Quick service restaurants (QSR), also known as fast-food restaurants, are among the most ubiquitous markers of the modern age. Head to any place from the large cities to the small suburban towns, and you’re guaranteed to spot at least one chain in each stop.
Because of this, there is no shortage of QSR franchise opportunities to earn a profit when going into business. Specifically, many industry experts advise obtaining a franchise for an already-existing chain. This means that you do not have to set up your own fast-food restaurant brand from scratch. Instead, you buy the right to open up a branch of a chain that is already established, such as McDonald’s or Burger King.
Running a fast food franchise, however, still requires much planning and work if you are to succeed. Hence, it is advisable that you carefully consider your decision before you start the process of buying a franchise.
Here are some things you ought to know first before you finalize your decision:
1. Make sure you are ready.
If you are going into business purely for the sake of earning money, then there is little chance you will end up successful. You must be completely sold on your idea and determined to make it work.
That said, as with anything else you choose to pursue as a career, it is important that your choice of a franchise is in line with your skills and interests. First, as it is a food franchise, you must have a basic knowledge of food preparation and the equipment required. You must also be familiar with trends in food as well as what appeals to people. If you are not yet knowledgeable in these aspects, it is recommended to do your research first and see whether or not you can make your idea work.
2. Be prepared to invest.
Like any other business, setting up your franchise requires a sizable capital investment. First things first are the franchise fee. If you are franchising a popular or well-known chain, this can easily go up to the hundreds of thousands of dollars. Hence, you must also choose whether you want this expensive but proven brand, or to take a chance on a lesser-known but cheaper option.
Depending on the franchise you choose, your startup expenses may vary. Some franchisors may provide equipment and training in the franchise fee, while others pass the responsibility of procuring these onto the franchisee. Hence, you better study the financials of each option carefully to see which will get you the best deal in the long run.
3. Location is key.
Contrary to popular belief, most of the time, the biggest factor for a restaurant to be successful is not the food per se or even the brand, but the location. After all, people would normally want to try out restaurants that are conveniently located from where they are. You would be hard-pressed to find a large group of people who are regularly willing to go out of their way just for a meal.
Because of this, it is important that you have a good location picked out first. You should also study the market around there to make sure it matches with your desired choice of menu. Once these two come together, you have the perfect foundation for a successful QSR franchise.
Setting up and running a restaurant franchise requires a great amount of time, effort, and commitment. With the right attitude and skills, however, there is nothing stopping you from turning this into a successful business.