Wintzell’s Location Real Estate Requirements
Each franchisee is required to provide the real estate product, i.e. the land and new construction or existing restaurant building. Wintzell’s must approve all sites, and we can approve conversions of existing restaurant buildings, out parcels with new prototype building or end-cap strip center sites per our approved plans.
Typically, we will not approve a building less than 6,000 sq.ft. of space.
The total investment required also depends upon the amount of equipment that may be in place in an existing restaurant. The following is a range that we have encountered in the Mobile, Alabama market:
Land: Based upon our size which yields some 200 seating capacity, a Wintzell’s will need approximately 1.4 acres of area, unless it is an out parcel with cross-easement parking. Raw land costs can run $500,000 to $850,000.
Construction Costs: Construction costs, including site work development, etc. can run as much as $200.00 p.s.f. for a typical restaurant building. Based upon the size of a Wintzell’s, this could be $1,200,000.
Furnishings, Fixtures, & Equipment (F.F.& E.): New equipment in a Wintzell’s can range from $185,000 to $250,000 depending upon vendor. Wintzell’s will provide a franchisee with a list of equipment recommended and assist with names of equipment companies, if needed. We do require use of the Micros Point of Sale system.
Conversion Of Existing Restaurants: If a franchisee can find an existing or closed restaurant that is approved by us, the conversion costs can be much less. For example, the company converted a closed Shoney’s in Saraland, Alabama for the approximate costs of:
- Construction: To build a new oyster bar, liquor bar and general interior changes was approximately $75,000.00
- Equipment: To make the kitchen more functional, add additional fryers, replace some existing equipment and add small wares was approximately $50,000.00.
- Exterior Pylon Signage: Our exterior package costs were approximately $15,000.00.
- Parking Lot/ Lighting/ and Landscaping: $10,000.00
In summary, a conversion of an existing restaurant building that meets our criteria would cost approximately $150,000.00. Please keep in mind that there are other factors such as the age of the building that could increase the costs substantially.
These costs do not include any pre-opening expenses such as training in Mobile for a minimum of three managers for four weeks, plus their incidental expenses, as well as training of some 100 new employees hired at least two weeks before opening.
Wintzell’s also requires that the franchisee agrees to fund the cost of a “opening team” consisting of 10-12 employees from our company restaurants, including one manager from our company that would assist for a minimum of two weeks (one week prior to opening and one week after opening). The fee for the opening team is $125.00 per person per day plus housing. It is recommended that a franchisee have a minimum of $50,000.00 in reserve for training expenses of management/employees.
Obviously, the most economic approach to a Wintzell’s franchise is to find a scenario similar to the above described conversion of the Shoney’s site in Saraland. The following is a summary of our experience, and this could vary in different markets:
Land & Building: An investor purchased the land and building from Shoney’s, Inc at a distressed sale price and leases to Wintzell’s on a 15 year lease with options on a triple net lease.
|TRAINING AND PRE-OPENING EXPENSES:||$50,000.00|
|ESTIMATED COSTS FOR OUR CONVERSION:||$200,000.00|
The objective of Wintzell’s is to assist a franchisee in making the most economically feasible approach to the hard costs of each location to ensure the maximum profitability for the long-term.
For more information, contact:
Bob Donlon / CEO