Old Chicago is a well-known restaurant brand that has been providing delicious pizza and Italian-inspired cuisine since 1976. It has built a strong presence across the United States, with a loyal customer base and a unique dining experience. The brand is widely recognized for its extensive menu, casual atmosphere, and commitment to quality. If you’re considering entering the world of franchising, the Old Chicago franchise might be an excellent opportunity. This guide will provide you with detailed information on the Old Chicago franchise, including its cost, requirements, process, profit potential, and more.
Introduction to Old Chicago
Old Chicago is a restaurant chain that specializes in pizza, pasta, and a variety of other Italian-inspired dishes. Known for its signature deep-dish pizza and wide selection of craft beers, Old Chicago has become a favorite for families, friends, and pizza enthusiasts alike. The brand is distinguished by its fun, casual atmosphere, large portions, and a commitment to quality ingredients. Old Chicago also offers a wide range of menu items, including appetizers, salads, sandwiches, and desserts.
Founded in 1976 in Boulder, Colorado, Old Chicago has expanded significantly over the years. The company operates both company-owned and franchised locations across the United States, with a strong focus on building a community of loyal customers. The brand’s unique combination of great food, casual dining, and excellent service has contributed to its growth and success in the competitive restaurant industry.
Old Chicago Franchise Cost
The cost of opening an Old Chicago franchise can vary depending on several factors, including location, size of the restaurant, and the specific requirements of the franchise agreement. On average, the initial investment required to open an Old Chicago franchise ranges between $700,000 and $1.4 million. This investment includes a variety of fees, including the franchise fee, equipment, real estate, and other startup costs.
Initial Franchise Fee
The initial franchise fee for Old Chicago is approximately $35,000. This fee grants the franchisee the right to use the Old Chicago brand, access to the company’s training programs, and ongoing support throughout the life of the franchise. The franchise fee is typically paid upfront at the time of signing the franchise agreement.
Total Investment
In addition to the franchise fee, the total investment to open an Old Chicago franchise includes the costs of equipment, real estate, and other expenses. The estimated range for total investment is as follows:
Real Estate and Lease Costs: This can vary significantly depending on the location of the franchise. You will need to secure a lease for a restaurant space that meets the brand’s requirements. The cost of leasing commercial real estate can be substantial, especially in high-demand areas.
Equipment and Furniture: The cost of purchasing kitchen equipment, dining furniture, and décor is included in the total investment. Old Chicago provides a list of approved vendors for these purchases.
Renovations and Build-Outs: Many franchisees need to make modifications or build out their restaurant space to meet the brand’s design and operational standards. This cost can vary, but it’s an important part of the investment process.
Working Capital: Franchisees are expected to have sufficient working capital to cover operational expenses during the early stages of the business. This can include staff salaries, inventory, and marketing.
Old Chicago Franchise Requirements
Opening an Old Chicago franchise requires meeting several important requirements. These include financial qualifications, business experience, and a commitment to maintaining the brand’s standards. Below are the key requirements for potential franchisees:
Financial Requirements
Net Worth: Old Chicago requires franchisees to have a minimum net worth of $1.5 million. This ensures that the franchisee has the financial resources necessary to cover the initial investment and manage the restaurant’s operations effectively.
Liquid Assets: Franchisees must have at least $500,000 in liquid assets. Liquid assets are those that can be easily converted to cash, such as savings or investments. This is important to ensure that franchisees can cover ongoing operational costs, especially during the early stages of the business.
Business Experience
Old Chicago looks for franchisees who have a strong background in business management, particularly in the foodservice industry. Although previous experience in pizza or Italian cuisine is not required, experience in managing restaurants or running businesses is highly beneficial. Franchisees should have a good understanding of customer service, staff management, and operations.
Old Chicago also values candidates who have a passion for the brand and a commitment to upholding its values. Franchisees should be dedicated to delivering a high-quality customer experience and maintaining the restaurant’s reputation for excellence.
Operational Requirements
Location: Old Chicago requires that franchisees operate in a location that is consistent with the brand’s target demographic. The ideal location is typically in a high-traffic area with ample parking and visibility. Franchisees must work with the company to select the right location for their restaurant.
Training: Franchisees are required to complete Old Chicago’s training program, which covers all aspects of restaurant operations, including food preparation, customer service, inventory management, and staff training. The training is designed to help franchisees get up to speed quickly and run their restaurant efficiently.
Commitment to Standards: Franchisees must adhere to the company’s operational standards, including menu offerings, food quality, and restaurant design. Old Chicago has a well-established brand identity, and maintaining consistency across locations is crucial to the brand’s success.
Old Chicago Franchise Process
The process of becoming an Old Chicago franchisee is straightforward but thorough. Here’s a step-by-step breakdown of the typical franchise process:
Step 1: Initial Inquiry and Research
The first step in becoming an Old Chicago franchisee is to contact the company and express your interest. You’ll need to complete an inquiry form and provide basic information about yourself and your financial background. The company will provide you with an initial franchise disclosure document (FDD), which outlines the details of the franchise opportunity, including costs, fees, and responsibilities.
Step 2: Application and Interview
If you meet the preliminary requirements and are interested in moving forward, you will need to submit a formal franchise application. This application includes financial information, business experience, and personal background. Once your application is reviewed, you may be invited to an interview with the franchise development team. This is an opportunity to ask questions and learn more about the business.
Step 3: Review and Sign Franchise Agreement
After the interview process, if both parties feel that the partnership is a good fit, you will proceed to review and sign the franchise agreement. This agreement outlines the terms and conditions of the franchise relationship, including the duration of the agreement, royalty fees, and other obligations. It is important to consult with a legal professional before signing the agreement to ensure that you understand all the terms.
Step 4: Site Selection and Lease Negotiation
Once the franchise agreement is signed, you will work with Old Chicago’s real estate team to select a location for your restaurant. The company will assist you in finding a site that meets the brand’s requirements and is in a high-traffic area. After selecting the location, you will negotiate the lease with the landlord.
Step 5: Restaurant Build-Out and Training
After securing the location and signing the lease, the next step is to build out the restaurant. This involves renovating the space to meet Old Chicago’s design and operational standards. During this time, you will also begin the required training program. The training covers all aspects of running the restaurant and ensures that you are fully prepared to manage your franchise.
Step 6: Grand Opening
Once the build-out is complete and you’ve completed your training, your restaurant will be ready for the grand opening. Old Chicago will assist you with marketing, promotions, and other activities to ensure a successful launch. The grand opening is an exciting milestone and a chance to introduce your restaurant to the local community.
Old Chicago Franchise Profit Potential
The potential profitability of an Old Chicago franchise depends on several factors, including location, management, and customer demand. On average, an Old Chicago restaurant generates between $1.5 million and $3 million in annual sales. However, it’s important to note that profitability can vary widely depending on the specific location and market conditions.
Revenue Streams
Old Chicago’s primary revenue stream comes from its food and beverage sales. The brand’s menu includes a wide range of pizza, pasta, and Italian-inspired dishes, as well as a large selection of craft beers. By offering a diverse menu and catering to different tastes, Old Chicago can attract a wide range of customers, which helps drive sales.
In addition to food and beverage sales, franchisees can also generate revenue from catering and delivery services. Many Old Chicago locations offer catering for events and parties, providing an additional source of income. Delivery services, whether through third-party platforms or in-house, are also a growing source of revenue for many locations.
Profit Margins
Profit margins in the restaurant industry can vary, but on average, Old Chicago franchisees can expect to see profit margins between 10% and 15%. This can vary depending on factors such as food costs, labor costs, and overhead expenses. By carefully managing costs and maintaining high customer satisfaction, franchisees can increase their profitability over time.
Royalties and Fees
As with most franchise systems, Old Chicago charges royalty fees based on a percentage of your gross sales. The standard royalty fee for an Old Chicago franchise is 5% of total sales. Additionally, franchisees are required to contribute to the brand’s marketing fund, which is typically around 2% of sales. These fees help support the brand’s advertising efforts and ensure consistent marketing across all locations.
Conclusion
The Old Chicago franchise offers a promising opportunity for those interested in the restaurant industry, particularly pizza lovers and entrepreneurs who want to join a successful brand. With its strong brand reputation, diverse menu, and support for franchisees, Old Chicago provides a solid foundation for success. However, like any business venture, success depends on effective management, location, and customer engagement. If you’re prepared to make the financial investment and commit to the brand’s standards, opening an Old Chicago franchise could be a rewarding experience.
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