So you want to own a food franchise?
The restaurant business industry employs approximately 11 million people in the United States and is the second largest private-sector employer in the country, next to the government. It’s no secret why so many individuals dream of one day owning a restaurant; the career can be incredibly rewarding and lucrative. But, owning this type of business can also be very challenging and requires hard work, patience and organization.
One option to reduce some risk in opening a restaurant or other foodservice establishment is to purchase a franchise. The same strong work ethic and due diligence is required in order to make a franchise successful, but with the added support, training and brand recognition franchise owners often have a better shot at making it. According to Chicago-based Technomic, Inc., nearly 75 percent of the top 100 foodservice chains use franchising to grow and new concepts continue to spring up every year. With so many concepts on the market, it’s important to work with a franchise consultant, attend trade shows, talk to other franchisees, and take advantage of the many resources available so you are well prepared to pick the right franchise that meets your needs.
The good news is, as long as people continue eating in restaurants, there will be a demand for more businesses. In our society, convenience is a priority for many busy families and professionals who are always on the go. Our fast-paced lives fuel growth for quick service restaurants and takeout services, many of which are franchise-owned. Another advantage to opening a franchised restaurant is that there is an existing demand for popular brands that already have many loyal customers. But being in the service business means you’re dealing with those customers all day, every day –whether they are content or irritated. And excellent customer service from the appearance of the restaurant itself to the quality of the food to the friendliness of the staff is vital for success.
Speaking of staff, another required characteristic of a strong food franchisee is the ability to build and manage a top-notch team. Whether you plan to work in the restaurant on a daily basis or not, it’s imperative that the right people are in place to run the business. Having worked in a foodservice establishment prior to owning one is a huge plus and will greatly prepare you for what’s to come. Additionally, having effective systems in place – many of which will be provided by the franchisor –will help each day run smoothly.
It seems like an obvious first step, but having enough capital to not only buy into the franchise but also fund the business is imperative. Holding a grand opening event, paying your people and putting money into ongoing marketing are just a few additional expenses to expect. Cutting corners in these areas could result in failed opportunities and ultimately, a failed business.
The final prerequisite for a successful foodservice franchisee is the motivation that comes from a true love for the industry. Don’t get me wrong, the ability to run a small business is important, but if you aren’t passionate about food, serving others, keeping a clean kitchen, interacting with customers and the community, you will not last. Running a restaurant or other food franchise requires long hours and a dedicated owner who is willing to put the work in to reap the endless rewards.
