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McAlister's Deli

Information based on 2024 FDD
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Brand Highlights
  • Founded in 1989
  • Franchising Since 1994
  • 506 US Franchises
  • $1,053,925 - $1,715,550 Investment Range
  • $1,968,124 Average Gross Revenue
  • 5% Royalty Fee
  • $35,500 Franchise Fee
Pre-qualification Amount

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Brand Description

McAlister's Deli, established in 1989, has grown into a beloved fast-casual restaurant chain known for its exceptional hospitality and high-quality, made-to-order menu items. With a strong presence across multiple states, McAlister's has earned a reputation for serving handcrafted sandwiches, garden-fresh salads, giant spuds (baked potatoes), and their famous sweet tea that keeps customers coming back.

The restaurant's menu caters to diverse dietary preferences, offering vegetarian options, gluten-free alternatives, and health-conscious choices alongside their classic deli favorites. Their signature items include the McAlister's Club, loaded baked potatoes, and a variety of homemade soups. The 'Choose 2' option allows customers to mix and match their favorite menu items for a personalized dining experience.

What sets McAlister's apart is their commitment to genuine hospitality and customer service. Their restaurant atmosphere combines casual comfort with efficient table service, making it ideal for both quick business lunches and relaxed family dining. The brand maintains high cleanliness standards and focuses on creating a welcoming environment where staff members are known for their friendliness and attention to detail.

McAlister's also offers comprehensive catering services, making them a go-to choice for office meetings, events, and gatherings. Their innovative ordering system, including a user-friendly mobile app and table-side QR code ordering, demonstrates their dedication to convenient, modern dining solutions. With consistent food quality, generous portions, and a proven business model, McAlister's Deli continues to expand its footprint while maintaining the warmth and charm that made it successful.

DID YOU KNOW?

How much does it cost to start a franchise with McAlister's Deli?

$1,053,925
$1,715,550
Starting your own McAlister's Deli franchise - famous for their sweet tea, loaded baked potatoes, and signature sandwiches - requires a total investment between $1,053,925 and $1,715,550, which covers everything from the $35,500 franchise fee to equipment, build-out costs, and working capital needed to bring this beloved Southern-inspired fast-casual concept to your community.
Financial Summary
Franchise Fee
$35,500
Investment Range
$1,053,925 - $1,715,550
Investment Midpoint
$1,384,738
Minimum Cash Required
$1,053,925
Royalty Fees
5%
Brand Fund
2%
Brand Bragging Rights
35+ years proven franchise system
539 locations nationwide market presence
Premium revenue performance vs competitors
Signature sweet tea brand differentiation
Comprehensive operational support infrastructure
Strong multi-unit development opportunities
Financial Analysis
McAlister's Deli requires a substantial investment of $1,053,925 to $1,715,550, positioning it in the premium tier of franchise opportunities and significantly above the sub-sector average range of $419,677 to $864,432. This elevated investment reflects the brand's comprehensive restaurant infrastructure, including kitchen equipment, dining room buildout, and extensive operational systems typical of full-service casual dining establishments.

The franchise demonstrates exceptional market performance with reported gross revenue of $1,968,124, substantially exceeding the sub-sector average of $608,302. This revenue differential suggests strong brand recognition and operational efficiency within the competitive sandwich shop segment. The fast-casual dining sector continues experiencing growth driven by consumer preferences for quality ingredients and convenient service models.

With 539 units and 35 years of operation since 1989, McAlister's exhibits mature franchise system stability and proven scalability. The extensive geographic footprint across multiple states demonstrates successful market penetration and franchisor expertise in site selection and operational support.

The premium investment level requires well-capitalized investors with substantial liquid assets and restaurant industry experience. Multi-unit development opportunities exist for qualified operators seeking portfolio expansion. Territory protection and exclusive market rights provide competitive advantages in established markets.

Ideal candidates possess significant restaurant management experience and access to substantial capital resources. The complex operational model demands hands-on leadership and understanding of food service logistics. Market entry timing should consider local competitive density and demographic alignment with the brand's customer base.
Expected Investment Range
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Average Gross Sales
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Financing
Financing Details

Franzy connects you with top-tier financing partners to help secure the funds to invest in a franchise like McAlister's Deli. Whether you're looking for a loan or exploring other financial products, our partners provide expert guidance to ensure you obtain the necessary capital. They specialize in offering solutions tailored to the needs of franchisees, making the process of securing financing smooth and straightforward.

Why Financing with Franzy Partners?

Choosing to finance through Franzy's partners ensures you get the best terms and support for your franchise investment. Our partners have extensive experience in the franchising industry and offer specialized financial solutions tailored to your needs. With competitive interest rates and flexible repayment options, you can find the right financing plan that fits your budget and goals. Our partners are committed to providing personalized guidance throughout the financing process, making it easier for you to secure the necessary funds and confidently move forward with your franchise venture.

Finance Partners
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First Bank of the Lake

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Location Analysis
McAlister's Deli demonstrates a strong regional presence across multiple states with widespread coverage, showing particular concentration in the South and Midwest. The brand maintains a significant market presence in Texas, with notable operations in Indiana, Illinois, North Carolina, and Missouri, indicating successful market penetration in these regions. The franchise's footprint suggests a strategic focus on markets with strong lunch crowds and family-dining demographics.

The brand shows particular strength in mid-sized markets and suburban areas, where it can capitalize on both residential and business lunch traffic. Ideal locations typically include high-visibility sites in retail corridors, near office complexes, and in lifestyle centers with strong daytime population density. The strong market presence in states like Texas and Indiana suggests these markets offer favorable operating conditions and strong consumer acceptance.

Expansion opportunities exist particularly in the Northeast and Western regions, where the brand has limited presence. Successful locations often feature 2,500-3,500 square feet in areas with median household incomes above $50,000 and significant daytime population. Key site criteria should include ample parking, strong visibility, and proximity to retail, office, or educational facilities. The brand's established presence in diverse markets demonstrates adaptability across different regional demographics while maintaining consistent performance.
Total US Locations539
Open Franchises506
Corporate Locations33
Average Sq. FootN/A
Territory Map

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Franchise Net Unit Growth
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Additional Information

Executive Team

Get to know the leadership behind McAlister's Deli. Learn about the experience and expertise of the executive team guiding McAlister's Deli's success. For more details, refer to Item 2 of the Franchise Disclosure Document (FDD).

Litigation

Review any legal actions or pending litigation involving McAlister's Deli. Understanding the legal history helps assess potential risks and the brand's business practices. For more details, refer to Item 3 of the Franchise Disclosure Document (FDD).

Bankruptcy

Review McAlister's Deli's bankruptcy history and any filings by key personnel or affiliates. This critical information provides transparency about the brand's financial stability and management. For more details, refer to Item 4 of the Franchise Disclosure Document (FDD).

Franchisor Assistance

Learn about McAlister's Deli's comprehensive support system for franchisees, including initial training programs and continuous operational assistance. Understanding the available resources and support structure is crucial for franchise success. For more details, refer to Item 11 of the Franchise Disclosure Document (FDD).

Frequently Asked Questions
Disclaimer

The information provided on this page is based on the latest Franchise Disclosure Document (FDD) that is publicly available and that we have on record, which was issued in 2024. This information is for informational purposes only and is not intended to constitute legal, financial, or business advice. We make no guarantees or claims regarding the completeness or accuracy. For the most current and detailed information, we recommend consulting the franchisor directly for the most recent FDD and regarding any questions that you may have about the information provided.

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