Golden Corral Buffet & Grill
Click
here to link to Golden Corral’s detailed company profile
Golden Corral’s first family steakhouse opened in Fayetteville, NC, in 1973. Since then Golden Corral has opened 485 units in 40 states and introduced its now signature “Buffet & Grill” restaurant design, with food preparation performed in full view of the dining area to emphasize freshness and quality. The focal point is the Golden Choice Buffet with 160 hot and cold items, including flame-broiled, cooked-to-order USDA sirloin steaks cut fresh daily, a carving station for a variety of meats, plus The Brass Bell Bakery and Dessert Café that features rolls, muffins, and baked desserts made from scratch as well as a Chocolate Fixation Station with hand-dipped chocolate covered strawberries.
Franchisees can take advantage of the range of Golden Corral buildings designed to match the building size and land needed to the market potential, ranging from 248-300 seats to 420-460 seats. Golden Corral enjoys a great reputation among its customers, and in 2009 Entrepreneur magazine named Golden Corral the #1 franchisor in the U.S. among family steakhouses for the 15th consecutive year.
| |
Operating Units |
12/31/2008 |
12/31/2009 |
12/31/2010 |
|---|
| | Franchised |
380 |
376 |
388 |
| | % Change | -- |
-1.1% |
3.2% |
| | Company-Owned |
103 |
103 |
97 |
| | % Change | -- |
0.0% |
-5.8% |
| | Total |
483 |
479 |
485 |
| | % Change | -- |
-0.8% |
1.3% |
| | Franchised as % of Total |
78.7% |
78.5% |
80.0% |
Investment Required
The initial investment fee for a Golden Corral franchise is $50,000. Golden Corral also has a development agreement program.
Golden Corral provides the following range of investments required to open your initial franchise. The range assumes that all items are paid for in cash. To the extent that you choose to finance any of these expense items, your front-end investment could be substantially reduced.
Please note, the figures below reflect the costs for a GS-11S restaurant design, seating 248 to 300 customers. The Total Initial Investment for a GC-11M restaurant design, which seats 360 to 400 customers, is $2,877,000 – $6,027,700, and the Total Initial Investment for a GC-10 restaurant design, which seats 420 to 460 customers, is $3,346,000 – $6,756,500.
| |
Item | Established Low Range | Established High Range |
| |
Initial Franchise Fee |
$50,000 |
$50,000 |
| |
Purchase of Land |
$400,000 |
$1,300,000 |
| |
Construction, Contractor Site Preparation, Leasehold Improvements |
$780,000 |
$1,600,000 |
| |
Signage |
$45,000 |
$77,000 |
| |
Furniture and Equipment |
$547,000 |
$642,000 |
| |
Opening Advertising |
$10,000 |
$15,000 |
| |
Initial Training |
$34,500 |
$147,000 |
| |
On-Site Assistance Costs |
$18,400 |
$75,000 |
| |
Inventory |
$40,000 |
$75,000 |
| |
Insurance |
$10,000 |
$15,000 |
| |
Additional Funds (3 Months) |
$19,000 |
$110,000 |
| |
Total Initial Investment |
$1,953,900 |
$4,106,000 |
Ongoing Expenses
Golden Corral franchise owners pay a weekly royalty fee equal to 4% of gross sales and a weekly advertising contribution fee ranging from 2% to 4% of gross sales (currently 2.4%). Additional fees include a fee for operation and maintenance of a computer system.
What You Get—Training and Support
Prior to opening, Golden Corral franchisees undergo a ten-week training program covering all aspects of restaurant management and operations. The program consists of eight weeks in certified training restaurants and two weeks in Corporate Center for Training & Development at Raleigh, NC. Golden Corral also assists franchisees with building their new Golden Corral restaurant, providing generic plans and specifications for construction including the restaurant’s exterior and interior design and layout, fixtures, furnishings, and signs.
Golden Corral supports its franchisees with advantageous pricing thanks to its combined purchasing power in a nationwide system with leading specialty distribution companies and equipment suppliers. Golden Corral franchisees can always offer a new and interesting menu tailored to evolving customer tastes thanks to the Golden Corral test kitchen team, which has some 30 new food items undergoing consumer evaluation in restaurants at all times. Golden Corral was awarded the national Restaurant Business “Menu Strategist Award,” based on votes in 2005 by industry experts, who described Golden Corral’s test kitchen team as producing “best in class” results.
Territory
Golden Corral grants exclusive territories.
Note: The tables and information regarding the number of operating units, investment required, on-going expenses, training and territory grants were taken from the company’s 2011 FDD. The 2011 write-ups will be incorporated into the 2011 Edition of Bond’s Top 100 Franchises publication.
|
