Established
2012
Franchise Units
20
Minimum Investment
$450,000
Franchise Fee
$40,000
Total Investment Range
$950,000
Home Based
No
Description
Pepe’s Cantina is a vibrant, full-service Mexican cantina concept that blends bold flavors, handcrafted cocktails, and an energetic dining atmosphere designed for today’s social-driven consumer. Positioned between casual dining and nightlife-inspired hospitality, Pepe’s Cantina delivers an experience—not just a meal—making it a compelling franchise opportunity in the highly resilient U.S. Mexican food segment.
The brand is built around authentic Mexican-inspired recipes, premium ingredients, and a lively cantina environment that encourages repeat visits, group dining, and strong alcohol-driven margins. With colorful interiors, curated music, and a menu that balances classics with modern crowd favorites, Pepe’s Cantina appeals to a broad demographic—from families and young professionals to late-night social diners.
For franchise investors, Pepe’s Cantina offers a scalable restaurant model with multiple revenue streams, strong unit-level economics, and a concept that fits well in urban cores, lifestyle centers, suburban hubs, and entertainment districts across the United States.
Why Invest in This Franchise?
Investing in Pepe’s Cantina means tapping into one of the most enduring and profitable food categories in the U.S.—Mexican cuisine—while leveraging a differentiated cantina-style experience.
Key reasons franchisees are attracted to Pepe’s Cantina include:
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High-Demand Cuisine – Mexican food remains one of the top-consumed cuisines in the U.S., with consistent year-round demand.
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Alcohol-Driven Profitability – Margaritas, tequila-based cocktails, and beer programs significantly enhance average ticket size and margins.
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Strong Brand Personality – A festive, social atmosphere that encourages celebrations, group bookings, and repeat visits.
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Flexible Footprint Options – Suitable for inline locations, end-caps, freestanding units, and mixed-use developments.
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Multiple Dayparts – Lunch, dinner, late-night dining, bar traffic, and private events create diversified revenue opportunities.
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Proven Systems – Standardized recipes, operational playbooks, and supply chain support reduce execution risk for owners.
Background
Established Year: 2012
Founders: Pepe’s Cantina was founded by experienced restaurant entrepreneurs with a vision to modernize the traditional Mexican cantina experience for the U.S. market—combining authentic flavors with contemporary hospitality and nightlife energy.
Brand Journey & History:
What began as a single cantina concept quickly gained traction due to its lively atmosphere, approachable menu, and strong beverage sales. As guest demand grew, the brand refined its operating systems, menu engineering, and brand standards, paving the way for franchising. Pepe’s Cantina has since evolved into a structured franchise concept focused on consistency, scalability, and profitability.
Franchise Active Units :
20+ locations operating or in development across the United States.
Ownership & Franchise Model:
Pepe’s Cantina operates under a franchise-driven growth model, partnering with single-unit and multi-unit operators who align with the brand’s hospitality-first culture and operational standards.
Market Presence in the USA:
The brand has established a growing footprint in key metro and suburban markets, with expansion opportunities available in high-traffic lifestyle centers, college towns, entertainment districts, and emerging suburban corridors.
Industry Category:
Full-Service Mexican Restaurant / Cantina-Style Dining Franchise
Support Training
Pepe’s Cantina offers comprehensive, end-to-end support designed to help franchisees launch confidently and operate efficiently.
Pre-Launch Support
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Site selection guidance and demographic analysis
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Lease review support and space planning
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Restaurant layout, kitchen design, and brand-standard interiors
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Vendor sourcing and equipment specifications
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Pre-opening marketing strategy and launch planning
Training Program
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Classroom and hands-on training at a designated training location
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Kitchen operations, food preparation, and quality control
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Bar operations, cocktail execution, and alcohol compliance
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Front-of-house service standards and guest experience training
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POS systems, inventory management, and cost controls
Operational Support
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Detailed operations manuals and standardized procedures
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Menu updates, pricing strategies, and food cost optimization
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Labor scheduling models and productivity benchmarks
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Health, safety, and compliance guidance
Marketing & Brand Support
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National and local marketing playbooks
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Digital marketing guidance (social media, promotions, events)
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Grand opening campaigns and local store marketing strategies
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Seasonal promotions and limited-time offers
Ongoing Support
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Dedicated franchise support team
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Performance reviews and benchmarking
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Ongoing training refreshers and new product rollouts
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Supply chain and vendor relationship management
Ideal Candidate
Pepe’s Cantina is best suited for entrepreneurs who thrive in hospitality-driven businesses and enjoy building a strong local brand presence.
Ideal candidates typically include:
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Restaurant operators or multi-unit franchise owners
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Hospitality professionals transitioning into ownership
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Investor-operators with strong management teams
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Groups seeking bar-plus-restaurant concepts with higher margins
Key Traits:
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Passion for food, beverage, and guest experience
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Hands-on leadership or ability to manage an experienced GM
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Financial capability to meet investment requirements
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Commitment to brand standards and operational excellence
Location Preferences:
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Urban and suburban markets with strong dining traffic
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Lifestyle centers, entertainment districts, and mixed-use developments
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College towns and high-density residential areas
Financial Detail
| Financial Component | Estimated Range / Details |
|---|---|
| Total Investment | $450,000 – $950,000 |
| Minimum Liquid Capital | $200,000 – $300,000 |
| Franchise Fee | $40,000 |
| Royalty Fee | 5% – 6% of gross sales |
| Marketing / Brand Fund | 2% – 3% of gross sales |
| Leasehold Improvements / Build-Out | $250,000 – $550,000 |
| Equipment & Kitchen Setup | $120,000 – $200,000 |
| Furniture, Fixtures & Décor (FF&E) | $60,000 – $120,000 |
| Initial Inventory & Supplies | $15,000 – $25,000 |
| Initial Marketing / Grand Opening | $15,000 – $30,000 |
| Technology & POS Systems | $10,000 – $20,000 |
| Working Capital (3–6 months) | $50,000 – $100,000 |
| Estimated Break-Even Period | 18 – 30 months |
| Expected ROI Potential | Competitive, driven by alcohol sales & high guest traffic |
| Primary Revenue Streams | Dine-in food, bar & cocktails, late-night sales, catering, private events |