10 Reasons You Should Buy A Restaurant Franchise

If you want to venture to a new business, why not buy a restaurant franchise? Did you know that according to data, 63% of the deliveries in cities are for food and restaurants? We’re just talking about deliveries and not the walk-in customers. Imagine the potential of a restaurant business considering that you have a good location and a powerhouse brand name. 

10 Reasons to Buy Restaurant Franchise

There are different businesses open for franchising. We have hotels, convenience stores, real estate, child education, home improvement, consultancy, and mailing & shipping businesses to name a few. But why do you think we encourage you to buy restaurant franchise instead? We listed 10 reasons for you below.

1. You Have Options

Most franchises don’t give you options as to how big/small your franchise location will be. Restaurant franchises, especially fast-food, give you typically three options to choose from. Whether you want to manage a full restaurant-sized location or operate a smaller venue inside of a tripe mall, restaurant franchises give you that flexibility. You can also choose from different types of restaurants to open. Here are some of the most common types.

• Fast Food  – Known as quick-service restaurants. No table service provided. 
• Fast Casual – They typically have a larger menu compared to fast food. Think about cafes and similar food places. They have limited table service. 
• Full Service – This is where people could enjoy a full selection of food and drinks. Payment is usually required after the entire dining experience. 

2. People-centric

If you’re considering a restaurant franchise, make sure you actually like people. Unlike other types of franchises, restaurants require you to constantly interact with people. You’ll need to get to know the customers, the managers, servers, regional managers, suppliers, etc. It’s a business that serves people and naturally requires good people skills.

If you’re looking for something more hands-off, then restaurant franchises might not be a good fit for you. But if you have the gift of the gab, there are no better opportunities.

3. Extensive Training Process

When restaurants open their opportunities for franchise, they provide extensive training and resources to make sure that the franchisee is well-equipped and can handle whatever comes your way during the first year.

The training process can be extensive, again, unlike most other franchises. This can be viewed as a pro or con, depending on your desired level of involvement. More training for both you and your managers mean everyone will be more prepared to handle the customers, follow the processes, and take advantage of the well-regulated systems in place. This will increase your chance of success.

Obviously, you’ll likely make fewer mistakes and be able to turn over a profit quicker the more comprehensive and interactive the training process is. There are few franchise categories that offer the same level of training as restaurant franchises.

4. Turnkey Operations

This isn’t exactly anything proprietary to Restaurant franchises. Just about every franchise is “turnkey”. Restaurant franchises take that to the next level. While most franchise opportunities claim to be turn-key, in reality, there’s a lot of decisions, investments, and processes that you have to tweak yourself due to location and other factors. It’s about 90% turn-key to be more precise.

Restaurants are as close to 100% turnkey as they come. Every single little decision, operation, and nuances have already been thought out and prepared for you right down to the dimension of the floormat. Love it or hate it, it is convenient and helps reduce decision-fatigue for new owners.

Everything you need is basically right in front of you. You just have to follow the system and you are on your way to making a profit. 

5. Easier Financing Process

If you’re trying to open an independent restaurant you’ve probably already been turned down by banks a few times already. Securing financing or loans when trying to open your own restaurant is difficult as restaurants are often seen as high-risk businesses. Restaurant franchises don’t share the same challenges.

Through a franchise, you’ll have a much easier time securing financing and funding. Often times, the franchisors have a partnership with specific financing institutions to help you get the loans you need to get started. You’ll probably get much lower interest rates and higher loan amounts going through one of the preferred partners.

6. Existing Marketing

Since you will franchise a well-known brand or restaurant, your marketing efforts do not need to be grand or costly. The name can speak for itself. Just place signage near your restaurant’s location and you would be surprised how fast the word can spread – thanks to social media.  

7. It’s More Profitable 

One of the benefits of franchising a popular restaurant is that it generates profit faster than when you establish your own. Again, it’s all about the name and it naturally entices customers to eat at your food place. The initial investment may be steeper, but the return of investment is faster and the long term benefits are much greater.

8. Support System 

And once you start your operations, the company will not ‘let you go’. Of course, you have some liberties to decide on the business. But if you need help, the team will always back you up. As much as possible, they want all their franchisees to succeed. Thus, you can expect a strong support system whenever you need it. 

9. Consistent Food Standards 

Food preparation and quality shouldn’t be much of a concern when you buy a restaurant franchise. Again, everything will be provided to you at the onset. This includes a manual on how you and your team must prepare the food, and how you can maintain an outstanding quality of service to your customers.