McAlister's Deli
Sandwiches, salads, baked potatoes- 2023 Franchise 500 Rank
-
#48 Ranked #40 last year
- Initial investment
-
$394K - $2.2M
- Units as of 2022
-
516 14.2% over 3 years
McAlister's Deli is a community and family-oriented casual restaurant chain. Started in 1989 by Don Newcomb in Oxford, Mississippi, the brand still serves traditional favorites: 13-layer club sandwiches, spuds, and its famous 32 oz. sweet tea.
The idea behind McAlister's Deli menu is simple: serve food that everyone, even the pickiest eater, will enjoy. The restaurant takes familiar flavors and popular classics and adds a special twist. It's one of many reasons why families eat out at McAlister's Deli, and franchisees take on the franchising opportunity.
Since beginning to franchise in 1994, McAlister’s Deli has grown to over 430 franchises located in the United States. It is seeking to expand even further.
Why You May Want to Start a McAlister's Deli Franchise
A potential McAlister's Deli franchisee should be a hardworking, community-oriented leader. Franchisees may be better suited to the company if they genuinely believe that giving back improves communities. The company will most likely prefer that its franchisees have prior business experience, ideally in restaurants.
McAlister's Deli has been ranked in Entrepreneur's Franchise 500 many times in recent years. This ranking is based on an evaluation of more than 150 data points in the areas of costs and fees, size and growth, franchisee support, brand strength, and financial strength and stability.
What Might Make a McAlister's Deli Franchise a Good Choice?
What may make McAlister's Deli a unique restaurant franchise is its emphasis on genuine hospitality and brand values. A franchisee should expect to commit themselves to the role of host and representative. McAlister's Deli often does community outreach, giving back to churches, schools, and other non-profits.
The company also uses ethically sourced ingredients, including Rainforest Alliance Certified cane sugar and tea leaves in their sweet tea, local produce, and genuine Idaho russet potatoes. Kitchens may be minimalistic, with no grills or fryers needed. This may make it easier for franchisees to hire and manage staff, monitor food quality, and keep up with food trends and new menu items.
To be part of the McAlister's Deli team, you should make sure you're financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include advertising, royalty, and potential renewal fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.
If accepted into the franchise family, the company may expect a franchisee to open multiple locations within several years.
How To Open a McAlister's Deli Franchise
To open a McAlister's Deli franchise, you should conduct thorough research into the local market, potential locations, and the company itself. Once you've decided to open the franchise, you'll contact a franchise representative who will begin the screening process. Be prepared to ask the company and existing franchisees questions as part of your due diligence. If you meet all the requirements, the company will call you in for discovery day and training.
Training usually lasts several weeks and covers menu items, operational standards, and other brand values. Franchisees most likely will train on-site at a McAlister's Deli location as well. Once ready, the company typically provides development and real estate support and marketing services. Franchisees will also have access to pre-established vendors and the McAlister's Deli IT team.
Soon, you may find yourself the owner of the newest McAlister’s Deli franchise.
Company Overview
About McAlister's Deli
- Industry
- Food
- Related Categories
- Miscellaneous Sandwiches, Sandwiches
- Founded
- 1989
- Parent Company
- Focus Brands
- Leadership
- Mike Freeman, Chief Brand Officer
- Corporate Address
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5620 Glenridge Dr.
Atlanta, GA 30342
Business Overview
- Franchising Since
- 1994 (2023-1994 years)
- # of employees at HQ
- 71
- Where seeking
-
This company is offering new franchisees throughout the US.
This company is offering new franchisees worldwide.
- # of Units
- 516 (as of 2022)
Information for Franchisees
Here's what you need to know if you're interested in opening a McAlister's Deli franchise.
Financial Requirements & Ongoing Fees
Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
-
Initial Franchise Fee
Information Circle - $15,500 - $35,500
-
Initial Investment
Information Circle - $393,500 - $2,187,450
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Net Worth Requirement
Information Circle - $1,000,000 - $1,900,000
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Cash Requirement
Information Circle - $425,000 - $930,000
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Veteran Incentives
Information Circle - $15,500 off franchise fee
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Royalty Fee
Information Circle - 5%
-
Ad Royalty Fee
Information Circle - 2%
-
Term of Agreement
Information Circle - 20 years
- Is franchise term renewable?
- Yes
Financing Options
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- Third Party Financing
- McAlister's Deli has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- On-The-Job Training
- 250 hours
- Classroom Training
- 50 hours
- Ongoing Support
-
NewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresLease NegotiationField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
-
Co-op AdvertisingAd TemplatesNational MediaRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Operations
Additional details about running this franchise.
- Is absentee ownership allowed?
- No
-
Can this franchise be run from home/mobile unit?
Information Circle - No
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Can this franchise be run part time?
Information Circle - No
- # of employees required to run
- 40
-
Are exclusive territories available?
Information Circle - Yes
Interested in ownership opportunities like McAlister's Deli? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where McAlister's Deli landed on this year's Franchise 500 Ranking versus previous years.
Additional Rankings
Curious to know where McAlister's Deli ranked on other franchise lists? Find out below.
Ranked #48 in 2023
Entrepreneur’s 44th annual Franchise 500® ranking shines a light on the unique challenges and changes that have shaped the franchise industry over the last year—and how franchisors have adapted and evolved to meet them.
Ranked #3 in Miscellaneous Sandwiches in 2022
Our annual list of the top restaurant and other food franchises, divided up by category, is the perfect place to start if you’re craving a food-based business opportunity.
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