When an aspiring entrepreneur is ready to jump into restaurant ownership, a common question is: should I start from scratch or open a franchise? While both options offer promise, they also come with their distinct challenges, so it’s important to fully consider the responsibilities, amount of capital and experience needed before choosing your path. Here are five of the most compelling reasons to consider franchising.
The restaurant industry is experiencing steady growth and banks are taking notice. Small business loans are often more readily available for restaurant franchises than independently-owned restaurants because they are believed to be safer investments. If your next venture is going to require a loan for extra capital, opening a restaurant franchise is a bank-friendly strategy.
As an independent restaurant owner, you’re tasked with developing a business plan, determining your target market segment and figuring out how to market to them. While some view this challenge as a thrill, others prefer to have a pre-determined plan in place. When opening a franchise, you will be handed a business plan that has already proven to be successful with other franchisees, which can serve as a roadmap for your business.
When you open a restaurant franchise, chances are, potential diners are already familiar with your brand and menu. Whereas new independent restaurant owners have to spend time, money and effort earning trust and recognition from the local market, your restaurant is already there on day one.
New restaurant owners wear too many hats to be full-time marketers as well. But as a franchisee, you can have the opportunity to leverage the regional and national marketing efforts of the corporate brand. Not only that, but your franchisor will also take care of the name, menu and certain aspects of the decor at your restaurant.
In the restaurant business, no franchise is an island. When you are part of a vibrant network of local and national restaurant franchises, you have access to their insights, best practices and success stories. Make the most of your opportunities as the owner of a restaurant franchise, and you’ll be on a sustainable, profitable path for your new business.
To learn more about what it takes to get a successful franchise off the ground, read our new whitepaper, The (Aspiring) Restaurateur’s Guide to Opening a Franchise.