What was the cost of sales for company-owned restaurants for Golden Krust Caribbean Restaurant in 2022?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
| 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 |
Source: Item 23 — RECEIPT (FDD pages 35–153)
What This Means (2024 FDD)
According to the 2024 Franchise Disclosure Document, Golden Krust Caribbean Restaurant's cost of sales for company-owned restaurants in 2022 was $1,226,078. This figure represents the direct costs associated with producing and selling the food and beverage products in Golden Krust Caribbean Restaurant's company-owned restaurants.
For a prospective franchisee, understanding the cost of sales is crucial because it directly impacts the profitability of the restaurant. A lower cost of sales as a percentage of revenue generally indicates more efficient operations and better profit margins. Monitoring this figure allows franchisees to benchmark their performance against company-owned stores and identify areas where they can improve their own cost management.
It's important to note that the cost of sales can be influenced by various factors, including the cost of ingredients, supply chain efficiencies, and inventory management practices. Franchisees should analyze these components to optimize their spending and maintain healthy profit margins. The FDD also provides figures for 2023, which can be used to compare year-over-year performance and identify trends in cost management.