Restaurant bookingwithout any doubt has revolutionized the restaurant business and conditioned customers have gradually become comfortable with parting their details online to reserve table for themselves at the restaurant of their choice. Indians also spend far less money on dining at restaurants as compared to some of their Asian counterparts. For example, people in Japan spend an average of $213 on eating out, while those in Singapore and Hong Kong spend $212 and $195 respectively. The average monthly expenditure on eating out is only $20 in India.
In an effort to recruit more franchisees, the award-winning pizza chain Papa John’s offers new store owners several financial incentives, including new ovens for each store, reduced royalty fees for the first six years of operation, a $3,000 food credit (where applicable), a $5,000 marketing budget, and—last but certainly not least—an entirely waived franchise fee. These incredibly generous incentives help make Papa John’s one of the lowest-cost franchises on this list.
Begin with a concept. This is one of the most important stages in your business planning. The type of your restaurant can be the reason it will succeed or fail. You can choose the one that is close to your heart, or to your stomach. The type of food, ambiance, and experience that you enjoy very much from other restaurants can be incorporated in your own.
RSM understands the issues affecting the restaurant industry. Growth-minded operators are listening to their customers, whose expectations are evolving. Busier lifestyles, shifting demographics, and changing consumer preferences and buying habits are combining with rising competition, real estate costs, food safety concerns and cybersecurity risks to ramp up the pressures on operators’ systems, sourcing and workforce.
There is always a risk of dilution of the Brand Name if the Franchise Outlets do not perform well. Also, the current business model needs to be profitable. Evaluate the cost structure of the cash flow for the first year and what would be the five-year-return to the franchise.