People start restaurants for different reasons. It could be to fulfil a lifelong dream to serve great food, it could be to fill a demand in the market, to honour traditions and keep culture alive or it could be to make some money.
Whatever the reason might be, a lot of thought goes into the decision to start a restaurant. One of the things you should think about is whether you should hitch your business to an already successful brand and buy a restaurant franchise or not.
With franchising, the owner of a business sells the rights to use their company name, trademarks and business model. Entrepreneurs who buy a restaurant franchise can benefit in these ways.
When you buy a restaurant franchise, you inherit the good will accorded to the mother brand. For instance, the Tahini’s brand has a history of serving authentic, 100% halal food with the finest ingredients and spices.
If you were to buy a restaurant franchise from Tahini’s, you would inherit this pedigree. This ensures that customers will already know you for something even if you are a new restaurant.
Speaking of customers
Customers already know the brand. Buying a restaurant franchise is like buying an inbuilt customer base. They will know what to expect plus, your advertising and marketing will be easier. When the mother brand advertises, you will benefit from those campaigns as well, lowering your marketing budget and widening your customer base.
Reduced risk of failure
Starting a restaurant business is hard. You might not be sure whether what you are doing and how you are doing it will result in success. When you buy a restaurant franchise though, you are buying proven management practices and proven systems.
Franchises are often supported with training, skills and the necessary tools to ensure that they succeed. While it is by no means an easy task, you can run a franchise with minimal experience because of the support you will receive from the franchiser.
This is a big one. A lot of new businesses struggle with financing but the franchising model offers options. While you have to set aside money to buy a restaurant franchise, some agreements will see that you get all the equipment you need to get started. Think freezers, fridges and fryers.
Other franchisers are able to offer financing to their franchisees, or facilitate them in getting loans from their partners. They might even be able to make the new franchisee a party to their existing friendly supplier contracts.
It is in their best interests to make sure that the new franchise succeeds. And even if they are not able to offer funding, because the risk of failure is significantly reduced with a franchise, it can be easier to secure external funding for your business.
You’re the boss, with some support
Buy a restaurant franchise and you get to be the boss, with some assistance. Those interested in being small business owners can enjoy this model. It allows you to have control while working in the framework of a franchise agreement that is set up to help you succeed.