Is A Fast Food Restaurant a Good Investment?

You can think of fast food as a pit-stop for people. The whole point of fast food is to quickly satisfy your customer’s hunger with a tasty, cost effective meal that they don’t have to wait around for. That’s precisely what the fast food franchise opportunity is all about – cashing in on people who are just passing by.

So some important factors to consider here if you want to be successful in fast food franchising are:

Location – you’ll want to be near to lots of passing traffic, either on a road or in a busy shopping location. You can also get great business by being close to a destination point like popular cinemas or theatres.

Brand Name – it’s an interesting exercise to watch an old independent fast food shop die a slow and painful death when a strong brand name fast food outlet opens up in the same street. Go for the best brand name you can afford, because fast food is a fashion item and the top brands are unlikely to go out of fashion anytime soon. Be careful though, of jumping onto a new trendy food just in case it’s a flash in the pan, rather than something that’s going to be around and popular in 5 or 10 years time.

Franchise System – Check that the franchise you’re looking at actually runs it’s own outlets somewhere, as well as selling them. They’ll need their own outlets so that they can properly control, test and measure new systems, products and services. Without the control that comes from directly running their outlets, there is a risk that any changes will be badly tested, poorly formed and will not operate effectively when they come to your outlet.

Franchise Consistency – When you’ve chosen a franchise, make the effort to visit a few outlets to see just how consistently they operate. The very best franchises will give the most consistent service, product and customer experience overall. If the franchises seem significantly different, or staff seem sullen or unhelpful at more than one branch, it’s probable that the system and control over it is less than ideal.

Food Trends – Do you believe that the franchise is a good long term bet or a short term food “fad” that will die out after a short period of popularity? Also, if it’s a niche food, are there sufficient numbers of potential customers who are likely to be long term committed buyers of your products, or will numbers struggle in the location you’ve got in mind?

As well as the specialist aspects of the restaurant franchise, there will also be the normal franchise negotiation and due diligence process. It’s this that catches so many potential franchisees out, with sharp-suited sales people selling poor quality franchises, leaving you stuck with a bad deal. Make sure you get your free copy of The 7 Myths of Franchising by entering your email in the box at the top of this page.

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