Story Highlights
- Melting Pot will return to San Jose by year's end.
- Each restaurant creates 35 to 70 jobs and requires a $2.1 million average investment.
- The Tampa-based chain uses SiteZeus software to identify expansion markets across 32 states.
Tampa-based fondue chain Melting Pot is targeting San Jose for its reentry into the Bay Area market.
The restaurant is eyeing San Jose as part of a broader expansion into markets such as Oregon, Nevada, Utah and South Florida, according to a February press release.
Melting Pot previously operated in Bay Area cities such as San Jose, San Mateo and Larkspur, all of which are now closed.
Melting Pot Franchise Growth Strategist Collin Benyo confirmed the plans, saying San Jose fits the brand's expansion criteria.
Benyo said the company uses Tampa-based software firm SiteZeus to analyze markets and identify expansion opportunities.
“San Jose shows up as easily one of the top markets that we need to have a presence,” Benyo told the Silicon Valley Business Journal.
He said San Jose is a strong growth market for Melting Pot because of its density and family-oriented customer base, aligning with the brand’s positioning as a “celebration space.” The city’s growth, along with a favorable mix of age groups and income levels, makes San Jose a better fit than other Bay Area cities the company has considered.
“That's why we see San Jose as a market we're targeting, even over other California opportunity markets,” he said.
Benyo said the company hopes to secure a San Jose location before year’s end. Given the city’s size, he said there is room for one or two sites, including a potential downtown location.
Benyo also pointed to Santa Clara and Sunnyvale as potential expansion markets.
He said opening a new location typically takes about 18 months after signing a franchise agreement.
Melting Pot locations typically span about 5,000 square feet, create an average of 35 to 70 jobs per unit and require an average investment of $2.1 million, Benyo said.
The company’s site states initial investment for one restaurant ranges from $1.6 million to $2.7 million, with franchise fees ranging between $36,000 and $45,000. There is also a $500,000 liquid capital requirement for new franchisees.
There are currently three California Melting Pot locations in Sacramento, Thousand Oaks and San Diego. Founded in 1975, Melting Pot has grown to more than 90 restaurants across 32 states and Canada. The brand is known for its variety of fondue cooking styles and entrees, including cheese fondues, salads, wines, spirits and chocolate desserts.
