When you embark on a business venture into the restaurant industry you will have two business paths to consider. You can either create your own restaurant from scratch or you can franchise a restaurant that always exists. One important thing to know is that restaurant franchises are also commonly referred to as chain restaurants. It is a good idea to explore the benefits and drawbacks of both options when you decide to open a restaurant in order to figure out which business path is the best one for you to take.
Starting An Independent Restaurant
Starting an independent restaurant means you are doing just as the name suggests: you are starting a restaurant completely on your own. There is no better way to demonstrate being a true entrepreneur than to venture out on your own and become the owner of an independent restaurant. An independent restaurant should be a unique creation that doesn’t mimic the main concept of another restaurant. Sure, you can open up a fast food restaurant even though there are many different ones in existence, but when you do, you should try to set yours apart from all the rest.
According to Food Service Warehouse, starting an independent restaurant tends to be a job that is reserved for individuals with a very specific personality. If you have a competitive or somewhat aggressive personality, starting your own restaurant may be a good fit for your life. This role is also ideal for someone who many might consider a “workaholic”. It is important to keep in mind that owning an independent restaurant is a high stress job. You are going to be in charge of the financing, branding, designing, marketing, and training that goes into creating a successful restaurant. So once you decide to start this venture, it’s serious business and a lot of hard work!
While starting an independent restaurant is definitely a lot of work, keep in mind that all of the work you do is your own work. In other words, you own the rights to everything and you are entitled to all of the profits that are made. In general, the more time and effort you put into your restaurant, the more money you could make.
Franchise An Existing Restaurant
Franchising an existing restaurant is when you purchase the rights to use the restaurant’s name, logo, and marketing material in order to make your own profit.
Deciding to franchise an existing restaurant is ideal for an individual who wants to own a restaurant, but does not have a lot of experience when it comes to all the business aspects behind creating a strong foundation for one. One important thing to keep in mind with deciding to franchise an existing restaurant is that you must have a certain amount of personal wealth. For example, Checkers Franchising requires you to have a minimum net worth of $750,000 in order to have a chance to own a franchise.
Taking the franchise route is ideal if you consider yourself more of a team player than a leader. A franchise restaurant already has management and training systems in place, so you don’t have to create them. As long as you can read manuals and follow rules, you should be able to understand how your franchise works and what makes it successful.
Believe it or not, this is also an ideal decision for someone who does not have a lot of experience or knowledge regarding the restaurant industry. It will be easier for you to learn the way that the specific restaurant works if you do not already have techniques and experiences of your own. Naturally, franchise restaurants are not going to be for everyone. However, they are certainly a lucrative business venture to consider.
Whatever decision you make, you should be sure to think about it thoroughly. Both options have their benefits and their downsides and you may be more suited for one than the other. Both can be lucrative opportunities, but money will not come without hard work. As long as you are willing to invest the time, money, and interest required to run a restaurant, you have a great chance at being successful.