June 11, 2018

A Look at Capriotti’s Margins

Too many companies only focus on top-of-line growth. Savvy business owners, on the other hand, know that focusing on their margins is often the best path to maximizing profits. This becomes even more important within a franchise system, where favorable margins at each location are essential to the overall success of the brand.

Since our franchise partners’ success is our success, we have made it our mission to ensure solid margins for our franchisees. Ever since we opened in 1976 and began franchising 17 years later, we’ve made sure our business model contributes to impressive margins and unit-level profitability at all of our locations.

Here’s a closer look at our margins, and how this benefits our franchisees:

Low Overhead and Simplified Operations

Because Capriotti’s is a fast-casual concept, it requires a significantly lower financial investment than full-service restaurants. Our average restaurant size seats 40 guests at a time, with a store footprint that ranges between 1,200 and 1,800 square feet. Nearly a quarter of the size of most full-service restaurants, the smaller space saves you a fortune on initial real estate costs and ongoing expenses for utilities and any maintenance.

Capriotti's store interior

A typical Capriotti’s also operates with only about 12 to 15 employees on the schedule. Your consolidated staff will know how to do everything in your restaurant – from preparing the food to serving and ringing up guests. This translates into significant cost savings on payroll, since you’re able to accomplish more with fewer people.

Not only does a smaller space and fewer employees mean money back in your pocket, it also fosters streamlined, simplified operations. And although much of our food is hand-made, sandwiches are our specialty – and from an operational standpoint are created with the same fundamental components. So, with relatively few, high-quality ingredients and easy-to-follow recipes, our franchise partners can look forward to efficient service.

Strong Sales in a Growing Industry

Of course, low overhead and simplified operations aren’t the only keys to a solid profit margin. You need to generate strong sales, too. Luckily for our franchise partners, our unparalleled product performs pretty well in the growing, $52 billion fast-casual sector. As a matter of fact, the top 25 percent of Capriotti’s locations average more than $1.1 million in sales annually.*

Our one-of-a-kind, fresh products are our key differentiator in the rapidly-growing fast-casual industry. Even though we make our food from scratch, we’re still able to maintain efficient operations, while serving our guests the food they love. And since introducing our catering and delivery options, we’ve been able to expand our reach and bring in thousands more orders from our guests.

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It’s not just our brand mission to create fresh, obsessively crafted sandwiches our guests can feel good about eating – it’s just as important create a profitable business opportunity our franchise partners can feel good about owning.

Simplified products and operations coupled with impressive sales make for strong profit margins. We’ve been able to help foster success for each of our more than 100 franchise locations by staying true to this simple formula and promoting unit-level profitability – and we’re excited to foster success for future franchise partners, as we continue to grow.

If you’re interested in becoming a franchise partner with a successful and profitable brand, contact us at 702-374-4746 or bruce.evans@capriottis.com.

* $1,115,570 is the average unit volume of the top 25% (8/44%) of all 74 franchised Capriotti’s shops in operation for the entire calendar year ending December 31, 2016. The median unit volume of restaurants in the top 25% of shops (8) is $1,120,259. A new franchisee’s results may differ from the represented performance. There is no assurance that you will do as well, and you must accept that risk. For information about the financial performance during 2016 of all franchised and affiliate-owned restaurants that operated for the full year see Item 19 of the CSSI Franchise Disclosure Document dated May 15, 2017. ** For a complete breakdown of the total investment, see Item 7 of the CSSI Franchise Disclosure Document dated May 15. 2017. The total investment ranges from $350K -$815K. The Franchise Investment varies.