How to open a Restaurant Franchise
So, Do you Think you can open a restaurant franchise. All the Best! The food franchise industry is on a boom – even full-service franchises have grown sales by 6.8% in financial year 2017.
Before you commence , always keep 1 thing in your mind . There is Risk too !!
People often think that starting a franchisee concept comes much easier & cheap than starting your own restaurant by scratch, Which isn't true at all . Below mentioned are few steps to take while opting for a franchisee restaurant.
1. Coordinate efficiently with Others:
Planning on how to commence a Restaurant franchise is all about a group effort – here are the people you want as your support.
a) Refer a Consultant:
Most successful Novice franchisees tie up with a restaurant franchise consultant to prevent huge cost upfront. A credible consultant must have ample wisdom & a proven success rate. They educate as to how to commence a restaurant franchise and aid you generate a business plan that will work the best for your Business.
b) Hire a lawyer & Accountant:
In order to commence a restaurant franchise you will need entire team to cope up , especially if this is your first chance at venturing. Plenty of Document work & Funding are about to swap hands throughout the franchising process. Tieing up with a genuine lawyer and accountant will embrace you to make wise financial decisions. Moreover they’ll protect your interests in every negotiations so you are better able to focus on commencing franchisees rather than worrying about expenses & law.
2. Prepare SOP for better planning:
There’s a reason behind as to why franchises are considered less risky than commencing a business from scratch. Majority of the franchises nowadays are built over Standard Operating Procedures (SOPs). That specifies strict guidelines for how to start a restaurant franchise, including the menu, management, and marketing.
The SOPs are a basic requirement for better planning. You might be the franchise owner, but the rules & regulation doesn't belong to you only. So thriving on getting innovative & artistic and asserting your ideas into motion is your motto then franchising may not be the best option for you.
On the contrary, some franchises are more lenient with less strengthened SOPs. The Bottomline is : review & overview the franchise agreement thoroughly before you sign it. SOPs are usually explained in Indepth detailing, outlining constraints and freedom leverage that arrives with how to franchise a restaurant. It’s totally dependent on you how to come in terms with your comfort level regarding Franchising.
3. Start for the Appropriate Reasons:
On a serious note : Franchising is not a cakewalk to do rather a commitment is required to do the same.
If there is frustration in your ming regarding your current job and you need a way out? Do you really believe that it’s an easy option to earn Bucks? Never start a restaurant franchise on a Misconception or to run away from your current scenario.
Consider chit chatting with a franchise consultant if you’re on the verge of learning how to commence a restaurant franchise. They will ask you all sorts of questions. So Your reasons behind starting a franchise needs to be strengthened enough to enable you to strive hard for years – not just til the opening night.
4. Have Realistic check on your Expectations:
If the advantages of starting a franchise is concerned then there's one thing for sure that you will be working with a well known name, established branding & built in marketing platforms.It’s more of like investing in top performing stock that will surely give you good returns over your investment over time
Howsoever in the stock market, results are always unpredictable. As you plan on how you should franchise a restaurant, keep your expectations in reality check. Even if the starting goes fine still then don’t take anything for granted the Franchising business will do wonders in few time as it will requires weeks,months & even years to see a return on your investments.
5. Preparation for long hours:
Being in restaurant franchising you're entering into Hospitality industry always remember . You must always invest long stretched hours no matter what kind of franchisee it is. As a restaurant owner you always have to be hands-on right from starting & always as initially you need to train your staff & managers. In order to reach pinnacle by climbing the ropes you first have to learn about Ropes especially if you're a novice in this industry . There will be numerous SOP's to instruct you from cleaning to managing food expenses & assembling food to the ordering system.
You mandatorily have to be present most of the time at your restaurant from opening till the closing to ensure that Rules & regulations are properly implemented according to the SOP's .
6. What does your pocket Says?
Always keep an eye over your Cash flows as starting a franchise requires hefty investments upfront. Some chains requires millions of dollars before you even open up the doors.
Once when business commences some chains requires more stores to be opened over time depending on the market opportunity,demand of the product amongst customers & sales numbers. Expectation must always be to earn enough money to open up more stores. Always be prepared for investments even if requires taking loans from banks, Angel investors, Venture capitalists etc.
7. Lookout for Appropriate Franchisee theme:
when you are done with learning basics then selecting the right franchising theme is the next stone to step on. So you must questions yourself that do you love interacting with Customers?
Do you want to operate weekly events like poker tournaments or Trivia nights?
This will help you in narrowing down your approach towards choosing your franchisee style.
8. Treat your customers like Jewel:
Acquiring & retaining customers for long, rendering quality food & service should always be the main motto as with any business you enter you're building rapport for your Franchisee.
To make sure your franchisee becomes a hit you must provide:
a) Appropriate training on Assembling Menu.
b) setting Benchmarks on staff uniforms.
c) Routine checks on Quality food & service
d) Customised dishes for your customers.
e) giving exciting offers & deals on cuisines according to the parent company policies.
Having said that You can't change already established rules of the franchisee but you still can exceed the standards of it.Rendering delightful experience to your customers will make them come over again & again.
9) Partnering with Food wallets:
Nowadays partnering with food wallet company is becoming famous & unbelievable option to earn more as they collaborate with you & provide exciting cashbacks & offers to the customers of any restaurants . One such recent food wallet app is Tablemonks which is best in class amongst its competitors. It makes restaurant searching very easy , provides exciting cashbacks & offers when customers makes payment through it online & even they don’t charge any restaurant any upfront fees but a minimal profit percentage when they start getting offers which is Unbelievably Awesome. So at the bottom line tieing up with Food wallets will lead to more income & profits as customers won’t be able to resist such kind of extravagant service & restaurants will have a competitive edge over others.
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