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Franchise Opportunity Deep Dive: McAlister’s Deli is an American fast-casual restaurant franchise known for handcrafted sandwiches, baked potatoes, soups, salads, desserts, and world-famous sweet tea.
McAlister’s Deli is an American fast-casual restaurant franchise known for handcrafted sandwiches, baked potatoes (spuds), soups, salads, desserts, and world-famous sweet tea. The franchise is owned by GoTo Foods, the parent company behind Jamba, Cinnabon, Moe’s and Auntie Anne’s.
McAlister's Deli was founded in 1989 near the University of Mississippi in Oxford, Mississippi.
Former dentist Dr.Newcomb wanted to create a neighborhood gathering spot that offered higher-quality food than your typical fast-food restaurant. In the 1980’s a Hollywood film transformed an abandoned gas station into a retro 1950s diner set, giving Newcomb the perfect location near the local college. After opening, Newcomb named the diner McAlister’s Deli after his wife’s maiden name.
Mission: Decades later, its mission remains the same: “To provide a community gathering place where genuine hospitality and real, handcrafted food come together to create craveable, memorable experiences.”
Vision: McAlister’s Deli envisions bringing Southern hospitality to every customer, being the ultimate neighborhood gathering place through handcrafted food. The brand stands by "our table is your table.”
Unique Selling Points (USPs)
McAlister’s has separated itself with:
Franchising with McAlister’s Deli offers simple operations with no grills, fryers, early mornings, or late nights, helping franchisees save on resources. McAlister’s provides comprehensive real estate and construction guidance, including site selection and development support. Franchisees also receive national and localized marketing support from field managers, ongoing assistance from dedicated franchise business consultants, and leverage from a supply chain spend management team. Additionally, sales are diversified through multiple service channels, including dine-in, takeout, catering, online ordering, and pick-up windows.
As demand for healthy fast-food options increases, McAlister’s Deli plans to fill this void. FastCasual reports that by 2032, McAlister’s plans to open 265 new locations nationwide, with 58 already signed.
Initial Costs: The estimated initial investment required to begin operation of a McAlister’s Deli franchise ranges from $910,175 to $2,575,400. The 2026 Franchise Disclosure Document (FDD) breaks these costs down as follows:
Restaurant at an Endcap or Inline Shopping Center Location
Type of Expenditure | Low | High |
| Initial Franchise Fee | $35,500 | $35,500 |
| Construction and Build-Out Costs | $412,400 | $775,500 |
| Permitting | $1,250 | $30,700 |
| Equipment Package | $224,900 | $329,400 |
| Millwork | $16,100 | $66,500 |
| Furniture | $20,000 | $58,900 |
| Menu Board, Graphics and Interior Signage | $9,600 | $30,000 |
| Exterior Signage | $21,000 | $75,000 |
| Computer System | $32,000 | $66,500 |
| Smallwares | $10,000 | $29,400 |
| TV/Music | $3,400 | $11,500 |
| Architect/Engineer | $15,000 | $35,000 |
| Rent | $7,200 | $20,000 |
| Grand Opening Marketing | $25,000 | $27,000 |
| Legal and Accounting Fees | $2,700 | $5,500 |
| Insurance | $1,925 | $9,500 |
| Misc. Opening Costs/Security Deposits | $2,500 | $6,500 |
| Management Training Program Fee | $0 | $25,000 |
| Travel and Living Expenses during Training | $26,200 | $33,700 |
| On-Site Training Fee | $0 | $34,000 |
| Opening Inventory | $18,500 | $58,000 |
| Additional Funds - 3 Months | $25,000 | $53,000 |
| Total Initial Investment | $910,175 | $1,816,100 |
Restaurant at a Freestanding Location (Newly Constructed or Conversion)
Type of Expenditure | Low | High |
| Initial Franchise Fee | $35,500 | $35,500 |
| Construction and Build Out Costs | $613,600 | $1,396,900 |
| Permitting | $6,000 | $20,000 |
| Equipment Package | $241,700 | $344,100 |
| Millwork | $38,000 | $60,000 |
| Furniture | $43,000 | $51,000 |
| Menu Board, Graphics and Interior Signage | $25,000 | $30,000 |
| Exterior Signage | $92,000 | $132,600 |
| Computer System | $22,000 | $58,000 |
| Smallwares | $20,000 | $25,400 |
| TV/Music | $3,000 | $12,500 |
| Architect/Engineer | $24,400 | $64,200 |
| Rent | $7,200 | $20,000 |
| Grand Opening Marketing | $25,000 | $27,000 |
| Legal and Accounting Fees | $3,000 | $10,000 |
| Insurance | $1,925 | $9,500 |
| Misc. Opening Costs/Security Deposits | $5,000 | $33,000 |
| Management Training Program Fee | $0 | $25,000 |
| Travel and Living Expenses during Training | $26,200 | $33,700 |
| On-Site Training Fee | $0 | $34,000 |
| Opening Inventory | $25,000 | $100,000 |
| Additional Funds - 3 Months | $25,000 | $53,000 |
| Total Initial Investment | $1,282,525 | $2,575,400 |
Initial Franchise Fee: The initial franchise fee to own a McAlister’s Deli is $35,500. Qualifying veterans or members of the Armed Forces pay $20,000.
Ongoing Fees: According to the 2025 FDD, McAlister’s franchisees are responsible for the following ongoing payments and fees:
| Type of Fee | Amount |
| Royalty Fee | 5% of Net Sales |
| Advertising Contribution | Currently, 2% of Net Sales. |
| Local Marketing Obligation | Currently, each calendar quarter, you must spend not less than 0.75% of Net Sales on local market advertising |
| Renewal Fee | 20% of the current Initial Franchise Fee |
| POS System License and Lease Fees | Our then-current fee. Currently, $351 to $456 per month if you purchase the POS System under the CapEx Program and $743 to $1,358 per month if you lease the POS System under the HaaS Program. |
| Loyalty App Fee | The then-current fee. Currently, $66 per month. |
ROI Potential: According to the 2025 FDD, the 533 franchises operating for the entirety of 2025 reported the following:
| Quartile | Average | Median | High | Low |
| Top Quartile | $2,754,102 | $2,689,279 | $4,932,405 | $2,240,435 |
| Second Quartile | $1,985,797 | $1,973,664 | $2,233,065 | $1,764,584 |
| Third Quartile | $1,589,119 | $1,587,250 | $1,763,661 | $1,403,501 |
| Bottom Quartile | $1,135,941 | $1,175,976 | $1,399,801 | $585,403 |
| Total | $1,868,101 | $1,764,584 | $4,932,405 | $585,403 |
McAlister’s provides support before and after opening your deli. Before development, McAlister’s supports you in selecting your location, your lease agreement, and construction. McAlister's offers layouts, architect approval, plan reviews, and construction inspections. Franchisees will also be supported with manuals, vendors, marketing, and training.
At McAlister’s, all employees are expected to embody southern hospitality. Their training includes:
Management Training Program
Each restaurant must appoint at least four dedicated managers. These managers must attend this training, which totals 300 hours. During the training, managers explore food safety, position training, service programs, shift management, inventory management, and more.
Primary Contact Training Program
Each franchisee must appoint a primary contact who attends a 54-hour training program. Here they learn how to oversee franchise relationships, communications, and administrative compliance.
To support grand openings, four representatives are sent to new franchises for about 10 days. They assist with operations and troubleshoot any questions the staff may have.
Franchisee-Conducted Training (Certified Locations)
Multi-unit operators that operate two or more locations may receive authorization to train their own managers if they maintain a Certified Training Location. This training is staffed by a certified, approved Certified Training Manager.
Continuing Education
Point-of-Sale (POS) System
Franchisees must purchase or lease standard in-store POS hardware: CapEx Program or HaaS Program. These programs handle sales transactions, inventory tracking, overnight sales data polling, and menu/price updates.
Within the POs system is a kitchen display system (KDS) that covers kitchen station screens, bump bars, kitchen printers, and a streamlined ticket management system to track speed.
Online Ordering & Digital Guest Management
McAlister’s prides itself on providing additional revenue streams, including online, app, and mobile orders. To support this, McAlister’s provides franchisees with software and integrations to streamline these orders.
Learning Management System (LMS)
Franchisees must own in-store tablets to access the corporate learning management system, which includes operations manuals, digital recipe books, video modules, employee onboarding courses, and annual manager recertification programs.
Data Security, Managed Network & Compliance Tools
Franchisees use the PCI-DSS Compliance Suite to protect credit card data, manage firewalls, quarterly network security scans, endpoint detection/response solutions, and anti-malware software.
Operating a McAlister’s Deli requires your best effort. Franchisees must assign four dedicated, Full-Time Managers. These managers are responsible for daily supervision and direct restaurant operations. Each franchise must also appoint a Primary Contact with full decision-making authority who supervises operations. The Primary Contact is required to own at least 5% equity. Semi-absentee ownership is not recommended, as the Franchise Agreement requires franchisees to devote their best efforts.
McAlister’s does not offer direct or indirect financing, but may refer prospective franchisees to unaffiliated third-party leasing or financing companies, and third-party financial consultants who assist franchisees with securing loans.
“Everyone always talks about climbing the corporate ladder, and I've never been a big fan of that — it’s not your ladder I want to climb, it’s mine. So I figured out what I wanted to do in the restaurant industry, built that ladder for myself, and got a seat at the table. It’s important to find your own voice because that is what will make you successful.” - Virginia McAlister’s owner, Heather Ricks.
According to Yahoo Finance, the Fast Casual Restaurants Market Size is projected to reach $301.6 billion by 2032, growing at a 6.6% CAGR since 2024. Meanwhile, the Nutritious Food Market Size is estimated to grow at a CAGR of 10.11%, rising from $11.78 billion in 2025 to $28.03 billion by 2034. Demand isn't only for fast casual restaurants, but for fast casual restaurants like McAlister's that pride itself on serving the community fresh, healthy food options.
McAlister’s Deli aims to be different than the rest through two statements: “No Fryers / No Grills” and "Our Table is Your Table". With a mission to bring community together through healthy fast-food options, McAlister proudly replaces fryers and grills with baking and slicing. When not in the kitchen, McAlister’s stays true to its Mississippi roots, bringing southern hospitality to each guest.
This separates McAlister’s from competitors like:
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