Catering points are a profitable business, which, when properly organized, is practically not affected by economic crises, since food remains a commodity of prime necessity, and many segments of the population do not have time to cook it. This contributes to the prosperity and development of the restaurant business.
The specifics of opening a franchise cafe
The number of food service outlets is constantly growing. At the same time, more than half of all newly made cafes and fast-food restaurants are franchised. Due to the fact that franchisees use the already debugged business technologies of the parent company, the risks and failures caused by shortcomings in business planning are minimized. Moreover, all the main points of doing business are governed by a specially drawn up contract.
It turns out that the cafe franchise is not only the purchase of a ready-made brand, but also the introduction of well-established and time-tested technologies. This business has its pros and cons.
Advantages and disadvantages of franchising cafes
The benefits of opening a cafe for franchising include:
- Relatively fast return on investment.
- Brand awareness among potential customers. If a popular cafe is opened, then people themselves come, no need to spend energy and resources on promotion and increase of recognition.
The purchase of a cafe franchise does not require the development of its own project, since the parent company advises the subsidiary at all stages of development. Often, the franchisor provides not only a finished project, but also the necessary equipment, raw materials, as well as personnel training technologies and work standards. If credit is planned, then it’s easier to get money for starting a franchise than for starting a business plan from scratch.
The disadvantages are:
- Dependence on the franchisor. Much in this cafe depends on the state of affairs of the parent company. When you open your own cafe, the costs are significantly less. Buying a really good franchise will cost a lot, firstly, because of a lump-sum payment, and secondly, because of the requirements of the parent company for repairs and equipment, which will not allow you to cut the budget drastically, saving on anything.
- Obligations to the franchisor. This is an exact adherence to recipes and customer service standards. Many franchised fast foods are closed due to non-compliance with the requirements of the parent company. It turns out less space for the implementation of creative ideas.
How to choose a franchisor
If you decide to open a cafe on a franchise, then you inevitably face the question of choice. There are companies that specialize in selling franchises. Exhibitions, as well as modern information technology will allow you to easily consider several commercial offers at once. The choice is large, but not always the purchase of an affiliate project guarantees the success of your undertaking. Therefore, initially, at the selection stage, it is worth evaluating the prospective partner according to a number of criteria.
What you should pay attention to when choosing a franchise:
- An important indicator is the age of the company. Ideally, such an organization should successfully operate in the market for at least several years. In most cases, it is not worth contacting with start-up companies that already sell their franchises, since the probability of payback will be significantly lower.
- A wide network of successfully operating cafes. If most franchised points are already thriving, your chances of success will be significantly higher.
- The specifics of the development of a particular brand in your area. The presence of demand or the ability to generate demand for the goods sold.For example, it may well be that in your city there is still no excellent pizzeria, while many would like it to be. Or if there are a lot of fitness centers in your area, you can pay attention to the franchise of a healthy food cafe.
- The degree of support by the franchisor, all of which are specified in the contract. In Russia there is no legislative act on drawing up a franchising agreement. The “commercial concession agreement” is often used - the act of transferring ownership of a trademark, service mark and production technology. This is not a franchise agreement, it does not imply support at all stages of the development of your project. Therefore, it is worth writing the contract as concretely and clearly as possible in order to protect each of the parties.
- The presence of a detailed business plan and a system for evaluating the effectiveness of the project.
Often, for start-up entrepreneurs, the price of a lump-sum payment is important. But, as a rule, the more successful the project of the parent company, the more famous the brand, the higher the price. Although there are exceptions. You can find an interesting and well-known developing project, which is worth investing in, despite its youth. In this case, the lump-sum price will be lower, and the payback will remain high.
Business plan
Despite the fact that the parent company has and provides its franchisees with a ready-made template of a business plan, on its basis it is worth developing your own, taking into account all the features of a particular point, region, traffic intersection and possible investments in the project. This will allow you to realize the amount of work awaiting you, as well as anticipate possible difficulties and pitfalls in the development of the project.
Cafe popular today
At the moment, in 2018, the trend will be food with home delivery. If you are in a big city, you can consider such offers of franchisors.
Also popular are: Asian cuisine, fast food franchises, pizzerias, burgers, ravioli, coffee houses and pastry shops. Cafes are especially popular and quickly payback if they are located in areas with a busy business life: business complexes, educational institutions, and so on.
An equally popular option is the franchise of a children's cafe - a cafe where you can not only eat, but also play, draw and in some cases leave the child under supervision.
Thus, choosing one or another franchisor, you should be aware that you will work under its brand and be responsible for observing all the rules and norms of the parent company. Nevertheless, buying a franchise significantly reduces the risks of failures and miscalculations, which is ideal for aspiring entrepreneurs.