For ambitious entrepreneurs yet to open their first restaurant franchise location, the title of this particular article might seem like putting the cart before the horse. However, the truth is that planning for a second restaurant franchise location is a lofty goal for franchisees who are looking to expand their portfolio, as well as their revenue stream. Plus, it’s a great way to get excited over the prospect of future development.
Whether you’re just entering the game, or you’re a veteran ready to expand outwards to multiple locations, the same principle holds true. Restaurant franchising is a fantastic business opportunity that can lead to unlimited growth, provided you adhere to a few street smart industry tips! Here they are, out in the open so you can sketch out your future franchising plans.
CHECK YOUR FINANCES
This first tip is an obvious one, but it’s worth scrutinizing. As well as your first franchise location might be doing, it’s still imperative to leave a bit of financial elbow room when planning to open a second. You’ll most certainly find the process much easier than before, since you’ll already have experience under your belt. That includes unforeseen financial challenges, opening hiccups, and wrinkles in the hiring process. As savvy as you might be, never forget the importance of making sure that your current franchise location is operating well into the green, and that your personal and family finances are in solid order. The more financial padding you have, the easier it’ll be to avoid any complications or pitfalls when you open up a second location.
PASS THE TORCH
Opening up a second restaurant franchise location will require a lot of your time and attention, and the last thing you’ll want is for your primary location to suffer for it. Make sure that you have the right staff members in place to keep operations running smoothly and efficiently while you shift your focus. Hiring a general manager for your primary location is a fantastic way to go hands-off, and the role will pay dividends when your second location opens up. In fact, the more franchise locations you open, the greater the need for general managers to keep things in order. If possible, promote your most promising and efficient employee into the role, as they’ll understand the day-to-day operations far better than a newcomer. Good general managers will be able to easily keep you updated on the progress and stability of your existing franchise location, so you can focus on expanding your portfolio.
LOCATION IS EVERYTHING
Your first restaurant franchise location will be situated in a high-traffic area with the potential for plenty of patrons to visit and dine. When it comes time to open a second location, the same principle applies, but you’ll still need to do your research. Make sure to identify all the competition within the area so that you know what you’re getting into. It isn’t enough to open a restaurant franchise location in an area that is light on food establishments. You’ll also want to be sure you’re attracting all kinds of diners, from local citizens and employees, to vacationing tourists. The good news is that you’ll have plenty of first-hand data from your original franchise location to help guide you when choosing where to set up your next one.
LEVERAGE YOUR REPUTATION
As an existing franchise owner, you’ll not only have the benefit of a reputation with the locals, but also connections with various businesses and local municipalities. If you’ve participated in charity drives and other community events, so much the better. The more expansive your network, the easier a time you’ll have when opening a second restaurant franchise location. You’ll have contacts in multiple areas, from zoning and insurance, to local media, all of whom can assist you. Honest, friendly and charitable franchisees always make huge names for themselves with the local community, and all that good karma will come back to help you as you expand your operations to serve the locals.
WHATEVER YOU DID RIGHT, DO IT AGAIN
The previous tips all circle around one key truth – there is no substitute for winning. First-time franchisees will experience a bevy of hurdles and challenges they did not expect, but all that matters is how they handled them. If you’re an entrepreneur capable of rolling with the punches and standing strong when the bell rings, then you’ve got everything it takes to open a second location. Just make sure to replicate everything that made you a success in the first place, and you’ll be fine. That’s easier said than done, however. Some franchisees forget the most important lessons, and start mentally from scratch, which is never a good way to expand your franchising portfolio. Go through a mental checklist of your greatest challenges, figure out how you dealt with them, and keep them ready for when you open your next location. Don’t try to reinvent the wheel; simply repeat all the right moves.
CONCLUSION
The thought of opening up a second franchise location should always be an exciting one, and it’s merely a stepping stone to even greater things. Many franchisees have multiple locations under their name, which allows them to keep earning revenue while building their own successful empire in the process. It’s a lofty, yet rewarding challenge that has set many on the path to enormous success, which means you can do it, too!
Interested in a future where you’ll own multiple restaurant franchises? Why not start by opening your first St. Louis Bar & Grill location? Our incredibly successful franchising model has allowed us to expand right across Canada, while tapping the lucrative U.S. market for those willing to jump in. We’d love to have you as part of your franchising family, and we’ll work with you to make your first, second, and yes…even third location a roaring success that your patrons will love! Contact us today to learn more!