Last year I opened a sushi franchise in Madrid’s Chamberí district, and after nearly a year of operation, I’d like to share this experience with everyone. I made my decision after reading many forum posts, and now it’s my turn to share what I’ve learned.
Why Choose Franchise Over Creating Your Own Brand
Honestly, I initially wanted to create my own brand, but after calculating the costs and risks, I felt franchising was more reliable. The Japanese cuisine market in Madrid has become very competitive in recent years, and without brand recognition it’s difficult to build a customer base quickly. I ultimately chose a brand that already had three locations in Barcelona. They provide a unified supply chain and training system, which is really important for newcomers.
Regarding the franchise fee, I negotiated it down to €25,000, which included brand usage rights, interior design plans, equipment lists, and two weeks of training. This price is mid-range for Madrid. Some major brands charge over €40,000, while smaller brands might only cost around €10,000, but they offer much less support.
Location Selection Experience and Actual Costs
Location selection is truly crucial. I spent about two months searching and finally chose Trafalgar Street in Chamberí. This street has good foot traffic, and with many office buildings nearby, lunchtime customer flow is very stable. The space is about 70 square meters with a monthly rent of €2,800, which is reasonable for central Madrid.
Here’s my main cost breakdown for opening:
| Item | Amount | Notes |
|---|
| Franchise Fee | €25,000 | One-time payment |
| Shop Rent | €11,200 | Two months deposit |
| Renovation and Equipment | €35,000 | Including kitchen equipment |
| Initial Supplies | €8,000 | Unified supply from franchisor |
| Business License and Misc. | €3,500 | Various administrative procedures |
| Working Capital | €15,000 | Reserve for first three months |
| Total | €97,700 | Approximately €100,000 |
Renovation requires special attention. Although the franchisor provides design plans, you still need to find your own contractors. I hired a local Spanish renovation team—the quality was good, but the timeline was delayed by half a month. The renovation originally budgeted at €30,000 ended up costing €35,000. This is normal in Madrid, so always keep buffer funds.
Daily Operations: The Reality
The first three months after opening were really tough. Every morning at 6 AM I had to go to the central market to purchase supplementary ingredients. Although most supplies are delivered by the franchisor, fresh vegetables and some seafood still need to be purchased independently. Labor costs were also higher than expected. I hired two chefs and two servers, with monthly labor costs around €6,500.
Regarding revenue, the first month was only €12,000, mainly from friends’ support. By the third month it started stabilizing, and now average monthly revenue is between €28,000 and €32,000. After deducting rent, labor, supplies, and various expenses, monthly net profit is around €4,000 to €5,000. At this rate, I can break even in about two years.
Several Suggestions for Those Considering Franchising
First, definitely visit the franchisor’s other locations in person—don’t just look at promotional materials. I specifically spent three days in Barcelona observing customer flow and operations at their stores. Second, read contract terms carefully, especially regarding supply provisions and territorial protection. A friend of mine learned this the hard way when another location of the same brand opened nearby, significantly diverting business.
Third, don’t expect to make big money right away. The restaurant industry is really tough, with high initial investment and long payback periods. But if you truly love this industry and are willing to spend time building customer relationships and establishing reputation, there’s still opportunity to succeed.
Finally, Madrid’s Japanese cuisine market still has room to grow, but trendy restaurants’ popularity comes and goes quickly. The ones that truly survive are those that focus on quality and service. If you have any questions, feel free to leave comments—I’ll help where I can.
