came the very first franchisee to come through the Social Equity pro- gram and become an owner. She owns and operates an Every- table store in the Inglewood neigh- borhood of Los Angeles—one that she ran as a manager for years, so she came in with eyes wide open about the cashflow needed. She is “comfortable” with the loan re- quirements. It’s early yet, but Cabrera said, so far, her store is doing well. She has a staff of two workers, and she has already started the process to fran- chise a second unit. “We are trending up,” she said. “I don’t struggle paying my bills, and that was my No. 1 fear in be- coming an owner.” What works about Everytable are its diversified sources of revenue, those involved with the concept said. Cabrera said the biggest chan- nel for her store is still walk-in cus- tomers, but Everytable also offers third-party delivery and there’s a subscription service for people who want healthful meals designed for specific medical needs. Catering is also a growing channel, and Ev- erytable also partners with school foodservice programs, particularly charter schools. The stores serve as both retail outlets and fulfillment and distribu- tion centers for all of that. Cabrera, who has worked for Everytable for six years, admits it was a little scary when the company started closing units. “Sometimes you have to make tough decisions,” she said. And yet, Cabrera is eager for more. For her, it’s really about more than money. She is passionate about encour- aging people to take a chance on themselves—especially women with children. Cabrera has six kids. Yes, six, ranging in age from 6 to 21. “I want people to know, yes, they can be moms and they can be en- trepreneurs at the same time,” she said. “They can be both.”
PHOTO COURTESY OF EVERYTABLE
of net worth, to open a franchise lo- cation, as other fast-food concepts typically require. It’s that financial burden that usually shuts many from underserved communities out of franchising. Under Everytable’s program, the cost of opening a unit, which is around $300,000, is loaned to the franchisee. They, in turn, pay that loan back over five or so years at a low interest rate, dedicating 75% of earnings before interest, taxes, depreciation and amortization, or EBITDA, leaving them with about 25% to cover taxes and other costs. (The payback percentage is likely shifting to 50% going forward, Polk said.) He noted that Everytable units are now averaging about $1 million in sales with 30% profit margins. It's a creative approach, said John Gordon, a restaurant economics advisor with Pacific Management Consulting Group, but one that’s not without a fair amount of risk. Without knowing specific de- tails, it’s hard to judge, he said, “But it seems likely they will be extreme- ly tight for the first few years, until the loan is paid off.” FIRST FRANCHISEES Everytable’s first two franchise operators took ownership of their units earlier this year. Susana Cabrera in March be-
All startups must evolve. Polk contends it was a process that made Everytable better: more efficient with stronger unit economics— “a diamond forged through heat and pressure,” he said. Everytable will get back to growth, probably next year, Polk said. Now Polk is focused on raising funding for the franchise program. The idea is to make franchising more accessible by removing some of the barriers—and a big one is money. At Everytable, becoming a fran- chisee is an opportunity open to any employee who joins at the store lev- el and is successful. First, they have the opportunity to become manag- ers of multiple units. Then, if inter- ested, they can sign on as a poten- tial franchisee. Once in the franchise program, candidates are eligible for intensive training, called Everytable Univer- sity, learning everything from how to read a profit-and-loss statement to cultivating the entrepreneurial mindset. They can do the training while working and earning a sala- ry—eliminating another barrier for those who cannot afford to go back to school. But here’s the kicker: they don’t have to come up with traditional $500,000 to $2 million in capital costs, or demonstrate a certain level
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OCTOBER 2024 RESTAURANT BUSINESS
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