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6 Differences Between Restaurant Franchise Ownership and Traditional Restaurant Ownership

Aug 15, 2016

If you’re thinking about getting into the restaurant business, then you’ve got two options: You can start your own restaurant and work hard to build it from the ground up, or you can invest in a restaurant franchise. The following are six differences between owning a traditional restaurant and franchise ownership:

franchise ownership

1. A Restaurant Franchise Has an Established Menu

If you decide to start your own restaurant, then either you or your chef will need to create a menu. This is a lot more difficult than it sounds. You’ll need to take into account all kinds of factors, including the type of restaurant you’re running, the type of food your target customers want, and the cost of the ingredients versus the price range of your menu. Not to mention that you’ll most likely have to tweak your menu over time. With franchise ownership, the menu is already established.

2. A Restaurant Franchise Has Established Branding

Customers will already be aware of your restaurant franchise because the franchise has an established brand. This will make attracting new customers much easier than when building a restaurant from the ground up. If you own a traditional restaurant, then you’ll have to work extremely hard to establish your brand identity and to increase brand exposure.

3. Restaurant Franchisors Provide Support to Franchisees

A high percentage of traditional restaurants fail within their first year. It’s the nature of the business—traditional restaurant owners often don’t have the experience or the resources to navigate many of the obstacles they have to overcome to ensure their restaurant survives. With franchise ownership, you’ll have the backing and support of the franchise. This means that you’ll receive the training that you need to manage your restaurant franchise effectively. In addition, the franchise will be able to guide you through any obstacles you encounter.

4. Restaurant Franchisees Benefit from an Established Marketing Plan

Trying to figure out how to market your traditional restaurant to attract new customers is extremely challenging, especially if you don’t have a marketing background. You risk wasting a lot of resources on advertising that simply doesn’t work. Franchises have established marketing plans that have been proven effective, which means that all you have to do is follow your franchise’s marketing plan. You’ll also benefit from the franchise’s national marketing campaigns, in which you may not even be involved.

5. Restaurant Franchises Have Established Customer Bases

Traditional restaurant owners have to build their customer base from the ground up, whereas a franchise restaurant owner has a built-in customer base. Customers who eat at other franchise locations won’t hesitate to eat at or even to seek out your franchise restaurant location.

6. Restaurant Franchisees Don’t Need Extensive Food Service Knowledge

If you plan on starting a restaurant from scratch, then you better have an in-depth knowledge of the food service industry—or be partnered with someone who does. Otherwise, your restaurant is very likely to fail.

With franchise ownership, you don’t need this kind of in-depth knowledge. The franchise will provide you with extensive training on how to manage your franchise restaurant, allowing you to focus on the business side of things without worrying about the details of food service.

Investing in a restaurant franchise is much different from running a traditional restaurant on your own. You could argue that franchise ownership is a less risky proposition. For more information about franchise ownership, visit us at Pretzelmaker today.





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