Panda Express Franchise : Franchise cost & profit margin

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Panda Express Franchise Overview

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“China is a historically culturally rich country. Chinese foods are getting popular in almost every country. Chinese Fast Food markets could be seen in almost every metro city in the world. Chinese foods traditionally originated from China, but now, it is getting a flavor of local culture. Panda Express is one of the big restaurant food chains which offers American Chinese Cuisine. How about doing business with this big brand name in your country?”

Panda Express company is an American Chinese food chain. It offers Chinese food as a combination of Chinese roots with an American taste.  Chinese cuisines, such as orange chicken, Kung Pao chicken, Teriyaki Chicken, and Beijing Beef are the most food available at its outlets. At Panda Express, every dish is inspired by Chinese regional cuisine. It was established by Andrew and Peggy Cherng in 1983 in California.

The company opened its  2nd outlet in Honolulu in 1987. Very soon it got very popularity and support. Panda Express launched its 100th branch in 1993. Panda Express Expansion reached more than 1000 outlets by 2007.

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Panda Express is doing a profitable business. The company made approximately  $9,500,000 in 2020. Its  majority of revenue comes in the form of royalty.  The Panda Express Charge 8% royalty of total sales amount or $4,000 or whichever is maximum.  Before COVID-19, the company net profit  had increased up to 25% in comparison to 2019.

Panda Express Franchise Foundational History

The Starting of Panda Express Company is very interesting. Nearly 50 years ago, Panda Express’s story began with one immigrant Chinese family. A Chinese  Chef, Ming Tsai Cherng  came to America with his family for a  better life. Mr. Ming Tsai Cherng opened a Chinese fast food restaurant as Panda Inn in 1970. Later, his son Andrew Cherng and Peggy Cherg assisted in his work.  Andrew Cherng opened the First Panda Express in 1983 at the Glendale Galleria in Glendale, California to support his family. In the beginning, Panda Express struggled, but Peggy Cherng Customizes the restaurant’s operating systems to assure the very best food and services.

Panda Express’s cross-cultural identity extends beyond the culinary world. Panda Express’ principal foundation is to welcome diverse communities and invite people of all backgrounds to join us at the Panda Express table for a celebration. It does not just value Chinese culture, but all cultures and identities believe in tolerance, mutual respect, and love.

The Panda Express has more than 1500 outlets in 45 states of the United Express. As of now, Panda Express has more than  2,500 outlets  in the United States and Canada, the United Arab Emirates, Korea, and Mexico.

Panda Express Franchise Cost

Panda Express does not have any direct franchisees’ own outlets. all outlets are company-owned. The outlets of Panda Express are  placed within academic premises; Airport, Casino, Military Base and hospitals. These stores are typically licensed to the institution. It is partially similar to franchise business.

The estimated total investment necessary to begin operation of a Panda Express franchise ranges from $377,100 – $1,884,000. This does not include the Panda Express Owner Salary.

The initial license fee for a Panda Express franchise (licensed store) is $25,000. This is the upfront fee that must be paid when opening a Panda Express franchise.

Detail of investment in Panda Express Franchise:

Lease or rent of premise for initial 3 months$10,000 – $425,000
Leasehold Improvements$80,000 – $700,000
Furniture, Fixtures, Equipment, and Supplies$90,000 – $310,000
Initial Inventory$2,200 – $10,000
Computer Hardware and Software, POS System$14,000 – $21,000
Non-renewable cash register$6,000 – $8,000
Insurance$30,000 – $75,000
Expenses incurred during initial training$13,000 – $29,000
Architectural and design fees$17,000 – $50,000
Construction Supervision$17,000 – $70,000
Sales Tax Deposits$4,500 – $10,000
Telephone, Fax, and Other Communication Related Fees$500 – $1,000
Licenses and Permits$1,500 – $30,000
Misc. Funds$0 – $10,000
Additional Funds (3 months)$60,000 – $110,000
Panda Express Franchise Cost

The above is an estimated amount. However, the actual cost varies. There are many variable amounts.

Panda Express Licensed outlet (Franchise) ongoing Cost : Panda express charge 8% royalty amount on total sales amount at an outlet or minimum of $4,000 per month or whichever is higher.  Apart from royalty, Franchisees’ has to pay salary to  Panda Express Owner’s each month.  Panda Express Owner Salary can be up to 15% of the total sales amount of the month, or  even more in case of high foot fall stores.

How to apply for Panda Express Franchise (Licensed Store)

As above, Panda Express does not offer an exact franchise-like business model. It gives licensed outlets. In this model, Franchisees outlet (licensed outlet) will remain owned by Panda Express. After deduction of owner salary, royalty  and  material cost, the remaining amount will go to the Franchisee or Licensed outlet operator. 

There are two ways to establish the contact with Panda Express as below :

  • Visit on its official website https://www.pandaexpress.com
  • On the home page, in the bottom side, there is  a link available for contact us.
  • Click on Contact Us. A new page will open
  • Click on the General inquiry.
  • A new page appears.  Click on the other option.
  • In the Contact information option, fill your details and write your  query in the comments box and then click on submit.
  • An authorized employee will respond to your query on either the mobile number/contact number or your given email address.

Or

  • Click on Real Estate and Licensing
  • Go into Panda Express Licensing opportunities, click on learn more.
  • Panda Express Licensing opportunities page will appear. The page explains about licensing units. Go into the bottom and click on the reach out tab.
  • Enter your details and sites details and other information and then submit.
  • An authorized member from Panda Express will contact you and will  discuss licensing procedure, fee, etc.  

Conclusion

Panda Express’s Franchise(licensed)outlets quick expansion and its location at money garnering sites speak about Its success story.  Despite the global pandemic COVID-19, that hit the world in 2020, Panda Express outlets are consistently growing. Every dish at the Panda Express outlet  is inspired by Chinese regional cuisine. It offers Chinese Fast Food as a combination of Chinese roots with an American taste which attracts customers and readily buy.

 In 2020 net profit grew 25% in comparison to 2019.  All its business outlets are completely owned by Panda Express itself. The kind of Franchise model ensures the success of outlets.  Therefore, owning a Panda Express franchise(or running a licensed outlet) is profitable.

Q1. How much is a panda express franchise?

Answer: The franchise or license fee for an outlet is $25,000.

Q2. Is the panda express franchise profitable ?

Answer:  Panda Express Franchise(licensed Outlets) quick expansion and its location at money garnering sites speak about Its success story.  Despite the global pandemic COVID-19, that hit the world in 2020, Panda Express outlets are consistently growing. All its business outlets are completely owned by Panda Express itself. Certainly, its franchise(or running a licensed outlet) is profitable.

Q3. How many outlets’ panda express franchise have ?

Answer: As per latest data available on the internet, Panda express has more than 2,500 Franchise (licensed) outlets  in the United States and Canada, the United Arab Emirates, Korea, and Mexico.

Q4. Who owns the panda express franchise?

Answer: Andrew Cherng is the founder and CEO of Panda Express. He is the son of Chinese origin Master Chef, Ming Tsai Cherng.


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