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.
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
| Initial Investment | $186,500-$596,000 |
| Franchise | YES |
| Franchising Since | 2016 |
| Franchise-Fee | $35,000 |
| Royalty-Fee | 6% |
| Liquidity | $50,000 |
| Estimated Outlets | 1000+ |
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
There is no specific information about the profit and revenue numbers of Potato Corner as a company.
However, they state the average profit margin of a franchised store. According to Potato Corner, 54% of your costs are for the goods sold. This means that an average Potato Corner makes 46% in gross margin.
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%.
Potato Corner Comparison
| Name | Franchise Fee | Royalty Fee | Initial Investment |
|---|---|---|---|
| Wingstop | $20,000 | 6% | $390,000-$775,000 |
| Auntie Anne’s | $10,500-$35,500 | 7% | $100,550-$503,500 |
| Potato Corner | $35,000 | 6% | $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.
FAQ
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.
Source:
https://en.wikipedia.org/wiki/Potato_Corner
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.