What costs are included in the Cost of Goods Sold calculation for a Black Bear Diner restaurant?

According to Black Bear Diner's 2025 Franchise Disclosure Document, the Cost of Goods Sold (COGS) for Black Bear Diner restaurants consists of the expenses related to food, beverage, and gift shop items. This is a crucial metric for franchisees to understand, as it directly impacts the profitability of their restaurant. Managing these costs effectively is essential for maximizing financial performance.

Specifically, the FDD includes a table showing the average Cost of Goods Sold for company-affiliated restaurants. For the fiscal year 2024, the average COGS was $772,790, representing 27.8% of gross sales. The median COGS was $751,026, or 27.9% of gross sales. The highest COGS reached $1,284,091 (30.7%), while the lowest was $453,099 (25.4%). In fiscal year 2023, the average COGS was $796,031 (27.9%), with a median of $785,621 (27.9%). The highest COGS was $1,414,411 (30.7%), and the lowest was $426,274 (25.6%).

Understanding these figures from existing company-affiliated restaurants can help a prospective Black Bear Diner franchisee estimate their own potential expenses. However, the FDD also clearly states that individual results may vary, and there is no guarantee that a franchisee will achieve the same sales or cost results. It is important to note that these figures are based on company-affiliated restaurants and do not include royalties, advertising contributions, or minimum local advertising expenditures that franchisees must pay. Therefore, franchisees should factor in these additional costs when projecting their potential profitability. Prospective franchisees should conduct their own independent investigation of costs and expenses, consulting current and former franchisees for additional insights.