Following are some frequently asked questions and answers:
How much space do we need?
Anywhere from 3,000 to 4,000 square feet is typical. Smaller stores with limited service are generally found in dense urban, downtown locations, where walk up traffic is the main source of sales. In the suburbs, our optimum size store is 3,500 square feet.
What is the cost breakdown?
Furniture, fixtures and equipment can cost anywhere from about $227,500 to $263,500 depending on the level of service you want to provide, and the size of the restaurant you want to run.
How much does the construction (tenant finish) cost?
Generally, $80 to $100 per square foot, depending on geographical area. A little less for large locations, but if you are located in high rent districts, or unionized areas, construction could be much higher. If you find a space that was used for a restaurant before you, it could be significantly less. Old buildings generally require more fix up and cost more. “In line” spaces in suburban centers anticipate tenants such as you, therefore many of the services you need are already available. Assuming a typical location of 3,000 square feet and an average build out cost of $90 a square foot, the average cost would be approximately $270,000.
What about other costs?
There are costs such as advertising, licenses, utility deposits, uniforms, food and small wares inventory, and working capital. These costs should be $22,500 to $27,500. If you choose to have a beverage license it would be additional and a different cost in most every area.
What are your fees?
The franchise license fee is $30,000 for a Grains of Montana franchise. You are required to contribute 1% of gross sales into a Marketing & Promotion fund. The royalty fee is 5% of gross sales. Expenses for travel and lodging are not included in the fee.
What is the total cost to open a store?
Based on the above, a Grains of Montana store can be opened for as little as $551,500 to approximately $684,400 depending on square footage.
How do we get trained?
We generally train you and certain employees at our headquarters and at another restaurant location prior to opening. We have simplified our operations to the point that we can have you ready to operate your store after about two weeks of intense training. We also assist you in opening your business. All training is tied to a detailed operations manual, which means procedures will be easy to follow after we leave.
What about design of the store?
We can provide complete architectural services that will lead to your building permit.
How do we obtain the equipment?
We are affiliated with an established equipment dealer, Cromwell Equipment Company; that buys directly from the manufacturers and charges a small mark up. Based on our specifications, Cromwell coordinates all aspects of ordering the equipment and then monitors shipping between the factory and your location.
Is it better to wait in a bad economy?
Not necessarily. The U.S. consumer will still dine out. However, they will trade down from the more expensive restaurant to the more moderate priced “fast casual” restaurant. Grains of Montana fits this model.
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