Tag Archives: restaurant franchise
The biggest category for franchising is restaurant franchising and it looks like lending for the business model America pioneered is on the upswing.
The advantage of franchising is the business plan is already laid out for you- your job is simply good execution. This should appeal to people who want to get into the industry but have little or no experience and aren’t sure how to create a concept or manage the business.
That said, a franchise is not an automatic money machine. You must keep a close eye on things and make sure you match the business with the right location or you are in for a rough road. Spend time talking to other existing unit owners and make … Keep reading
We have a pretty extensive restaurant franchise section on our website so some of this might already be things you’ve red but it doesn’t hurt to go over the high points again if you are considering a franchise.
My personal take on them is that unless you are buying a proven concept of a reasonable size that is still in the growth stage rather than at the saturation point you might be onto something good.
On the other hand, buying an over-staturated brand, one with only small volume potential or one from a relatively small or unproven concept is not any better and very possibly worse than buying an existing restaurant for sale or starting a restaurant of your own.… Keep reading
I’ve had the discussion before with someone thinking about opening a restaurant of their own and then they will at some point say something along the lines of “maybe I’ll just open a franchise instead that way I don’t have to worry about failing.”
If it were that easy no one would bother open their own place. The fact is franchises are businesses too and they can and do run into problems. Apparently Quiznos is in that boat. It’s not hard to see why some of these things are problems. If your main point of differentiation is having a toaster you can’t expect that advantage to last forever.
A much bigger problem in my opinion is when I heard, long … Keep reading
The following restaurant success story is not a personal tale of coming up with an idea to open a restaurant and going for it but I still think it is both informative and helpful in showing how a restaurant business should be run- as a business.
The restaurant franchise story here is about how they took a chain with some success and really focused on how it could grow and become a much bigger and more successful operation, which in turn builds value for the company owners and franchisees at the same time.
Reading through their business-like approach, and the fact that is has worked very well to drive the company to growth and higher profitability, should give you a … Keep reading
I think the assumption is that since the franchise provides the answers to many of the things that are found in the business plan that somehow the plan then becomes unnecessary or superfluous. actually, nothing could be further from the truth. While it is accurate to say that the franchise system does provide a lot of the information and details that you would otherwise have to plan for yourself it is also true that there is still a significant amount of work planning required on the part of the restaurant … Keep reading
There are lots of things that should go into your decision on which franchise to buy into if you are considering the idea of going the franchise route as a way to open a restaurant but one of the main ones is how many units they have open and how long they have been doing it.
If a franchise has trouble adding new units that should be a big red flag. Likewise, if they have been franchising for a long time but have a relatively small number of franchise locations … Keep reading