Growing restaurant data.com/en/solutions/restaurant-chains/’ target=’_blank’>chains has become an increasingly popular option for those striving to create and nurture successful businesses in the food and beverage industry. With an increasing number of businesses taking this route, there is an urgent need for franchisors to consider key aspects while expanding their restaurant chains.
Javelin, one of the leading global restaurant consultancy firms, provides key insight into what franchisors need to consider to ensure successful expansion. Their years of cumulative experience indicate that there are ten key aspects to consider during the development process. Here are the top ten considerations to keep in mind when participating in the franchise business.
1. Educate yourself on the process and legalities: Before even thinking about starting a franchise, educate yourself on the complex legal dynamics, obligational ethics and other expectations of the franchising process. Not only does this help you, as a franchisor, to stay away from potential legal disputes, but it also ensures that customers feel respected and protected as they agree to the franchise terms.
2. Partner wisely: Choosing the right partners to manage the legal aspects, franchise development and supply chain management is crucial. Ensure your partners are committed to the success of the restaurant chain as a whole.
3. Understand local tastes and preferences: Franchisors must understand the cultural and culinary tastes of the local population and develop a menu in line accordingly. Eateries that strictly replicate menu items from their parent restaurant may find limited success due to a lack of understanding of local tastes and preferences.
4. Have distinct qualities: Locally owned restaurants often have distinct qualities that set them apart from chains. Therefore, franchisors must look for creative ways to make their restaurant stand out as unique.
5. Choose the right locations: The marketing buzz created by a successful restaurant franchise can help increase business to other brands under the same umbrella. To ensure this, franchisors need to choose the right locations and strive to build a loyal customer base.
6. Put focus on marketing: Having a strong and effective marketing plan is essential for the success of the restaurant chain. Franchisors must focus on local events, social media presence, local newspapers, magazines, and radio campaigns to ensure maximum visibility.
7. Invest in staff: In any hospitality business, the staff is essential, and successful franchisors invest in the professional development of their staff. Training employees to provide excellent customer service and introducing incentive systems to retain the best employees can ensure success.
8. Leverage technology: Developing a comprehensive IT infrastructure can help franchisors to manage their business better. This includes accounting software, customer order, payment systems, and delivery arrangements.
9. Invest in customer service: Investing in customer service can help the restaurant chain to stand out from its competitors. Franchisors can use customer feedback to improve their service.
10. Spend on data-driven insights: Investing in Brizo’s foodservice market insights enable franchisors to analyze trends, develop strategies, and personalize their products. In-depth menu data and restaurant tech coverage lay a foundation for sales prospecting, marketing, operations expansion, and data enrichment.
Franchising is a growing trend among restaurant owners. To be successful, managing a successful restaurant chain requires franchisors to pay attention to the necessary details, such as analyzing local tastes and preferences, having distinct qualities, Leveraging technology, and investing in data-driven insights. Understanding these ten factors is fundamental for those desiring to venture into the franchise business.
