Posted in restaurant franchise on June 17, 2011
What’s often said of property for investment is also said of a restaurant franchise opportunity – the keys to success are three things – location, location and location!
On top of that, with a franchise food outlet you’re also going to want a recognisable brand name that will attract customers into you, rather than your competition. That brand name must communicate the type of food, the quality of food and the level service that your customers can expect.
So what do we need to think about for your great restaurant location?
Menu Of Your Short-Listed Restaraunt Franchises
First things first, you might want to think about your menu. You see, an ice-cream parlour is a great choice for a Florida beach, where temperatures are hot all year round, even in winter. But a hot food restaurant will be a better choice for a colder climate. Just think this part through before you get over-excited.
Are there enough people locally, and are they close enough, to make your restaurant a viable business? If there aren’t enough people to keep your tills ringing all day long, you’re going to struggle to make a profit. The busier the location, the higher the property cost but the higher the potential customer base and profits.
It is possible to commission a professional survey of the area to find out the population and also the demographic mix (age, race, prosperity etc to make sure you’ve got the right kind of potential customers locally). If you’re about to make a big franchise investment, often the franchisor will help you to do this and will have appropriate systems to check out your locations. Before spending the money, though, you’ll want to make sure that the sums add up from your own informal survey of the place.
Parking & Ease Of Access To Your Franchise
Once you’ve found a great place that seems to have lots of potential, make sure that people can get to you easily. It’s no good offering a service that people want if there’s no simple way for them to shop with you.
A local Dominoes pizza outlet that we know is forced to do 90% deliveries because they’re on a high street with no parking anywhere near. Even offering a huge discount on picked-up pizzas does not help, because the hassle factor is just so high, people are willing to pay the difference to avoid the inconvenience of having to walk after parking.
For this very same reason drive-throughs can prove highly popular – if you can stay in your car, you’re really in your comfort zone and the hassle factor is almost zero.
Visibility For Your Franchise Signage
Any restaurant has to fight with other businesses around to get noticed. If your signs cannot be displayed loud and proud to tell people you’re there, you’ll miss out on huge swathes of foot-fall and business. It’s especially important in the first couple of years of trading, as you want people to notice that you’ve arrived and to beat a path to your door.
If they never see you, they won’t know you even exist and so you’ll struggle to get their attention.
If you can find a location that satisfies all of the above, you’ll be investing wisely in a location survey with your franchisor. At least they shouldn’t waste your money, and that’s a very positive start for researching restaurant franchise opportunities.