Breaking down the costs of launching the L&L Hawaiian barbecue franchise 💸

  • How to Open this Business: Guide
  • TOP-7 KPI Metrics
  • Running Expenses List
  • How To Increase Business Profitability?
  • How to Sale More?
  • How To Raise Capital: Guide
  • How to Value this Business?

Introduction

Thanks to its widely accessible and affordable dishes, L&L Hawaiian BBQ is one of Hawaii’s most popular fast food chains. Along with its sister restaurants, the franchise has nearly 200 locations across the United States, representing steady growth in the Southeast Asian fusion food industry. If you are considering franchising one of their restaurants, first take a look at the costs involved in starting a Barbecue Hawaiian L&L franchise.

It can be difficult to launch a restaurant from the ground.Between franchise fees, rental costs, supplies, and marketing, the costs of launching a restaurant with the L&L Hawaiian Barbecue franchise can add up quickly.It’s important to make sure you have all your basics and plan for potential expenses.Here, we’ll go through all the costs you’ll need to cover to ensure a successful launch of your Barbecue Hawaiian L&L franchise.
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start-up costs

Opening a Hawaiian L&L barbecue franchise business will require significant investments in equipment, rent, marketing and advertising, legal fees and other expenses. Average franchise start-up costs for this business range from approximately 0,000 to 3,000, depending on the size and scope of the franchise.

Here is a breakdown of expected start-up costs:

Franchise start-up costs Construction/rent costs for the space restaurant equipment Marketing and advertising expenses Legal fees Supplies and inventories Utility expenses Labor costs Develop IT systems/computers/cash registers
,000 – ,000 ,000 – 0,000 ,000 – 0,000 ,000 – ,000 ,000 – ,000 ,000 – ,000 ,000 – ,000 ,000 – 0,000 ,000 – ,000
Total 0,000 – 3,000

Franchise start-up costs

If you’re looking to open an L&L Hawaiian BBQ restaurant, you may have heard that the initial cost of buying a franchise can be a significant investment. The franchise start-up fee for an L&L restaurant franchise is ,500 and includes brand usage, initial training, assistance in selecting a suitable location, and exclusive territory rights.

You will need to make a long-term commitment to the L&L franchise system, which is at least ten years. During this time, you will have to pay a monthly royalty fee of 7% of your monthly net sales to L&L, as well as an advertising fee of 2% of monthly net sales.

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In addition to franchise fees, there are other expenses associated with opening an L&L Barbecue restaurant. These expenses may include, but are not limited to:

  • Lease of property: Rental of premises can range from ,000 to ,000 per month.
  • Construction costs: Construction costs can range from 0,000 to 0,000 depending on location.
  • Equipment: Equipment costs can range from ,000 to 0,000.
  • Supplies: Supply costs can range from ,000 to ,000.
  • Utilities: Utilities are normally paid for the first month upfront and can range from ,000 to ,000.
  • Insurance: Insurance costs can range from ,000 to ,000 per year.
  • Permits and licenses: The initial cost of the permit and license can range from ,000 to ,500.
  • Opening Money: Expect to have at least ,000 to open money.

The actual costs of an L&L Barbecue franchise can vary greatly depending on the location and size of the restaurant. Taking the time to do the research and crunch the numbers will help you make a more informed decision before taking the leap and investing in an L&L franchise.

Construction/rent costs for the space

In order to open a Hawaiian L&L barbecue franchise, one of the most important costs to consider is that of building or renting the space. According to FranchiseHelp, a reputable resource center in the United States, the median cost of building restaurant space to open an L&L Hawaiian BBQ franchise is 5,000 – 5,000 . Cost varies greatly depending on size, location, etc. On the other hand, the cost of rent can vary between ,000 – ,000 per month. Renting a space is more budget-friendly, but comes at the cost of flexibility.

Also, if you plan to build a space, it is important to consider the cost of additional resources required such as furniture, fixtures, equipment, decoration, etc. An average restaurant construction cost ranges between restaurants between ,000 – 0,000 , depending on the size of the space. You will also need signage, branding materials, tools, and other necessary materials so factoring these costs into your budget is essential.

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Finally, don’t forget to factor in time costs. When building or running a business, time is often your most valuable asset, so you shouldn’t ignore it when considering the costs of opening a business. Be sure to allocate resources and a budget not only for finances, but also for time.

restaurant equipment

When it comes to opening a Hawaiian L&L barbecue franchise, one of the most important considerations is the cost of restaurant equipment. This cost can vary greatly depending on the size and type of restaurant you plan to open. According to the latest statistical information, the average restaurant equipment cost for a fast-food restaurant can range from ,000 to 0,000 . This cost includes items such as freezers, ovens, fries, grills, dishwashers, furniture, and other essentials.

It is important to note that the cost of restaurant equipment can vary greatly depending on the type of equipment you choose. For example, some types of ovens may cost more than other types. In addition, high-end furniture can significantly increase the cost of restaurant equipment. Therefore, it is important to research and compare the different types of equipment available to determine what best suits your needs.

In addition to the cost of equipment, you may also need to consider the cost of installation and other related expenses. This may include costs such as plumbing and electrical work, painting, and other renovations. Therefore, it is important to factor these additional costs into your budget when calculating the total cost to open an L&L Hawaiian BBQ franchise.

Marketing and advertising expenses

When it comes to opening a Hawaiian L&L barbecue franchise, the cost of marketing and advertising is one of the biggest expenses to consider. The exact amount is difficult to pinpoint, as marketing and advertising costs vary widely depending on the size and scope of the franchise. However, according to recent statistics, the average marketing and advertising cost for a franchise is ,000 to ,000 per month .

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The majority of this spending will go towards digital marketing and advertising, such as managing search engine campaigns, creating social media ads, and creating content to engage with potential customers. Other expenses may include local print or television advertisements, as well as promotional materials for trade shows or other events. It is important to consider all potential marketing and advertising expenses before starting a franchise.

It is also important to note that the cost of marketing and advertising can increase over time as the franchise grows and more customers are reached. Therefore, it is important to consider a budget for marketing and advertising expenses in the future. Additionally, the cost of marketing and advertising can be offset by taking advantage of discounts or promotions offered by vendors, or by investing in marketing automation or analytics software.

Legal fees

When opening a Hawaiian L&L barbecue franchise, legal fees can be a significant cost. According to the franchise disclosure document, the estimated legal fees are approximately ,500. This includes fees associated with franchise agreement, trademark registration, local business licenses and other miscellaneous fees.

Also, if you are opening a franchise in a different state than you are currently in, legal fees will be higher. This is because you will need to comply with each state’s franchise laws. Also, if you plan to finance the purchase of a franchise, you will likely have to pay fees to the lender for the legal work associated with the loan.

In addition to the fees associated with the franchise agreement and other legal costs, you likely incur other legal costs to protect your intellectual property, such as trademarks and copyrights. The cost of registering a trademark can vary from 5 to 0 per class of goods or services. Copyright registration fees range from to .

It is important to budget for legal fees when opening a Hawaiian L&L BBQ franchise as they can be a significant cost. This will help ensure that you have the necessary funds to cover all legal fees associated with the franchise.

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Supplies and inventories

Opening an L&L Hawaiian BBQ franchise requires purchasing supplies and inventory. According to the Franchise Disclosure Document (FDD) For L&L Hawaiian Barbecue, the initial investment for supplies and inventory for a franchisee ranges from ,500 to ,500. This cost is based on the size of the store and the type of products sold. Initial inventory includes items such as food, beverages, paper products, and cleaning supplies.

In addition to the initial purchase of supplies and inventory, franchisees must also budget for ongoing inventory costs. These costs usually consist of regular purchases of food, beverages, paper products, cleaning supplies, and other materials needed to keep the restaurant running. The cost of these ongoing purchases can vary greatly depending on the size of the franchise, the number of customers and the type of products sold. According to the FDD, the average monthly cost of supplies and inventory is estimated to be between ,500 and ,500.

When budgeting for supplies and inventory, franchisees should also consider additional costs such as food waste, spoilage, and product removal. As any restaurant knows, food waste and spoilage can add up quickly and can dramatically increase the cost of supplies and inventory. Although these costs are difficult to predict, they should be considered when estimating the total cost of supplies and inventory.

Utility expenses

When it comes to opening a Hawaiian L&L barbecue franchise, one of the most important factors to consider is the cost of utility expenses. To ensure a successful launch, it is important to budget for all utility costs. According to the latest 2019 statistics, a Hawaiian L&L BBQ franchise is expected to cost between ,500 and ,500 per month for utility expenses.

These costs may include water, electricity, gas, waste disposal and other miscellaneous utility costs. The exact cost of utility expenses will depend on the restaurant’s size, location and type of utilities needed. For example, a larger restaurant may require more electricity and water than a smaller one, and a location in an area with higher utility costs may require more money for utility expenses.

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In addition to these costs, it is also important to budget for any additional fees or taxes that may be associated with utility expenses. This could include electricity taxes, water taxes or any other applicable charges. It is important to research and plan for these additional costs to ensure that the utility expenditure budget is accurate and realistic.

Finally, it is important to note that utility expenses can vary from month to month, depending on restaurant usage. To ensure that the utility expense budget is accurate and up-to-date, it is important to monitor utility costs and adjust the budget accordingly.

Labor costs

When considering the cost of opening a Hawaiian L&L BBQ franchise, labor costs should not be overlooked. According to the US Bureau of Labor Statistics, the median hourly wage for food service workers was .29 per hour as of May 2020. Depending on the size of a franchise, labor costs can vary widely. A smaller franchise with a limited staff may have a lower cost than a larger one with a larger staff. However, the cost of hiring and training employees, as well as the cost of benefits, should also be considered.

Plus, the costs associated with salary and overtime, as well as payroll taxes can add up quickly. As of 2020, the minimum wage for employees in California is .00 per hour . In Hawaii, the minimum wage is .10 per hour . For employers, this means that total labor costs for a Hawaiian L&L barbecue franchise can vary significantly depending on location and number of employees hired.

Develop IT systems/computers/cash registers

When considering opening your own Hawaiian L&L BBQ franchise, you need to consider the costs associated with developing IT systems/computers/cash registers. According to the 2018 Franchise Disclosure Document, the estimated initial capital cost to start an L&L Hawaiian BBQ franchise ranges from 2,150 to ,106,500. This includes the cost of developing IT systems/computers/cash registers.

The cost of developing computer systems/computers/cash registers depends on the size and complexity of the system. Generally, the cost of developing IT systems/computers/cash registers for a franchise is between ,000 and ,000 . This cost includes the installation and configuration of the system, as well as the purchase of any necessary equipment, such as computers and cash registers. Additionally, some franchises may require additional fees for software licenses, maintenance contracts, and other services.

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It is important to keep in mind that these costs are only estimates and may vary depending on various factors. For example, if a franchise is located in an area with limited access to reliable IT infrastructure, the cost of developing IT systems/computers/cash registers may be higher. Additionally, the cost may also be higher if the franchise decides to use more advanced technology.

Here is a breakdown of the estimated cost of developing computer systems/computers/cash recorders for a Hawaiian L&L BBQ franchise:

  • Hardware: ,000 to ,000
  • Software licenses: 0 to ,000
  • Maintenance contracts: 0 to ,000
  • Additional services: 0 to ,000

In addition to the cost of developing IT systems/computers/cash recorders, you may also need to consider the cost of training and hiring staff to maintain the system. Depending on the size and complexity of the system, the cost of training and hiring staff can range from ,000 to ,000 .

Overall, when considering the cost of developing IT systems/computers/cash records for an L&L Hawaiian BBQ franchise, it is important to consider the cost of hardware, software licenses, maintenance, additional services, and training and hiring personnel. The total cost of developing computer systems/computers/cash registers for an L&L Hawaiian BBQ franchise can range from ,000 to ,000 , depending on the size and complexity of the system.

Conclusion

Starting a Hawaiian L&L Barbecue franchise is no small task, but with the right preparation, it can be a rewarding experience. From the initial franchise fees to the ongoing costs of supplies and labor, it’s important to consider the full cost when planning to open an L&L Hawaiian BBQ franchise. While the exact cost of starting an L&L Hawaiian BBQ franchise can vary, a typical cost can range from 0,000 to .5 million . With careful planning, the right team, and a strong commitment to success, you can open your Hawaiian L&L BBQ franchise with confidence.