Can you for see in the future and that you will be opening a restaurant franchise? The trend today is for franchises that cost less than 200k offering good potential earnings.
When times are tough there is a perceived move towards restaurant franchising.For example McDonalds benefited from such a move in the last recession of the 1970′s. One distinct drivers was for 2 earners in the same family. Changing demographics saw women leaving the traditional stay at home job and start taking up jobs. In this process they needed restaurants to eat at, because now they were taking their children out to eat rather than cooking.
This also meant more expensive restaurants suffering while
fast food and quick casual models gained ground.
Here are some things to watch out for in selecting a food franchise.
1 – Avoid over represented franchises. If you can already name several restaurant franchises in your part of town, it is probably saturated.
2 – Avoid expensive franchises. Always ask , “What am I paying for?” You should be investing in a proven system and experience, but you want to make a profit. Too much at the start going in, can endanger the bottom line.
Here are some things to positively seek out:
1 – Good food. There is no substitute.
2 – Original presentation. Winning concepts have a unique presentation that attarcts interest and keeps customers coming back.
3 – Reasonable investment. Some well established franchises often demand high premiums. Set your investment limits and set realistic profit goals.