Once you have started out on a new restaurant venture, luring many customers isn’t too difficult, but in order to ensure that your business stays profitable, you have to strive for repeat customers. The restaurant industry has been long marked by creativity and resiliency, intrinsic to restaurant operators’ DNA. Consumers long for a return to restaurants. In a Datassential consumer survey, when asked what activities they wish to resume, dining at my favorite sit-down restaurant” topped a list that included visiting movie theaters, shopping centers, meeting friends and family at restaurants, and attending events at stadiums or arenas.
The minimum financial requirements, to obtain a franchise, are holding a net worth of $ 1.5 million and liquid assets worth of $ 500,000. One also needs to pay $50,000 towards the franchise fees, the total estimated investment would fall in between $2.0 million and $3.5 million. It is mandatory to have a unit size of around 5,000 sq. ft with the availability of seating space for 185 people. It is also mandatory to choose a location with 25,000 to 50,000 per 3 mile population. IHOP also takes several other things like the freeway traffic and density of retail stores or offices into consideration while opening the franchise with a third party.
Virtual Restaurant Consulting (VRC) had been operating for about two years training restaurants on the ins and outs of starting a virtual restaurant, such as creating and pricing a menu, promoting the restaurant, and working with delivery partners. But what VRC kept hearing was, “Can’t you just do this for us?” according to Paul Kalms, a partner with VRC.
Although many business owners did affiliate with cooperative ventures of one type or another, there was little growth in franchising until the early 20th century, and in whatever form franchising existed, it looked nothing like what it is today. As the United States shifted from an agricultural to an industrial economy, manufacturers licensed individuals to sell automobiles, trucks, gasoline, beverages, and a variety of other products. The franchisees did little more than selling the products, though. The sharing of responsibility associated with contemporary franchising arrangement did not exist to a great extent. Consequently, franchising was not a growth industry in the United States.
The location based social review websites – Gone are the days when food reviewers started releasing their opinions in food sites only after they left a restaurant. With the emergence of mobile devices and apps, sharing reviews on real time has become a reality. In fact, the restaurant apps are designed in such a way that they will allow the reviewer to tag their location with the food review. This information can be used as a marketing strategy. While it will inform other business owners about your whereabouts, your followers on the food site will refuse to enter the restaurant even if they are in the locality if you have provided a bad review.