Wingstop is one of the fastest-growing quick-service restaurant chains in the world, and if you have been eying this business opportunity for a while, then this article is for you!
In this guide, we have shared how much does a Wingstop franchise owner make, how much investment one needs, what is the payback period of this franchise opportunity and more.
About Wingstop
Wingstop is a popular American restaurant chain that primarily sells chicken wings. It was founded by Antonio Swad in the year 1994 in Garland, Texas, and today, there are more than 1500 Wingstop restaurants around the world.
Wingstop started franchising in the year 1997, and now they are the fastest-growing franchise concept attracting operators and entrepreneurs who have a passion for owning and running a business.
If you want to own this restaurant franchise, too, then keep on reading to find what qualification you need and how much money you can make with this franchise.
How Much Does A Wingstop Franchise Owner Make?
The sales figure of each Wingstop franchise may vary depending on a number of factors such as the locations, staff performance, operating cost, etc.
However, as per the Wingstop website, a Wingstop franchise owner generates an average unit volume of $1.59 Million a year.
As a Wingstop owner, you can make more or less than this average number.
Wingstop Key Investments
| Fees | Amount |
|---|---|
| Initial investment | $315,310 – $948,080 |
| Initial franchise fees | $10,000 – $20,000 |
| Marketing fees | 4% |
| Royalty fees | 6% |
| Minimum net worth | $1,200,000 |
| Minimum liquid capital | $600,000 |
How Much Does A Wingstop Employee Earn?
According to ZipRecruiter, the hourly pay of Wingstop employees ranges from $9.38 an hour to $35.84 an hour on average.
So if we look at this in yearly terms, then someone working as a restaurant team member would earn $19,500 a year, and someone working as a District manager would earn $74,553 a year, and so on.
Please note that this is just an average number, and a Wingstop employee may earn more or less than this depending on their department, position, skills, location, etc.
Pros & Cons Of Wingstop Franchise
Pros Of Wingstop Franchise
- Offers territory protection.
- Provide comprehensive training and support.
- Highly profitable.
- Menu that stands out.
- International presence.
Cons Of Wingstop Franchise
- High royalty-fee.
- No direct financing options.
- Lots of competition.
- High cost investment.
Wingstop Franchise Average Revenue & Profit
As per the information mentioned on the company’s website, the Wingstop franchise generates an average unit volume of $1.59 Million annually. This figure is based on the performance of 28 corporate and 1,144 franchised locations operating in the year 2020-2021.
Out of these 1172 restaurants, 42% (494) outlets made higher net sales than $1.59 million, in fact.
After deducting all the expenses, a Wingstop franchise owner makes an average profit of $200,000 each year, which corresponds to an average profit margin of 15%.
If we talk about the Wingstop company in general, then the company generates average systemwide revenue of $53 million each year.
((https://www.wingstop.com/why-wingstop))
Wingstop Franchise Failure Rate
To find out the Wingstop franchise failure rate let us look at the table below:
| Outlet Type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|---|
| Franchised | 2019 | 1095 | 1199 | +104 |
| 2020 | 1199 | 1320 | +121 | |
| 2021 | 1320 | 1485 | +165 | |
| Company-Owned | 2019 | 29 | 31 | +2 |
| 2020 | 31 | 32 | +1 | |
| 2021 | 32 | 36 | +4 | |
| Total Outlets | 2019 | 1124 | 1230 | +106 |
| 2020 | 1230 | 1352 | +122 | |
| 2021 | 1352 | 1521 | +169 |
As we can see, not even a single Wingstop restaurant closed down during the three years, which is quite impressive.
And if we talk about the growth rate of Wingstop, then it has a surprisingly high growth rate of 35.6% which is impressively high for this industry.
The figure clearly paints a positive picture of Wingstop and shows the company has been growing and expanding rapidly. So the failure rate of Wingstop is very low.
Wingstop Franchise Payback Period
To determine the Wingstop franchise payback period, let us do some calculations.
| AVERAGE INVESTMENT | $631,695 |
| AVERAGE REVENUE PER OWNER | $1,590,000 |
| AVERGAGE PROFIT PERCENTAGE | 15% |
| AVERGAGE PROFIT PER YEAR | $200,000 |
| AVERAGE PAYBACK PERIOD | 3 Years |
PAYBACK PERIOD = TOTAL INVESTMENT / PROFIT PER YEAR
= 631695/200000= 3.1 = 3 Years based on median
The average investment for a Wingstop Franchise is $631,695.
With an average profit percentage of 15%, the average profit per year is $200,000.
This means that the average payback period for a Wingstop Franchise is 3 years, as the total average investment of $631,695 would be recovered within this period.
Wingstop Might Be The Hardest Franchise To Get
Wingstop is a very profitable franchise, and getting hands-on it is not that easy. In order to own a Wingstop franchise, you must have the following:
- Have a total net worth of $1,200,000.
- Have total liquid assets of $600,000.
- A minimum 3 restaurant commitments for development.
- Give time for required training programs.
- Experience with running and managing multi-unit restaurant operations.
- An initial investment of $315,310 – $948,080 (excludes lease costs and real estate purchase)
((https://www.wingstop.com/get-started))
Facts About Wingstop
- Wingstop does not accept any ideas from outsiders and has a written policy against considering “unsolicited ideas” for their menu items.
- You can get free fries at Wingstop if you fill out the survey that is indicated at the bottom of your receipt.
- Wingstop features 11 unique and delicious flavors of wings.
- Wingstop is one of the fastest-growing QSR chains in the world.
- Wingstop has a policy of adding an extra wing per order over 10 wings. So if you order 10 wings, you should get 11, and for 20 you should get 22, and so on.
- Wingstop exclusively sells chicken and nothing else.
- Wingstop has served over a billion wings up until now.
- During the Pandemic, the systemwide sales for Wingstop increased by 30%.
((https://www.mashed.com/290125/the-untold-truth-of-wingstop/))
What Is Wingstop Known For?
Wingstop is known exclusively for its chicken wings, available in 11 different flavors.
Wingstop is one of the fastest-growing QDR chains in the world, owing to the lip-smacking flavors offered by them. And they take pride in offering flavourful fresh chicken wings served with hand-cut seasoned fries and delicious sides.
If you have never been to Wingstop before, then here are some must-try items from their menu:
- Mango habanero wings
- Louisiana Voodoo fries
- Original hot wings
- Spicy Korean Q wings
- Cajun fried corn
- Atomic wings
- Buffalo ranch fries
- Garlic Parmesan wings
- Triple chocolate chunk brownie
- Cajun wings
- Cheese sauce
- Lemon pepper wings
Is Wingstop Franchise Profitable?
Yes, Wingstop is a very profitable franchise, with single franchise units making sales of as much as $1.59 million on average and some units making sales of even more than this.
With a 15% profit margin, a Wingstop franchise owner can easily make an average annual profit of $200,000.
And even on the lower end, a Wingstop franchise owner makes $85,000 annually. So even in the worst-case scenario, you would be making a profit if you choose to buy this franchise opportunity.
Read: Feed Your Soul Franchise
Wingstop Franchise Earning Potential
The earning potential of the Wingstop franchise is high, especially since there has been constant growth in the number of Wingstop franchise that has been opening in the past few years.
And also, there has been an increase in sales in the last few years. In fact, there was a 26.56% in sales in 2022 compared to 2021.
And in the same year, out of the 1172 restaurants, 42% (494) outlets made higher net sales than $1.59 million.
So all the key data indicates that Wingstop has the potential to make a high amount of profit.
Wrap Up
After looking at the nitty gritty of Wingstop, this is what we conclude:
Wingstop is a very profitable albeit high-investment franchise opportunity. The Wingstop franchise failure rate is low, and the payback period is 3 years on average.
You need to meet certain strict financial eligibility criteria to own this franchise, and the only flaw is that it has a royalty fee of 6%, which is on the higher end.
Overall, if you have the kind of money it requires to own this franchise, then you should definitely consider buying the Wingstop franchise.
Read: Domino’s Franchise
Frequently Asked Questions
How much royalty and marketing fees does Wingstop charge?
Wingstop charges a royalty fee of 6% of gross sales and marketing fee of 4% of gross sales.
What is the franchise fees to own a Wingstop restaurant?
Wingstop charges an initial investment fee of $10,000 and $20,000.
Does Wingstop offer financing to franchises?
No, Wingstop does not offer direct financing to franchisees. However, they can provide you with a list of trusted financers on request.
Amit Gupta is the founder of DrFranchises – a digital marketing agency that helps brands rank better on Google Maps through local SEO strategies. Amit has over 11 years of experience in digital marketing, SEO, email marketing, and social media marketing. He’s also the owner of multiple franchises and has helped countless brands achieve success online. When he’s not working, Amit can be found playing with his dog.