Seeing $46.2 billion in revenue at the end of 2024, the sandwich industry employs over half a million people across 20,500 locations. Savvy entrepreneurs are eager to invest in the market–and franchising offers a solid foundation for growth.
As you research sandwich franchise opportunities, you will likely come across McAlister’s Deli. Known for their hearty sandwiches and Southern hospitality, a McAlister’s franchise may seem like the ideal investment. However, there are other brands to consider. See how McAlister’s Deli compares to its competition, starting with a cost breakdown between McAlister’s Deli and Penn Station East Coast Subs.
| McAlister’s Deli Franchise | Penn Station East Coast Subs Franchise | |
| Franchise fee | $35,500 | $25,000* |
| Initial Investment range | $1,053,925 – $2,488,500 | $481,783 to $832,399* |
| Net worth requirement | $1 million | $500,000 |
| Cash requirement | $425,000 | $300,000 |
| Monthly Royalty fee | 5% | Up to 8% (depending on net sales volume) |
| Monthly Ad fee | 2% | 2% to 4% (of net sales) |
Information sourced from entrepreneur.com.
The McAlister’s Deli Franchise Opportunity
Founded in 1989 and franchising since 1994, McAlister’s Deli now has over 550 locations nationwide. With a diverse menu that includes sandwiches, salads, soups, spuds (baked potatoes), and desserts, the brand offers something for everyone. Plus, with dine-in, takeout, catering, online ordering, and a pick-up window, customers can get their food whichever way is most convenient for them.
McAlister’s provides their franchisees with guidance on site selection and restaurant development, in addition to 18-50 hours of classroom education and 36-250 hours of on-the-job training. Even after opening, franchisees are partnered with a dedicated franchise business consultant to ensure smooth operations and a supply chain team to help them manage costs. Additionally, McAlister’s offers marketing assistance, from national campaigns to localized strategies, positioning franchisees for long-term success.
To qualify for a McAlister’s Deli franchise, interested franchise candidates should have a net worth of $1 million and at least $425,000 in liquid assets. Initial investment costs range from $1,053,925 to $2,488,500, including a franchise fee of $35,500.
Penn Station East Coast Subs’ Franchise Opportunity
Founded in 1985, Penn Station East Coast Subs began franchising just two years later. Now, with over 300 locations across the country, we offer prime territories for investment in 17 states. Famous for our grilled subs, fresh-cut fries, and freshly squeezed lemonade, we also serve a variety of cold deli sandwiches, wraps, and salads. Our online ordering platform lets customers place pickup or delivery orders, prioritizing their convenience.
At Penn Station East Coast Subs, our franchise training and support programs equip our franchisees with the knowledge they need to run a thriving business. Our four-week training program in Cincinnati, Ohio, covers everything from general operations and product prep to employee orientation and financial reporting. Franchisees receive 25-33 hours of classroom learning and 202-209 hours of hands-on training, ensuring they’re fully prepared to launch their restaurant.
As a more affordable alternative to a McAlister’s franchise, entrepreneurs interested in owning a Penn Station East Coast Subs should have a net worth of $500,000 and a minimum of $300,000 in liquidity. Initial investment costs range from $481,783 to $832,399*, which includes a franchise fee of $25,000.
Get Started with Penn Station Today
From site selection and restaurant design to tech support and marketing assistance, we provide the tools to serve delicious food and drive business growth. If you’re interested in franchising with Penn Station, request information today, and one of our team members will contact you.
The information presented in this blog is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. Franchise opportunities with Penn Station East Coast Subs are only available in certain states. This website and the information contained herein do not constitute the offering of a franchise in any state or jurisdiction where such an offer or solicitation would be prohibited by law or regulation.
California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin regulate the offer and sale of franchises. If you are a resident of one of these states, are receiving this information in one of these states, or intend to operate a franchise in any of these states, we will not offer you a franchise unless and until we have complied with all applicable pre-sale registration and/or disclosure requirements in your jurisdiction.
Any franchise offer can only be made through a Franchise Disclosure Document (FDD) registered in the applicable state. The FDD will include detailed information regarding the franchisor and the franchise opportunity. Penn Station, Inc., does not guarantee the success of any franchisee or the profitability of any franchise. Individual success will depend on a variety of factors, including the franchisee’s skill, effort, and dedication to operating the franchise business.
Penn Station, Inc. 1226 US 50, Milford, OH 45150. Penn-Station.com
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