Popeyes Franchise Owner Salary, Profit & Net Worth 2024

Are you a fan of the delicious spicy taste of Popeyes and are hoping to start your own Popeyes franchise?

Are you wondering if Popeyes is even profitable and worthy of your investment? We got you!

In this guide on How Much Does a Popeyes Franchise Owner Make, we have broken down the qualification, net worth, profit potential, the investment needed, etc., so that you can decide whether buying this franchise is fit for you.

How Much Does a Popeyes Franchise Owner Make

About Popeyes

Popeyes Louisiana Kitchen, Inc, or Popeyes, is an American fried chicken fast food chain that was founded in 1972 in New Orleans, LA, by Alvin C. Copeland Sr.

The restaurant was initially named “Chicken on the Run,” where Alvin served traditional Southern-fried chicken.

However, the natives deemed their food “Bland,” and as a result, the owner opened the restaurant again as “Popeyes,” serving new spicy, New Orleans-style chicken which became an instant hit.

Today, Popeyes is famous for its unique and flavourful New Orleans-style menu, inspired by Cajun and Creole flavor profiles.

Even after establishing Popeyes, there were many challenges that the company had to face. However, today, Popeyes has expanded a great deal with more than 3,700+ locations globally.

Popeyes operates two business segments: Company-Operated Restaurants and Franchise Operations, and the Franchise segment consists of both international and domestic franchising activities.

So if you plan on investing in a Popeyes franchise, we have shared all the details you shouldn’t miss below.

((https://www.popeyes.com/our-story))


How Much Does a Popeyes Franchise Owner Make?

The money that a Popeyes Franchise owner makes may vary based on their location, operating expenses, management skills, demand in the area, and so on.

However, on average, a Popeyes Franchise owner makes between $241,918 – $403,196 annually.

Interested In Popeyes Franchise?

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Popeyes Franchise Cost

Cost Or FeesAmount
Initial franchise fees$50,000
Royalty fees5.0%
Marketing fees5.0%
Minimum net worth$1,000,000
Minimum liquid capital$500,000
Average investment amount$1,096,000

How much does a Popeyes Employee Earn?

The salary of Popeyes employees may vary based on their department, position, location, skills, etc.

However, according to ZipRecruiter, Popeyes Employee’s hourly wage ranges from a minimum of $7.93/hour to $29.09/hour with an average pay of $17/hour.

If we see this on a yearly basis, then a person in an entry-level position at Popeyes earns $16,500 a year, and a person at a high-level position earns $60,500 a year on average.


Pros & Cons Of Popeyes Franchise

Pros & Cons Of Popeyes Franchise

Pros Of Popeyes Franchise

  • Training and support from the franchisor.
  • Strong brand recognition.
  • The company updates its menu constantly.
  • Quite profitable.
  • Opportunity for growth.
  • Offers multi-unit options. 
  • Provide standardized design concepts such as endcap, freestanding, inline, walk-up, malls, and so on

Cons Of Popeyes Franchise

  • High-cost of investment.
  • Limited flexibility on how you can run and present your business.
  • High franchise fee when compared to other similar restaurants.
  • Requires more space.

Popeyes Franchise Average Revenue & Profit

According to Recent Data, the Popeyes Franchise makes $1,445,000 in sales per year on average.

If we assume a profit margin of 15% then we can find out that a Popeyes franchise owner make average profit of $216750 a year. Of course, this figure could vary based on location, type of restaurant, management, etc.

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%1445000.00
Rent10.63%(153531.25)
Insurance5.31%(76765.63)
Salaries21.25%(307062.50)
Franchise Royalty Fees5.31%(76765.63)
Utilities2.13%(30706.25)
Cost of Goods Sold (COGS)26.56%(383828.13)
Labor (Variable)13.81%(199590.63)
Total (Expenses)85.00%(1228250.00)
Net Profit15.00%216750.00

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.


Popeyes Company Overall Revenue

Popeye’s financial performance for the year 2022 shows that it made a total revenue of $6.5 billion, a great increase from the last year’s revenue of $5.7 billion.

Out of $6.5 billion in revenue, the company’s net income was $1.4 billion that year. The net income shows a profit margin of 20% which is quite high.

Although Popeyes saw an increase in revenue between 2021 and 2022, there was not much increase in profit. Popeyes made a total net income of $1.2 billion in the year 2021 as compared to a net income of $1.4 billion in 2022.


What can we say about Its Net Worth?

To estimate a company’s net worth based on revenue and profit, we can use a valuation method known as the price-to-earnings (P/E) ratio. The P/E ratio is a common valuation metric that relates a company’s market value to its earnings.

Assuming a P/E ratio of 20 for the restaurant industry, we can estimate the net worth using the following formula:

Net Worth = (Net Income) x (P/E Ratio)

Using the net income figure of $1.4 billion for Popeyes in 2022, the estimated net worth would be:

Popeyes Net Worth = $1.4 billion x 20 = $28 billion

Please note that this is a simplified estimation and does not consider other factors that may affect the net worth, such as debt, assets, and liabilities. A comprehensive analysis of the company’s financial statements and other relevant information is required for a more accurate net worth calculation.


Popeyes Franchise Failure Rate

To determine the failure or growth rate of Popeyes, let’s have a look at the table below:

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20192,3272,458+131
20202,4582,593+135
20212,5932,736+143

For the Franchised outlets:

  • In 2019, the growth rate was (131)/2,327×100≈5.62%
  • In 2020, the growth rate was (135)/2,458×100≈5.49%
  • In 2021, the growth rate was (143)/2,593×100≈5.51%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
201941410
202041410
20214141

For the Company-Owned outlets:

  • In 2019, the failure rate was (0)/41×100≈0.00%
  • In 2020, the failure rate was (0)/41×100≈0.00%
  • In 2021, the failure rate was (0)/41×100≈0.00%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20192,3682,634+131
20202,6342,777+135
20212,7772,7770

For Total outlets:

  • In 2019, the growth rate was (131)/2,368×100≈5.53%
  • In 2020, the growth rate was (135)/2,634×100≈5.12%
  • In 2021, the failure rate was (0)/2,777×100≈0.00%

According to the above-mentioned data, Popeyes has been continuously expanding without even a single outlet being closed down.

The franchised outlets for Popeyes grew from 2019 to 2021, showing a growth rate between 5.62% and 5.51%. On the other hand, for company-owned outlets, the failure rate of Popeyes was lying in the range of 0.00% for the same period of time.

Overall, when we combine the data of franchise and company-owned outlets, we can see that the Popeyes franchise has expanded in the years 2019-2021, showing a total growth rate between 5.53% and 5.12%.


Popeyes Franchise Payback Period

To find out the payback period of the Popeyes Franchise, let us do some calculations considering costs such as ongoing monthly fees, the initial franchise fees, minimum liquidity, etc.

AVERAGE INVESTMENT$2,315,900
AVERAGE REVENUE PER OWNER$1,445,000
AVERAGE PROFIT PERCENTAGE15%
AVERAGE PROFIT PER YEAR$216,750
AVERAGE PAYBACK PERIOD10 years

PAYBACK PERIOD = TOTAL INVESTMENT / PROFIT PER YEAR
= 2315900/216750 = 10.6 = 10 Years based on median

The average investment for a Popeyes Franchise is $2,315,900.

With an average profit percentage of 15-25%, the average profit per year is $216,750.

This means that the average payback period for a Popeyes Franchise is 10 years, and the total investment of $2,315,900 would be recouped within this period


Facts About Popeyes

Facts About Popeyes
  1. Many people think that the name Popeyes is taken from the famous cartoon character, but it is, in fact, taken from the character of “Popeye Doyle” from the film “The French Connection.”
  2. According to Bloomberg Business, Popeyes had to purchase several of its core menu recipes for $43 million as it originally belonged to Diversified Foods and Seasonings.
  3. Popeyes founder Al Copeland was only 28 years old when he started this company.
  4. Popeyes was first started under the name of “Chicken on the Run,” and it didn’t serve spicy chicken back then. As a result, the founder had to restart the business with a different menu.
  5. Beyonce is a fan of Popeyes Chicken and holds a free-Popeyes-for-life card.
  6. Actress Aubrey Plaza and Comedian Ellen DeGeneres have appeared in Popeyes Chicken commercials.
  7. The founder, Al Copeland, also owned a famous comedy club in America called the “The Improv.”
  8. The founder also opened Cheesecake Bistro in four locations in Louisiana and Georgia.
  9. 70% of Popeyes restaurants are in Texas, Louisiana, California, Illinois, Maryland, Virginia, New York, Florida, Georgia, and Mississippi.
  10. Over-expansion led Popeyes to accumulate a debt of $391 million in the year 1991, and it forced the company to file for protection under the Bankruptcy Act.
  11. Popeyes has set up several outlets on military installations in Germany, Japan, and other countries to make sure the military men and women get to eat their favorite food.
  12. Before establishing Popeyes, the owner sold donuts and opened the Tastee Donut franchise at the age of 18. And the money he earned from this was used to establish Popeyes.

((https://moneyinc.com/popeyes-chicken/))


What Is Popeyes Known For?

Popeyes is the world’s third-largest chicken quick-service restaurant that is known for its Cajun-species meal and Louisiana-inspired dishes.

However, the showstopper of this fast-food restaurant is its spicy chicken sandwiches and dishes. Customers love their unique and delicious New Orleans-style chicken recipes.

Some of the most popular dishes in Popeye’s menu are:

  • Chicken Sandwich.
  • Red Beans and Rice.
  • Mashed Potatoes.
  • Cinnamon Apple Pie.
  • Tenders Meal.
  • Biscuits.
  • Popcorn Shrimp Meal.
  • Cajun Fries


Is Popeyes Franchise Profitable?

The profitability of Popeyes Franchise depends on various factors such as the investment amount, ongoing expenses, franchise fees, etc.

So Popeyes requires at least $1 million of the total investment on average, along with an initial franchise fee of $50,000. This is a huge investment amount, and to some, it might even seem scary.

However, the demand for Popeyes franchises is ever-increasing, and even with more than 3700+ outlets in the world, there is a lot of room left for expansion and growth.

Popeye’s unique taste, along with its high demand around the world, keeps customers coming in.

As a result, Popeyes franchise outlet easily makes an average of $1.4 million in sales annually, giving out a net profit of $216,750 a year.

So clearly, the Popeyes franchise is a very profitable business to invest in.


Popeyes Franchise Earning Potential

The growth rate of Popeyes has been increasing over the last five years, and although it requires you to put in a high investment amount, the profit potential of Popeyes is good.

On average, a Popeyes franchise owner makes a salary between $241,918 – $403,196 annually from a revenue of $1,445,000, which is a profit margin of 15% -25% and has the potential to make even more than this based on your skills, location, and other such factors.


Wrap Up

After looking at the franchise details of Popeyes, we can say that investing in a Popeyes Franchise requires you to put in a huge amount of investment (up to $1 million).

If you want to invest in this franchise, then there are a few criteria that you must meet.

They also charge a high initial franchise fee and royalty fee.

However, this franchise is quite profitable, and within an average of six years, you will be able to recover your initial investment amount.


Frequently Asked Questions

What is the profit margin of Popeyes Franchise?

The profit margin of the Popeyes Franchise lies between 15% – 25%.

Does Popeyes offer third-party financing to franchisees?

No, Popeyes does not offer direct or indirect financing opportunities to franchisees.

What is the requirments to open Popeyes Franchise?

These are the needed requirements to open a Popeyes Franchise:

  • You or a member of your team should have previous restaurant experience (preferably QSR chicken) with a track record of southern hospitality.
  • Experience and resources in setting up a successful business.
  • Minimum of $1,000,000 net worth.
  • Minimum of $5,00,000 liquid assets.

Who owns Popeyes?

Popeyes is currently a subsidiary of Toronto-based Restaurants Brands International.

How many location does Popeyes has?

Popeyes has 2,988 restaurants in the United States. The state with the most number of Popeyes restaurants is Texas, with 408 restaurants.

Who founded Popeyes?

AI Copeland founded the Popeyes Chicken & Biscuits fast-food chain in the New Orleans suburb of Arabi in St. Bernard Parish.

Where is Popeyes headquartered?

Popeyes is headquartered in Miami, Florida.

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