usually afford to take less (around 4%) but smaller companies take slightly more. Regardless, anybody actually interested in owning a franchise should be able to deduce all of this on their own and perform the quick calculations in order to make an informed decision so he wouldn’t gain anything from intentionally trying to deceive potential investors. So if they can’t or don’t do their due diligence, then they probably shouldn’t be owning a franchise.
🔥They are building a Houston's Hot Chicken here in downtown San Diego. I'm waiting for that one. It's right in gaslamp where all the bars and clubs are at. If they could stay open late, alot of places don't have food available. Only pizza by the slice is available that late.
Can't wait for HHC to branch out of Vegas and into other States and become a house hold name just as much as chick-fil-a is. Can't wait for HHC to eventually come to New York in the future.
The man runs a solid operation, but don't see it expanding too big nationally. It's original location seems really solid though: high quality chicken made with high quality equipment and great looking sauces. For them to really take off, they need cheapen their product or drastically raise their prices to make franchisees happy. All in all, I say they'll have a good run for about a decade--enough time to make the original owner some good money.
I wish I had the money to pop one of these in downtown Oceanside CA, there’s a few vacant spaces, historic area, a ton of tourists, right near a major, massive marine corps base, right on the beach Been trying to comment on videos and tell these guys but oh well
I saw in a comment it’s coming to the Woodlands Texas . That area has a wide economic range . You got the regular middle class and they have homes selling for 4 million dollars. There is nothing special like a super nice beach to drive those home prices it’s just they got people that rich here. Exxon the world’s biggest oil company moved their headquarters to there. You know the executives working there are making obscene amounts of money. I wonder how big a territory the person doing the woodlands franchise gets . It would be nice to get into this if that guy doesn’t get the rights to the whole Houston area
@@RyanPineda I looked into a SBA loan and the amount you need for a loan + plus fees is what we put down for the house so it's possible. So many ideas .
A genuine business question, if the profit margins are that high, why do to the corporate give out the franchises in the first place? Wouldn't they better be off if they open them themselves? I feel like they'd have enough funds and it would be worth their investment.
It’s a lot easier to open a lot of stores when you have people paying you to open more. Not only that, the franchise owners are going to care alot about the store cause they have so much invested.
@@tommartyn524 I definitely understand what you mean but it's just that the profit margin is so high and can be gained so fast with relatively low investment that it seems to be a better choice for them to scout the better locations themselves and hire a good management team to manage them. Investing $450K and getting back all your investment in a few months seems a lot more lucrative than just getting one time 50K and a small franchise percentage.
Is it normal for a franchise to take a cut off of the gross revenue versus the profits? If the store does not perform I would think this would hurt the franchisee right? Also, after taxes this leaves very little profit for the franchisee. Maybe I am not understanding that fully but 8.5% of gross revenue would be a hefty percentage to pay right?
Does anyone know anything about Uncle fluffy ? It’s a Japanese themed dubai franchise and they are trying to expand globally and have similar franchise price as houston hot chicken but can’t find any info on it
Every time he says the restaurant industry is easy as someone who has owned a bunch over the last 12 plus years it very much makes me realize that he really has no idea. Also how can someone that’s so connected in Vegas just assume the store in Connecticut is going to do the same numbers. I’m sure food is amazing haven’t been. Also hope everyone makes money, but man seems like this is a pump and dump of chicken restaurants. Talking about starting funds and stuff for a place that hasn’t been open a year yet.
@@RyanPineda My 1st time there Houston walked in for a meeting a couple tables next to me so that was cool also you took that spicy sandwich like a champ, being Hispanic and trying it myself I know wassup lol
coming soon. my name is houston we aren't from "houston" but we have a lease out in the woodlands so looks like a few months you'll be able to check us out
so now you're pivoting and trying to be like codi sanchez.. if you want to stop losing followers.. drill down into one theme and keep your message consistent
Houston's chicken is shady as F##k! Absolutely NOTHING special and uses store fries you throw in your oven. Trying to make a fast buck off of dreamers...just my 2 cents!
Mannn this is the goal to eventually start franchising! I’m opening a foodtruck in the upcoming months in Las Vegas because it’s the cheapest route to get into the food business hats off to this man. Ryan how do I get in contact with you let’s talk business. Send me an email
