Studies of the most successful businesses have shown that the majority of these are franchises. Franchising is a strategy involving licensing of trademarks and this concept can apply to all kinds of products and services, such as the retail, restaurant and health and beauty sector. What is the secret of their success? Simply that the business has already been market tested, promoted and developed. Therefore, the foundations are already laid, the groundwork has been done and you have a business ready-to-go, with instant name recognition and built-in marketing. However, it is still essential to do some research on the business you are interested in, to ensure that you are familiar with the product or service being franchised and that you have seen how it is being implemented.
In the franchising sector, perhaps the most popular and successful are restaurant franchises. More than half of all restaurants in the United States are part of a franchise “family” and they account for around three-quarters of the revenue for the industry. Walk down any high street or visit any mall and you will always find at least one, often several, restaurant franchises. Restaurant franchises have shown themselves to be recession proof and there are many different opportunities to choose from. These include pizza, burger, fried chicken and other fast foods, healthy eating franchises, sandwich bars, coffee houses and many more. The successful strategy adopted by all of these companies and ensuring big profits is that of focusing on their customers’ wants and needs. They have learnt how to satisfy them and how to keep them coming back for more.
So, is restaurant franchising for you? There are pros and cons, according to your own particular circumstances. A restaurant franchise offers an instant business. The name, décor and marketing is all done for you and support comes via head office, very useful if you are new to the restaurant business and are in need of guidance. There is no need to worry about start-up costs for advertising as your restaurant franchise will already benefit from name recognition. However, in return for these advantages, you will have to invest a considerable amount of money. You will also have to pay royalties to head office. This covers advertising/publicity and any support provided to you. You should also appreciate that, in order to provide the same level of quality service and continuity at each restaurant franchise location, you will have no say in the menu or decor of your business. There will be rules to be followed, such as uniforms, seating plans and signage, so if you are a creative person with a themed concept in mind, then maybe restaurant franchising isn’t for you. However, if you are looking for a low-risk, profitable and ready established business, than a restaurant franchise could be just up your street!