For greater than 30 years, Panda Categorical has been acknowledged as one of many huge names in fast-casual. The corporate has greater than 2,200 places globally. In 2019, Statista reported Panda Categorical because the quantity 3 main fast-casual restaurant.

How a lot does it price to open a Panda Categorical? Sadly, this chain shouldn’t be open for franchising on the time of writing. The truth is, nearly all of Panda Categorical places in america are company-owned. This implies workers handle the day-to-day operations of a location, as a substitute of a franchisee. Take our 7-minute franchise quiz to search out a possibility that matches your targets and funds. 

Within the occasion Panda Categorical opens its restaurant chains to franchisees sooner or later, how a lot do you have to count on it to price? To personal a Panda Categorical, your liquid property would are estimated between $100,000 to $250,000. Complete funding is estimated between $426,700 – $2,404,000 whereas Panda Categorical’s franchise is anticipated to be $25,000. After all these are estimates primarily based on related franchise ideas.

In the event you’re inquisitive about Panda Categorical, their operations, and the way a lot they make in a yr, beneath are extra particulars relating to this fashionable restaurant chain. I even embody what I view as benefits and challenges of the idea. Let’s get into it.

Monetary Necessities and Charges

Panda Categorical is a privately-owned firm. They don’t enable franchising of their restaurant and so they haven’t revealed any of their franchising charges and necessities.

Panda Categorical might not be open for franchising however they do enable their workers to run their eating places. No different particulars are supplied if because of this you’d should work at Panda Categorical with a purpose to be granted a franchise. If this adjustments, we’ll be the primary to let you recognize.

Common Gross sales / Income per 12 months

In accordance with Forbes, Panda Categorical recorded $5.4 billion in income in 2023. They’ve had billion-dollar revenues within the earlier years as effectively. The chain has loved double-digit share income development in related development as effectively. Whereas revenues dipped in the course of the starting of the pandemic and lockdowns, the idea completed the yr robust.

Panda Categorical Franchise Details

Panda Categorical’s roots began within the Nineteen Seventies when Andrew Cherng alongside along with his father opened the Panda Inn in Pasadena, Calif. Panda Inn was an upscale restaurant the place Mandarin and Sichuan dishes had been served. In 1983, along with Peggy Cherng, they opened Panda Categorical which was positioned as a fast-food model of Panda Inn. The primary Panda Categorical was situated in Glendale Galleria in Glendale, Calif.

Peggy Cherng has a Ph.D. in Electrical Engineering and an M.S. in Laptop Sciences was the individual behind Panda Categorical’s environment friendly working system. Cherng carried out monitoring inventories in addition to a computerized system for reordering substances which made the enterprise course of sooner and simpler, one thing that different Chinese language-American eating places weren’t training throughout these instances but.

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Throughout the first decade in enterprise, Panda Categorical rapidly grew to 100 branches. The Panda Categorical situated at Ala Moana Middle in Hawaii is taken into account to be one of the vital worthwhile places. This location alone rakes in a reported $4 million a yr. Panda Categorical additionally began testing drive-thrus again in 1997.

A wok at Panda Categorical.

To start with, the restaurant chains had been largely present in meals courts in malls. Panda Categorical has all the time had a method of opening in places the place there’s a captive viewers. Because of this, the corporate has focused opening on college campuses, airports, amusement parks, and even casinos.

The corporate’s first location outdoors america was in Mexico Metropolis in 2011. Different locations the place Panda Categorical may be discovered embody Dubai, Canada, Philippines, Japan, Puerto Rico, Guam, and South Korea.

In 2007, Panda Categorical’ revenues hit $1 billion for the primary time ever. It was additionally round this time that they’ve opened their 1,000th department in Pasadena, California.

Panda Categorical’s hottest merchandise is orange hen. These are hen bites with a candy and spicy orange sauce. In accordance with their web site, they’ve offered over 80 million kilos of orange hen since 2016. In 2017, they’ve additionally purchased 22 million kilos of broccoli. Different fashionable dishes on the menu are Beijing Beef and Honey Walnut Shrimp. The restaurant additionally offers away fortune cookies with uplifting notes on inscribed on them. Panda Categorical arms out a staggering 282 million fortune cookies yearly.

The Asian restaurant chain gained the 2021 Excellence in Meals Security Award for his or her efforts in guaranteeing meals security. Despite large development, Panda Categorical continues to be thought of a household enterprise with couple Andrew and Peggy Cherng on the helm. The couple is now ranked 838 in Forbes’ Billionaires Record of the richest folks on the earth with a mixed internet price of $3 billion.

They couple has three kids and two of them work for Panda Restaurant Group Inc., the mum or dad firm that owns Panda Categorical, Panda Inn, and Hibachi-san. Nicole Cherng is the supervisor of catering and particular occasions whereas Andrea Cherng is the chief advertising and marketing officer.

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The corporate is thought to be very charitable. Panda Cares is the group below Panda Restaurant Group Inc. concerned in all kinds of philanthropic missions. The group was shaped in 1999 with the mission of offering funding, meals, and volunteer providers for catastrophe reduction efforts and underserved kids. The group has raised over $50 million for charity. The headquarters for Panda Restaurant Group Inc. is situated in Rosemead, California.

How A lot Does Panda Categorical Make in Revenue?

Panda Categorical has not made their revenue knowledge recognized, however the restaurant chain’s gross sales per unit was $2.18 million in 2022. Whereas we don’t know precisely how worthwhile a Panda Categorical, usually talking Chinese language meals is a worthwhile menu merchandise. Most Chinese language eating places can markup their dishes 3 – 4 instances meals price. After all, this doesn’t take into consideration the price of labor, hire, or taxes so maintain that in thoughts.

Contemplating Panda Categorical’ dedication to working a good ship, I guess they’ve discovered a approach to cut back their meals prices even additional past mom-and-pop Chinese language eating places that may markup meals by 3x – 4x. At this level, Panda Categorical enjoys financial system of scale and might negotiate with distributors to scale back the price of substances.

Benefits of a Panda Categorical Franchise

Based mostly on the multi-decade development there would clearly be many benefits to franchising a Panda Categorical. Listed here are a few of the greatest benefits of this restaurant.

The Orange Hen Expertise

Panda Categorical is synonymous with orange hen and the corporate sells 285,000 plates every year. The shop’s hottest merchandise on the menu is the one wanted by many for its crispy pores and skin but additionally juicy chunk smothered in orange sauce. As talked about above, they promote actually tens of millions of kilos of the stuff yearly.

Although unbiased Asian eating places serve the identical gadgets on their menu, folks proceed to decide on Panda Categorical due partially to dish consistency. The meal can also be served extraordinarily rapidly and picked-up by way of a drive-thru location with a Panda Categorical making it a extra handy expertise.

Selection

In the event you’ve been to a Panda Categorical then you recognize that they’ve an in depth menu. Components embody beef, hen, fish, greens, noodles, and rice with choices from plain steamed rice to brown rice. The servings are beneficiant too. If you’ll be able to franchise a Panda Categorical sooner or later, you may be assured prospects enter hungry and go away very a lot happy.

They’re Not Stopping

You’d suppose with over 2,300 places, Panda Categorical could be struggling to search out new markets to enter. However even to this present day, the restaurant chain is constant to develop. Their current branches are in Grand Junction, Delaware, and Island Metropolis. Being part of the Panda Categorical franchise household means you’re in good arms understanding that the corporate is constantly rising.

Challenges of a Panda Categorical Franchise

Each enterprise together with Panda Categorical has its challenges. I view these as the important thing challenges of franchising a Panda Categorical.

Lengthy Strains

Except for Panda Categorical being synonymous with orange hen, it’s additionally related to lengthy strains. Everytime you’re on the meals courtroom or drive-thru, you’re sure to see a protracted line of individuals queuing to order at any given time.

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Although the excessive site visitors is sweet for enterprise, it could possibly additionally drive potential prospects away. They’ll see the lengthy line and suppose, “Oh, let’s discover someplace else.” Possibly the lengthy strains are a part of the restaurant’s advertising and marketing technique so it could possibly reel in additional prospects. However generally, lengthy strains generally is a drawback and have folks go for another place that may accommodate them directly.

Worker Lawsuits

Panda Restaurant Group Inc. has confronted quite a few lawsuits earlier than. These lawsuits concerned hiring discrimination, additional time pay, and harassment. Although the corporate has settled these lawsuits, it has broken Panda Categorical’s identify. Try to be conscious of those as a attainable franchise proprietor sooner or later.

Is the Panda Categorical Franchise Proper For You?

Panda Categorical shouldn’t be out there for franchise proper now but when it does open its doorways to sharing their chain sooner or later then this is perhaps the proper franchise for you. Panda Categorical has all kinds of things on their menu and a scrumptious fan favourite generally known as the orange hen that brings again prospects many times. If it’s an Asian-American restaurant chain you’re evaluating, Panda Categorical could be one of many prime alternatives I’d check out.

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What’s another Panda Categorical franchise?

In the event you can’t anticipate the day that Panda Categorical will settle for franchise operator candidates, try Teriyaki Insanity. This Asian-American chain has been round since 2003 and has over 130 branches all around the United States. The restaurant serves bowls of hen, fish, or beef, together with their very own model of orange hen. Additionally they have choices like fried rice, noodles, white rice, or brown rice.

Teriyaki Insanity can also be open for franchisees. The franchise charge begins at $45,000 for a single unit, $99,000 for the standard 3-pack franchise, or $150,000 for a 5-pack platinum franchise. Different charges you ought to be conscious of are weekly royalty charges of as much as 6% relying on the product sales figures you usher in.

Quick-casual eating places are sprouting up all around the United States and so they’re anticipated to proceed rising at a price of 10.6% till 2032 despite challenges to the trade as a complete. All these eating places are recognized to serve high-quality meals in an off-the-cuff setting. Many additionally deem them to be more healthy in comparison with fast-food. Regardless of the case, fast-casual eating places are on the rise and one of many prime gamers is Panda Categorical.

There you’ve it! Hopefully Panda Categorical will open their arms quickly to welcome future franchise operators so you’ll be able to have considered one of your individual.