[CORRECTED: The attached slideshow initially mentioned In-N-Out Burger, a California-based regional hamburger chain that does not franchise. This chain has been removed and another top-earning franchise chain substituted.]
Wondering which are the most popular fast-food chains in the land? The truth is, the list of the biggest chains in terms of overall sales doesn't change much from year to year (surprise!
But that's not the most important figure if you're thinking about buying a franchise.
What a franchise owner needs to know is how much a typical restaurant at their chosen brand rings up in a year.
New data on the top fast-food chains reveals the best opportunities for franchise restaurant owners to bring in the most revenue in a single store. According to data from industry publication QSR Magazine and industry research and consulting firm Technomic, McDonald's is near the top of this list too, but they're not the best.
Top per-store revenue earners
Who's number one in per-store sales? Chick-fil-A. Clearly, controversy over their politics hasn't hurt traffic at the restaurants, which gross an average of over $3.1 million a year. That figure puts the College Park, Ga.-based chain in a class by itself -- nobody else tops $3 million in average per-unit sales.
McDonald's is no slouch in second place, with $2.6 million in sales per store. In third place, though, is a dark horse many restaurant diners outside the South may not even know: health-sandwich chain Jason's Deli. The 38-year-old Beaumont, Texas-based chain has 245 units, 100 of which are franchised.
With an average of over $2.55 million per store, regional powerhouse Jason's is within spitting distance of unseating McDonald's from its number-two ranking. But McDonald's is a moving target, so they may be hard to catch.
In 2012, McDonald's per-store sales were lower at $2.5 million, last year's survey showed. Jason's also improved per-store revenue in the past year from $2.2 million in 2012. We'll see whose growth curve rises faster in the coming year.
You might wonder where
But Subways tend to be smaller restaurants than a typical McDonald's. Subway's average store revenue is way lower that these top dogs -- only $481,000, the QSR study estimated.
What it takes
Many things have to go right for a restaurant to be a top performer in average gross revenue. Site selection has to be perfect, the food has to be appealing and price-competitive, there needs to be a steady stream of new menu items, marketing has to connect with diners, and management has to resist the urge to open too many stores in close proximity that might dilute store revenue averages.
For most mom-and-pop eateries and even many franchise owners, getting to just $1 million in revenue is a dream. The average fast-food restaurant brings in just over $750,000, the National Restaurant Association reports. So these top chains are operating far more efficiently than a typical restaurant.
The higher sales volume against the same typical restaurant costs such as labor, advertising, and rent helps boost profits. Top-producing stores become cash cows for their owners, while lower-grossing stores struggle. If you're looking to buy a franchise, it's important to see which chains have the revenue to give you meaningful net profits to take home.
For a look at all the top fast-food franchises in terms of single-store average sales, see The 12 Best Fast-Food Franchises to Own.
