Customer Acquisition Cost Of Popeyes

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One day in 1971, Alvin Copeland was coming home on a family vacation when his family stopped for food. He noticed that all of the places on the way home, were all the same. They all had the same taste, and quality. When his family got home, he remembered his mother’s recipe for fried chicken and made it. His family liked the chicken and decide to open a quick-serve restaurants. That name of the quick-serve restaurants is Popeyes. Popeyes is a 222 million dollar business that serves spicy chicken, chicken tenders, fired shrimp and other regional items. With Popeyes Louisiana Chicken having over 2,600 franchises, it shows that there are a multitude of places to get Popeyes but, there are some places that don’t have a Popeyes. The average consumer …show more content…

Customer acquisition costs can make or break a franchise because you need to have customers come into your business and you will have to find them. Having a low customer acquisition cost means that you are able to bring potential customers into your franchise. To formula to find customer acquisition cost is how much you spend on money divided by number of customers acquired. The first year the franchise will spend around $40,000 with the number of customers being around 60,000 to 80,000 customers. The customer acquisition costs would be from 50 to 67 cents. The average customer acquisition for Popeyes is around 80 to 90 cents. Having this low customer acquisition means that the franchise can acquire customers at a low …show more content…

This is so that Popeyes can have a bigger market share in that area. If the Popeyes franchise goes into an area with high competition, the franchise may not be able to survive. Locally there is only one competitor and this Kentucky Fried Chicken. Kentucky Fried Chicken has two franchise: 2005 East Morthland Drive and 2402 Calumet Avenue. If the consumer went outside of the city, they would be more competitors like Chick-fil-A, Boston Market, and Zaxby’s. The cities that contain these franchise are Schererville and Merrillville Indiana but are a 30 minute drive. Having a good site for your franchise means that you will be able to have customers find your franchise. If your customer cannot find your place you might not be in a good location. The location of the Popeyes franchise will be at 2014 US-30 Valparaiso, Indiana. The location of the franchise is near a highway, so that means there is more traffic on that road which could lead to more customers. This location is near a Staples and a Speedway Gas Station with a Kentucky Fried Chicken inside. The franchise should build close to it competitors because the franchise needs to see how the KFC will compete with the

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