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Perkins Franchise: Sales, Costs & Profits (2023)

Famous for its breakfast-style menu and its waffles and pancakes, Perkins has today more than 300 restaurants scattered across 32 states in the US. It’s a very popular brand for any franchisee who wants to capitalise on a solid all-day breakfast style franchise.

But is it a profitable business? To open a new Perkins restaurant you would need to invest $1,922,728 (from equity or a loan). Then, you could expect your restaurant to gross on average an annual turnover of $1,729,246.

So is this a good investment? In this article we’re looking at the financial stats of Perkins franchises.

We will answer questions like: how much profits can you make? How much does it really cost? More importantly, we’ll see whether you should invest in this franchise today, or not. Let’s find out!

Perkins franchises: key figures

Franchise fee$40,000
Royalty fee4.7%
Marketing fee4.0%
Investment (mid-point)$1,922,728
Median annual sales$1,729,246
Sales to investment ratio0.9x
Investment payback*7.4 years (average)
Minimum net worth$1,500,000
Minimum liquid capital$500,000
* using 15% net profit margin

🔎 How does Perkins compare vs. other franchises? Check the ranking

What is Perkins?

Perkins is an American casual dining restaurant chain founded in 1958 by Matt and Ivan Perkins in Cincinnati, Ohio, and is now headquartered in Sandy Springs, Georgia.

The chain serves pancake and waffle options, American staples like breakfast all day, hearty steak plates, juicy burgers, and a wide selection of handcrafted handhelds, soups, salads, pies, and muffins.

Its franchising journey began in 1965, and now it has more than 300 company-owned and franchised stores in 32 US states and two provinces in Canada.

Perkins franchises: pros and cons

Pros

  • Site development assistance: The brand helps its franchisees identify a convenient business location, considering traffic and growth potential for expansion into multi-unit locations. It also assists with restaurant designs and construction, whether building new or converting an existing location, lease negotiation, and grand opening.
  • Comprehensive franchise training: Perkins has an extensive management and staff training program. Its initial training consists of approximately 350 on-the-job hours and 105 classroom hours. This provides franchisees with the business concept, staff management, and operational procedures required to reduce inventory waste and conduct a successful grand opening.
  • Vendor and supply chain support: Franchisees get access to approved vendors and a central supply chain. They can leverage the brand’s purchasing power to establish strong vendor relationships and enjoy a consistent supply of high-quality foods, trade fixtures, and supplies at low costs.
  • Experienced management support: The brand offers franchisees a professional and dedicated management team with experience in the successful establishment of numerous franchises. Franchisees get a proven business model, franchise infrastructure, and ideas to smoothly run their business.
  • Exclusive territory protection: Perkins grants its franchisees the right to operate their businesses in an approved protected territory. It does not license any other franchises or operate a competing brand or channel in that agreed-upon area.
  • Multiple income streams: Perkins is well known for its popular full menu all day long. Franchisees can provide a menu that caters to all tastes and dayparts, including breakfast, lunch, dinner, and late night. In addition, dine-in, take-out, and delivery options offer franchisees multiple income streams to boost their profitability.

Cons

  • No financing. The franchisor does not directly or indirectly finance its franchisees for franchise fees, ongoing operations, or development costs. Also, the franchisor does not guarantee any grant, note, or lease on behalf of its franchisees.
  • Not a passive investment: Perkins does not allow for absentee ownership. It requires franchisees to be actively involved in their restaurants’ day-to-day operations.
  • Competition: The brand faces tough competition from chains offering full-day menu times such as breakfast, lunch, and dinner, such as Denny’s, Waffle House, and IHOP.

How much does a Perkins franchise cost?

You would have to invest on average $2,014,728 to open a new Perkins restaurant franchise.

Note that this is the investment for a traditional unit. Indeed, there are two kinds of restaurant formats you can choose from:

  • Traditional unit: $2,014,728
  • Non-Traditional unit: $1,830,728

Also note that the investment presented here is an average; indeed, it varies based on many factors, such as the location of your restaurant, its size, etc. For example, here are the low and high estimates provided in the latest Franchise Disclosure Document:

Here’s the full breakdown of costs per restaurant format:

TraditionalNon traditional
Initial franchise fees$40,000$15,000
Improvements$575,000 – $1,250,000$400,000 – $1,250,000
Equipment and seating$490,000 – $590,000$400,000 – $590,000
Signs and decor$53,000 – $82,000$40,000 – $82,000
Additional funds -3 months$100,000 – $150,000$100,000 – $150,000
Other$272,065 – $387,390$232,065 – $387,390
Total$1,530,065 – $2,499,390$1,187,065 – $2,474,390

What’s the average turnover of a Perkins restaurant?

On average, a Perkins Restaurant franchise makes $1,729,246 in sales per year.

This is the average sales per restaurant for the 195 of the 205 franchised restaurants operating in all of 2021. This is a significant increase of 129% year-on-year vs. 2020 ($752,477, 63 units) as the chain recovered from the COVID-19 pandemic.

Note that this excludes 10 franchised restaurants operating less than 50% of 2021. These units had an average net sale of $885,775.

How profitable is a Perkins franchise?

On average, a Perkins Restaurant franchise makes $484,144 profits per year. This corresponds to a 28% adjusted EBITDA margin, higher than the industry average (25-27% as per our restaurant franchise benchmark).

We calculated this number using the information available in the Franchise Disclosure Document 2022.

Unfortunately, Perkins Restaurant has not provided detailed information on the cost of goods sold (COGS), and labor costs. Therefore, we used 25% and 29% of sales, respectively, as per industry benchmarks.

Profit and lossAmount ($)% sales
Sales$1,729,246100%
COGS($432,312)25.0%*
Labor($501,481)29.0%*
Rent($160,000)9.2%
Royalty + marketing fees($151,309)8.8%
Adjusted EBITDA$484,144~28.0%
*industry average
Source: Franchise Disclosure Document (2022)

Is a Perkins franchise a good investment?

At first, you could think $484,144 profits per year is an incredible franchise business. The reality is a bit different. Indeed, the profits you will earn as the franchisee (or any investor) should be calculated from net profits instead of EBITDA.

Whilst EBITDA gives a clear picture of the ‘true’ profitability of a business (like a franchise) as it excludes non-operating expenses like corporate taxes, debt interest and so forth, you would need to pay for those anyway. That’s why we look at net profits for judging whether a franchise is a good investment.

Assuming a 15% net profit margin, we found that it takes on average 7 years for a franchisee to recoup her / his initial investment upfront (the $1,922,728 we discussed earlier).

Whilst not exceptional (the best franchises have payback period of 3 years or even less), it’s an average payback period. As such, we see Perkins as a good investment if you were to buy the franchise.

Perkins franchise business plan template

Download the Perkins franchise business plan and get your franchise funded

Including a 5-year financial plan built with the latest Franchise Disclosure Document numbers

How does it compare vs. other franchises?

FranchiseInvestment ($)Sales ($)S/I RatioPayback (years)Min. net worth ($)Min. liquid capital ($)
Chick-Fil-Ahttps://sharpsheets.io/blog/chick-fil-a-franchise-costs-profits/Chicken1,363,5104,227,4173.12.2--
Dunkin' Donutshttps://sharpsheets.io/blog/dunkin-donuts-franchise-costs-profits/Donuts779,0001,056,5211.44.9500,000250,000
Domino'shttps://sharpsheets.io/blog/dominos-franchise-profits-costs/Pizza398,7251,286,4283.23.9250,00075,000
Krispy Kremehttps://sharpsheets.io/blog/krispy-kreme-franchise-costs-profits/Donuts824,0003,400,0004.11.62,000,000300,000
Little Caesarshttps://sharpsheets.io/blog/little-caesars-franchise-costs-profits/Pizza1,022,850798,1130.88.5350,000150,000
Wingstophttps://sharpsheets.io/blog/wingstop-franchise-costs-profits/Chicken631,6951,460,4592.32.91,200,000600,000
Steak 'n Shakehttps://sharpsheets.io/blog/steak-n-shake-franchise-costs-profits/Burger, Milshakes815,6261,346,3321.74.01,500,000500,000
Crumbl Cookieshttps://sharpsheets.io/blog/crumbl-cookie-franchise-cost-profits/Sweets507,2241,582,0903.12.1300,000150,000
Taco Bellhttps://sharpsheets.io/blog/taco-bell-franchise-costs-profits/Mexican462,4131,650,0003.61.91,500,000750,000
Popeyeshttps://sharpsheets.io/blog/popeyes-franchise-costs-profits/Chicken1,095,7831,444,6171.35.11,000,000500,000
Smoothie Kinghttps://sharpsheets.io/blog/smoothie-king-franchise-costs-profits/Smoothie688,108573,2690.88.0300,000100,000
Jersey Mike'shttps://sharpsheets.io/blog/jersey-mikes-franchise-costs-profits/Sandwich574,3231,220,5862.14.7300,000100,000
Nothing Bundt Cakeshttps://sharpsheets.io/blog/nothing-bundt-cakes-franchise-costs-profits/Sweets538,6501,307,2802.42.7600,000150,000
Jimmy John'shttps://sharpsheets.io/blog/jimmy-johns-franchise-costs-profits/Sandwich513,650874,8451.73.9300,00080,000
Texas Roadhousehttps://sharpsheets.io/blog/texas-roadhouse-franchise-costs-profits/Steakhouse4,209,5002,955,5340.79.5n.a.200,000
Kung Fu Teahttps://sharpsheets.io/blog/kung-fu-tea-franchise-costs-profits/Bubble tea250,125353,2371.44.7n.a.25,000
Wendy’shttps://sharpsheets.io/blog/wendys-franchise-cost-profits/Burger1,374,8331,791,2311.35.11,000,000500,000
Burger Kinghttps://sharpsheets.io/blog/burger-king-franchise-costs-profits/Burger1,242,9501,215,9701.06.81,500,000500,000
Sonic Drive-Inhttps://sharpsheets.io/blog/sonic-drive-in-franchise-costs-profits/Burger1,467,0831,617,0001.16.01,000,000500,000
Panera Breadhttps://sharpsheets.io/blog/panera-bread-franchise-costs-profits/Sandwich2,290,5002,599,4321.15.97,500,0003,000,000
Pizza Huthttps://sharpsheets.io/blog/pizza-hut-franchise-costs-profits/Pizza935,575906,9111.06.9700,000350,000
KFChttps://sharpsheets.io/blog/kfc-franchise-costs-profits/Chicken1,802,0501,567,4740.97.71,500,000750,000
Arby’shttps://sharpsheets.io/blog/arbys-franchise-costs-profits/Sandwich1,184,9751,126,2631.07.01,000,000500,000
Dairy Queenhttps://sharpsheets.io/blog/dairy-queen-franchise-costs-profits/Ice Cream1,404,2201,143,1800.88.2750,000400,000
Jack in the Boxhttps://sharpsheets.io/blog/jack-in-the-box-franchise-costs-profits/Burger2,195,8001,755,5030.812.51,000,000250,000
Papa John’shttps://sharpsheets.io/blog/papa-johns-franchise-costs-profits/Pizza353,6951,101,1273.12.1750,000250,000
Zaxby’shttps://sharpsheets.io/blog/zaxbys-franchise-costs-profits/Chicken534,7502,229,1874.22.41,000,000500,000
Hardee’shttps://sharpsheets.io/blog/hardees-franchise-costs-profits/Burger1,759,0001,147,9750.710.21,000,000300,000
Culver’shttps://sharpsheets.io/blog/culvers-franchise-costs-profits/Burger4,044,5003,051,7620.88.82,000,000350,000
Five Guyshttps://sharpsheets.io/blog/five-guys-franchise-costs-profits/Burger511,2251,203,3662.42.8500,000250,000
Carl’s Jr.https://sharpsheets.io/blog/carls-jr-franchise-costs-profits/Burger1,860,3351,419,5160.88.71,000,000500,000
Baskin-Robbinshttps://sharpsheets.io/blog/baskin-robbins-franchise-costs-profits/Ice Cream465,100316,8150.79.8250,000125,000
IHOPhttps://sharpsheets.io/blog/ihop-franchise-costs-profits/Pancakes2,058,3021,553,3110.88.81,500,000500,000
Applebee’shttps://sharpsheets.io/blog/applebees-franchise-costs-profits/Casual American5,137,9662,356,9650.514.51,000,000500,000
Denny'shttps://sharpsheets.io/blog/dennys-franchise-costs-profits/Casual American3,785,4591,639,5490.415.41,000,000500,000
Papa Murphy'shttps://sharpsheets.io/blog/papa-murphys-franchise-costs-profits/Pizza433,174580,4411.35.0275,000125,000
Auntie Anne'shttps://sharpsheets.io/blog/auntie-annes-franchise-costs-profits/Pretzels229,692343,1351.55.6300,000100,000
Firehouse Subshttps://sharpsheets.io/blog/firehouse-subs-franchise-costs-profits/Sandwich613,186888,3561.44.6350,000100,000
Tropical Smoothie Cafehttps://sharpsheets.io/blog/tropical-smoothie-cafe-franchise-costs-profits/Smoothie430,500961,9692.23.0350,000125,000
Marco’s Pizzahttps://sharpsheets.io/blog/marcos-pizza-franchises-costs-profits/Pizza437,625895,5232.03.3400,000100,000
Cinnabonhttps://sharpsheets.io/blog/cinnabon-franchises-costs-profits/Sweets276,062394,8971.45.8300,000120,000
Cold Stone Creameryhttps://sharpsheets.io/blog/cold-stone-creamery-franchise-costs-profits/Ice Cream310,956417,5881.35.0250,000100,000
Jambahttps://sharpsheets.io/blog/jamba-franchise-costs-profits/Smoothie414,562597,0281.47.7300,000100,000
Church’s Chickenhttps://sharpsheets.io/blog/churchs-texas-chicken-fees-sales-costs/Chicken1,195,1471,395,0881.25.71,000,000300,000
Moe’s Southwest Grillhttps://sharpsheets.io/blog/moes-southwest-grill-franchises-costs-profits/Mexican792,3701,013,3611.35.21,000,000100,000
Tim Hortonshttps://sharpsheets.io/blog/tim-hortons-franchises-costs-profits/Coffee1,242,7501,188,2401.07.0500,000100,000
Checkers & Rally'shttps://sharpsheets.io/blog/checkers-franchises-profits-sales-costs/Burger837,8471,039,7731.25.4750,000250,000
Charleys Philly Steakshttps://sharpsheets.io/blog/charleys-philly-steaks-costs-profits/Sandwich509,806786,2331.54.3500,000100,000
Buffalo Wild Wingshttps://sharpsheets.io/blog/buffalo-wild-wings-costs-profits/Chicken3,546,9002,534,1480.79.31,500,000750,000
Rita's Icehttps://sharpsheets.io/blog/ritas-ice-franchise-costs-profits/Ice Cream215,839248,3401.25.8300,000100,000
A&W Restaurantshttps://sharpsheets.io/blog/aw-restaurants-franchises-costs-profits/Burger786,750851,2121.16.2350,000150,000
Hungry Howie’s Pizzahttps://sharpsheets.io/blog/hungry-howies-pizza-franchise-costs-profits/Pizza419,682806,8991.93.5750,000200,000
Bojangleshttps://sharpsheets.io/blog/bojangles-franchise-costs-profits/Chicken1,658,0001,801,0571.16.11,000,000500,000
McAlister’s Delihttps://sharpsheets.io/blog/mcalister-deli-franchise-costs-profits/Sandwich1,424,9631,865,8611.35.11,000,000500,000
Round Table Pizzahttps://sharpsheets.io/blog/round-table-pizza-franchise-costs-profits/Pizza783,2501,037,8161.35.0500,000200,000
Qdoba Mexican Eatshttps://sharpsheets.io/blog/qdoba-mexican-eats-franchise-costs-profits/Mexican659,250972,9621.54.5
Freddy’shttps://sharpsheets.io/blog/freddys-franchise-costs-profits/Burger1,453,0401,792,9291.25.41,000,000400,000
Taco John’shttps://sharpsheets.io/blog/taco-johns-franchise-costs-profits/Mexican1,119,0001,124,9801.06.61,000,000400,000
Scooter’s Coffeehttps://sharpsheets.io/blog/scooters-coffee-franchise-costs-profits/Coffee1,143,250797,1010.79.6500,000200,000
Einstein Bros. Bagelshttps://sharpsheets.io/blog/einstein-bros-bagels-franchise-costs-profits/Sandwich750,075885,0111.25.71,000,000536,500
Great American Cookieshttps://sharpsheets.io/blog/great-american-cookies-franchise-costs-profits/Sweets385,275452,7711.25.7250,000100,000
Wienerschnitzelhttps://sharpsheets.io/blog/wienerschnitzel-franchise-costs-profits/Hot dogs873,300880,9801.06.6600,000250,000
Blaze Pizzahttps://sharpsheets.io/blog/blaze-pizza-franchise-costs-profits/Pizza865,4501,096,4321.37.9500,000300,000
Wetzel's Pretzelshttps://sharpsheets.io/blog/wetzels-pretzels-franchise-costs-profits/Pretzels377,571748,8572.03.4300,00050,000
Pizza Ranchhttps://sharpsheets.io/blog/pizza-ranch-franchise-costs-profits/Pizza3,268,3001,174,0880.418.61,000,000297,000
Del Tacohttps://sharpsheets.io/blog/del-taco-franchise-costs-profits/Mexican1,406,8501,345,3411.07.02,000,000500,000
Schlotzsky’shttps://sharpsheets.io/blog/schlotzskys-franchises-costs-profits/Healthy, Salads1,102,9331,053,3330.322.21,000,000300,000
Captain D’shttps://sharpsheets.io/blog/captain-ds-franchise-profits-costs/Seafood982,7781,067,8160.419.01,000,000350,000
Biggby Coffeehttps://sharpsheets.io/blog/biggby-coffee-franchise-profits-costs/Coffee310,575648,3520.320.0300,000100,000
Which Wichhttps://sharpsheets.io/blog/which-wich-franchises-profits-costs/Sandwich330,375281,8860.322.2500,000150,000
Marble Slab Creameryhttps://sharpsheets.io/blog/marble-slab-franchises-costs-profits/Ice Cream407,360251,0520.416.7250,000100,000
Mountain Mike's Pizzahttps://sharpsheets.io/blog/mountain-mikes-franchise-profits-costs/Pizza410,900865,7130.320.0300,000100,000
Huddle Househttps://sharpsheets.io/blog/huddle-house-franchise-cost-profits/Diner988,743712,4280.513.3600,000300,000
L&L Hawaiian Barbecuehttps://sharpsheets.io/blog/ll-hawaiian-barbecue-franchises-costs-profits/BBQ334,350612,9210.333.3500,000150,000
Chicken Salad Chickhttps://sharpsheets.io/blog/chicken-salad-chick-franchises-costs-profits/Healthy, Salads651,0001,202,0200.320.0750,000250,000
Golden Chickhttps://sharpsheets.io/blog/golden-chick-franchises-costs-profits/Chicken362,975917,6092.52.62,000,000425,000
Perkinshttps://sharpsheets.io/blog/perkins-franchise-costs-profits/Diner1,922,7281,729,2460.97.41,500,000500,000
Waba Grillhttps://sharpsheets.io/blog/waba-grill-franchises-costs-profits/Teryaki454,000466,5361.06.51,000,000250,000
Bruster’s Ice Creamhttps://sharpsheets.io/blog/brusters-franchises-profits-costs/Ice Cream663,925466,6960.79.5375,000150,000