Running a restaurant can be a fast paced and exhilarating career choice. If you have a passion for food and the service industry, it’s a great business investment.
Of course the food industry could be risky, like any other business investment but there is a surefire way to increase your chances of success and that is through franchising.
Restaurants are the franchise industry’s forte, and it’s been nailed down to a science in some fields. There are different areas of interest in the food franchising field, some focusing on a healthy and expensive menu, while others provide fast food for a quick and easy meal.
Either way, when it comes to restaurants, franchising is a great option. In fact, it’s definitely the safest option.
Americans love to eat out, whether it’s on a date, in a family setting or for a quick bite to eat. People are busy and grabbing something on the go works well in this fast paced economy.
The food and drink industry reached over 745 billion US dollars in 2015 and there are over 600,000 restaurants across the country. While in 2012, there were close to 1,300 franchised food brands operating throughout the states.
That’s a lot of waiters.
Nowadays, franchises cater to the many different types of restaurants available and usually provide different services and meal options. People now order ahead of time online, they want takeout and delivery. They want to be served quickly and efficiently, while eating a great, fresh meal at a good price.
The variety of options allows restaurants to cater to the many different patrons and the diversity of palates.
It’s good to consider a restaurant that serves the many needs of its customers and includes alcohol and a few different services, other than a simply sit down restaurant. There are numerous choices, so you can truly cater to your passion. If you’re interested in a family setting or a sleek professional restaurant, all options are definitely available.
Investing in a franchise helps protect the owner and it also allows them to hold stake in a well-established brand and reputation. Some restaurants are staples on American’s menus and will always have a stream of customers. The marketing and advertising is already completed by the franchisor, allowing you to open your doors with a giant customer base.
Franchising is a safe bet and it will generate profit, as well as success. A franchisee does not have to be well-versed in the industry to run a restaurant, but rather will use guidelines set out by the head office. The restaurant industry is aware of what works and what doesn’t and this knowledge is passed down to its franchisees.
There will be competition with small businesses; a lot of people have their own private restaurants. Once given a tentatively location, a franchisee may want to seek out and consider the direct competition. That being said, a lot of private restaurants fail, while franchises have a proven track record.
Either way, location is the fundamental key to restaurant success. High traffic areas for restaurants allow more and more people to take advantage of the services. A franchisor can usually pinpoint a place of interest and help establish a proper venue in the right place.
If you have a passion for cooking and creativity, a restaurant franchise may not suit your personal needs. Since this industry depends on brand and consistency, it is usually expected to follow the menu exactly, ensuring that all product remains the same across the board. Being involved in the process would help for success and being well-knowledge in the restaurant and food industry would provide opportunity within the business but it will not help ignite any creative flames.
The restaurant franchise comes with a large investment fee. Due to all the necessary equipment and the construction of the facility itself, there are a lot of financials to cover before getting the doors open. However, if you are seeking banking assistance with your financials, a restaurant franchise is considered a low risk investment.
One of the challenges facing restaurants is a high turnover rate. As a franchisee you would like to invest in some quality and dedicated servers and managers to help run the business when you are not on the floor. However, that may not be an opportunity when it comes to restaurants. The great advantage of owning a franchise is allowing a work life balance that keeps you out of the business’ way. It is difficult to keep a large staff consistent and for long periods of time in this industry, in fact the restaurant business has one of the biggest turnover rates. Some of your time will be committed to training and hiring staff, however the franchisor will provide a lot of support in that area.
A huge benefit of the restaurant franchise is the support offered. Not only are a lot of the marketing and advertising materials covered, there is usually someone constantly available to the franchisee. There are some restaurants that that offer support at opening to generate a successful beginning and allow owners to be well-versed in the protocol while it’s generating customers.
Though a restaurant franchise would likely provide financial success, it would be relatively hard to determine whether or not this lifestyle would suit your life or if you have the right traits to run a business in the restaurant industry. Reaching out to other franchisees and owners in similar fields can alleviate some concerns and answer a lot of your questions. More franchisors will provide connections to other franchisees if you reach out to them and in some cases you can shadow certain restaurants to experience the challenges and rewards first hand.
If you have the ability to cover the investment and royalty fees, a restaurant will generate profit quickly and allow an investor to enjoy the success of the business with financial freedom. Most franchises in the restaurant food industry are well-established and well received, but given the fast paced and high energy business of a restaurant, it would be wise to try and experience it before investing. Like any investment, research and consideration is very important.
LOOK OUT FOR OUR NEXT SPECIAL FEATURE: FOOD FRANCHISING PART 2