 |
 |
 |
 |
A Slice Of Sucess
A Slice Of Sucess
By Elaine Rose on September 14, 2009
When any franchisee looks at purchasing a franchise one wants to make sure that their investment can survive various economic climates. A fast food franchise often serves that purpose. Upscale restaurants tend to suffer in bad times since consumers become more cost conscious. Fast food restaurants become the next best option.
An article in The Australian while discussing a bad economic climate was quoted saying, “This is a great time for fast-food outlets to catch a bigger share of the market as more people turn to less expensive items such as hamburgers, pizza, chicken meals and sandwiches.”
Of the fast food conglomerates, the Pizza industry proves to be a profitable investment. There is a pizza for almost every occasion. When you are celebrating a promotion at work, when you are with the boys watching a match or when the family gets together. The convenience of this creation is what makes it indispensable. Even when you’re pinching pennies the affordability of the pizza is what makes it an attractive option.
Yes it is true that in recent past with rising prices of gas, cheese, wheat and other ingredients required by the industry the percentage of profit made by the owner were slashed considerably. However things have gotten better today, even though the economic slump may have not completely passed.
With consumers trading in upscale restaurants for more affordable options owners can look at capturing this new budget minded consumer segment. They can offer rebates, value meals etc. They can also look at acquiring additional income by offering product add on in their menus such as pasta, wings, sandwiches, appetizers etc.
When looking at setting up a fast food business there are a number of things one would need to consider:
Certificates & Licenses
There are heath and safety issues that need to be considered when opening up your own fast food place. Hence, you are required to get various certifications.
Location
Where would you like to set up your business? This would largely depend on what you plan your target demographic to be.
Menus
What variety of meals do you plan on offering?
Suppliers
Building good contacts with food suppliers required for the business.
Marketing & Advertising
Where and how do you plan to advertise to create an awareness for you business?
Having to do all this could prove being a herculean task. However, having franchisor support that has already established systems in place could make establishing this business a lot easier.
When it comes to securing certification you have the franchisor to guide you with what you need to do. Some franchisors offer site selection as a part of their franchisor support. Menus will be provided as a part of the franchisor offering. However, having an established base of suppliers could prove to be one of the most advantageous parts of having franchisor support.
While choosing a franchise you need to take into account your priorities, your financial constraints as well as what kind of business you want to be in.
First of all you have to decide what kind of food/hospitality business you want?
• Dine In
• Take Away
• Delivery
A Dine In restaurant comes with additional cost such as restaurant maintenance, staffing, furniture, fitout, etc. However a dine-in restaurant gives you the option of earning income through delivery as well as walk-in and take-away customers which is restricted with a delivery place.
And one of the last things you need to consider – do you want to be in the health industry or not. At the moment there seems to be a growing demand for healthy food/meals. However, if you do choose to specialise and cater to this specific demographic then make sure you pick where you are located carefully. For instance, if you have an organic food business make sure you have your restaurant is in a location that is known to have a demand for organic products.
Make sure you make your decision of what type of business you want before you start looking for a franchise. Once you know what you want, selecting a franchisor who can give you what you want becomes a much easier exercise.