Pollo Tropical Franchise Owner Salary, Profit & Revenue 2024

Do you want to own a restaurant franchise, but you are not sure whether it’s a good idea or which one you should go for? That’s totally normal because the industry is massive, there is a lot of competition, and whether you can find success within that is not certain.

Pollo Tropical Franchise

Pollo Tropical is one of the restaurant franchise chains specializing in a niche kitchen, Latin-Caribbean cuisine.

If you like this type of dish, you probably heard of them as they operate a lot of stores in various states. Pollo Tropical currently franchises, and they possess a good opportunity for entrepreneurs with cash.

This article will give you all the necessary information about Pollo Tropical’s franchise system.


About Pollo Tropical and Pollo Tropical History

Pollo Tropical is an American restaurant franchise chain specializing in Latin Caribbean cuisine. They are famous for their marinated and grilled chicken dishes and various dishes on their menu.

They have a special chicken recipe that they have been using since they were founded in 1988.

In addition to their chicken dishes and sides, they also offer Roast Pork, fried chicken, Yuca Bites, and other regional dishes.

They have a very strict and detailed franchising policy because the company wants to grow slowly but decently after shutting down numerous restaurants in the past due to uncontrolled growth. With the controlled franchising policy, they now grow steadily with high investment numbers.


Franchise Model Table

Cost or FeeAmount or Percentage
Initial Investment      $1.5 million-$5 million
FranchiseYES
Franchising Since1998
Franchise-FeeN/A
Royalty-FeeVaries
Liquidity$1.5 million
Estimated Outlets170+

How Much Does It Cost To Open A Pollo Tropical Franchise?

The total cost to open a Pollo Tropical is between $1.5 million to $5 million. The startup costs are very direct because they are non-negotiable in the franchise agreement.

You have to pay the amount decided by Pollo Tropical. They decide the number depending on the number of outlets, location, and size.

The exact numbers are determined once you know how many stores you are going to open and where. You need to open at least 5 restaurants to qualify.


Franchise Requirements

You need to have significant multi-unit restaurant management experience, no matter the exact industry. They desire five years or more experience, but it is not mandatory. It just increases your chances of approval.

The franchisee must have an excellent credit history, good business references, and a financial structure to support the development of at least five Pollo Tropical franchise stores. Additionally, you need to have a net worth of a minimum of $5 million and liquid cash of at least $1.5 million.


Profit & Revenue of Pollo tropical

The revenue numbers without deducting any expenses or taxes was $387.4 million for 2022. This is a 9.1% increase from the previous year in overall sales.

Out of the $387.4 million, the operating profit was $59.4 million, representing a 15% profit margin for the company.


Overall Sales

Pollo Tropical’s average annual overall sales numbers were $2.8 million per store in 2022, according to Pollo Tropical’s latest report.


How Much Does A Pollo Tropical’s Franchise Owner Earn?

There is no direct information about the net profit per store, but we know that the company has an average profit margin of 15% and $2.8 million in overall sales per store. Based on this information, the average franchise owner’s salary is about $420,000 net profit annually.

This is how we arrived at the net profit of Pollo Tropical franchise owner:

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%2800000.00
Rent10.63%(297500.00)
Insurance5.31%(148750.00)
Salaries21.25%(595000.00)
Franchise Royalty Fees5.31%(148750.00)
Utilities2.13%(59500.00)
Cost of Goods Sold (COGS)26.56%(743750.00)
Labor (Variable)13.81%(386750.00)
Total (Expenses)85.00%(2380000.00)
Net Profit15.00%420000.00

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.


Payback Period Of Pollo Tropical Franchise

With an investment of $5,000,000 and a yearly profit of $420,000, we can calculate the payback period of Pollo Tropical.

So, to find out how long it will take to earn back the initial investment:

Payback Period = Investment / Yearly Profit = $5,000,000 / $420,000 = 11.9 years

Based on these figures, it will take approximately 12 years to pay back the initial investment for Pollo Tropical. This time period could be longer or shorter depending on your sales, revenue, and profit figures.


Training and Support

There is a compulsory comprehensive initial training program that all new franchisees must take before starting their operations. The initial training focuses on teaching the new franchisees on all aspects of the business operations. The aim is to reduce the failures and increase the quality of the service.

There is ongoing support to franchisees, guiding them continuously on certain procedures to increase the profitability of the store. There are continuous meetings, refreshing courses, and gatherings for franchisees.


Terms of Agreement and Renewal

There is no official communication from the company about the terms of the agreement, but some documents online show an initial term of 15 years. Renewable is available in six five-year renewal options if both sides are satisfied.


Obligations and Restrictions

The franchisees are obligated to open at least five stores when they opt to operate a Pollo Tropical franchise store. Other operational obligations and restrictions are communicated to you while you are discussing the agreement.


Financial Assistance

Pollo Tropical does not provide direct or indirect financial assistance to any of its franchisees. All of the financial responsibility falls with the franchisee. They also make sure to choose franchisees that have the necessary financial qualifications.

However, Pollo Tropical is open to connecting potential franchisees with US government agencies that have programs to back certain manufacturers.


Pollo Tropical Comparison

NameFranchise FeeRoyalty FeeInitial Investment
El Pollo Loco$40,0005%$768,750-$2.6 million
Taco Cabana$45,000N/A$1.1 million-$2.6 million
Pollo TropicalN/AVaries$1.5 million-$5 million

Conclusion

Pollo Tropical is a fast-casual American franchise restaurant chain specializing in Latin-Caribbean dishes like grilled chicken and various flavors. They operate over 150 stores both in the United States and internationally.

An average franchised store makes $2.8 million in annual overall sales and about $400,000 in net profits annually.

You need to open at least 5 restaurants, and the costs start from $1.5 million and go as high as how many restaurants you want to open.

If you have the cash to cover the high startup expenses, Pollo Tropical is a good brand to own because of the potential to make good money.


FAQs

Can I open only one Pollo Tropical franchise store?

No, there is a minimum limit to open at least five stores. If you don’t have the necessary funding to open and run five stores, you can’t apply to be a Pollo Tropical franchisee.

Is Pollo Tropical a franchise?

Yes, they are a franchise. They have a strict and very organized franchising structure for all franchisees to follow.

How much should I expect to spend to open a Pollo Tropical franchise?

Generally, Pollo Tropical requires you to pay between $1.5 million and $5 million, depending on certain factors. This is non-negotiable, and you pay it to the franchisor.

Who Owns Pollo Tropical?

Fiesta Restaurant Group Inc. owns Pollo Tropical. The group owns, operates, and also franchises the Pollo Tropical restaurant brand.

Where is the headquarters of Pollo Tropical?

Pollo Tropical headquarters is located in 7255 Corporate Center Drive, Suite C, Miami, FL 33126.

How many location does Pollo Tropical have?

There are 138 Pollo Tropical restaurants in the United States.

Sources

https://www.pollotropical.com/franchising-requirements

https://www.pollotropical.com/franchising-faqs

https://www.pollotropical.com/franchising

https://en.wikipedia.org/wiki/Pollo_Tropical

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