Understanding the Pros and Cons of Working with a Food Service Operator

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Food Service Operator

The foodservice market is an ever-changing and competitive landscape, especially for entrepreneurs looking to gain a foothold. Partnering with established food operator partner or existing brand can be simultaneously beneficial and detrimental to your business success. As with any business decision, there’s no “one size fits all” approach and understanding the balance of working with a food service operator is essential.

Companies within the food service industry often utilize data-driven insights and analytics for informed decision making – such as Brizo, which provides a board and diverse set of data for deeper understanding and analysis. With unique data fields specific to the food service industry – such as in-depth menu data and restaurant tech coverage – utilizing such services can help level the playing field when considering a food service operator partner.

With this article, franchisors will be equipped with the knowledge of understanding the pros and cons of working with a foodservice operator, streamlining their business journey and helping to make prudent decisions for their business.

The Pros of Working with a Food Service Operator

There are many positives in working with a current or potential food service operator partner. With an established operator’s network, there are quickly-available resources, from experienced personnel and locations, to the brand recognition of an established set-up. With an existing operator partner, there is the chance to facilitate production innovation and expand strategically thanks to the market intelligence already available.

Partnering with an existing service operator partner can also provide added incentives such as code of ethics, national representations, and alliances with organizations. In short, a food service operator partner is usually an experienced and reliable ally, which can accelerate the entrepreneurs’ road to success.

The Cons of Working with a Food Service Operator

Naturally, there are downsides as well as upsides to a food service operator partnership. With an existing operator partner, due to their years of experience, their own beliefs and opinions can be difficult to change. Additionally, due to the already-existing infrastructure, resources are limited – it may be difficult to make further investments or to make more ambitious decisions, as there may be reservations about a budget or scope. Additionally, although experience can be invaluable and allow for access to greater resources, it can also form a barrier to progress – putting a premium on innovation and potentially retarding potential initiatives.

What to Consider Before Entering Into a Food Service Operator Partnership

Understanding the pros and cons of working with a foodservice operator is not enough – it’s important to consider all options carefully. It’s worth considering whether an existing operator partnership is the only solution to success; could a franchise model work better? Understanding local opportunities, comparing data-sets and identifying target locations are incredibly useful when making decisions.

It is also worth assessing the risk environment. By understanding key competitors, preference for the brand, market restrictions and regulations, entrepreneurs can secure a clearer view of the market landscape in order to make pragmatic decisions concerning their future.

Wrapping up

Working with a food service operator can provide a lifeline to entrepreneurs within this market. Yet it’s important to consider the pros and cons of the decision; weighing up the opportunity cost vs the risks. Informed decision making, based on market intelligence and research, can help to make the journey less risky for budding entrepreneurs – ensuring they make the best decision for their own business.