Johnny Whiteper. 2opening a chilis franchise1.
Have you ever been at a restaurant and thought to yourself, how do I do startmy own Chilis restaurant? If I have does that make me weird? Opening a restauranthas been something I have wanted to do for a while now.2.Qualifications for ChilisA)three steps1. 5yrs. experience with a multi-unit restaurant owner2. personal/business liquidity of $500,000 per restaurant3.
personal/ business net worth of at least $5 millionB)initial franchise fee $ 40,0003.Land / LocationA)1. lease monthly $4,000 (Richmond) 2. buy 10 years contract $300,000B)Average price $3,000 – 12,000 monthly4.Size1. approx.
5532 sq. feet2. 217 seats3. 146 dining area seats4.
71 seats in the bar area5.ConstructionA)pre-construction $40,000 – 200,000 (architectural and related drawings,engineering, testing, and permits)B)construction cost $650,000 – 1,100,000 (foundation, slob, materials,hardware, roof, plumbing, electrical, HVAC equipment, and labor)C)site work $95,000 – 300,000 (paving, parking lot, sidewalks, curbs,installation of outdoor lighting)D)exterior signage $12,000 – 40,000 (2 min. signs)6.Furniture / fixtures $75,000 – 90,000(requires you to the table, chairs, and benches that meet their specifications)7.Kitchen / bar equipment $300,000 – 350,000(kitchen and bar equipment, bar millwork, ventilation, refrigerationequipment, and sound system)B) bar accessories $30,000 – 35,0008.Opening Advertising $8,000 – 10,000(local broadcast media, advertisements in local newspaper, direct mail, andmagazine)9.Initial TrainingA)the cost of training for 1st time employees $40,000 – 50,00010.Working Capitol – is comprised of an estimated range of $12,000 to 22,00011.Inventory $15,000 – 20,000 A) range given will be needed to cover your inventory needs for the 1stmonth of operation.12.Liquor license $10,000 – 400,000vary significantly – Local requirementsStateCounty13.System Installation $30,000 – 40,000A) computerized accounting, and security system14.Additional funds $450,000 – 600,000A) 1st three months lease payments, 1st three months inventory, payroll,utilities, insurance, security, repairs, maintenance, builders risk insurance.15.Effective factorsA)management and skillB)experienceC)local economic conditionsD)local market for the restaurantE)prevailing wage rateF)competition in market place16.Total cost to start a Chilis restaurant $1,800,000 – 2,909,000RESOURCESwww.chilis.cominterviewed Chilis managerWords/ Pages : 315 / 24
