This West Coast eating chain began as a small-scale restaurant with a bear motif and rapidly grew to one of many important restaurant gamers throughout 14 states. Based by Bob Manley and Bruce Dean in 1995 this household restaurant started providing franchise alternatives round 2002 and now has over 144 eating places working in 14 states.
How a lot does it price to open a Black Bear Diner? Opening a Black Bear Diner franchise requires a web value of a minimum of $1,500,000 earlier than contemplating the franchise investments. On prime of this, every restaurant begins with a $55,000 franchise payment and a sliding scale franchise payment for opening a number of eating places in the identical space.
The bills don’t finish there, nevertheless. There are a number of different prices to think about together with advertising charges, grand opening prices, 4.5% of gross earnings, and different line gadgets I’ll focus on later on this assessment. Opening a Black Bear Diner typically prices an estimated $1,114,800 to $1,876,200 with high-end estimates coming near $3,000,000 primarily because of actual property prices.
Nonetheless desirous about becoming a member of this bear’s den? Earlier than beginning your individual Black Bear Diner, hold studying to study extra about this franchise and every little thing it’s good to know. Then, in case you’re interested by what franchise finest matches your fashion, take our 7-minute franchise quiz to be matched with a chance that matches your price range.
Franchise Info
| Yr Based: | 1995 |
| Founders: | Bob Manley and Bruce Dean |
| Whole Items: | 144, with 83 eating places of the 144 as franchises |
| Business: | Meals and Beverage |
Based in 1995 by Bob Manley and Bruce Dean, Black Bear Diner’s design reportedly got here to the 2 enterprise companions in a dream. Their first restaurant embraced the black bear and log cabin aesthetic and has grown right into a multi-million greenback enterprise with 144 models throughout 14 states.
The 2 co-owners had been Northern California locals, the place bears aren’t solely discovered on the state flag. “Bears had been a giant a part of my life,” Manley advised Franchise Occasions. “I used to be a wilderness information with bears. My sports activities workforce in highschool was The Bears…Every part was primarily based on bears…So I envisioned this restaurant with old school values, just like the Cheers story, the place all people is aware of your identify, and also you’re really an individual.”
From a bare-bones begin of $15,000 every, these two turned a single restaurant into a shocking household restaurant empire because of a rebranding change within the type of the household restaurant Jerry’s. These preliminary eating places took off surprisingly quick. At the moment, Black Bear Diner is a favourite eating chain on the West Coast, with eating places slowly creeping additional East yearly.
Monetary Necessities and Charges
| Charges and Bills | Monetary Quantity |
| Liquid Capital | At the least $100,000 to $150,000 for franchising, coaching, merchandise, and facilities at a single location, not together with actual property price |
| Web Price | $1,500,000 |
| Whole Funding | Relying on the price of actual property, whole funding ranges between $1,114,800 to $1,876,200, with high-end estimates near $3,000,000 |
| Preliminary Franchise Price | $24,000 to $55,000 |
| Growth Price for A number of Eating places | 50% of the preliminary Franchise Price |
| Royalty Price | 4.5% of Gross Gross sales per week |
| Advertising and marketing Fund Contribution | 1.5% of Gross Gross sales per week |
| Native Promoting | 1.5% of Gross Gross sales per 30 days |
| Grand Opening Promoting | $5,500 |
| Franchise Renewal Price | $5,000 |
| Retailer Product Purchases | Varies |
| Service provider and Present Card Processing Charges | Approx. $75/month plus 4.7% to six% per transaction |
| Waitlist Administration System | Approx. $35 to $45/month |
| Olo On-line Digital Ordering System | Approx. $50/month, plus a month-to-month payment per order quantity starting from $5 to $90, and a fee payable quantity of 20% to 30% of the order price |
| Software program Licenses Charges | Approx. $200 to $400/month |
| Worker Coaching Bills | Varies |
| Substitute Normal Supervisor Coaching | $3,000 |
Different charges embrace penalties for not attending conventions, a $10,000 switch payment in case you resolve to promote the restaurant to a different proprietor, and extra hidden charges relying on inspections, product testing, and efficiency. Yikes!
Black Bear Diner will refund all however $10,000 of your preliminary franchise payment ought to they decide they don’t need you to run a restaurant utilizing their identify. Nonetheless, apart from this caveat, the franchise payment is non refundable. Most Black Bear Diner franchise contracts are for ten years with renewals lasting one other ten years. It is usually value noting you want a minimum of 65 staff to function a Black Bear Diner. Not all the time a straightforward activity in a good labor market.
Common Gross sales and Income Per Yr
| Systemwide Annual Gross sales | $350,000,000 in 2021 |
| Common Annual Gross sales per Unit | N/A |
| Common Franchisee Revenue | $2,574,759 |
How A lot Revenue Do Black Bear Diner Franchisees Make Per Yr?
Estimating the common revenue of a Black Bear Diner franchisee is difficult as a result of COVID-19 pandemic and the continuing restoration of the restaurant trade. Nonetheless, some place the common franchisee revenue at $2,574,759. After all, this quantity must be taken with a grain of salt, because the high and low finish of franchisee income should not simply accessible.
Keep in mind that a Black Bear Diner in an optimum location may end up in important income numbers. However location and expertise working / advertising a profitable restaurant will play a giant position on this success.
Who Owns the Black Bear Diner Franchise?
Co-founder Bruce Dean is presently one of many main forces in command of the Black Bear Diner franchise. Whereas one other co-founder Bob Manley has stepped down from operating the restaurant, he’s nonetheless concerned on the corporate board.
As well as, CEO Anita Adams joined the corporate in 2019 following a profitable observe document as CFO of American Blue Ribbon Holdings (ABRH) and introduced her expertise to the franchise.
How Many Black Bear Diners Are There?
As of November 2022, there are 144 Black Bear Diners throughout 14 states. Of those 144 diners, a majority of them are situated in California, the place the chain bought its begin. Eighty-three of those eating places are franchises, which means the remaining 61 are company-owned.
Through the COVID-19 pandemic, franchise numbers stayed comparatively fixed because of trade challenges. Nonetheless, as a response to the struggles brought on by the pandemic shutdown, Black Bear Diner moved to off-premise gross sales, rising these to twenty% as an alternative of the earlier portion of seven%.
This flexibility indicators an organization keen to improvise and experiment to continuously enhance buyer expertise and guarantee their franchisees have the instruments obligatory for fulfillment.
What’s It Wish to Work Inside Black Bear Diner?
A assessment of former worker testimonies on websites like Glassdoor and different employment web sites exhibits that whereas working at Black Bear Diner varies from location to location because of administration, the general impression of the corporate and CEO is optimistic.
Many staff complain about poor administration. Nonetheless, they appreciated the shift flexibility and availability and located the fast-paced ambiance agreeable. Some complained in regards to the expectations positioned on low-level employees, which means that franchise homeowners ought to stability their hires’ duties correctly to make sure employees retention.
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The Black Bear Diner work construction is just like some other Americana restaurant, with a normal diner fare menu and rotating menus protecting breakfast, lunch, and dinner. Workers are anticipated to work within the kitchen making ready meals, as servers or hosts, or as cleansing employees and administration. Normally, coaching in correct administration positions can assist stability the workload of a franchise proprietor and enhance the general office satisfaction of all staff. As well as, encouraging communication between work areas and selling an expert, courteous setting can go a great distance towards worker retention and buyer satisfaction.
Keep in mind that the common Black Bear Diner requires a minimum of 65 staff to perform, with added staff wanted for sick time protection, holidays, and through the seasonal rush. As well as, black Bear Diner offers coaching info for brand spanking new hires and administration positions, so be ready to finance this coaching when beginning your restaurant.
Benefits of Black Bear Diner
Some benefits of opening a Black Bear Diner embrace the benefit of start-up, the established nature of the enterprise, and the general recognition of the restaurant. Since its founding 27 years in the past, Black Bear Diner has grown every year considerably and now contains 144 eating places throughout 14 states. The dependable menu and basic consolation meals are simple to organize and require little in the best way of specialised substances.
Normally, whereas the start-up price of a Black Bear Diner is steeper than different franchise eating places, the common franchisee revenue matches the preliminary start-up price, which means that some franchisees see a return on funding in whole of their first fiscal 12 months. As well as, as a result of age and recognition of the franchise and its efficiency throughout difficult COVID-19 restrictions and common restaurant income droop, this restaurant is a typically sound funding for an American-style diner franchise.
Challenges of Black Bear Diner
The excessive start-up price of this franchise could be a direct barrier to funding. Whereas the franchise charges are comparatively affordable, particularly with the sliding scale for a number of restaurant investments, the price of actual property, coaching, common gross revenue charges, licensing charges, and product investments could be daunting for potential franchisees.
Whereas the corporate has been constant in its progress over time, the varied “hidden charges” that come on prime of the franchise payment generally is a draw back for potential traders. For instance, not solely are franchisees anticipated to fund facets of worker coaching, however failure to attend sure firm features can incur a high quality. As well as, relying on state and native limits, late fee charges include an 18% curiosity payment. These charges might reduce the general franchisee income in case your restaurant runs right into a sluggish interval, and you might lose income rapidly do you have to routinely fall behind.
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One other factor to think about is that whereas Black Bear Diner has been slowly making its approach throughout the US, it’s securely a West Coast chain, which means it might not be a wonderful funding for somebody trying to open an East Coast restaurant. Whereas this can be an opportunity to be the one Black Bear Diner in an space, the struggles of attempting to carry a brand new franchise to a longtime web site are often not for the faint of coronary heart.
To summarize, steep start-up prices, native recognition, general funding prices, and potential late charges all contribute to the challenges of this restaurant. One other factor to think about is the variety of staff wanted to run every restaurant.
With a minimal of 65 staff really helpful per location, beginning up a Black Bear Diner is just not for rookies and requires important administration expertise. Not solely that however coaching new managers can turn out to be pricey as a result of $3,000 coaching payment, which means managing such a big workforce of staff can rapidly turn out to be a problem.
Normally, Black Bear Diner is just not a newbie franchising alternative. Whereas the restaurant marketing strategy is simple, and there’s a important quantity of recognition and model recognition behind the chain, the start-up prices, administration expertise wanted, and general dimension of a single restaurant make this restaurant an skilled franchisee selection.
Is Opening a Black Bear Diner Proper for You?
Normally, not each alternative works for each investor. Earlier than diving right into a Black Bear Diner franchise restaurant, taking inventory of your funds is important. The corporate reserves the correct to refuse any franchise software, which means that you just’re unlikely to be authorized to open the restaurant if you don’t make the minimal web value.
Due to the multi-restaurant reductions, opening and operating a number of Black Bear Diners in the identical space generally is a viable technique. They might show a difficult however rewarding funding alternative for the clever entrepreneur.
After all, earlier than beginning any franchise or branding alternative, speak with different franchise homeowners in the identical trade to seek out out any hidden prices, challenges, or charges which will come hand-in-hand with the enterprise alternative. Make a practical evaluation of your preliminary funding, and take the time to check actual property prices, kitchen provides, and worker coaching charges earlier than totally committing to a 10-year franchise contract.
If you’re desirous about discovering different franchise alternatives, take a look at our different articles. We cowl franchises in varied fields, from meals and beverage to finance and taxes. Lastly, in case you’re uncertain the place to start, take our seven-minute franchise quiz to seek out out what sort of franchise is the correct match.
