Arby's vs McAlister's DeliFranchise Comparison 2026
Arby's and McAlister's Deli represent two different approaches in the QSR space. Here's how they compare on investment costs, fees, revenue potential, and market presence.
Quick Comparison
Side-by-Side Comparison
| Metric | Arby's | McAlister's Deli | Difference |
|---|---|---|---|
| Franchise Fee | $37,500 | $40,000 | -6% |
| Total Investment (Low) | $500,000 | $820,000 | -39% |
| Total Investment (High) | $2.4M | $2.4M | 0% |
| Cash Required | $500,000 | $500,000 | 0% |
| Royalty Rate | 4.0% | 5.0% | Lower |
| Advertising Fee | 4.0% | 3.0% | Higher |
| Estimated Revenue | $1.1M | $1.6M | -33% |
| Number of Locations | 3,400 | 520 | More |
| Year Founded | 1964 | 1989 | Older |
| Training Duration | 6 weeks | 6 weeks | Same |
Note: Data sourced from public FDD filings and industry reports. Actual costs vary by location, real estate, and format. Always review current FDD Item 7 and Item 19 disclosures before making investment decisions.
Detailed Analysis
About Arby's
Roast beef and specialty sandwiches with 'We Have the Meats' positioning. Part of Inspire Brands portfolio.
About McAlister's Deli
Sandwiches, spuds, soups, salads, and famous sweet tea. Part of Focus Brands with strong Southern presence.
Investment Comparison
Arby's requires a lower initial investment (avg $1.4M) compared to McAlister's Deli(avg $1.6M), making it more accessible for first-time franchisees. However, McAlister's Deli may offer higher revenue potential.
Fee Structure
Both brands have similar ongoing fee structures (8.0% total), so the difference in profitability will primarily come from top-line revenue, operating efficiency, and local market conditions.
Market Position
Arby's has a significantly larger footprint with 3,400 locations compared to McAlister's Deli's 520. This larger network typically means better brand recognition, more purchasing power, and stronger operational support.
Frequently Asked Questions
How much does it cost to open a Arby's vs McAlister's Deli franchise?
Arby's requires an initial investment of $500,000 to $2.4M, while McAlister's Deli requires $820,000 to $2.4M. Arby's has the lower average investment at $1.4M.
What are the ongoing fees for Arby's vs McAlister's Deli?
Arby's charges a 4.0% royalty plus 4.0% advertising fee (8.0% total). McAlister's Deli charges 5.0% royalty plus 3.0% advertising fee (8.0% total). McAlister's Deli has lower total ongoing fees.
Which franchise makes more money: Arby's or McAlister's Deli?
Based on estimated average unit revenue, McAlister's Deli generates $1.6M per location compared to $1.1M for Arby's. However, profitability depends on many factors including local market, operating costs, and management.
How many locations does Arby's have vs McAlister's Deli?
Arby's has 3,400 locations, while McAlister's Deli has 520 locations. Arby's has the larger footprint, which typically means stronger brand recognition and supply chain advantages.
Is Arby's or McAlister's Deli a better franchise investment in 2026?
Both Arby's and McAlister's Deli are established QSR brands with proven models. Arby's offers a lower entry point, while McAlister's Deli shows higher average revenue. The best choice depends on your available capital, local market conditions, and personal goals. Always review the current FDD before making investment decisions.
Stay Updated on Franchise Comparisons
Get detailed franchise cost analysis and investment insights delivered weekly.
QSR Intelligence Briefing
Daily insights on the QSR industry. No spam, just intelligence.