Perkins Restaurant and Bakery is known for serving the most popular meal of the day: breakfast. They’re big on serving pancakes and other breakfast items since 1958 and have even expanded their menu to serve lunch and dinner. Though they’ve gone through a history of business mergers, bankruptcy, and changes of ownership, Perkins Restaurant and Bakery is here to stay and it looks like they’ve even made some upgrades to compete against big breakfast chains as well.
How much does it cost to open Perkins Restaurant & Bakery? This breakfast chain is available to franchise starting with a liquid capital of $500,000 and a net worth of $1,000,000. The total investment range you can expect is $1.5M to $2.5M and the franchise fee is $40,000.
Keep on reading if you’re interested in franchising Perkins Restaurant and Bakery and need to know more about them, their financial requirements, pros and cons of signing up with them, and whether or not this is the right franchise for you. Take our 7-minute franchise quiz to be match with an opportunity based on your passions and skills.
- Financial Requirements and Fees
- Average Sales / Revenue per Year
- Perkins Restaurant and Bakery Franchise Facts
- How Much Does Perkins Restaurant and Bakery Make in Profit?
- Advantages of a Perkins Restaurant and Bakery Franchise
- Challenges of a Perkins Restaurant and Bakery Franchise
- Is the Perkins Restaurant and Bakery Franchise Right For You?
Financial Requirements and Fees
These are the financial requirements and fees to franchise a Perkins Restaurant and Bakery:
|Fees / Expenses||Financial Amount|
|Total Investment||$1.5 M to $2.5 M|
Perkins also requires a royalty fee of 4.75% of their weekly net sales. For advertising fees, 3% of the weekly net sales is contributed by Traditional Perkins Franchise owners while 1% is contributed by Non-Traditional Owners. Franchise owners also contribute 1% of their net sales quarterly on qualified marketing activities and local advertising.
Other fees they require can be found below:
|Expenditures||Low Range||High Range||Payment Method|
|Initial Franchise Free Training||$40,000||$40,000||One Time Payment|
|Training Fee & Training Expenses||$92,000||$114,000||As Arranged|
|Real Estate – Rent for 3 months||$20,000||$60,000||As Arranged|
|Interest During Construction||$25,000||$30,000||Progress Payments|
|Equipment & Seating||$490,000||$590,000||Financed or as Incurred|
|Signs and Décor||$53,000||$82,000||As Arranged|
|Site Plans & Engineering Drawings||$12,500||$18,500||As Arranged|
|Travel Expenses for Opening Guide Meeting||$0||$0||One Time Payment|
|Smallwares, Opening Inventory & Uniforms||$50,000||$70,000||One Time Payment|
|POS System||$20,000||$25,000||Financed or as Incurred|
|Back Office Software||$425||$500||Financed or as Incurred|
|Help Desk & Maintenance (First 3 Months)||$215||$215||Progress Payments|
|Computer Related Security Services||$2,500||$3,000||Financed or as Incurred|
|Grand Opening Promotion||$4,000||$10,000||One Time Payment|
|Miscellaneous Opening Costs||$45,000||$55,000||As Arranged|
|Additional Funds – 3 Months||$100,000||$150,000||As Arranged|
|Online Management System||$425||$425||As Arranged|
|Online Management System||$425||$425||Financed or as Incurred|
In addition, the term of agreement to franchise Perkins is 20 years. You’ve got to be 100% sure you want to be in this for the long haul before singing any franchise agreement.
Average Sales / Revenue per Year
As of 2021, Perkins Restaurant and Bakery have reached average net sales of $2.9 million. This number is from the top 10% of their franchise system. Of course this means that 90% of restaurant owners didn’t generate that much in sales. You’ll want to dive into the details of typical store revenue within the FDD of this restaurant. Location, marketing, and staff training all play an important role in rounding out the annual sales of a restaurant.
Perkins Restaurant & Bakery Franchise Facts
|Total Units||Over 300|
|Incorporated Name||Perkins Restaurant and Bakery|
|Subsector||Full Service Restaurant|
Perkins started in 1958 in Cincinnati, Ohio as a pancake house. According to their website, they served all kinds of pancakes and waffles from buttermilk to coconut to strawberry. It wasn’t until 1969 that they changed their name to Perkins Cake & Steak as they offered more than just breakfast items on their menu.
They eventually changed their name to Perkins Restaurant and Bakery in the 1980s when they included pies on their menu. They also went on to open franchised stores in Canada. Many locations were opened 24/7 at the time. We had one located near a hospital and just off the interstate in the town I grew up in. Both were popular for shift workers and late-night partiers in addition to the Church crowd on Sunday morning. Pretty unique combination of clientele when you stop to think about it.
The 2000s was a tough time for most businesses due to the recession and Perkins Restaurant and Bakery was hit hard as well. They filed for Chapter 11 Bankruptcy in 2011 and once again in 2019. The company also went through different owners such as Holiday Corp. (parent company of Holiday Inns) and The Restaurant Company. At present, they are owned by Huddle House Inc.
To franchise Perkins Restaurant and Bakery, you’ll need to contact them by submitting your details here. An initial call will be made by the company to you once they’ve received your application and you’ll also be given a walkthrough of their Franchise Information Guide so you’ll know what to expect in running a restaurant business as well as check whether your area is an ideal place for Perkins.
You’ll take a look next at the business’s Franchise Disclosure Document (FDD) which gives you all the necessary details you need such as the fees to expect other than the ones mentioned above. This is your time to read through every tiny detail or have a legal advisor look through the document. Perkins will also determine whether your financial records fit their criteria and if you’re prepared to run a franchise.
If both parties are in a mutual agreement over things, you’ll then get to sign the FDD which sets the franchise in motion. By this time, initial franchise fees will be paid.
Finding the ideal location for your Perkins Restaurant and Bakery comes next. Perkins’s franchise team will help you with this. You’ll also be undergoing the business’s initial training program during this phase.
After all the training and construction, your Perkins Restaurant and Bakery will finally be ready to prepare for the grand opening event. The franchise team will still be there to help you through grand opening and beyond.
At present, Perkins Restaurant and Bakery can be found in the following states:
- North and South Dakota
- New York
- New Jersey
- West Virginia
- North Carolina
Perkins Restaurant and Bakery’s current Chief Executive Officer is Michael Abt. The company’s headquarters is in Atlanta, Georgia.
How Much Does Perkins Restaurant & Bakery Make in Profit?
As of the time of this writing, the only confirmed numbers that Perkins has released is their average net sales of $2.9 million mentioned above. This is strong sales performance in the restaurant industry. There are many chains that yield only $1 – $2 million annually in sales per unit.
Advantages of a Perkins Restaurant & Bakery Franchise
Franchising a Perkins Restaurant and Bakery provides many advantages. Here are of them.
The menu at Perkins Restaurant and Bakery is extensive. They have the breakfast menu which they’re known for such as buttermilk pancakes, French toast platters, hash browns, sausages, and omelets. For lunch and dinners they have country fried steaks, shrimp, salmon, porkchops, steak, and pasta. There are also burgers, sandwiches, soups, and salads.
There’s also the bakery where customers can choose from a variety of pies, cookies, brownies, and their signature Mammoth Muffins. They also have a kids menu.
So if you franchise Perkins, know that what you’re getting isn’t just a simple and basic menu but a wide variety of delicious food items.
Perkins Restaurant and Bakery updated their store designs to make them look more modern. The size of the place is now down to 4,100 square feet to accommodate more take outs and entertain delivery services. Franchising with them means your store will get the fresh new Perkins look rather than the classic ones they used to have.
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On the Rise
Perkins may have been around since 1958 but it is only now that they’re trying to catch up to the big names in the breakfast restaurant industry. They’ve changed their management, their look, their menu, and the way they do orders and deliveries to adapt to the changing times.
If you decide to franchise Perkins, then you’ll be a part of this modern change.
Challenges of a Perkins Restaurant & Bakery Franchise
Like all other businesses, franchising Perkins will also have its challenges.
History of Bankruptcy
Not only does Perkins Restaurant and Bakery have a history of bankruptcy once but they’ve gone through it twice: first in 2011 and then the second one in 2019.
Such history can be damaging to the business’s reputation and can affect how customers look at your brand. It also demonstrates that many stores have struggled financially in recent years. This is cause for pause before investing more than $1 million.
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Perkins Restaurant and Bakery isn’t the only big name in breakfast and full-service restaurants. There’s Waffle House, IHOP, and Denny’s. These names are considered tough competitors and the market is filled with these similar chains that offer breakfast, lunch, and dinner.
If you franchise Perkins, do know that you’ll need to take a look at the company’s advertising strategies so you know they’re working hard in getting the Perkins name out there alongside those popular restaurants.
You’ll also want to consider whether or not there’s brand awareness for Perkins in your area. For example, diners on the West Coast have likely never heard of this restaurant. If you live in the Midwest, you’re probably very familiar with this brand since most of the locations are concentrated in this region.
Is the Perkins Restaurant & Bakery Franchise Right For You?
Franchising Perkins Restaurant and Bakery can be a good business decision for you especially since they’re starting to put themselves out there and adapting their overall strategy. You’ll be a part of their growth as they start to cement themselves in the full-service restaurant industry.
But also keep in mind the business’s history of bankruptcy and how they’re just finding their footing in this new age of dining. It’ll be up to you whether or not you’re comfortable doing business with Perkins despite the many challenges they’ve been through.
What is an alternative franchise?
If you’re looking for a franchise that has an extensive breakfast menu, check out Panera Bread. They’re known for having a delicious variety of fresh baked goods and they also serve breakfast such as breakfast wraps, pastries, sandwiches, yogurt, oatmeal, and grain bowls.
To franchise Panera Bread, expect investments to reach $1,117,000 to $3,464,000 and pay a franchise fee of $35,000. To know more about franchising Panera Bread, read through our guide here.
With all the details provided here on franchising Perkins Restaurant and Bakery, you’ll be able to decide whether this full-service restaurant is for you to explore further.