Wahlburgers Greektown Closed?

[One Shot]

Savy Sliders expansion is eerily similar to Starvin Marvin’s strip clubs in the late 2000’s. The food was ok but too expensive and it seems like a quick money grab/scheme. No facts, just my opinion.

The same people from Happys…they got nailed a few years back for tax evasion. Makes you wonder how they opened so many all over in such a short period of time.

[Zacha341]

^ Yep. I am kinda done with the obligatory $16.99+ solo hamburger-to-go scene that's become standard post COVID. I don't mind spending when I dine out, or for the better takeaway options beyond burger king of course but pricing has gotten out of hand [burger wise].

[stasu1213]

Mark Wahlberg probably had bitten off more than he could chew and the cost of having a national franchise was overwhelming

[Richard]

Mark Wahlberg probably had bitten off more than he could chew and the cost of having a national franchise was overwhelming

They are international franchises.

They are closing locations all across the country and in the UK permanently,mostly blamed on corona but across the country reads store closings for health violations 800 miles long,violations are a part of the game but when stores are shut down because of it even more so franchises,they have a systematic problem they they clearly are not addressing.

A few lawsuits going on that are not helping matters.

Franchise costs

• Chick-fil-A: $10,000
• In order to open a Chick-fil-A franchise, you must have a net worth of more than $350,000.
  
  McDonald’s: $45,000
• Taco Bell: $45,000
• Chipotle: $20,000
• Dunkin’: $40,000
• Wendy’s: $40,000
  
  The estimated investment required to open a Wahlburgers Franchise is between $1,680,000-$2,885,000. There is an initial franchise fee of $40,000 which grants you the license to run a business under the Wahlburgers name.
  
  You have to have a net worth of 5 million to be even considered.
  
  So compared to chick fil a who actually purchases the land and builds the building and has a yearly store revenues exceeding 3.5 million per year minimum.
  
  The highest non mall location for chick fil a 2020 was over $17 million in revenue with the lowest bringing in 3.5 million per location.
  
  Yearly sales for Chick Fil A $13.7 billion - Wahlburger $500 million
  
  So you can kinda see the bigger picture and who has the winning franchise formula that works.
  
  I just used Chick Fil A as an example but most of the others have the same results.
  
  Wahlburger per store revenues are hard to find for some reason but with the overall company revenues it does not appear to be much comparatively to other franchises that require far less to get into and provide a comfortable if not insane return on investment.
• 
  I guess you could say they seem pretty proud of the name even though it is not providing the return,hense the closing.
• I have a customer that sells burgers in a similar fashion,not a franchise and along the same price structure and was pulling in $60k a month at a mall location.
• They are also doing close to $400k a year with the same concept out of a food truck and I am helping them open up 3 more locations on a $30,000 original investment.
• 
  
• They have a special hamburger club outside of the regular menu where people pay over $75 PER hamburger,it does come with fries though.
• 
  The moral of that is,a hard working individual can have the exact same results without having to franchise,lots are doing it.
  
  
  I have zero clue as to why it keeps putting the little dots
  

Back in the 80s I used to do all the buildouts and maintenance for the local Subway franchise,they were required to purchase territory for the franchise and were also required to open so many locations per year.

It got to the point where they were buying out mom n pop sub shops at insane prices just to dominate the market and open stores to meet the franchise requirements.

That’s how Subway rapidly fueled growth and gained market share as a franchise.
but it came back to haunt them.

So if one starts out with a lot of cash and opens multiple locations without knowing anything about the business they can have a good return,like in this case if you are an individual with a limited amount of funds and you are going to look at franchising one location,it does not work as you can see in this case because there are lots of more productive options.

[carlscomputers]

Thanks Richard! Very informative & enlightning!

[13606Cedargrove]

Richard: This is your best post in a long time. Right on with the analysis, which by the way, is consistent with the franchise discussions we had in class when I was a hotel and restaurant manager major at MSU in the 70's [[the amounts changed, of course). I am now I CPA, and what I have seen among clients with franchise stores, is that in many cases they are essentially buying themselves a job after expensive fees, rent, and upgrade requirements are factored in. When asked my advice about investing in a storefront/fast food restaurant, I usually advise avoiding franchises due to the costs, and, an independent has more flexibility to adjust the operations to the clientele. Or, I advise to avoid the restaurant business altogether. I do this when I detect the client wants to be an absentee operator, or wants to open a new operation with little experience in a high rent area. High rents here in Southern California have killed a lot of small businesses.

[Zacha341]

Indeed a great deal of cost is cast down upon those expensive burgers.

Yet the food service business is precarious, depending on many factors.

[sirrealone]

In the mid-2010's, there was a wave of 'specialty' burger joints. It seemed like you could find a new one opening within a stone's throw. I think the market just got oversaturated. Before that it was specialty cupcakes.

[Zacha341]

Yeah too much... Speaking of there was a cup-cake shop in Ferndale - 9 mile not far from Woodward shuttered not too long ago.

More to the 'over-burger' scene is the Wendy's and Red Robin burger restaurant side by side on Ford Rd. Dearborn recently closed. The Wendy's had bad service for some time. The RR a ghost town.

In the mid-2010's, there was a wave of 'specialty' burger joints. It seemed like you could find a new one opening within a stone's throw. I think the market just got oversaturated. Before that it was specialty cupcakes.

[mkd]

In the mid-2010's, there was a wave of 'specialty' burger joints. It seemed like you could find a new one opening within a stone's throw. I think the market just got oversaturated. Before that it was specialty cupcakes.

That reminds of this Freep article in which the writer begged the Lovers Only chef not to open yet another burger joint downtown.

Lovers Only has since closed.

[Zacha341]

How's about that! When visiting south I get my C-Fil-A 'fix' fast as they have plenty locations. Went to the new one up on 'The Hill' [that stack of stores in Allen Park off the Southfield). Insane line wrapped around the place. I went in were service was much faster. Talked to a manager who told me they paid very well and the owner of this particular CF-A is attentive to staff selected and how they are treated. Great service for 'grab-and-go' chicken!

Smiling faces and not the default 'sullen', rude attitudes you often get with fast-food places. I guess there's one located in the medical center. I wonder how they're handling their lines as it's the only one in Detroit.

Reminds me somewhat of Culver's. Sure, just average burgers and fries but you're treated well usually. For dine-in they bring you your food; you can customize menu items. Pleasant staff. They too have long lines.

[Cincinnati_Kid]

How's about that! When visiting south I get my C-Fil-A 'fix' fast as they have plenty locations. Went to the new one up on 'The Hill' [that stack of stores in Allen Park off the Southfield). Insane line wrapped around the place. I went in were service was much faster. Talked to a manager who told me they paid very well and the owner of this particular CF-A is attentive to staff selected and how they are treated. Great service for 'grab-and-go' chicken!

Smiling faces and not the default 'sullen', rude attitudes you often get with fast-food places. I guess there's one located in the medical center. I wonder how they're handling their lines as it's the only one in Detroit.

Reminds me somewhat of Culver's. Sure, just average burgers and fries but you're treated well usually. For dine-in they bring you your food; you can customize menu items. Pleasant staff. They too have long lines.

I love Culver's too. I see they are expanding, but I still don't think there is one in Detroit proper. They just opened one on Haggerty between 14 Mile and Maple. There is also a new chain called Savvy Sliders I've yet to try.

[Zacha341]

I tried Savvy sliders [there's one in WSU area] but just can't do a twenty+ spot for four tiny average [slider] burgers. But service was excellent.

I love Culver's shakes which you can basically make any way you want.

I love Culver's too. I see they are expanding, but I still don't think there is one in Detroit proper... There is also a new chain called Savvy Sliders I've yet to try.

[Cincinnati_Kid]

I tried Savvy sliders [there's one in WSU area] but just can't do a twenty+ spot for four tiny average [slider] burgers. But service was excellent.

I love Culver's shakes which you can basically make any way you want.

So you're saying they weren't worth the price?

[Zacha341]

Yes! How did it become standard to pay such high prices for nondescript, average burgers sold there?

So you're saying they weren't worth the price?

I tried Savvy Sliders [there's one in WSU area] but just can't do a twenty+ spot for four tiny average [slider] burgers. But service was excellent.

I love Culver's shakes which you can basically make any way you want.

[One Shot]

There are local better options than gimmicky expensive chains.
Geneva burger 8 & Kelly!!!

Chic fil a has gotten skimpy in the last few years. I have been going since a kid. The nuggets are half the size and the sandwiches are small. For the money I want my portions. Don't raise the price AND shrink the portions.

[softailrider]

There are local better options than gimmicky expensive chains.
Geneva burger 8 & Kelly!!!

Chic fil a has gotten skimpy in the last few years. I have been going since a kid. The nuggets are half the size and the sandwiches are small. For the money I want my portions. Don't raise the price AND shrink the portions.

As of a few months ago, the last time I asked, Geneva was carry out only. Eat in wasn't offered, I wonder if that situation has changed. I used to like eating there.

[Zacha341]

Well, they review well. I'll have to check them out soon...

https://www.yelp.com/biz/genevas-burgers-eastpointe

As of a few months ago, the last time I asked, Geneva was carry out only. Eat in wasn't offered, I wonder if that situation has changed. I used to like eating there.

[Zacha341]

Yep. Them nuggets have shrunken. And fowl ain't gettin' no cheaper!

We're seeing the shrinkage of portions on many levels. Some social engineer or approved 'study' would even argue greedy, privileged, Americans eat too much and should be happy! I say give me portions adequate to cost and I can save some for later on my own without big-brother governance. Hah!

...Chic fil a has gotten skimpy in the last few years. I have been going since a kid. The nuggets are half the size and the sandwiches are small. For the money I want my portions. Don't raise the price AND shrink the portions.

[preserve]

for the heck of it, I tried a Big Boy the other day after many years. The bun was the killer. It was old and dry and when I picked up the burger, it cracked and fell apart. I've found that a lot of "burger" places are just ignoring a good plain bun, and maybe since Brown's Buns aren't around anymore, that may be the reason.