What was the restaurant gross profit for Golden Krust Caribbean Restaurant in 2022?

According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, the restaurant gross profit for the year ending December 31, 2022, was $1,670,026. This figure represents the gross profit from company-owned restaurant sales after deducting the cost of those sales. In 2022, the company-owned restaurant sales totaled $2,896,104, with a cost of sales of $1,226,078.

For a prospective franchisee, this indicates the potential profitability of the restaurant operations themselves, separate from franchise fees and other revenue streams. It's a key metric for understanding the efficiency of the restaurant's operations in terms of managing costs related to sales. A higher restaurant gross profit suggests better cost control and potentially higher profitability for individual restaurant locations.

It is important to note that this gross profit is based on the performance of company-owned restaurants and may not be directly indicative of the performance of franchised locations. Factors such as location, management, and local market conditions can significantly impact the profitability of individual franchise units. Therefore, while this figure provides a benchmark, prospective franchisees should conduct their own due diligence and market research to assess the potential profitability of their specific location.

Furthermore, the FDD also reports the total gross profit for Golden Krust Franchising, Inc., which includes revenues from royalties, advertising charges, and franchising fees, in addition to company-owned restaurant sales. The total gross profit for 2022 was $6,835,548. This broader figure reflects the overall financial health of the Golden Krust Caribbean Restaurant franchising business, but the restaurant gross profit specifically isolates the performance of the restaurant operations.