Chipotle Franchise Cost & Fees | How To Open (2024)

FAQs

How much does it cost to open up a Chipotle franchise? ›

A single Chipotle makes an average of $2.2 million in revenue per year. The average store's profit margin is about 22%. Of course, there are no guarantees, but this would put a hypothetical franchise owner's profits at about $480,000 per year.

Chipotle Mexican Grill Franchise Cost

While a few franchises were sold in the early days, since Chipotle's success the franchising plan has been scrapped in favor of complete corporate ownership and control. The Chipotle franchise cost is therefore really just an expansion cost and is borne by the company directly.

The short answer to “Is Chipotle a franchise?” is NO, although it once was. Back in 1996, McDonald's became a massive investor in Chipotle, and their investment paved the way for the company to expand to over 500 restaurants by 2005.

The average restaurant sales of Chipotle Mexican Grill reached 2.8 million U.S. dollars in 2022, an increase over the previous year.

They have typically 30-45 employees that work part-time to full time. I would say about 12 employees. All together, about 25-35, give or take, depending on how busy the store is, and how big it is. A typical Chipotle has 20-30 employees.

On average, typical franchisees make about 80,000 dollars a year, not considering tax and expenses. Only a small part of franchise owners make over $200,000 annually, more than fifty percent of franchisees make about $50,000. The industry you're operating in impacts the amount of profit as well.

31, Chipotle posted revenue of $2.2 billion, good for an 11.2% year-over-year increase. Same-store sales, a key metric for any retail-based business, rose 5.6% from Q4 2021.

Whereas in 2021 all quarters had an average sales per restaurant at $2.5 million.

Is Chipotle a franchise or a chain? ›

Operation and distribution. All of Chipotle's restaurants are company-owned, rather than franchised. As of December 2012, 1430 restaurants have since opened throughout the United States and Canada, with locations in 43 states, Ontario, British Columbia, and the District of Columbia.

One of the keys to Chipotle's success is its small menu. A smaller menu has three benefits. First, since Chipotle only stocks fresh ingredients, there is always a chance of food spoilage. The small menu reduces the number of ingredients needed on-hand, thus reducing the likelihood of waste.

How much does Chipotle Mexican Grill make a day? Chipotle Mexican Grill makes $23.7M in a day.

While operating a Chick-fil-A restaurant requires a relatively modest $10,000 initial financial commitment ($15,000 CAD in Canada), it requires a holistic commitment to own and operate the business in a hands-on manner.

The reason these places don't franchise is mainly that the respective brands want to have quality control. Chipotle spokesperson Chris Arnold says the fast-casual restaurant doesn't need franchises for business purposes—and doing so could hurt their brand.

In addition to best-in-class benefits and a competitive hourly rate, Chipotle's crew members can advance to a Restaurateur, the highest General Manager position, in as little as three and a half years, with average compensation of $100,000 while leading a multi-million-dollar growing business.

The report also said the chain is planning to open 100 more stores by the end of the year. Hector Hernandez, manager for the College Park Chipotle, said a Chipotle in New York currently holds the top grossing position, attributing it to the higher price of the New York location's food.

Chipotle Mexican Grill's highest-paying job in California is service manager, with an average salary of $75,358.

What is the hardest job at Chipotle? ›

Employee of Chipotle, on grill. By far the hardest thing to do in the store, you have to manage and do 3-4 things at once during lunch rushes, including grilling chicken, steak, shredding carnitas, barbacoa, making white/brown rice, cutting steak and chicken, and preparing the beans.

Chipotle mandates employees take one uninterrupted 30-minute meal break if they work over five hours, and two 30-minute meal breaks if they work more than 10 hours. Managers are to provide employees with a 10-minute rest break if they work three and one-half hours or more.

As a Chipotle crew member, you will receive one free meal for every daily shift. That means one entrée, one drink, and one side.

Buying a franchise doesn't have to mean making a full-time commitment. Believe it or not, there are many franchises that can be run on a part-time basis, especially when you first start out.

The bottom line is that while a franchise can make you independently wealthy, it isn't a guarantee. Choosing the right business in the right industry, and going in with preexisting entrepreneurial experience and/or existing wealth can help, but your income-generating potential may still be somewhat limited.

Pretty fun place to work overall. You get to meet a lot of awesome people, and the benefits are amazing. There are of course some bad days, but overall I would reccomend. Chipotle is a good company overall to work for with all the benefits related to tuition for school, health, and dental.

It is important to note that Chipotle requires franchisees to have a minimum net worth of $1 million and liquid assets of at least $500,000. Additionally, franchisees are required to pay 6% of their gross sales as a royalty fee and contribute 3% of their gross sales toward a national marketing fund.

Hoffman estimates that the gross profit margin on Chipotle food is 80%. That means that Chipotle pays just $1 for the raw materials that go into every burrito that it sells for $5. (The company says the margin is 68%.)

Current and historical operating margin for Chipotle Mexican Grill (CMG) over the last 10 years. The current operating profit margin for Chipotle Mexican Grill as of March 31, 2023 is 11.69%.

Can you make 6 figures at Chipotle? ›

Chipotle is increasing the pay of its restaurant workers to an average of $15 per hour, the chain announced Monday. Some employees will become eligible to make a six-figure salary after just a few years on the job.

Chipotle typically features a 2,000 - 3,500 square foot building, and are usually situated on 0.50 - 1.00 acres of land.

Steve Ells , Founder, Chairman and CEO, started Chipotle with the idea that food served fast did not have to be a typical fast food experience.

The average licensing cost required to open a Starbucks is a $315,000 licensing fee and a net worth requirement of at least $700,000.

The Differences

Simply put — within a chain business, a parent company owns each location. With a franchise, different stores or branches are owned by separate individuals who are solely responsible for daily operations.

Naturally, all prior parameters and cadence was derailed by 2021's 40-year inflation highs. The cost of labor and supply drove restaurant pricing more than opportunity did. It was one of those dynamics where guests were (generally) accepting because their whole lives got more expensive.

Total revenue increased 14.4% to $8.6 billion. Comparable restaurant sales increased 8.0% In-restaurant sales increased 26.4%, while digital sales¹ represented 39.4% of food and beverage revenue. Operating margin was 13.4%, an increase from 10.7%

Your sodium intake can easily add up with just a burrito order, ticking toward the FDA's recommended maximum of 2,300 milligrams sodium per day. A McDonald's Big Mac, for comparison, contains 1,010 milligrams of sodium. But when you look at the ingredients, Chipotle is comparatively healthier than other to-go options.

Gross profit margin is roughly 20%.

That first year, McDonald's invested $50 million into the Mexican food restaurant. Over the next seen years, Chipotle opened almost 500 new restaurants, and by 2005 McDonald's investment had grown to 90 percent, basically meaning that the golden arches did own Chipotle.

What is the McDonald's franchise fee? ›

How Much Does A McDonald's® Franchise Cost?* Most McDonald's franchise owner/operators have entered the corporation by purchasing an existing restaurant. To open a McDonald's franchise, however, requires a total investment of $1-$2.2 million, with liquid capital available of $750,000. The franchise fee is $45,000.

Franchising fee: It costs between $25,000 and close to $50,000 for the initial franchise fee. This, too, will vary depending on the details of your specific Taco Bell franchise. Net worth: The current net-worth requirement is around $1.5 million worth of assets.

Startup costs for Chick-fil-A franchises are relatively low. That's because, unlike other franchises, Chick-fil-A actually purchases the real estate and all of the equipment required to open the business, and then leases them to you via monthly rent payments.

The average licensing cost required to open a Starbucks is a $315,000 licensing fee and a net worth requirement of at least $700,000.

How Much Does Chipotle Mexican Grill Make A Day? Chipotle Mexican Grill makes $23.7M in a day.

To begin operating a Dunkin' Donuts franchise, you'll need to invest between $121,400 and $1,787,700 upfront. Dunkin' does not provide financing directly, but does partner with lenders to offer a variety of types of small business loans, including equipment loans and commercial real estate loans.

What Does a Subway® Franchise Cost? To buy a franchise with Subway®, you'll need to have at least liquid capital of $40,000 and a minimum net worth of $80,000. Franchisees can expect to make a total investment of $150,050 - $328,700.

According to Securities and Exchange Commission filings from September, Narasimhan will start with a base salary of $1.3 million per year.