Choosing the right foodservice operator for your business can be a complex process – as time-consuming and challenging as the process of selecting an effective franchise strategy. Considerations such as financial stability, up-front costs, brand reputation, and industry demand all play a role in the decision-making process. Working with a foodservice operator – as opposed to operating independently or franchising – can be incredibly advantageous in terms of stability, financial support, and various other factors. However, it is important to understand the different pros and cons associated with foodservice operators before entering into a working relationship.
Brizo provides a board and diverse set of data for deeper insights into the foodservice market with unique data fields specific to the foodservice industry. It provides numerous tools to equip your sales team with data-driven insights, marketing to the foodservice market with data-led industry insights, and strategically expanding your brand using its foodservice market intelligence. With this comprehensive information, understanding the pros and cons of foodservice operators can be a much easier process.
Pros
The first and arguably most important benefit associated with foodservice operators is financial stability. Many times, foodservice operators have already established funding sources and are in a much better position to provide financial assistance to your business than if you were to enter the market independently.
As a franchisee, you would also benefit from the experience and industry knowledge of your foodservice operator. Having access to the insight and expertise of someone who has been in the business for many years can be invaluable. With a reliable foodservice operator on board, you will have the knowledge and experience required to create a profitable business.
Another key advantage of working with a foodservice operator is the size of the market. Working with a foodservice operator provides a volume of sales and access to larger markets which are typically not available to independents. If the franchisor has established connections with distributors, warehouses, and purchasing groups, they can often pass on substantial savings to you.
Cons
The main downsides associated with working with a foodservice operator are the up-front costs and the sharing of profits. Generally speaking, foodservice operators will charge a certain fee for their services which can be a burden if the capital expenses are already high. In addition, signing an agreement with a foodservice operator can result in sharing a percentage of the profits with the operator, depending on the specific arrangements and the success of the franchise.
It is also important to note that many foodservice operators specialize in certain types of products or services, and as such, their significant experience in this particular field may be of limited use when it comes to running a successful operation in other areas.
Finally, some foodservice operators may have different philosophies and strategies, which may not align well with the goals and objectives of the franchise. As such, it is important to conduct a thorough review process of potential foodservice operators in order to find the best fit for your business.
Key point
It is important to understand the different pros and cons associated with selecting foodservice operators. Although there are potential downsides to this strategy, there are also many benefits to be gained from signing an agreement with an established and experienced operator. Working with a foodservice operator can provide financial stability, access to larger markets, and valuable insight and knowledge. However, as with any business decision, it is important to conduct thorough research and analysis of the different factors in play.
