FDD Talk 2016: The Which Wich Superior Sandwiches Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

In this FDD Talk 2016 post, you’ll learn the following:

• Section I – Background information on the Which Wich Superior Sandwiches franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a Which Wich Superior Sandwiches franchise, based on Item 7 of the company’s 2016 FDD

• Section III – Presentation and analysis of Which Wich Superior Sandwiches’ financial performance representations, based on Item 19 of the company’s 2016 FDD, including information on the:

• 2015 average weekly gross sales for the 355 franchised Which Wich Superior Sandwiches Stores open and operating on December 31, 2015, regardless of the length of time the Stores operated during the year, divided into 3 groups:  the 161 Which Wich Stores with average weekly gross sales of $12,001.00 and higher; the 110 Which Wich Stores with average weekly gross sales from $9,001.00 to $12,000.99; and the 84 Which Wich Stores with average weekly gross sales from $0.00 to $9,000.99

• 2015 average weekly net sales, cost of goods sold, labor costs, and occupancy costs for the 119 franchised Which Wich Superior Sandwiches Stores open and operating on December 31, 2015, regardless of the length of time the Stores operated during the year, and submitted profit and loss statements to the franchisor, divided into 3 groups:  the 54 Which Wich Stores with average weekly net sales of $12,001.00 and higher; the 41 Which Wich Stores with average weekly net sales from $9,001.00 to $12,000.99; and the 24 Which Wich Stores with average weekly net sales from $0.00 to $9,000.99

Section I – Background Information

Jeff Sinelli learned a lot about hospitality from his father who operated two different sports bars in the Detroit area. After college and graduate school he moved to Dallas, where he started dozens of different nightclubs, bars, and restaurants.

He started thinking bigger in 1998 when he created a food concept he called Genghis Grill, a Mongolian stir fry joint that lets you pick what ingredients you want included in your order, then stir fries them up for you. When he sold that developing chain, he decided what he wanted to do next is make a mark in the field of sandwiches.

What he came up with in 2003 was Which Wich Superior Sandwiches, and the chain is definitely making its mark. Since franchising began in 2005, the number of locations has been growing steadily for well over 10 years and has reached 354, of which 3 are company-owned and 10 are outside the U.S. (Mexico, Guatemala, Panama, Bahrain, Kuwait, Qatar, and United Arab Emirates).

Here’s how Which Wich keeps the sandwich fixings flying in the competitive sandwich segment:

Innovative Ordering

Just making an order is a whole new experience at Which Wich. Customers grab a bag that has a menu printed on it. Using a red sharpie marker, customers mark the type of sandwich, size, bread, cheese, spreads, and fixings, along with their name. A few minutes later customers grab their bag with their food in it. After eating, they can decorate the back of their bag however they want and add it to a gallery area in the shop.

Innovative Philanthropy

The innovative approach to ordering even carries over into the chain’s charitable efforts. Every year the company runs a campaign called Flag Your Bag. Customers are given red and blue sharpies to give a patriotic flair to menu bags, which are then filled with treats and delivered to active service members as well as veterans.

Started in 2010, the company has already distributed more than 10,000 such bags to people all over the world.

The Menu

These are submarine-style sandwiches, grouped on the menu into 10 different bags with various options in each. The 10 groupings of ‘wiches include turkey, ham and pork, beef, chicken, seafood, vegetarian, Italian, Philly cheesesteak, classic, and breakfast. The signature ‘wich is called The Wicked, which includes five meats and three cheeses.

You can get any ‘wich baked (hotwich) or not (coldwich). Using bread, your choices are white or wheat (small 7-inch, medium 10.5-inch, or large 14-inch), but you can also have your order as a bowlwich or a lettucewich (wrap).

The menu is rounded out with milkshakes, brownies, cookies, rice krispie treats, and cookie ice cream sandwiches.

Setting a World Record

Sinelli and his Which Wich team have another charitable project where they donate PB&J sandwiches to people in need through different organizations. It’s a bit of comfort food that helps people out.

In January 2015, at the company’s annual conference, the assembled team set a Guinness World Record by making 26,710 PB&Js in just one hour. Twenty different organizations throughout Dallas got the sandwiches to pass on to people they serve.

Section II – Estimated Costs

• Please click here for detailed estimates of Which Wich Superior Sandwiches franchise costs, based on Item 7 of the company’s 2016 FDD (updated).

Section III – Financial Performance Representations (Item 19, 2016 FDD) and Analysis