Pros and Cons of a Restaurant Franchise

For example, you might have seen McDonalds restaurants at different places nearby you. All these restaurants are not directly run by the owner of the restaurant; rather people take franchise by fulfilling the terms and condition. It is one of the lucrative businesses and that is why many people prefer to take franchise instead of starting their own restaurant. Advantages and disadvantages of owning a restaurant franchise has been mentioned below:-

Most of the franchise locations mainly in the case of restaurants have a well established name. People ranging from those on lunch breaks to travelling around any place prefer to visit these restaurants that have well established name. That is because they have the surety of good taste and quality food.

When buying a restaurant franchise, the amount of training and support is easy to provide. That is because this training is given by professionals at no extra cost.

For years upon years, people become crazy yet habitual to grab something to eat a franchise food when they are hungry. This is an advantage especially for those who are entering into the market. It’s year of marketing that is already done for you.

Owning a restaurant’s franchise requires no promotion. It means the reputation of brand automatically get inherit in all their established restaurants irrespective of their location. One would also get huge customer’s trust.

If you are taking a bank loan for owning a franchise then also it is so easy. That is because almost every bank is aware of simple procedure to be followed in approving the loan for such business.

No doubt, food industry is price sensitive especially today when there are a number of food chains available. This leaves you with very few options with cost of goods and making a high profit. Generally, the profit is limited. On the contrary, at ordinary restaurants in Karol Bagh or at any other place, you get the freedom of deciding the margin.

In restaurant franchise, you are liable to sell only the brand’s product. That means, you can’t show your creativity.

In order to maintain certain quality of customer service, there are a lot of rules and regulations one has to follow. Everything ranging from sitting plan to colour of the restaurants has to be as per the brand’s rules.

To run a franchise smoothly, high number of employees are required. In most of the cases, these employees get low pay which in turn leads to inconsistent or unreliable employees with a high turnover rate.

A substantial investment is required to own a franchise. All mandatory equipments like ovens, right food disposal, furniture, venting etc. are the things that should be kept in mind when buying a restaurant franchise.

Owning a restaurant franchise has both advantages and disadvantages over owning restaurants in Karol bagh or at any other place. For more information click here.

Report this Page