Qdoba Mexican Eats Franchise Cost, Profit & Failure Rate 2024

A food franchise, such as Qdoba Mexican Eats Franchise, can help you get started with your franchise portfolio.

You’re buying from a restaurant firm that owns and manages more corporate-owned and managed locations than many fast-casual chains. Continue reading to learn everything about the franchise.

Qdoba Mexican Eats Franchise

About Qdoba  Mexican Eats

QDOBA Mexican Eats is a renowned fast-casual Mexican restaurant business with over 700 in the United States and Canada.

The brand, dedicated to offering high-quality, freshly cooked entrées, regularly prepares a variety of menu items in its restaurants’ kitchens.

Guests can sample QDOBA’s delectable flavors by ordering one of its signature dishes or personalizing their burritos, tacos, burrito bowls, salads, quesadillas, nachos, and tortilla soup to suit their preferences. QDOBA Mexican Eats was named “Best Fast Casual Restaurant” in the USA Today 10Best Readers’ Choice Awards for 2019.

Burritos with chicken, pork, or steak, as well as tacos, quesadillas, soups, and salads, are available at the eateries.

As of March 2012, Qdoba Mexican Eats franchise stores were accessible in most U.S. states and Canada.

Those interested in opening a Qdoba Mexican Grill must go through a company-structured purchase process. It is also one of the best fast-food franchise opportunities to own in 2024.

Qdoba Mexican Eats Franchise Model 

Cost Or FeesAmount
Initial Investment$936,226 – $2,282,609
Net-worth Requirement$750,000 – $2,000,000
Royalty Fee5%
Area Requirement400 sq. ft. space to 1,200 sq.
Total Outlets750

Reasons To Investment In Qdoba Mexican Eats Franchise

Reasons To Investment In Qdoba Mexican Eats Franchise
  • In the fast-casual Mexican restaurant sector, it’s a leader.
  • Catering and off-premises sales are strong.
  • Existing markets and franchisees have a track record of success.
  • Growing with a strong brand is an exciting opportunity.
  • The company owns 50% of the locations.
  • Multiple populations, situations, and dayparts are all appealing.

Qdoba Mexican Eats Franchise Revenue & Profit

The revenue and profit of the Qdoba Mexican Eats franchise could vary depending on the outlet’s size, location, number of employees, operating expenses, etc.

However, based on the performance of 359 franchised outlets in 2021, the Qdoba Mexican Eats franchise owner makes $972,962 in sales per year.

With a profit margin of 24%, we estimate that a Qdoba Mexican Eats franchise owner makes $233,511 in profits per year on average.

Here’s how we calculated the profits of Qdoba Mexican Eats:

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%972962.00
Franchise Royalty Fees4.75%(46215.69)
Cost of Goods Sold (COGS)23.75%(231078.48)
Labor (Variable)12.35%(120160.81)
Total (Expenses)76.00%(739451.12)
Net Profit24.00%233510.88

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 Qdoba Mexican Eats

With an investment of $2,282,609 and the yearly profit of the franchise owner, which is $233,510, we can find the payback period of Qdoba.

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

Payback Period = Investment / Yearly Profit = $2,282,609 / $233,510 = 9.77 years

Based on these figures, it will take approximately 10 years to pay back the initial investment for Qdoba Mexican Eats. This time period could be longer or shorter depending on your sales, revenue, and profit figures.

Failure Rate of Qdoba Mexican Eats

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change

For the Franchised outlets:

  • In 2018, the growth rate was (22)/341×100≈6.45%
  • In 2019, the growth rate was (17)/363×100≈4.68%
  • In 2020, the growth rate was (17)/380×100≈4.47%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change

For the Company-Owned outlets:

  • In 2018, the growth rate was (4)/385×100≈1.03%
  • In 2019, the failure rate was (39)/389×100≈10.03%
  • In 2020, the failure rate was (6)/350×100≈1.71%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change

For Total outlets:

  • In 2018, the growth rate was (26)/726×100≈3.58%
  • In 2019, the failure rate was (22)/752×100≈2.92%
  • In 2020, the growth rate was (11)/730×100≈1.50%

According to the above-mentioned data, we can see that the franchised outlets for Qdoba  Mexican Eats grew from 2018 to 2020, showing a growth rate between 6.45% and 4.47%.

On the other hand, for company-owned outlets, the failure rate of Qdoba Mexican Eats was lying in the range between 10.03% and 1.71% from 2019-2020. However, the company started with a positive change, showing a growth of 1.03%.

Overall, when we combine the data of franchise and company-owned outlets, we can see that the Qdoba  Mexican Eats franchise has expanded in the years 2018-2020, showing a total growth rate between 3.58% and 1.50%. In 2019, the company experienced a failure rate of 2.92%.

Support & Training

The success of the franchisees is the top goal at Qdoba Mexican Eats. They work hard to equip their restaurant owners with the procedures and resources they need to succeed.

As a Qdoba  Mexican Eats Franchisee, you can expect to receive the following support services:

  • Business Consultants for Construction and Design Franchises
  • Marketing / Advertising 
  • Management Training
  • Operations Services 
  • Purchasing & Distribution 
  • On-Site Restaurant Opening Support
  • Information Technology
  • Research & Development 

Agreement & Renewal

Qdoba Mexican Agreement & Renewal

The initial franchise term usually is ten years, and however, if the property can’t be secured for ten years, the agreement term may be reduced.

Franchisees can enter into a new agreement for an additional term for an additional price if they are not in default, redesign the restaurant, and meet certain other standards.

Qdoba Mexican Eats Franchise Financial Assistance

The franchisor usually does not provide money for the opening or operating of new franchised restaurants.

The franchisee’s lease and any note or other obligation incurred by the franchisee are not guaranteed by the franchisor.

If opening a restaurant franchise appeals to you, consider Firehouse Subs Franchise, Philly Pretzel Factory, Applebee’s Franchise, Del Taco Franchise, or Salata Franchise as viable options.

Qdoba Mexican Eats Comparison

CompanyQdoba Mexican EatsWendy’s
Founded In19951969
Initial Investment$936,226 – $2,282,609$2,000,0000-$3,000,000
Total Outlet7506500
Annual Revenue$786 Million$1.9 Billion

Frequently Asked Questions

What is the profit margin on a Qdoba Mexican Eats franchise?

Several factors determine the profitability of a franchise. Profits usually depend on the size of the investment. Demand for your products, labor expenses, commercial lease rates, and various other factors all have an impact.

How many locations does Qdoba Mexican Eats has?

There are approximately 400 franchised Qdoba Mexican Eats sites in the United States as of the 2020 Franchise Disclosure Document.

Is Qdoba Mexican Grill a Good Fit for You?

Individuals or partnerships must have three years of restaurant management experience as an owner or operator to be eligible.

Is Qdoba Mexican Eats a franchise?

Yes, Qdoba Mexican Eats grants franchises for the operation of quick-service or fast-casual Mexican restaurants under the service mark “Qdoba.”

How much does a Qdoba Mexican franchise cost?

The initial investment required for the Qdoba Mexican Eats franchise is $936,226 – $2,282,609, with an initial franchise fee of $15,000-$30,000.

Who owns Qdoba Mexican Eats?

Qdoba was acquired by Butterfly Equity in 2022. It is the number 1 franchisor of Mexican fast-casual dining in North America.

Where is Qdoba Mexican Eats headquartered?

Qdoba is a chain of fast-casual restaurants operating in the United States and Canada. It is headquartered in San Diego, California.

Who founded Qdoba Mexican Eats?

Qdoba was founded in Denver, Colorado, in 1995 by Robert Hauser and Anthony Miller.

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