Irrespective of any situation, the overall quick-service restaurant industry is booming, and becoming a partner with one of the most popular chains may certainly be worth your investment.
If you have been following the food and beverages industry and possess a passion to serve some of the most popular lip-smacking food ranges, then opting for Golden Krust might be the best option for you.
In this article, we’ll explore in detail about the Golden Krust that began their journey from an Island in Jamaica and rose to become the No. 1 Caribbean food franchisor.
Furthermore, this guide will also provide you with essential details about the Golden Krust, including its investment costs, potential profit margins, and step-by-step guidelines for becoming an approved partner.
- Brand: Golden Krust
- Founded: 1949 and 1989 in the U.S.
- Founder: Lowell Hawthorne
- Industry: Food and Bakery
- No. of outlet: 125
- Area served: United States and Canada
- Franchise Fee: $40,000
- Royalty Fee: 5%
- Model: Franchise
- Initial Investment: $225,900 and $620,000
Table of Contents
Overview of Golden Krust Franchise
In 1949, on the idyllic island of Jamaica, a small bakery by the name of Hawthorne & Sons Bakery was born. This charming store was the brainchild of Mavis and Ephraim Hawthorne, who just happened to be the parents of Lowell Hawthorne, the visionary founder of Golden Krust.
With the eager help of their 11 children, Mavis and Ephraim ventured into the bakery industry. After amassing nearly four decades of invaluable experience and running successful stores in their hometown, a significant moment arrived.
In 1989, Lowell Hawthorne, along with five of his siblings and their spouses, made the bold move to the United States.
Their journey took them to the bustling streets of New York, where they established their very first Caribbean bakery store at 1381 E. Gunhill Road. Fueled by a vision of boundless growth, they soon went on to open and operate an additional 17 restaurants along the East Coast.
Fast forward to 2023, Golden Krust has evolved into a rapidly growing Caribbean food chain of over 125 restaurants in North America.
The franchise also takes immense pride in holding the title of No. 1 Caribbean Food franchisor, manufacturer, and producer of the world’s most famous Jamaican-style patties and succulent jerk chicken.
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The Journey of Golden Krust
1949: It all started as a simple bakery shop on the island of Jamaica. Obviously, there weren’t many stores available during that period. With the help of their 11 children, they embarked on their journey.
Followed up in 1989:
Nearly 40 years later, Lowell Hawthorne and five of his siblings, along with their wives, moved to the United States and set up their first store on Gunhill Road. In a quick span, they opened nearly 17 restaurants and operated all of them as family-owned businesses.
It was the year of their growth, where they built their first manufacturing plant and acquired a few more places on Park Avenue.
After having an experience of approximately four decades, they opened their first franchise store in Brooklyn, New York, to Mr. Earl Chin.
In 2005, they launched their 100th store in Queens, NY. Since then, there haven’t been any setbacks, and as of today, the chain operates nearly 125 restaurants across the United States and a few stores in Canada.
Key Facts on Golden Krust
|1||Trade Name||Golden Krust|
|2||Industry||Food and Beverages,|
Restaurants and Bakeries
|3||Founded||1949 in Jamaica|
|4||Founders Or Parent Company||Lowell Hawthorne|
|5||Corporate Headquarters||New York, US|
|6||Number of locations||125 + Outlets|
|7||Area served||United States and Canada|
|9||Menu offering||Patties, Salad, Chicken, Meals, Sides,|
Soups, and more
|10||Revenue||$10 million (As per Kona Equity)|
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How much does a Golden Krust franchise cost?
Golden Krust is certainly renowned for their healthy salads, delectable chicken bowls, soups, and tempting sides, which can be found at one of their flagship restaurants.
And that’s not all – The chain’s flagship patties and other bakery products can be found on the shelves of over 25,000 supermarkets in the United States and Canada.
Currently, the chain offers two models that can be chosen based on the franchise’s investment capabilities.
- GK Jerk ‘n Patties
Nevertheless, the initial investment cost to become an approved Golden Krust franchise partner ranges between $225,900 and $620,000 for a restaurant space of approximately 1000–3500 square feet.
How much is the Golden Krush Franchise Fee?
The franchise fee for Golden Krust is $40,000. Furthermore, interested candidates should also meet the minimum financial requirement of at least $200,000 in liquid assets and a net worth of $500,000.
Additional Cost for Golden Krust
Typically, to run and maintain a Golden Krust location, one must adhere to their standards and be liable to pay a few additional costs, such as a royalty fee, an advertisement fee, a maintenance fee, and a few other investments.
The on-going royalty fee for the Golden Krust franchise is 5%, and the marketing fee is 2.5%, which will be calculated based on the monthly gross sales.
|Type of Fee||Cost & Other details|
|Ad Royalty Fee||2.5%|
|Agreement Period||10 Years|
|Veteran Discount||Available: $10,000 off royalty and ad fees|
|Required liquid capital||$200,000|
|Total Initial Investment||$225,900 and $620,000|
Cost breakdown of the initial investment
|Type of Fee||Cost & Other details|
|LEASEHOLD IMPROVEMENTS||$81,000 – $307,000|
|FURNITURE, FIXTURES & EQUIPMENT||$48,000 – $98,000|
|SIGNAGE||$4,400 – $16,000|
|FIRST MONTH’S RENT||$3,000 – $15,000|
|SECURITY DEPOSIT||$0 – $45,000|
|OPENING INVENTORY & SUPPLIES||$6,000 – $12,000|
|GRAND OPENING ADVERTISING||$3,000 – $10,000|
|TRAINING EXPENSES||$2,500 – $5,000|
|MISCELLANEOUS||$8,000 – $18,000|
|ADVERTISING FUNDS (3-7 months)||$30,000 – $54,000|
|Total Initial Investment||$225,900 and $620,000|
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How much is the Golden Krust franchise profit margin?
Undoubtedly, Golden Krust is one of the most popular Caribbean restaurant franchises that generates revenue from multiple sources.
From selling its trademark patties and bakery items at supermarkets to serving up a mouthwatering range of Caribbean cuisine, Golden Krust has mastered its business.
With nearly four decades of experience in operating restaurants in the United States and a sprawling network of approximately 125 restaurants across North America, the chain currently boasts bolstered systemwide sales of over $100 million.
Additionally, according to official information, the chain produces approximately 40 million Jamaican patties every year, making them the No. 1 producer and manufacturer of Jamaican-style patties in the United States.
With an average capital investment of $422,950, coupled with their extensive industry experience, widespread restaurant presence, and reasonable startup costs, franchise partners can confidently anticipate a minimum income of $40,000, reflecting a 10% net margin.
For those who strategically select their locations and manage to draw higher customer foot traffic, the net margin could soar to an impressive range of 15-20%, offering franchisees the potential to earn a substantial $60,000 to $80,000 in net income.
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Why consider owning a Golden Krust franchise?
- Renowned brands in the industry:
- Golden Krust holds a prominent position in the bakery and F&B industries, and with the title of No. 1 Caribbean Restaurant Franchise, it will definitely give its franchisee an extra advantage over its competitors.
- Moderate investment cost with minimal royalty Fee:
- Unlike other food franchises, interested candidates can become approved partners of Golden Krust with a minimum investment of $225,900.
- Additionally, the brand charges a royalty fee of only 5%, which is the lowest in the industry.
- Training and support:
- Interested franchise prospects may also benefit from Golden Krust’s proven business model and successful track record of operating its outlets, and its extensive training program may provide enough insight on the company’s operations and day-to-day tasks.
- Marketing and advertising support:
- As a franchisee, you’ll leverage Golden Krust’s marketing campaigns, such as social media promotion and digital advertising, to create brand awareness in your neighborhood.
- Growth at every stage:
- Starting as a bakery store to currently being recognized as a pioneer Caribbean restaurant in the States, their growth journey signifies their enduring presence and their ability to understand and fulfill market demand.
What does it require to start a Golden Krust franchise?
- First and most important – One should be financially well-qualified, have good credit to start a GK Restaurant, and be ready to invest a minimum of $225,900 to $620,000
- Interested applicants are advised to dedicate themselves to the Golden Krust business, and follow the company standards and maintain their legacy.
- Interested applicants must undergo and complete the necessary training program offered by the Golden Krust’s team.
- Applicant should be hard-working and dedicated to being heavily involved during the early stages of their new venture with Golden Krust.
- Interested franchisees should have a passion to work in the Food and Bakery industry and should possess the leadership and financial skills to operate a Golden Krust restaurant.
- Last but not least, the interested prospect should have the minimum amount of cash, which is equivalent to $200,000, and possess a net worth of $500,000.
What are the alternatives to the Golden Krust Franchise?
Opting and operating a franchise demands hours of research, including the market analysis, competitior analysis, industry growth prospects, and more.
Before taking up Golden Krust, you may consider checking out these options as well.
Teriyaki Madness Franchise
The chain was established in 2003 by Rod Arreola, Alan Arreola, and Eric Garma. Teriyaki Madness is popular for serving oversized portions of grilled chicken, tofu, fresh cut veggies tossed-in and house-made sauces to create an aromatic and flavorful Asian Bowls.
Currently, the chain operates over 130 restaurants in more than 30 states. To become their approved partner, you may need to have an initial investment of $346,400–$768,760.
However, you may need to pay a little more royalty and ad marketing fee of 6% and 3% respectively, as compared to Golden Krust.
You can check out our in-depth article here.
Little Caesars Franchise
Little Caesars is probably one of the oldest and most loved Pizza franchise in the United States. Being renonwed as the third-largest pizza chain in the country, Little Caesars boasts a bolstering store count of 5500 across the globe.
Apart from Pizza, you as a franchise will also cater to its diverse range of wings, brownies and other mouthwatering beverages.
Little Caesars also sells its franchises and to become one of their approved partner, you need to have a capital investment of $379,000 to $1,695,500, including a franchise fee of $40,000.
For more details, you can check the below article (link provided).
|Type of Fee||Golden Krust||Teriyaki Madness||Little Caesars|
|Ad Royalty Fee||2.5%||3%||7%|
|Required liquid capital||$200,000||$150,000||$150,000|
|Total Initial Investment||$225,900 and $620,000||$346,400–$768,760||$379,000 to $1,695,500|
How to Get Golden Krust Franchise?
Owning a Golden Krust restaurant requires a relatively moderate investment and in return possess a potential to benefit its outlet holder with an impressive profit.
Regardless of any franchises available in the country, the first step is to fill in its application form (available at its official webiste), followed by understanding the FDD and Q&A Session, where one would get an overall picture of the franchise and the industry’s growth.
One can avail this franchise by following the given steps;
- Visit the Golden Krust’s official website and fill in the application form.
- You need to fill in the personal details, such as Name, Email ID, Phone Number, City, State, Net worth and available cash.
Final Takeaway – Conclusion
Golden Krust holds a prominent position in the American Food and Beverage industry. With a heritage spanning nearly eight decades and a mouthwatering array of patties, chicken, soups, and sides, Golden Krust can quickly become a trusted and beloved restaurant in your area.
Furthermore, with an initial investment ranging from $225,900 to $620,000, a reasonable royalty fee of 5%, a 2.5% ad marketing fee, and the invaluable support of an experienced team guiding franchisees every step of the way, Golden Krust emerges as the top choice in the Caribbean restaurant industry.
If you’re considering Golden Krust, don’t forget to explore alternative options and conduct thorough market research to make an informed decision.
Good Luck!! Happy Franchising!!
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How much does it cost to start a Golden Krust Franchise?
The initial investment for Golden Krust ranges between $225,900 and $620,000, which includes a franchise fee of $40,000.
Is Golden Krust Franchise Profitable?
Obviously, The end margin depends on several factors. However, With over four decade of expertise, delicious range of Caribbean cuisine, and average investment of approximately $400,000, Franchise owner can expect a profit margin of 10-20%
How many Golden Krust Stores are there?
As on September 2023, Golden Krust operates nearly 125 restaurants across the United States and Canada.
How much is Golden Krust Franchise Networth?
According to a report published in 2017, Lowell Hawthorne, the founder of Golden Krust, was reported to have a net worth of $71 million. However, as on 2023, it could have increased substantially.
Who is the CEO of Golden Krust?
The current CEO of Golden Krust is AL Novas.