In 2015, McAlister’s aggressive expansion strategy established the brand across new territories. In 2016, the fast-casual restaurant brand continued to grow, and their unit net sales averaged $1,650,105 for the year.*
As McAlister’s continues to find new customers in new markets, brand awareness and demand has continued to surge. In 2017, McAlister’s development team has pursued a strategic growth strategy to accelerate that trend, targeting key markets for new restaurants, including cities in Florida, Virginia, Ohio, and Wisconsin.
Rising brand recognition is just one component of McAlister’s Deli® and its increasingly attractive unit economics. McAlister’s Deli’s President, Paul Macaluso, told 1851 that the brand’s operational model is designed to support the performance of each individual restaurant.
Here are five more ways that Macaluso says the McAlister’s Deli model positions owners for success.
1. A unique customer value proposition
“McAlister’s offers customers an appealing alternative to fast food and one-note sandwich brands. We’re able to stand out in two key ways. One, our diverse menu of elevated food options, and two, our genuine hospitality. Where other brands have customers bringing their own meals to their table, we bring the meals to our customers, at their table. We are as fast as any other QSR brand, but we emphasize excellent service and always going the extra mile.”
2. Operational simplicity
“We figured out what we do best long ago, and we’ve designed our restaurants to focus on those things. We’ve built our menu in a way that eliminates the use of fryers and grills. Our menu offerings do not require a multitude of different vendors, and they all require the same minimal level of preparation. Our restaurants are cost-effective to build and maintain, and we strive to make them easy to operate.”
3. A strong support system
“Our corporate team provides outstanding support to new owners. We’re right there for every step of the process, offering solutions for with real estate selection, marketing, staffing, and grand openings. Once a McAlister’s restaurant is up and running, they already have a strong relationship with our corporate team, so they are more than comfortable reaching out to us with any questions. And McAlister’s owners don’t just have our brand at their back, they’ve got the support of the full network of FOCUS Brands, which includes a number of other large franchise brands.”
4. A robust catering platform
“By emphasizing our catering option, we’ve added an additional revenue stream for our owners. The food preparation for our catering options is the same as the food preparation in-store, and we supply all the packaging materials, so there are very few additional operational concerns for owners.Each restaurant is able to reach an entirely new set of customers who may have never stepped foot in a McAlister’s Deli restaurant. In that respect, it’s not just another sales channel, it’s catering is a very effective local marketing tool.”
5. High sales-to-investment ratio
“Our startup costs are very competitive within our segment. Excluding real estate, the cost to open a McAlister’s Deli ranges from $762,000 to $1,023,000.”
*Figures reflect 2016 averages for 301 franchised traditional McAlister's Restaurants that were in operation continuously during the period from January 1, 2016 through December 31, 2016 and from whom McAlister’s Restaurants received complete and timely financial information for such period, as published in Item 19 of McAlister’s Restaurants’ April 2017 Franchise Disclosure Document. There were an additional (i) 35 franchised traditional McAlister's Restaurants which were not added to the sample because they did operate continuously during the 2016 period, and (ii) 19 franchised express McAlister's Restaurants which were not added to the sample because they are not traditional McAlister's Restaurants. Of the 331 restaurants in the sample, 147 restaurants [or 44%] attained or exceeded the average total net sales. You should review McAlister’s Restaurants’ Franchise Disclosure Document for details about these figures. A new franchisee’s results may differ from the represented performance. There is no assurance that you will do as well and you must accept that risk.
THE FOLLOWING APPLIES TO TRANSACTIONS GOVERNED BY THE FRANCHISE INVESTMENT LAW OF THE STATE OF CALIFORNIA ONLY: These franchises have been registered under the franchise investment law of the State of California. Such registration does not constitute approval, recommendation or endorsement by the commissioner of corporations nor a finding by the commissioner that the information provided herein is true complete and not misleading. This information is not intended as an offer to sell a franchise. McAlister’s Restaurants will not offer you a franchise until McAlister’s Restaurants have complied with disclosure and registration requirements in your jurisdiction. Contact McAlister's Franchisor SPV LLC, 5620 Glenridge Drive NE, Atlanta, Georgia 30342, to request a copy of the FDD. RESIDENTS OF NEW YORK: This advertisement is not an offering. An offering can only be made by a prospectus filed first with the Department of Law of the State of New York. Such filing does not constitute approval by the New York Department of Law. RESIDENTS OF MINNESOTA: MN Franchise Registration Number: F-8196.