In general, restaurants can be categorized into several categories.
1. Chain or Independent (Indy) and Franchise Restaurant. McDonald's, Union Square Cafe, or KFC
2. Quick service (QSR), sandwich. Burger, chicken etc. Convenience store, noodles, pizza
3. Fast casual. Panela Pan, Atlanta Bread Company, Aubon Payne etc.
family. Bob Evans, Perkins, Friendly, Steak & Sheik, Waffle House
5. Casual. Applebee's hard rock cafe, Chile, TGI Friday & # 39; s
6. Fine Dining. Charlie Trotter's Morton & # 39; s Steakhouse, Flemming's The Palm, Four Seasons
7. Other. Steakhouse, seafood, ethnic, dinner house, celebrities, etc. Of course, some restaurants fall into several categories. For example, Italian restaurants may be casual and ethnic. The concept of major restaurant of turnover has been tracked for several years in magazine restaurant and restaurant
organ.
Chain or independence
The impression that some huge quick service chains have complete control over the restaurant business is misleading. The chain restaurant has several advantages, and an independent restaurant has several drawbacks. The advantages are as follows.
1. Market perception
2. Expansion of advertisement publicity
3. Sophisticated system development
4. Discount procurement
At the time of franchise, various types of support can be used. Independent restaurants are easy to open surely. All you need is thousands of dollars, knowledge of restaurant management, and
Successful. The advantage for an independent restaurant manager is that you can do yourself. If our customs and taste do not change significantly in terms of concept development, menus, decorations, etc., there is plenty of room for an independent restaurant in a particular place. The restaurant will come and go. Some independent restaurants grow into small chains, others are large companies to buy small chains.
If small-scale chains show growth and popularity, large companies are more likely to acquire or will be able to raise funds for expansion. The temptation of the first restaurant is to observe the big restaurant in the big city and believe that success can be reproduced in the second city. If you read the restaurant reviews in New York, Las Vegas, Los Angeles, Chicago, Washington, DC, or San Francisco, it is possible that abnormal restaurants will be duplicated in Des Moines, Maine, USA. Due to demographics, these luxury or ethnic restaurants do not click in small cities and towns.
5. Training from bottom to top and covering all areas of the restaurant The franchise has already been tested on the market to minimize financial risks in restaurant formats such as building designs, menus, marketing plans, etc. . The franchise restaurant is less likely to get angry than an independent restaurant. The reason is that the concept has been demonstrated and the operating procedure is established with all (or most) entanglements completed. Training is provided and marketing and management support is available. But increasing the likelihood of success is not cheap.
There are requirements for accession fees, royalty fees, advertising fees, and substantial personal net worth. For those without substantial restaurant experience, franchises may be a means to enter the restaurant business. They begin at the bottom and are ready to take a crash training course. The restaurant franchise is an entrepreneur who prefers to possess, operate, develop, and extend existing business concepts in the form of a contractual business arrangement called a franchise.1 Multiple franchises end in multiple stores, spending a lot of time It was. Naturally, most ambitious restaurant managers are thinking about myself. I have a concept and I can not wait for it.
An example of expenses related to franchising is shown below.
1. Traditional Miami / Subs restaurants require a $ 30,000 fee, a 4.5% royalty and a minimum of 5 years' prize. Experience as multi-unit operator, $ 1 million individual / business interest, and individual / business
Net assets of $ 5 million.
2. Chili & # 39; s is at least 8.5% of monthly rent (a) monthly basic rent or (b) rent proportion monthly revenue in addition to restaurant sales performance (currently 4% service charge per month).
3. McDonald & # 39; s requires $ 200,000 non-transferred personal funds, initial charge of $ 45,000, restaurant sales performance (approximately 4%) and monthly service fee based on rent.
Percentage of monthly basic rent or monthly revenue. Equipment and pre-opening costs are $ 461,000 to $ 788,500.
4. For the Pizza Factory Express Unit (200 to 999 square feet), a franchise fee of $ 5,000, a 5% royalty and 2% advertisement fee is required. The facility cost is 25,000 to 90,000 dollars, miscellaneous expenses 3,200 to 9,000 dollars, and the opening stock is 6,000 dollars.
5. The Earl of Sandwich has one unit option with net asset value of $ 750,000 and liquidity of $ 300,000. In the case of 5 units, the net asset value is 1 million dollars and the liquidity amount is 500 thousand dollars is necessary. 10 units, net assets
$ 2 million, liquidity $ 800,000. The franchise fee is $ 25,000 per place and the royalty is 6%.
What do you get for this money? The franchise offers:
1. Help with site selection and review of suggested sites
2. Design support and building preparation
3. Helps to prepare for opening
4. Manager and staff training
5. Planning and implementation of marketing strategy before opening
6. Unit visit and ongoing driving advice
There are hundreds of restaurant franchise concepts, not risk-free. A restaurant owned or leased by a franchisee may fail even if it is part of a well-known chain it is very successful. The franchise will also fail. The Boston Market, based in Golden, Colorado, is gaining attention. In 1993, when the company's stock was first made publicly at $ 20 per share, it rose to a high of $ 50 per share as it was about to acquire it. In 1999, after the company declared bankruptcy, the stock price fell to 75 cents. Contents of many stores were bidding on auction
It is only a part of their expenses.7 Fate has been made and lost. One group that was not lost was an investment banker who sold stock offerings in bulk and received a considerable fee for service.
The offering group also went well. I was able to sell the stock while the stock price was high. Quick service food chain, which is well-known as Hardee or Carl & # 39; s Jr., also goes through red ink. Both companies under the owner of one called CKE experienced four years with real incomes as a company minus. However, there is no guarantee that the franchise chain will prosper.
In the mid-1970s, there were 2,400 stores in A & W Restaurants, Inc. in Farmington Hills, Michigan. In 1995 the chain exceeded 600 several times. After that year buyout, the chain expanded 400 stores. Several extensions took place in non-traditional places such as kiosks, track tops, colleges and convenience stores where full-service restaurant experience is not important. The concept of a restaurant works well in one area, but it does not work in another area. The style of operation is highly compatible between the character of one operator and the character of another operator.
In most franchise operations, much labor and time are required so that many people feel annoying. If the franchisee lacks sufficient capital and rents the building or land, there is a risk of paying more lease fees than the business can support. The relationship between franchisee franchisee and franchisee is often nervous even for large companies. Each goal is usually different. Franchise hopes to support franchise services such as marketing and employee education to the utmost. Occasionally the franchise chain is involved in franchise litigation.
Since the franchise enterprise established hundreds of franchises throughout the United States, several areas are planned. The current franchise owner complains that he can not reduce the sales of existing stores simply by increasing the franchise. Pizza Hut, for example, stopped selling
A franchise other than a wealthy buyer that can take up many units. Overseas markets are a major source of income from several quick service chains. As expected, McDonald's is a leader in overseas expansion and has bases in 119 countries.
Approximately 30,000 restaurants serve approximately 50 million customers each day, and about half of the company's profits come from outside the United States. Many other quick service chains have many units franchised abroad. The first restaurant manager is very honestly focused on the success here, but many bright, ambitious and energetic restaurant managers will think about future possibilities abroad. Once the concept is established, entrepreneurs can sell to the franchisor or receive overseas formats through franchise with a lot of guidance. (It is foolish to build or buy in a foreign country unless there is a partner who is safe in property and familiar with local laws and culture.
McDonald's domestic and international success stories indicate the importance of adaptability to local conditions. The company opens a unit in an illegal place and closes a unit that does not work. Overseas, men tailor to local customs. For example, in the crisis of Indonesia, I removed French fries that I had to import from the menu and replaced rice. If you read the life story of a big franchise recipient, once the franchise is established, that road may be a definite sailing. Thomas Monaghan, the founder of Domino Pizza, is speaking a different story. At one time, the chain has borrowed $ 500 million in debt. Monaghan is a devout Catholic, abandoning his greatest sin and pride, his life in his life <God, family, pizza. & # 39; & # 39;
Meeting with Pope John Paul II changed his life and his feelings of right and wrong. Personal and observe. In the case of Monaghan, reinstitution went well. There are 7,096 dominican pizzerias around the world, with annual sales of about $ 3.7 billion. Monaghan announced that he sold the majority of his interests for the $ 1 billion remuneration and would use his property for the Catholic Church's further cause. Recently, the majority of food service milk mills are franchising, but many restaurant managers who are in the business and degree courses of hotels and restaurants are very excited about being a quick service franchisee I have not.
They prefer to own or manage a full service restaurant. Prospective franchises need to review their food experience and access to money and decide which franchise is suitable for them. If they have little or no food experience, you can consider starting a restaurant career with an inexpensive franchise that provides startup training. To people with experience desiring a proven concept, the Friendly chain which started the franchise in 1999 may be a good choice. There are more than 700 units in the chain. The restaurant is regarded as a family-oriented meal, offering ice cream specialty stores, sandwiches, soups and quick service meals.
Let's emphasize this point once more: I'm working in a restaurant you enjoy and I want to emulate at my restaurant. If you have enough experience and money, you can defeat yourself. Even better, if you work in a successful restaurant where partnerships, ownership is possible or where the owner is considering retirement, you may be able to receive payment over time due to taxes or other reasons.
The franchise is effectively an entrepreneur and there are many things that create chains in the chain.
McDonald 's system sales of Quick Service Chain was the highest, followed by Burger King. Wendy, Taco Bell, Pizza Hut, KFC came next. The subway was one of hundreds of franchisors with total sales of $ 3.9 billion. There is no doubt that the list of companies with the highest sales will be different in 10 years. Some current leaders have decreased sales, others are merging or acquiring with other companies. Some of them are major companies that have not engaged in restaurant business before.
