Potato Corner Franchise Cost, Revenue & Failure Rate 2024

Undoubtedly, the food industry is huge, and the potential is there. Any entrepreneur looking to enter into a business will probably think of owning a food business.

If franchising is on your table for this industry, Potato Corner is one of the options you can consider.

They are one of the biggest food franchises in the Philippines that also franchises internationally.

They have a big customer base and have been in the business enough to have high brand recognition. This article will cover all the details about Potato Corner and its franchising system.

Potato Corner Franchise
Potato Corner Franchise

About Potato Corner and Its History

Potato Corner is an international food franchise chain based in the Philippines, famous for its flavoured French fries.

They first started as just a food stall in 1992 in SM Megamall in the Philippines, and they have been growing ever since.

As of 2022, they operate in 18 different countries and have over 1,000 stores worldwide.

Despite being opened in 1992, they only started to franchise in 2006, both in the Philippines and internationally.

Their first international store was in Indonesia and later expanded to the United States in 2010.

The franchise has been constantly growing ever since and entering new markets through franchising.


Franchise Model Table

Cost Or FeesAmount
Initial Investment       $186,500-$596,000
FranchiseYES
Franchising Since2016
Franchise-Fee$35,000
Royalty-Fee6%
Liquidity$50,000
Estimated Outlets1000+

How Much Does it Cost to Open a Potato Corner Franchise?

The expected initial investment of a Potato Corner franchise mostly depends on your location.

In the United States, the average total investment is between $186,500 and $596,000. This includes the franchise fee of $35,000 and all other related startup costs.

Depending on your location, the size of the store, and many other factors, this overall investment could be way higher than the average number.

You also need to have a net worth of between $30,000 and $60,000 and a liquid capital of $50,000. Once you open the store, you must pay a 6% royalty fee from your gross sales each month.


Potato Corner Franchise Requirements

Potato Corner doesn’t specifically mention their requirements for potential franchisees.

You have to provide the information they ask such as your CV, letter of intent, qualification form, and market study, and apply online from their website. Once you send in your application, they will get back to you with the answer.

Depending on your personal experiences and financial background, you might increase or decrease your chances of being approved.

Having experience in the industry, especially as a manager, could increase your chances.


Potato Corner Average Revenue & Profit

Potato Corner Franchise Requirements

As the performance of Potato Corner franchised stores in 2020, the revenue of this business in $242,584 on average.

The net income of your store depends on your operational expenses. But at the minimum, you can expect a profit margin somewhere between 10% to 20%.

So based on this we can calculate that a Potato Corner franchise owner make $36,387 in net profit on average.

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%242584.00
Rent10.63%(25774.55)
Insurance5.31%(12887.27)
Salaries21.25%(51549.10)
Franchise Royalty Fees5.31%(12887.27)
Utilities2.13%(5154.91)
Cost of Goods Sold (COGS)26.56%(64436.38)
Labor (Variable)13.81%(33506.92)
Total (Expenses)85.00%(206196.40)
Net Profit15.00%36387.60

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 Potato Corner

With an investment of $596,000 and an estimated 15% profit on the median franchise sales, the yearly profit would be $36387.60.

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

Payback Period = Investment / Yearly Profit = $596,000/ $36387.60= 16.37 years

Based on these figures, it will take approximately 17-20 years to pay back the initial investment for Potato Corner. This time period could be longer or shorter depending on your sales, revenue, and profit figures.


Failure Rate Of Potato Corner

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20182627+1
201927270
202027270

For the Franchised outlets:

  • In 2018, the growth rate was (1)/26×100≈3.84%
  • In 2019, the failure rate was (0)/27×100≈0.00%
  • In 2020, the failure rate was (0)/27×100≈0.00%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
201879+2
201998-1
2020880

For the Company-Owned outlets:

  • In 2018, the growth rate was (2)/7×100≈28.57%
  • In 2019, the failure rate was (1)/9×100≈11.11%
  • In 2020, the failure rate was (0)/8×100≈0.00%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20183336+3
20193635-1
202035350

For Total outlets:

  • In 2018, the growth rate was (3)/33×100≈9.09%
  • In 2019, the failure rate was (1)/36×100≈2.77%
  • In 2020, the failure rate was (0)/35×100≈0.00%

From the above data, we can see that the franchised outlets for Potato Corner grew only in 2018, showing a growth rate 3.84%. But, the number of outlets started declining in 2020-2021, showing a failure rate of 0.00%.

On the other hand, for company-owned outlets, the failure rate of Potato Corner was lying in the range between 11.11% and 0.00% for the same period of time. The company also experienced growth rate of 28.57% in 2018.

Overall, when we combine the data of franchise and company-owned outlets, we can see that the Potato Corner franchise has declined in the years 2020-2021, showing a total failure rate between 2.77% and 0.00%. And in 2018, the growth rate was 3.60%.

For those looking to open a franchise in the food franchise industry, possibilities include Chick-fil-A, Popeyes Franchise, Burger King, Waffle House, and White Castle Franchise.


Potato Corner Comparison

NameFranchise FeeRoyalty FeeInitial Investment
Wingstop$20,0006%$390,000-$775,000
Auntie Anne’s$10,500-$35,5007%$100,550-$503,500
Potato Corner$35,0006%$186,500-$596,000

Conclusion

Potato Corner is an international food franchise chain operating in 18 different countries with over 1,000 stores.

They are one of the most popular names in the Philippines, and they are increasing their international brand recognition day by day.

All this enormous growth makes them a viable option for entrepreneurs looking to own a franchise.

The expected initial investment is between $186,500 and $596,000, including the franchise fee of $35,000.

The initial investment also covers all other startup costs, and you also have to pay a 6% royalty fee each month once you start operating.

In the end, if you can manage it well and have some experience in the industry, Potato Corner could be an amazing opportunity for entrepreneurs.


FAQs

Can everyone open a Potato Corner franchise?

To open a Potato Corner franchise, you first need to be approved by the company. This means that not everyone who wants to can open it.

You need to meet certain requirements for the company to approve you as a franchisee.

What is the cost of opening a Potato Corner franchise?

The average expected initial investment is between $186,500 and $596,000.

This investment covers all the related costs of opening a franchise branch, including the $35,000 franchise fee. Depending on many different factors, the numbers could vary a lot.

Can I fail with a Potato Corner franchise?

Yes. A Potato Corner is a business just like all the other businesses. It needs good management and constant supervision for success.

The brand name might help you to stay afloat, but you still need to push the store to its standards.

Who owns Potato Corner?

Potato Corner is owned by the Po family’s Shakey’s Pizza Asia Ventures Inc.

Where is Potato Corner headquartered?

The headquarters of Potato Corner is located in the Philippines. The exact address is 869 Katarungan St., Mandaluyong City, Philippines.

Who founded Potato Corner?

Potato Corner was founded in 1992 by Jose Magsaysay Jr., Ricky Montelibano, Danny Bermejo, and George Wieneke.

How many locations does Potato Corner have?

Potato Corner has 1400 stores worldwide.

Source:

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

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