What was the cost of sales for Golden Krust Caribbean Restaurant's company-owned restaurants in 2022?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
57,643 |
GOLDEN KRUST FRANCHISING, INC. CONSOLIDATED STATEMENTS OF OPERATIONS YEARS ENDED DECEMBER 31, 2023 AND 2022
| 2023 | 2022 | |
|---|---|---|
| REVENUES | ||
| Royalties | $ 4,094,692 | $ 3,693,105 |
| Advertising Charges | 1,718,952 | 1,503,874 |
| Franchising Fees | 122,508 | 95,050 |
| Total Franchise Revenues | 5,936,152 | 5,292,029 |
| Company Owned Restaurant Sales | 2,631,341 | 2,896,104 |
| Cost of Sales | (1,071,371) | (1,226,078) |
| Restaurant Gross Profit | 1,559,970 | 1,670,026 |
| GROSS PROFIT | 7,496,122 | 6,962,055 |
| SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES | 7,038,995 | 5,856 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2024 FDD)
According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, the cost of sales for company-owned restaurants in 2022 was $1,226,078. This figure represents the direct expenses associated with the goods sold in the company-owned restaurants.
For a prospective franchisee, understanding the cost of sales is crucial because it directly impacts the profitability of the restaurant. It reflects the cost of ingredients, packaging, and other direct expenses involved in producing the menu items. A lower cost of sales relative to revenue indicates higher efficiency and potentially better profit margins.
It's important to note that this figure is specific to company-owned restaurants and may not directly translate to franchised locations due to variations in operational costs, supply chain efficiencies, or negotiated vendor pricing. Franchisees should conduct their own due diligence to estimate their potential cost of sales based on their specific circumstances and location. Reviewing the performance of company-owned stores can provide a benchmark, but it is essential to consider all factors that may influence these costs in a franchised setting.
Prospective franchisees should also inquire about the factors that influence the cost of sales, such as supplier relationships, bulk purchasing options, and waste management practices, to better understand how they can manage and potentially reduce these costs in their own Golden Krust Caribbean Restaurant franchise.