TL;DR
Chop Stop, a chopped salad franchise founded by Mark Kulkis, plans to expand across the country once it reaches 100 locations. The franchise has a reported ROI of $452,773-$997,692 and an initial investment cost of $327,000-$698,500.
The chopped salad franchise will expand all over the country when it hits 100 locations.
REPORTED COST TO GET IN: $327,000- $698,500
REPORTED ROI (Item 19): $452,773- $997,692
Founder Mark Kulkis was disappointed with California’s lack of options for chopped salads. He began making chopped salads for family and friends and received rave reviews. He then teamed up with Joey Gonzalez, a veteran restaurant operator with over 30 years of experience. In 2011, they opened the first Chop Stop together and slowly opened more stores until the duo started franchising in 2016.
There are 30 Chop Stop locations primarily on the west coast and one in Texas. Target markets are currently California, Nevada, Arizona, Oregon, Washington, Colorado and Utah. Once it reaches 100 locations, expansion will spread to other states.
The Chop Stop business model is being “more than a salad.” Customers get more for their money as each salad weighs over a pound on average, and Chop Stop offers a variety of 40 different toppings. Storefronts don’t require grease interceptors or stoves like most retail restaurants, which allows shop workers to deliver fast service.
According to the 2022 Franchise Disclosure Document (FDD), Chop Stop franchise owners can earn a range of $452,773–$997,692. A list of what franchise owners earned in previous years is listed below.
2019: $680,792–$995,956
2020: $402,984–$841,046
2021: $452,773–$997,692
Initial investment costs to open a Chop Stop range from $327,000–$698,500. Honorably discharged full-time veterans can receive a discount off the initial franchise fee of up to $10,000.
Initial Franchise Fee $35,000
Real Estate Consultant: $0–$4,500
Design/Architect Fees: $8,500–$13,000
Construction Management: $10,000
Plans and Permits: $2,000–$22,000
Leasehold Improvements: $135,000–$230,000
Rent, Utilities and Security Deposits Before Opening: $10,000–$36,000
Signage: $5,000–$15,000
Furniture, Fixtures and Restaurant Equipment: $45,000–$97,000
Initial Supply of Smallwares: $10,000–$18,000
Initial Inventory (Food + Paper + Janitorial): $11,000–$17,000
Office Equipment and Supplies: $1,000–$10,000
POS System: $20,000–$23,000
Security System: $3,000–$10,000
Opening Package: $6,000–$15,000
Professional Fees: $1,500–$6,000
Insurance (First Three Months): $1,000–$3,000
Training Expenses: $0–$21,000
Staff Training: $7,000–$17,000
Restaurant Opening Marketing: $6,000
Additional Funds: $25,000–$95,000
Total Estimated Initial Investment: $327,000–$698,500
Founder and CEOt: Mark Kulkis
Vice President of Operations: Joey Gonzale
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This story was originally published in 1851 Franchise on April 13, 2023. Burnaze summarizes and links to the original reporting.
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