How To Run A Successful Restaurant Franchise — 10 Essentials For Sustainable Growth

#1 Protect Your Company’s Intellectual Property

Secure your exclusive right to use the trademark.

How To Franchise A Restaurant?

Develop your franchise using a proven roadmap for franchisors.

#2 Cover All Bases In A Detailed Business Plan

A solid business plan is integral to winning the franchise game.
  • How many restaurants do I want to sell, and at what rate?
  • Where will my franchises be located?
  • Which staff structure will I use?
  • What kind of support will I provide to franchisees?
  • How will I market your franchise?
  • How will I ensure consistency and carry out quality control?
  • Devote enough time to training
  • the expected growth rate for (at least) the first year;
  • the estimated restaurant cash flow;
  • the expected payback period.

#3 Develop A Comprehensive Manual For Franchisees

Consistency is crucial for a successful franchise.
  • general workplace requirements;
  • the restaurant concept, your vision, and mission;
  • opening and closing procedures;
  • uniform and equipment requirements;
  • info about suppliers and sourcing;
  • Food regulations, from preparation and service, to storage and sanitisation;
  • safety and hygiene guidelines;
  • service procedures;
  • food production requirements, including recipes, portion sizes, and presentation guidelines;
  • pricing information;
  • interior design and appropriate furnishings.

#4 Write A Bulletproof Franchise Agreement

Hire an expert to ensure the agreement covers everything that is legally required.
  • the names of both franchisor and franchisee;
  • the duration of the franchise collaboration (and renewal options);
  • your franchise model: how it will operate, geographies, marketing strategy, etc.;
  • fee structure of licensing fees, royalties, and any additional fees;
  • a Franchise Disclosure Document (FDD) that outlines your company details, legal history, corporate structure, etc.;
  • your operations manual;
  • a list of supporting activities and resources you will provide to your franchisees for the entire duration of the agreement;
  • legal responsibilities and tax regulations for both parties;
  • rules for selling the franchise;
  • procedures to be followed when franchisees violate the contract or upon termination.

#5 Create A Marketing Strategy No Investor Can Resist

Capitalise on your brand’s strengths, solid financials, and growth potential.

#6 Invest In The Partnership With Your Franchisees

Provide ongoing support and training.

#7 Training Is The Cornerstone Of A Successful Restaurant Franchise

Build a robust training program in support of your operations manual.
  • the corporate history,
  • the company mission, values, and culture,
  • opening procedures,
  • daily operations,
  • KPIs and reporting requirements,
  • and many more.
  • webinars,
  • field training,
  • on-site visits,
  • conferences, and
  • classroom refresher sessions.

#8 Use Technology To Scale More Efficiently

Technology allows you to manage orders quickly and efficiently, while generating in-depth insights.
  • Product development software, for example, allows franchisors to create a scalable recipe database that can be rolled out to all locations, boosting product consistency and cutting food costs.
  • And inventory management tools can help you keep track of inventory at each location to keep food and beverage stock accurate down to the raw ingredients.
  • A central production kitchen allows you to buy ingredients in bulk and prepare batches to distribute to your locations. Since most of the cooking gets done in the central production unit, your outlets require less staff. Central kitchen software will streamline logistics, keep track of internal orders and automate stock.
  • Another asset to franchise restaurants is production planning software, which enables you to set up fully calculated production plans in one place for all your outlets. These help you ensure consistency across locations while saving kitchen staff time.
  • Other valuable features of innovative restaurant management solutions include centralised HACCP task management that helps you monitor food safety procedures in one workflow.
  • Procurement automation eliminates purchasing mistakes in your corporate and concession outlets.

#9 Be Open To Feedback

Franchisees often bring years of know-how to the table.

#10 Put Together Your A-Class Franchise Support Team

They will help you build and execute a winning franchise strategy.
  • an operational franchise manager
  • marketing and sales professionals
  • a real-estate expert
  • additional HR support
  • a public relations expert

Look Before You Leap

  • Do I have a unique and well-defined business concept that is attractive to budding restaurant entrepreneurs?
  • Can a new (and potentially inexperienced) team consistently replicate my brand, menu, and overall guest experience?
  • Can I demonstrate a strong record of profitability and success in multiple locations?
  • Will franchisees be able to get a good ROI from their restaurant?

Take Out The Guesswork Of Running Successful Franchise Restaurants

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Geert Merckaert

Geert Merckaert

8 Followers

I write about F&B Management Best Practices for Multi-Unit Food Businesses. My goal is to help you keep costs down, quality up and operations running smoothly.