If you have been watching Shark Tank for a while, you may have seen Buena Papa and their story. They became an actual restaurant chain thanks to this show, with more than just one store. Buena Papa recently started offering franchises, as well, to those interested, and it seems like a great opportunity due to the online fame they have.
However, you might wonder if it’d actually be worth opening one when you factor in the costs and other expectations. In this article, we will go through Buena Papa, its franchise system, the costs associated, and all other things related to its franchise system.
About Buena Papa and Buena Papa History
Buena Papa is a fast-casual franchise restaurant chain specializing in Latin meals with fries. The company started from a simple idea of switching rice with fries to traditional Latin cuisine by James and Johanna Windon.
They offer meals from Colombia, Mexico, and Puerto Rico with hand-cut, made-to-order gourmet French fries. When the couple appeared on Shark Tank, they got a $400,000 investment for 17% equity of the brand.
Now, the company has grown to 7 locations across the United States, and they keep growing. They started to franchise in 2022, so a lot of things are quite new for the brand.
They are still developing their franchise program, which is said to be a low-cost program, even though the exact information is not available online.
Buena Papa Franchise Model Table
| Cost Or Fees | Amount |
|---|---|
| Initial Investment | Not Available |
| Franchise | YES |
| Franchising Since | 2022 |
| Franchise-Fee | $29,500 |
| Royalty-Fee | 8% |
| Liquidity | N/A |
| Estimated Outlets | 7 |
How Much Does It Cost to Open a Buena Papa Franchise?
The exact information on how much it costs to open a Buena Papa franchise is not available to the public. Once you apply on their website to show your interest, they will get in touch with you and give you the necessary information regarding the financials.
The only thing that is available to the public is that the franchise fee is $29,500, and there is an 8% royalty fee.
Buena Papa Profit & Revenue
Buena Papa is not a public company. They are privately owned by the owners and the investors. That’s why they don’t share the financial information publicly, but there are estimations online, and the company also tries to give an overview.
When Buena Papa was first introduced to the world, they had one location, and they had about $2 million in annual sales during the shooting of the show. Once expenses were removed, the brand had $200,000 in net profit in total. Now, it is probably higher as they have 7 stores.
Buena Papa Overall Sales
Buena Papa’s one-store made close to $2 million in its first year of operation. Now, the brand gives out estimations on the number of customers per week and the average spending per customer.
It says they expect 900 to 1,100 customers a week with an average spending of $19. That averages between $889,200 and $1 million in average annual unit sales.
Buena Papa Franchise Owner Salary
According to sources, Buena Papa Franchise owner generates between $889,200 and $1.08 million in average revenue.
If we consider a profit margin of 15% on average, then we can calculate that Buena Papa franchise owners make $147,690 in net profits on average.
This is how we calculated this amount:
| Financial Overview | Percentage of Revenue | Amount ($) |
|---|---|---|
| Individual Franchise Annual Revenue | 100% | 984600.00 |
| Rent | 10.63% | (104613.75) |
| Insurance | 5.31% | (52306.88) |
| Salaries | 21.25% | (209227.50) |
| Franchise Royalty Fees | 5.31% | (52306.88) |
| Utilities | 2.13% | (20922.75) |
| Cost of Goods Sold (COGS) | 26.56% | (261534.38) |
| Labor (Variable) | 13.81% | (135997.88) |
| Total (Expenses) | 85.00% | (836910.00) |
| Net Profit | 15.00% | 147690.00 |
Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.
What Are Some Alternatives to Buena Papa?
Buena Papa is brand new, and there isn’t a lot of proof of success for risk-averse entrepreneurs. You might consider looking at alternatives that might provide more value with less risk. Here are some of them.
Qdoba Mexican Eats
Qdoba is a fast-casual Mexican specialty restaurant franchise chain. From tacos to burritos and quesadillas, they offer a variety of Mexican dishes. The company was founded in 1995, and it currently has 739 outlets, over 400 of which are franchised.
The initial investment for Qdoba is between $252,800 and $1.1 million, which includes the $15,000-$30,000 franchise fee. The royalty fee is 5%.
Taco Bell
One of the biggest Mexican fast-casual franchise restaurant chains, Taco Bell, is an amazing franchise opportunity. They were founded in 1962, and they grew to over 7,000 locations worldwide by now. They are popular for most of their Mexican dishes, like burritos, nachos, tacos, and wraps.
You need to spend between $575,600 and $3.3 million for one Taco Bell franchise store. This includes the franchise fee between $25,000 and $45,0000. You also need to pay a royalty fee of 5.5%.
Moe’s Southwest Grill
Another famous Mexican restaurant franchise chain, Moe’s Southwest Grill, is a great alternative to Buena Papa. The company focuses on Mexican cuisine with a specialty in tacos, burritos, bowls, and wraps. Moe’s was founded in 2000, and they started to franchise in 2001. Currently, the company has over 500 stores across the United States.
The cost to open a Moe’s varies between $659,075 and $1.8 million. The franchise fee is $30,500, which is included in the initial investment, and the royalty is 5% of net sales.
Comparison
| Name | Franchise Fee | Royalty Fee | Initial Investment |
| Taco John’s | $25,000 | 5% | $942,000-$1.3 million |
| Pancheros Mexican Grill | $30,000 | 5% | $500,000-$1.2 million |
| Buena Papa | $29,500 | 8% | Not available |
Conclusion
There isn’t a lot of information on Buena Papa’s franchise system and associated costs. We only know the basics, such as the franchise fee and the royalty fee. However, we also know certain sales numbers and what the expectations are from other franchised stores. You can expect a number above $1 million, going as high as $2 million in overall sales.
Compared to its competitors, who are mostly way bigger than Buena Papa, the company provides an exceptional investment opportunity. If you like to take risks and become one of the first franchisees of the brand, Buena Papa is a great opportunity.
FAQs
How much does a Buena Papa franchise cost?
The exact initial investment numbers are not available. We only know that the franchise fee is $29,500, and the royalty fee is 8%.
Is Buena Papa a franchise or not?
Buena Papa is a franchise. They have an active program, and they franchise across the United States.
What is the Buena Papa franchise fee?
Buena Papa franchise fee is $29,500.