Thinking of owning a restaurant franchise? You’re making the right choice! Owning a food or drink franchise has numerous benefits and advantages. According to a study done on franchise acquisitions, restaurant franchises rank in the top 10 business ventures due to their revenue-generating potential. When evaluating the food industry, it is important to look at the various advantages that are associated with obtaining a franchise, such as stability, resources and support. According to the latest data, food related franchises account for the largest annual financial output compared to other franchise industries in Canada. Owning a franchise gives you the best of both worlds – you’re your own boss, but have the support of the brand. Let’s have a look at some of the advantages that come with owning a food related franchise.
Proven Model for Success
One of the biggest advantages of acquiring a franchise is that you are also acquiring the company’s experience and success. The original founders of the company have established a certain level of success and have learned from the mistakes that you won’t need to repeat. This is the most imperative advantage that makes your future franchise stand out from independent start-ups. When you open a franchise, you capitalize on the success of the brand in your market.
Built-in Demand from Brand Recognition
As a franchise, you will have a pre-established demand from consumers that enjoy the company. This consumer loyalty diminishes your marketing costs and thus increases your profits. Furthermore, as a franchisee in the food industry you are avoiding the fear of being just a fad that consumers will get over due to the previous success of the brand. This is the optimal strategy since you decrease the chance of risk by acquiring an established brand. Your customers want to eat, and you are providing them with food they already know they love.
Resources
Typically, restaurant franchise brands have an easier time obtaining supplies at a lower cost. This stems from the fact that their brand is recognized and has had previous negotiations with suppliers. This facilitates your ability to penetrate the market at a lower cost and helps you gain more inventory. Entering negotiations with a supplier when you have an established name providing you bargaining power allows you to decrease the cost of inventory and supplies.
Support
One of the biggest obstacles that start-up entrepreneurs are faced with is a lack of support. Luckily, as a franchise owner you benefit from the appropriate franchise and staff training which helps ease into the transition period. Most companies provide intensive training to franchise owners in order to ensure smooth sailing during their endeavours. Some examples of the training you’d be getting is sales, techniques on how to cook, and maintaining the proper brand image and reputation. This support also involves a close and personal relationship with the brand’s team which helps you gain the necessary confidence when opening up your franchise.
Greater Organic Marketing
With numerous restaurants and bars opening up, being a franchisee provides you with a shield of security and stability. With a pre-established market, your consumers are spreading the news by word of mouth. Organic marketing helps you expand your brand without having to invest money into marketing. Having a team of other franchisees increases buzz around your franchise and expands your network. Furthermore, since franchises are in various locations, this creates a strong opportunity for you to gain popularity in your area through the help of your colleagues who own the same franchise.
Expanded Possibilities
The recent pandemic outbreak has done a lot of damage to many industries, but franchises stand to take advantage of the situation. Research has shown that restaurant franchises are expected to grow immensely over the next 2 years, driven primarily by newly available real estate, low fees and customer demand for a return to normalcy. This makes sense given how fatiguing the pandemic has been for everyone. As we move ever-closer to a vaccine and other treatment methods for the Covid pandemic, the demand to get out and have fun will be a number one priority on everyone’s mind. This spells good news for franchisees.
Running a new business comes with various obstacles and difficulties. As this blog illustrates, partnering up with an established franchised brand provides franchisees with a greater chance at success with minimal risk. Acquiring a restaurant franchise in Canada helps mitigate a substantial amount of potential risks. Acquiring a franchise where everything has been set-up, practiced and marketed omits the fear of failure. Finally, the golden statement for franchisees: be in business for yourself, not by yourself. Franchisors want to help their franchisees create a sustainable and profitable business by providing them with all the strategies and resources necessary for their growth. The food industry is thrilling, but with the proper support of established franchisors and their brand awareness, you are sure to be thriving in no time.
