Qdoba Franchise Cost Profit Reviews and Info Now

 

A fast-casual Mexican restaurant franchise called Qdoba specializes in burritos, tacos, salads, and bowls that may be customized. The menu at the restaurant offers a selection of dishes made with fresh ingredients, such as grilled chicken and steak, pulled pork that has been slowly roasted, and vegetarian and vegan options including roasted vegetables and black beans. Customers can add different proteins, toppings, and sauces to their orders to make them more unique.

Mexican restaurants are predicted to produce $59.8 billion in revenue in the United States in 2021, according to an IBISWorld forecast for that year. According to data from Technomic, the fast-casual restaurant market, which includes Qdoba, has increased in popularity in recent years, with a compound annual growth rate of 9.3% from 2011 to 2016.

According to Ibisworld, the total number of Mexican restaurant opportunities is 49,354 in the United States with an expected growth rate of 2% in 2023. Cumulative Market growth for 2018 to 2023 is anticipated at 2.5%.

What is Qdoba ?

An array of individualized burritos, tacos, salads, and bowls are available at the fast-casual Mexican restaurant brand Qdoba.

Customers can build their own customized meals at Qdoba by selecting from a variety of proteins, toppings, and sauces. With more than 350 locations, Qdoba has more than 700 physical stores across the United States and Canada.

Due to their well-known three-cheese queso dip and far more than 30 different add-ins and toppings, Qdoba tends to stand out from other fast-casual Mexican restaurant businesses. The flexibility and inventory management may prove to be attention-seeking for you as a franchisee. Most Qdoba Mexican Food locations can range in size from a 400 square foot non-traditional location to a 1,200 square foot free-standing restaurant.

Is Qdoba Franchise Opportunity?

Yes, Qdoba provides qualified people and organizations with franchising opportunities.

Facts That Nobody Told You About Qdoba 

Here are some interesting facts about the Franchise that you may not know

• When it first debuted in 1995, Qdoba was known as “Zuma.” In 1999, the name was changed to Qdoba.

• The company’s logo, which highlights the restaurant’s emphasis on Mexican cuisine, is a stylized representation of a Mayan temple.

• With the introduction of its first online ordering platform in 2006, Qdoba was one of the first fast-casual restaurants to provide online ordering and mobile payments.

• The plant-based meat alternative from Impossible Foods, which is manufactured from soy protein and is intended to taste and feel like real beef, was initially made available by Qdoba in 2017, the first significant fast-casual restaurant chain in Mexico.

Qdoba Franchise Reviews and Information
Industry Type	Food Franchise Opportunities
Sub Category	Mexican Restaurant Franchise Opportunities
Year Established	1995
Company Name	Qdoba
Founder/Management Head	Keith Guilbault
Franchising Started	1997
Employees at Company H.O	128
Franchise Expansion Plan	US and worldwide
Number of Units	643
Number of Franchise Units	643 (2022)
Social Media Handles	Facebook
	Twitter
	Youtube
	Instagram
Company Office location	San Diego, California, United States

Qdoba Franchise Requirements

The following criteria must be met in order to open a franchise

1. Net worth

You must be worth at least $1 million.

2. Liquid assets

You must have liquid assets of at least $500,000 to qualify.

3. Experience in business

It would be ideal if you had prior experience in the restaurant or retail sectors.

4. Business charge

Depending on the size and location of the franchise, the first franchise price might range from $30,000 to $40,000.

How much does a Qdoba franchise cost?

The company’s 2021 Franchise Disclosure Document states that a total cost of a Qdoba franchise.

1. $252,800–$816,700 for NON-TRADITIONAL and 

2. $476,800-$1,096,700 for TRADITIONAL

According to the company’s 2021 Franchise Disclosure Document, the first franchise fee ranges from $30,000 to $40,000 and the total investment needed to start a Qdoba franchise ranges from $462,158 to $970,670.

This total cost covers the initial franchise fee, real estate fees, equipment, and construction costs, as well as other charges.

 

Qdoba Franchise Startup and On-going Franchise Costs
Qdoba Franchise Fee	$30,000
Qdoba Franchise Cost	$252,800–$816,700 For NON-TRADITIONAL Stores $476,800-$1,096,700 For TRADITIONAL
Royalty Fee	5%
Advertising Fee	1.5%
Term of Agreement	10 years
Is franchise term renewable?	Yes
Renewable Franchise Fees	50% of Initial Franchise fees

Qdoba Training to Franchises

The training program includes the following components

1. Initial training

Qdoba offers new franchisees and their managers an initial training program that involves both classroom and hands-on instruction at a business-owned restaurant.

2. Training that is ongoing

Through its online learning management system, Qdoba provides franchisees with ongoing training and support.

3. Support from the local area

Qdoba offers local business advisors that offer franchisees continuous assistance, including frequent visits to their businesses to offer advice and criticism.

4. Marketing and advertising assistance

Qdoba offers its franchisees’ marketing and advertising assistance, including help for social media and digital marketing campaigns on a national and local level.

Qdoba Operations to Franchises

The franchise provides ongoing support and guidance to its franchisees to help them run their businesses successfully. This support includes,

1. Site selection and restaurant design

Qdoba offers franchisees advice on choosing the best location for their eatery as well as assistance with design and layout.

2. Supply chain management

Qdoba has a well-established structure in place for managing its supply chain, giving its franchisees access to high-quality ingredients, tools, and supplies at reasonable costs.

3. Training and development

Qdoba provides thorough training programmes that cover all facets of restaurant operations, including food production, customer service, and managerial abilities, for franchisees and their personnel.

4. Support for technology and systems

Qdoba gives its franchisees access to cutting-edge point-of-sale systems, online ordering websites, and back-office management tools.

How is Qdoba Territory Granted to Franchises

1. First inquiry

Potential franchisees often start the process by contacting Qdoba’s franchise development team with an initial question.

2. Evaluation

The franchise development team at Qdoba’s assesses the initial inquiry from the potential franchisee and determines whether they fit the requirements for franchise ownership.

3. Territory selection

After a potential franchisee has been given the go-ahead, Qdoba’s franchise development team will consult with them to choose the best possible location for their restaurant.

4. Franchise Agreement

The potential franchisee and Qdoba will sign a franchising agreement once the territory has been determined.

What is the Qdoba Term of Agreement and Renewal?

• First Term

Depending on the details of the agreement between the franchisee and Qdoba, the period of the agreement and renewal for a Qdoba may change. Nonetheless, Qdoba’s franchise agreement typically has a 10-year initial term.

• Renewal Term

Franchisees must often fulfill a number of requirements in order to renew their agreements, including maintaining excellent relations with Qdoba, operating a profitable business, and satisfying financial obligations.

 

Does Qdoba provide Financial Assistance to Franchises?

Franchisees are not given direct finance or financial support by Qdoba. But, the business might be able to help franchisees acquire finance in other ways.

Pros & Cons of owning a Qdoba

Pros of Owning Qdoba

1. Brand recognition

Qdoba is a well-known company with good standing in the fast-casual dining industry.

2. Training and assistance

Qdoba offers its franchisees a wealth of assistance and training, including initial training for the franchisee and their team.

3. Operational efficiencies

Qdoba’s well-established operational systems and procedures will be advantageous to you as a franchisee and can help you simplify your operations and cut expenses.

4. Menu and product development

Qdoba frequently launches new menu options and product lines, which helps keep your restaurant’s menu unique and appealing to customers.

Cons of Owning Qdoba

1. Costs associated with the first investment

Establishing a Qdoba’s franchise demands a sizable upfront expenditure, which some potential franchisees may find difficult to finance.

2. Royalty fees

Paying continuing royalties to the firm as a franchise will be necessary and will affect your profitability.

3. Restricted opportunity to customise the Qdoba menu

As a franchisee, you will be expected to adhere to Qdoba’s predetermined menu and product offerings, which may restrict your ability to customise your restaurant to local tastes and preferences.

4. Competition

The fast-casual dining industry is fiercely competitive, so it could be difficult for you to draw in and keep customers in your neighborhood.

How much do Qdoba franchise owners make?

The amount of money that Qdoba franchise owners can make varies greatly and depends on a number of elements, such as the restaurant’s location and size, the state of the local economy, and the franchisee’s managerial abilities and experience. 

We shall estimate the Qdoba franchise profit and years to recoup the investment (ROI).

AUV Traditional Location (10%)AndNon-Traditional (10%)	Estimated Annual Profit (12.5%)	Estimated Annual Profit (15%)	Estimated Annual Profit (18%)
For a Traditional location it is $1,260,746 Non-Traditional locations it is $1,359,325	$ 45,000	$ 54,000	$ 64,800
Recoup for traditional Locations it is 8 Years Non-Traditional locations it is 9 Years	8.36 years	7 years	5.8 years

According to industry standards, it will take a very long time to get a return on the franchise investment.

What is Qdoba franchise profit?

The estimated Qdoba franchise profit is in the range of $ 1,675,750 and it will take 8 Years for traditional Locations And 9 Years for Non-Traditional Locations to recoup the investment. 

At their peak, these profit margins were greater than 25% of sales, or Approx  $625,000 per store. Goals for revenue and profit are not being met.

What are Qdoba franchise reviews?

Positive Reviews

• According to many franchisees, Qdoba’s well-established name and standing in the fast-casual dining industry have aided in bringing people to their establishment.

• According to franchisees, Qdoba offers thorough training and assistance to help them launch their businesses.

Negative Reviews

• The initial investment necessary to operate the Qdoba franchises is higher than some franchisees had anticipated. This can make it difficult for certain potential franchisees to secure financing.

• Franchisees are required to pay continuing fees and royalties to Qdoba, which can reduce profitability and make achieving financial success more difficult.

Qdoba Franchise Rankings

• Qdoba’s has previously appeared on the Franchise 500 list from Entrepreneur Magazine, which evaluates the best franchise opportunities based on qualities like financial stability, rate of expansion, and brand power.
• News from Nation’s Restaurants, Based on the company’s unit growth and revenue growth, Nation’s Restaurant News ranked Qdoba as one of the top 10 fastest-growing chains in the United States in 2018.
• Fast Casual, The business was recognized as one of the top 100 fast-casual brands in the US in 2019.
• Also, Qdoba has received praise from QSR Magazine, a prestigious trade journal for the quick-service restaurant sector. Qdoba was ranked among the top 50 fast-casual restaurants in the United States by the magazine in 2018.

Franchise Deck Analysis and Overview

Having a Qdoba franchises gives you access to a recognized brand and well-liked cuisine in the fast-food sector. But the hefty upfront and recurring costs, as well as the expertise needed to become a franchisee

Is the Qdoba  Franchise Profit Worth the Cost?

Yes, Due to its established reputation, devoted clientele, and tested business plan, Qdoba franchisees may find it easier to draw in new clients, keep existing ones, and make money.

Franchise Success and Failure Rate

The below table will highlight the franchise success and failure rate for the last 3 years. This will supplement your decision-making process.

Year	Format	Start	End	Change
2019	Franchise Owned	362	380	+18
Company Owned	362	346	+16
2020	Franchise Owned	380	390	+10
Company Owned	346	333	+13
2021	Franchise Owned	390	342	+48
Company Owned	333	289	+44

Competition Analysis of Qdoba
Brand	Cost to Franchise	Franchise Fees	Royalty + Ad fees	Expected Profit	Recoup of Capital	FD Rating
Qdoba	$252,800–$816,700 For NON-TRADITIONALAnd$476,800-$1,096,700 For TRADITIONAL	$30,000	5%	$100,000	4-5 years	3.9/5.0
Subway Franchise	$222,050 – $506,900	$15,000	8%	$454,877	7.3 years	4.5/5.0
Jimmy John’s Franchise	$355,900 – $671,400	$30,000-$35,000	6%	$280,000	6-7 years	4.0/5.0
Jersey Mike’s Franchise	$194,035 to $954,611	$ 18,500	6.5%	$1,049,047	7-8 years	3.6/5.0
Jason’s Deli Franchise	$1,020,759 to $1,554,891	$17,500	6%	$2,080,645	5-6 years	3.9/5.0
McAlister’s Deli Franchise	$175,000 to $1,360,000	$15,000 to $15,000	5%	$1,865,861	4-6 years	3.5/5.0

The Franchise Deck rating for the franchise is 3.9/5.0.

Conclusion: Should You Buy Qdoba franchise for sale

Yes, Owning the Franchise is profitable For the proper businessperson, purchasing a Qdoba franchise might be a potentially rewarding investment. 

The value of Qdoba franchises is determined by the specific opportunity, your goals and circumstances, and your willingness to accept the risks and challenges of business ownership.

Entrepreneurs who want to open a franchise in the burritos, tacos, salads, and bowls  franchise opportunities categories can look at 

1.  Chipotle Franchise
2. Five Guys Franchise
3. Noodles & Company Franchise
4. Moe’s Southwest Grill Franchise
5. Jack in the Box Franchise
6. Jimmy John’s Franchise
7. Jersey Mike’s Franchise
8. Chick Fil A Franchise

Frequently Asked Questions (FAQs)

1. Is the Qdoba franchise profitable?

A Qdoba franchise’s profitability will be determined by a number of factors, including the individual franchisee’s management, marketing strategies, cost control, and local market conditions.It varies according to a number of factors, including location, competition, management, and overall market conditions.

2. Can you make money owning a Qdoba franchise?

Yes, it is possible to make money by owning a

Qdoba franchises, but profitability is not guaranteed and will depend on several factors. To maximise profits and minimise expenses, franchisees must develop effective management strategies, marketing plans, and cost controls.

3. Is Qdoba a franchise?

Yes, A fast-casual Mexican restaurant franchises called Qdoba specialises in burritos, tacos, salads, and bowls that may be customised. Customers can add different proteins, toppings, and sauces to their orders to make them more unique.

4. How much is a Qdoba franchise?

The company’s 2021 Franchise Disclosure Document states that a total investment of $252,800–$816,700 For NON-TRADITIONAL And

$476,800-$1,096,700 For TRADITIONAL is needed to create Qdoba franchises. This covers the initial franchise fee, real estate fees, equipment, and construction costs, as well as other charges.

5. How do Qdoba franchises make money?

Qdoba franchises make money by selling customers food and beverages. Franchisees buy food and supplies at negotiated prices from approved suppliers and sell them to customers at retail prices, earning a profit on the difference between the cost of goods and the price charged to customers.