Why choose a Restaurant Franchise opportunity?
There are some great benefits to franchise opportunities in the food & beverage business category. It is important to know what value the franchise offers the operator. Here are few value items to consider:
- Chef & General Manager Training opportunity at an existing franchise operation. You need to recreate the entire experience that the franchise is known for. This includes the food and the location experience (i.e. menu, seating, colours, lighting, washroom style, service, etc).
- Buying Power comes with established brands and can help you establish supplier relationships and discounts.
- Financial Planning Knowledge gained from existing franchise locations can provide a new franchisee with cost structures and sales targets to achieve target profits. Some critical concepts to understand include: (1)Cost of Goods Sold (COGS), Return on Investment (ROI), and Sunk Costs (what you need to spend before opening day). Franchisors have existing operations to model by and assist in financial planning.
- Order Operating Systems for point-of-sale (POS) hold great value. Making order inputs easy for staff is important…and so is communicating those orders to your cookline, and identifying customers orders so servers can get them to the correct customers fast.
- Marketing Materials & Branding are important for franchisee’s who want to focus on sales. Brand recognition and marketing efforts by a successful franchise head office will provide instant credibility and support for new franchise operators. Recognition and reputation come with a good franchise, so you can focus on operating and serving customers, and simply purchase the franchise success and customer loyalty.
- Commercial Equipment Specifications provided by the franchise company ensure you have the correct equipment for the job, and that product consistency is maintained. If you provide the right equipment then you can look to your staff to provide the best results.
Established franchise brands can get you into the action and sales right away, but you need to understand the value they bring so you can get the most out of the relationship. Remember you don’t pay franchise fees just for a name; there must be added value to make it work for you.