For more than 30 years, Panda Limited has been recognized as ane of the large names in fast-coincidental. The visitor has more than 2,200 locations globally. In 2019, Statista reported Panda Express equally the number 3 leading fast-casual eating house.

How much does it cost to open a Panda Limited? Unfortunately, this concatenation is not open for franchising at the time of writing. In fact, the majority of Panda Express locations in the United states of america are company-owned. This means employees manage the solar day-to-day operations of a location, instead of a franchisee. Accept our 7-minute franchise quiz to detect an opportunity that fits your goals and upkeep.

In the consequence Panda Express opens its eating place bondage to franchisees in the future, how much should you expect information technology to price? To own a Panda Express, your liquid avails would are estimated betwixt $100,000 to $250,000. Total investment is estimated between $377,100 to $1,884,000 while Panda Express's franchise is expected to be $25,000. Of course these are estimates based on similar franchise concepts.

If you're curious virtually Panda Express, their operations, and how much they make in a year, below are more details regarding this popular restaurant chain. I fifty-fifty include what I view as advantages and challenges of the concept. Let'south get into it.

  • Financial Requirements and Fees
  • Average Sales / Revenue per Year
  • Panda Express Franchise Facts
  • How Much Does Panda Express Make in Profit?
  • Advantages of a Panda Express Franchise
  • Challenges of a Panda Express Franchise
  • Is the Panda Express Franchise Right For Y'all?

Financial Requirements and Fees

Panda Express is a privately-owned visitor. They do not let franchising of their restaurant and they haven't revealed any of their franchising fees and requirements.

Fees / Expenses Fiscal Amount
Liquid Capital $60,000 to $110,000
Total Investment $377,100 to $1,884,000
Franchise Fee $25,000

Panda Express may not be open up for franchising but they practice allow their employees to run their restaurants. No other details are provided if this means that you lot'd have to piece of work at Panda Express in order to be granted a franchise. If this changes, we'll be the first to let yous know.

Average Sales / Revenue per Year

According to Forbes, Panda Express recorded $iii.5 billion in revenue in 2020. They've had billion-dollar revenues in the previous years as well. The chain has enjoyed double-digit percentage revenue growth in similar growth besides. While revenues dipped during the beginning of the pandemic and lockdowns, the concept finished the year stiff.

Panda Express Franchise Facts

Total Units 2,200+
Incorporated Name Panda Express
Franchising Since Does Not Allow Franchising
Manufacture Fast-Casual Restaurant
Subsector Nutrient and Beverage

Panda Limited's roots started in the 1970s when Andrew Cherng forth with his father opened the Panda Inn in Pasadena, Calif. Panda Inn was an upscale restaurant where Mandarin and Sichuan dishes were served. In 1983, together with Peggy Cherng, they opened Panda Limited which was positioned every bit a fast-food version of Panda Inn. The start Panda Express was located in Glendale Galleria in Glendale, Calif.

Peggy Cherng has a Ph.D. in Electrical Applied science and an One thousand.South. in Calculator Sciences was the person backside Panda Limited's efficient operating system. Cherng implemented tracking inventories also as a computerized organisation for reordering ingredients which made the business procedure faster and easier, something that other Chinese-American restaurants weren't practicing during those times yet.

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Within the beginning decade in business, Panda Express quickly grew to 100 branches. The Panda Express located at Ala Moana Center in Hawaii is considered to be i of the most assisting locations. This location lonely rakes in a reported $4 one thousand thousand a year. Panda Express also started testing drive-thrus back in 1997.

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A wok at Panda Express.

In the showtime, the restaurant chains were mostly found in food courts in malls. Panda Express has always had a strategy of opening in locations where there is a captive audience. As a result, the company has targeted opening on university campuses, airports, amusement parks, and even casinos.

The company'due south kickoff location outside the Us was in Mexico City in 2011. Other places where Panda Express can exist found include Dubai, Canada, Philippines, Japan, Puerto Rico, Guam, and South korea.

In 2007, Panda Express' revenues hit $one billion for the start fourth dimension ever. It was also around this fourth dimension that they've opened their 1,000th branch in Pasadena, California.

Panda Express'southward most pop item is orange chicken. These are craven bites with a sugariness and spicy orange sauce. According to their website, they've sold over 80 million pounds of orange craven since 2016. In 2017, they've too bought 22 million pounds of broccoli. Other popular dishes on the menu are Beijing Beef and Honey Walnut Shrimp. The restaurant also gives away fortune cookies with uplifting notes on inscribed on them. Panda Limited easily out a staggering 282 million fortune cookies annually.

The Asian restaurant concatenation won the 2021 Excellence in Food Safety Award for their efforts in ensuring food rubber. In spite of massive growth, Panda Limited is still considered a family business organisation with couple Andrew and Peggy Cherng at the helm. The couple is at present ranked 838 in Forbes' Billionaires List of the richest people in the globe with a combined internet worth of $3 billion.

They couple has three children and two of them work for Panda Restaurant Group Inc., the parent company that owns Panda Express, Panda Inn, and Hibachi-san. Nicole Cherng is the manager of catering and special events while Andrea Cherng is the main marketing officer.

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The visitor is known to be very charitable. Panda Cares is the organization under Panda Restaurant Group Inc. involved in all sorts of philanthropic missions. The organization was formed in 1999 with the mission of providing funding, nutrient, and volunteer services for disaster relief efforts and underserved children. The grouping has raised over $l million for clemency. The headquarters for Panda Eatery Group Inc. is located in Rosemead, California.

How Much Does Panda Limited Make in Turn a profit?

Panda Limited has not made their turn a profit data known, but the eating house concatenation's net income was around $8,000,000 in the twelvemonth 2020. While we don't know exactly how profitable a Panda Limited, more often than not speaking Chinese nutrient is a profitable menu particular. Most Chinese restaurants can markup their dishes iii – 4 times food cost. Of course, this doesn't take into business relationship the toll of labor, rent, or taxes so keep that in mind.

Considering Panda Express' commitment to running a tight ship, I bet they've found a way to reduce their food costs even further beyond mom-and-pop Chinese restaurants that can markup nutrient by 3x – 4x. At this bespeak, Panda Express enjoys economy of scale and tin negotiate with vendors to reduce the price of ingredients.

Advantages of a Panda Express Franchise

Based on the multi-decade growth in that location would clearly exist many advantages to franchising a Panda Limited. Here are some of the biggest advantages of this restaurant.

The Orange Chicken Experience

Panda Express is synonymous with orangish chicken and the company sells 285,000 plates each year. The shop'due south virtually popular item on the menu is the one sought afterward by many for its crispy pare but also juicy bite smothered in orange sauce. Every bit mentioned above, they sell literally millions of pounds of the stuff every year.

Even though contained Asian restaurants serve the same items on their menu, people go on to cull Panda Express due in part to dish consistency. The meal is also served extremely quickly and picked-up through a drive-thru location with a Panda Express making information technology a more than user-friendly experience.

Variety

If you lot've been to a Panda Express so you know that they have an extensive menu. Ingredients include beef, chicken, fish, vegetables, noodles, and rice with options from manifestly steamed rice to brownish rice. The servings are generous likewise. If you are able to franchise a Panda Express in the future, y'all can be assured customers enter hungry and leave very much satisfied.

They're Not Stopping

You'd call back with over 2,200 locations, Panda Limited would be struggling to find new markets to enter. But even to this solar day, the eating house chain is continuing to expand. Their recent branch just opened in Owensboro. Being a role of the Panda Express franchise family ways you're in proficient hands knowing that the company is continuously growing.

Challenges of a Panda Limited Franchise

Every business including Panda Limited has its challenges. I view these equally the fundamental challenges of franchising a Panda Limited.

Long Lines

Aside from Panda Express existence synonymous with orange chicken, it's also associated with long lines. Whenever you're at the food court or drive-thru, you're jump to encounter a long line of people queuing to order at any given fourth dimension.

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Though the high traffic is good for business, it can likewise drive potential customers away. They'll see the long line and retrieve, "Oh, let's find someplace else." Possibly the long lines are part of the restaurant'due south marketing strategy and so information technology tin reel in more customers. Merely sometimes, long lines tin exist a disadvantage and take people opt for some other place that tin accommodate them at once.

Employee Lawsuits

Panda Restaurant Group Inc. has faced numerous lawsuits earlier. These lawsuits involved hiring discrimination, overtime pay, and harassment. Though the visitor has settled these lawsuits, information technology has damaged Panda Express's name. You should be aware of these as a possible franchise owner in the future.

Is the Panda Express Franchise Right For You?

Panda Express is non available for franchise right at present but if information technology does open its doors to sharing their chain in the future then this might be the right franchise for you. Panda Limited has a wide variety of items on their menu and a delicious fan favorite known as the orangish chicken that brings back customers again and once more. If it'southward an Asian-American restaurant chain you're evaluating, Panda Express would be ane of the elevation opportunities I'd take a await at.

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What is an culling Panda Express franchise?

If you can't wait for the 24-hour interval that Panda Limited volition accept franchise operator applicants, check out Teriyaki Madness. This Asian-American chain has been effectually since 2003 and has over 150 branches all over the United States. The eating house serves bowls of chicken, fish, or beefiness, including their ain version of orangish chicken. They besides have options similar fried rice, noodles, white rice, or brown rice.

Teriyaki Madness is besides open for franchisees. The franchise fee starts at $45,000 for a single unit, $99,000 for a standard 3-pack franchise, or $150,000 for a v-pack platinum franchise. Other fees y'all should exist aware of are weekly royalty fees of upwardly to 6% depending on the gross sales figures you bring in.

Fast-casual restaurants are sprouting up all over the United States and they're expected to proceed growing at a rate of 8% until 2024 in spite of challenges to the industry every bit a whole. These types of restaurants are known to serve high-quality nutrient in a casual setting. Many also deem them to be healthier compared to fast-food. Any the case, fast-casual restaurants are on the rise and ane of the summit players is Panda Express.

In that location you lot have information technology! Hopefully Panda Limited will open up their artillery before long to welcome future franchise operators so you lot tin have one of your own.