Golden Krust Caribbean Bakery & Grill Franchise Cost & Profit Opportunity Review

March 27, 2019


If the opportunity knocks, are you going to take it? You should if it’s a good one. But how can you tell if it is? There are quite a few considerations that you have to make before you make that final decision. In fact, when you purchase a franchise business, there are a lot of things that could make or break your success.

 

Even before you begin.

 

And with the variety of different opportunities available on the market, it’s not always an easy task to narrow down your options. But let’s start with the industry.

 

One of the industries that always seem to experience a great deal of growth would be the food industry. Because people will always purchase food. They will always have family dinner nights or date nights. They will always find a way to spend money on food.

 

So, let’s narrow it down a bit more. Today, we get down and dirty with the Golden Krust Caribbean Bakery. This establishment offers a decent franchise opportunity that aspiring entrepreneurs can enjoy and take advantage of.

 

The Golden Krust is an authentic Caribbean cuisine establishment that people have been enjoying for years. They value their customers. And I believe that the amount of integrity and great customer service that they have proves how successful they can become.

 

But will it be the right choice for you? First, we will need to take a look at what the company is and what it stands for. Then, we look at the growth that the company has experienced. Or in some cases, may not have experienced. Last, we will check out the requirements and costs for this franchise business.

 

By the end, you will have a better idea of what this company is and how it measures up as a franchise business opportunity. So, let’s get started.

Golden Krust Caribbean Bakery

It’s no longer necessary to travel all the way to Jamaica to enjoy Caribbean cuisine. In fact, all you have to do is hop on over to the nearest Golden Krust Bakery. There, you will find some of the most authentic tasting foods that consist of Jamaican patties and other Caribbean cuisines.

Whether you are looking to treat the family and take them out for dinner, or you need a quick bite to eat on the way home, this is the place to go. Golden Krust has the traditional restaurant setting as well as a drive-thru restaurant. But both may not be available in your area.

 

And that’s where franchising comes into play. But let’s not get too far ahead of ourselves here.

 

The Golden Krust Caribbean Bakery is well-known for serving customers with authentic and delicious food. But they are also known for the fun and energetic environment that they allow their customers to experience. We all know that the Caribbean is connected with fun and vibrant colors. And that’s the exact experience you will have at the Golden Krust.

 

They truly value their company and the patrons that visit their establishment. And it shows. Not only that. But they are fully committed to helping franchises achieve success through their company.

 

And I believe that is extremely important when looking at a franchise opportunity. The fact that the company cares about the success of its franchise owners. As it should be. However, not every company will care enough. Most just leave you to fend for yourself.

 

But after all, each franchise is still a part of their company, right? So, I think every company should show this much interest and passion with each of their partnerships.

Franchise Growth and Expansion

With the amount of support that the company is willing to provide and share, you would expect for there to be a great interest in this franchise opportunity. But that’s not always the case. However, here, we o see a definite increase in franchise locations for the Golden Krust. Even if it’s not much.

 

This company has been offering the franchise opportunity since back in 1996, and has seen an increase in growth and expansion over the last decade alone.

 

In 2010, The Golden Krust had a total of 108 franchise locations operating. Then, by the end of 2017, there was a total of 119 operating franchise locations within the United States. As I have mentioned, it may not be a big jump, but it is definitely a decent amount of growth for this type of company.

 

And the turnover rate doesn’t look too bad either. Granted, it’s not extremely low. But it doesn’t seem to be too risky. Depending on the reasoning, of course.

 

A turnover rate gets calculated by totaling the number of transfers, terminations, ceased operations, and non-renewals of the franchise agreement. Then you divide that number by the total number of operating franchise locations.

 

So, if the number is too high, it could indicate that there were a lot of closings. But you will have to question the company as to what the reason for those closings was. That would be the only way to find out if the reasons were legitimate or if franchises were not making enough money.

 

However, just because some of the previous franchise owners weren’t successful, doesn’t mean you won’t be. After all, the company does provide a great deal of training so that you have a better understanding of how to run the company.

Expectation VS Reality

So, how much profit can you expect to make with this franchise business? Unfortunately, that can’t really be determined. But you have to ask yourself if the positives outweigh the negatives. And make sure that the investment and fees won’t put you in too much debt before you get started.

For The Golden Krust Caribbean Bakery, you’ll be glad to know that the fees are just about average for this industry. Your initial franchise fee will be $40,000 due at the signing of your 10-year contract.

 

Depending on your specific location, along with a few other determining factors, you can expect to have invested between $215,500 and $575,000.

 

Overall, it doesn’t seem too bad. But the company does not offer any finance options. So if you feel that you may have trouble coming up with these fees, you will have to find a private lender for financing.

 

There are two fees, however, that you cannot get away with when it comes to financing or discounts. And those are the ongoing royalty and advertising fees. The royalty fee will be 3% or $250 (whichever is greater) due weekly. This minimum will be dropped for those that franchise a drive-thru location. Regardless, your advertising fee will be a steady 2.5%, though.

 

These ongoing fees are exceptionally low for this industry. So, keep that in mind when looking through your pros and cons of this franchise opportunity. It may not be all butterflies and rainbows, but that’s what business is about. Trial and error. And spending a whole lot of money.

An Honest Opinion

Now that you have the facts, it’s time for an honest opinion about this franchise opportunity. Is it worth it in the end? Although I cannot personally say that this is the perfect franchise opportunity for you, I can say that it seems decent.

 

This is a one-of-a-kind business. Sure, there may be other Caribbean cuisine restaurants around, but the authenticity and amazing service go above and beyond. The environment is fun and inviting. Which helps when you need to keep repeat customers as well as bringing new ones in.

 

The one thing that I feel this opportunity may be lacking is the number of benefits they provide. Sure, they offer great training and support. But they lack in financial transparency and finance options.

 

However, if you can overlook those few things and you love what they offer, then by all means, who am I to stop you?

Wrapping it Up

With the number of different franchise opportunities out there in the world, it can prove to be difficult when it comes time to narrow down your options. But there will always be a select few (or maybe even just one) that sticks out the most to you. And that one, my friend, will be the one that you pursue.

 

Of course, it should be a business that you know is growing and has little risk. But no matter what the price point is or how many benefits they offer, you should go with your gut feeling.

 

The Golden Krust Bakery is a great establishment that is fun and vibrant. It would be a fantastic way to introduce Caribbean cuisines to your neighborhood through this restaurant. But do you feel passionate enough about it?

 

If you feel that this is the right fit for you, then contact the company. So that you can find out more on this franchise opportunity. Remember to always ask relevant questions that will give you the full rundown on what they expect from you and what they offer to you.

 

After everything is said and done, you may just end up applying and becoming a franchise owner for this great Caribbean-style restaurant.

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