Could A Food Franchise Be Your Recipe For Success?

If making money from food appeals to you, there’s almost certainly a food franchise opportunity that will be a good fit for you. Looking at the number of different search phrases on Google, it certainly looks like food and restaurants attract the most interest from potential franchisees.

There is everything from home food delivery, fast food outlets, full service restaurant franchises, right through to health food and vending machine franchises.

There is a problem with this wide choice though – as well as some of the very strongest franchise brand names and business systems, there is so much demand for food franchising that there are bound to be a few “here today, gone tomorrow” operations that you really want to avoid.

So how do you figure out where to invest your hard earned money?

The first thing to do is to consider what kind of franchise entrepreneur you are. Are you happy to take a risk with a new fashionable food idea, or do you want something that’s been around for a while and is a staple part of our diets?

Just consider what happened to McDonald’s when food fashion changed around the end of the 1990’s. The restaurants struggled to keep their customers and many outlets closed. It took a huge investment from the franchisor to re-invigorate the brand with new menus and a big marketing campaign to get things back on track.

It’s all to do with fashion – our tastes change over time, fads come and go (remember the Atkins diet that everybody was on a few years ago?). So choose carefully when buying into a food-based franchise, you want something with lasting power.

Another factor to consider is how much focus your franchisor has on your success. For example, while McDonald’s restaurants routinely generate good profits, the business has a reputation for being the world’s biggest property investment business, so will their interests always align with yours in terms of profit generation?

And this leads to another key lesson – your franchisor is not in the same business as the franchisees. It’s your job to sell the products they develop and deliver to you.

It’s their job to sell more franchises – just make sure that they’re the kind of franchisor who also cares about keeping you happy and profitable.

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