The catering industry is most suitable for scaling using franchising tools. In any ranking of franchises, traditionally in the “top 5” list you can find two or three restaurant franchises.
The vast majority of our franchise packaging projects have been implemented in the catering industry. In this article we will look at the content of a franchise development project: we will look at the main stages of the project, the contents of the franchise package, and most importantly, we will try to share life hacks that will help you in developing your restaurant franchise
Restaurant franchise package
Let's start by looking at the franchise package. What specific elements should a restaurant franchising program include so that a franchisee can truly recreate the business of the franchise founder and be successful along the way?
Financial model
A very important document for every franchise, but even more so for a catering franchise. The financial model shows how much investment is needed to start a business, what kind of revenue you should expect, and in what timeframe you should expect the return on investment for the franchise property. For catering facilities fin. The model is very important because it fully reflects how the processes within the enterprise are set up and whether the buyer will receive an advantage in the market by joining such a franchise program.
Terms of the franchise program
Franchise terms are developed based on a financial model. The conditions must be developed taking into account the interests of both parties, only in this case the network will grow and develop.
Often the franchise founder makes the mistake of considering only his own interests. In the long term, such a network will not show significant growth.
In my experience of selling a catering franchise, there was a case when I sold a franchise to an entrepreneur, who subsequently brought two more of his friends from different regions, who also bought a franchise. This is because the franchise is profitable and the conditions are favorably combined with the profit that this franchise brings.
Commercial concession agreement
Catering is a very complex business due to the large number of internal processes. All of them must be recorded in the commercial concession agreement in order to define the boundaries of cooperation within which the franchisee must operate.
Brand book
When choosing a franchise, an entrepreneur wants to join a bright, successful brand. It is in the brand book that the rules, standards and principles for using the corporate identity of a restaurant company are described. A franchise network needs a brand book primarily to ensure uniformity of the network: so that all signs, booklets, and interiors are made in the same style, regardless of whether a particular facility is located in Moscow or Novosibirsk.
Guideline
In order for the franchisee to clearly understand how to open a franchise facility, how to conduct operational management and conduct business in accordance with your rules and standards, he needs to be given a manual with a step-by-step description of each step. Only in this case can we expect that the partner will do the right things and be successful in this business in principle.
Lifehacks for packaging restaurant franchises
We’ve sorted out the contents of the franchise package, as promised, I’ll give you a few tricks that will help you package your restaurant franchise.
Involve all key employees in the development process. If employees do not perceive this project as their own, they will not accept it after its completion. In any of our franchise development projects, we create a working group that includes our employees and our customer’s employees.
Be sure to conduct research on target audiences of two groups:
guests who will order your food
potential buyers of your franchise.
Only by relying on their opinions and requirements can we make a really working product.
Give your franchisees a way to achieve wealth. Your success lies only through the success of your franchisee. Any other schemes where only you get all the money are doomed to failure.
Try to make a mass product. A franchise is about big numbers, numerous networks and massive openings. Experiments for the sake of launching two or three partner outlets usually do not work.
What does a franchise give to a restaurateur?
1
Expand the regional presence of the brand
2
Build a team of partners interested in results
3
Attract additional resources from contributions and royalties
4
Make a profit from deliveries
5
Gain federal recognition of the restaurant brand
Cases
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