FRANCHISE FRANCHISE

In the restaurant industry today, it seems more, and more people are jumping in the boat of the next big "Deal" franchise. The opportunity defiantly exists to deploy a well known name, and a established menu to consumers without the hassle of starting out with a blank slate. It sounds good, and it can work in the right place, and geographical area. Just realize, there is more to just investing your money in a trusted name, and thinking that alone will produce a productive return. Before you salute the captain, and get on board, do a little investigating.

Royalties anyone? All franchises in exchange for their name, and logo will expect a percentage, or monthly fee for the use of their name, and slogans. Just make sure it isn't going to increase, or strangle your profits. After most chains will not go up in smoke in a dedicated market, but will eventually slow in the sales of their franchise. The slower their franchise sales, the higher the percentage of royalties they expect in return. Buying in early might be better, than waiting if you plan to go for a well known name.

Corporate Backing? Most places claim to be willing to help you with every step up to opening, and any problems you may end up facing with production, and deployment of their franchise. Take a little time, and research quite a bit into the company you've selected, and it's history. Don't take the pamphlet they hand out for granted, take notes, and make phone calls. Double check with other owners of these establishments. A simple phone call to a establishment, franchised out to another person, might swing your opinion before you sign the papers. Ask to speak to the owner, and ask questions about corporate support, and contributions from the main head quarters. If the answers are less than perfect, you might need to look else where.

Good Area to Implement the Franchise? Just because the franchise is established, and the name is well known. It does not mean your place will stay afloat. Many franchises are doing good in their neck of the woods, but will it's style survive in yours? A good example would be the Corky's BBQ Franchise. A southern state established company that does well in their area, but take it further up north, and it seems it might not do so well. As is the case with Corky's in East Peoria, Illinois. Owned by Gary Matthews of Emproperties, they were facing the breaking point, and there wasn't any real corporate support coming at all. Their issues and concerns are great, but after consulting for them earlier this year, it seems the style would be better suited in a more rural area, and further south. This particular place is the furthest northern franchised restaurant in the Corky Pig Corporation realm.

Ethnic Population Targeted Food? Mexican food will be better received in a ethnically correct Mexican populated area, right? Not exactly, the idea sounds good, but everyone eats everything, and a demand for a more culturally diverse menu may be better received. Before making that choice in area implementation, think about the density of the ethnic population. Opening a Hispanic styled restaurant in a more diverse area will most often bring better traffic, than just setting up in a Hispanic dense area. Also, a complete opposite look at ethnic targeting, would suggest opening a Hispanic style food chain in a completely different ethnic area. Hispanic food may draw better attention in a densely Asian population. I am not suggesting that you target ethnically dense area's, with the complete opposite food items one might expect to find, but opening the door to a diverse population with a change in primarily found food items is a good step in bringing business to the door. Pizza is a good example of a food item that will cover all the bases. An ice cream shop is a great example of delivering a ethnically dense population a choice that can bridge the gap.

Small Towns -vs- Big Cities: Stand out, or be part of the scenery! If you have the opportunity to open a restaurant, don't set your anchor in just the busiest area. Yes, traffic is important, but when you have an area with many different restaurants set up all around you, your looking to get a small percentage of the areas traffic. Look towards the outlined areas of the city. A small town will not only appreciate the growth, but save people from driving for miles to quench their dinning out needs. If you go for the big city spin, a good mind set is to offer a choice in food style that is everything "but" what can be found in the area. Just keep in mind, after four or more restaurants open in one area, they blend in. So make your choice based on local needs, and local competition.

There are an abundant amount of ideas out there, and established operations that work without having to buy into a franchise. Hire a consultant first, and try to make that blank slate a design of your own, and who knows, maybe your establishment will be the next big "DEAL".