Archive for June, 2009

Restaurant franchise- targetting the middle classes part 2

Friday, June 26th, 2009

A recent survey has found that approximately one in three British adults eats takeaways at least once a week, and more than three million people eat takeaways at least twice a week. Three factors drive this trend. First, human beings are fundamentally lazy and no, we haven’t become a nation of cooks, despite our obsession with TV chefs and cookbooks. Second, greater availability of quick-food outlets drives its own demand. We can’t say no when it comes to food. And third, much fast food actually tastes rather nice, often better than the stuff we cook for ourselves.

This all adds up to big business for restaurant franchises, with the potential for an even greater volume of sales. However, takeaway food typically served by restaurant franchises is notoriously unhealthy. The average takeaway contains high levels of salt, sugar, fat and monosodium glutomate – cheap and potentially addictive ingredients. As an occasional treat, this should not be a problem but when eaten regularly, such high levels of fat, salt and sugar can have a significant health impact. It can be argued that there is no reason for take away food to be so unhealthy, apart from profits from cheap ingredients. For example, healthy olive oil is expensive but unhealthy oils are cheap. The fact remains, however, that when one restaurant franchise outlet starts selling cheap to corner the market, the others have to follow suit or go out of business..

Some takeaway restaurant franchise chains are making an effort to add healthier options to their menus, but these are in the minority in the UK. So it seems there is a gap in the market for healthy fast food restaurant franchises in Britain. The middle classes have traditionally been regarded as more health-conscious and, with the number of takeaways they are consuming rapidly increasing, the time may be right for quick-food restaurant franchises to exploit this demand by offering healthier menus.

Net worth franchise calculator

Thursday, June 25th, 2009

In order to help you calculate your net worth in any future franchise you may be thinking of entering into, here is a net worth calculator.  If you enter in your various assets (things you own) and your liabilities (things you owe) your net worth will be calculated at the bottom of the page.

This should help you calculate how much you can safely afford to invest in a franchise.

Download the calculator here

Why is Net Worth so Important?
It is a basic in determining a safe  investment level for any opportunity that you are looking at.  It is required by most franchise owners before they will accept you.

It is important to provide  your net worth, since many franchisors use a  model to determine if you are qualified to own their franchise.

How is  Net Worth Calculated?
You calculate your assets and your liabilities – your net worth is basically the difference between the two. Assets are money and property, and liabilities are debts that you currently owe.

Assets are divided into 3  categories – liquid, personal, and investments.

  • Liquid Assets  can be turned into cash immediately, referred to as “liquidation”. Liquid assets include your checking account, savings and money market accounts, cash value of life insurance policies, and any other asset that has the same value as cash.
  • Personal Assets are all your possessions, and include the current value of your house (and other real estate) and automobiles, furniture, electronics, jewelry and other personal items that have value. Personal assets are sometimes called Fixed Assets.
  • Investment Assets are bank-related assets such as bank CDs (certificates of deposit), stocks and bonds, IRAs , Mutual Funds, and any other type of investments you may own in your own name.

Liabilities are divided into two categories – current, long-term.

  • Current liabilities include your credit card debt and any loan balances you may have, such as student loans, automobile loans, or other installment loans.
  • Long term liabilities include your mortgage and any other debt that you pay over a long period of time.

What is the Next Step?

Once you have worked out your net worth and know how much money you can invest,  you can start to search for your ideal franchise.

Restaurant franchise and the middle class

Thursday, June 18th, 2009

Fast food restaurant franchises are targeting Britain’s middle classes. It may surprise you to learn that the middle classes are rapidly becoming Britain’s largest consumers of takeaways and other fast foods. Increasingly busy lifestyles mean that hungry business people and other professionals are chomping their way through more pizzas, quarterpounder burgers, curries, kebabs and chips than manual labourers, shop workers and bus drivers. If you have been working hard all day, returning home at 8pm after a long commute totally shattered, phoning for a takeaway is a very tempting option.

For many people, cooking is a chore, especially in households where both partners work long hours. Anyone who works full-time will understand that planning and preparing fresh lunches and dinners seven days a week, 365 days a year, is often simply impossible. In addition, the traditionally affluent middle classes are feeling the financial pinch in these difficult economic times and fast food restaurant franchises offer cheap, tasty, value for money food, which is often less expensive than making your own meals from scratch.

Restaurant franchising ctd.

Wednesday, June 10th, 2009

Although the increasing diversity of the restaurant franchise business may in the future result in a slightly reduced market share for fast food retailers, it is not predicted that this sector will suffer markedly. Furthermore, the fact that some of the bigger names in fast food restaurant franchising are beginning to supplement their menus with “healthy” options or are offering a choice of salads instead of fries and low calorie dressings or wholemeal bread, demonstrates that they are pre-empting this trend.

As for the newer products being added to the restaurant franchising market, it seems there is room for them too. Ice cream cupcakes, cookies, pretzels and so on have a universal appeal. It is human nature, even amongst the health conscious, to desire a sweet treat. Maybe we have had a stressful day and need to cheer ourselves up, or perhaps we have something to celebrate – a birthday or passing an exam. Or maybe we have been very good, having eaten a healthy soy bean casserole lunch at one of the healthy restaurant franchises, and need to reward ourselves accordingly!