Tell anyone that you want to start a business in the food industry and you’re likely to get one response: “I heard that’s a really tough industry to survive in.”
People know that running a restaurant is difficult and that the failure rate for new operations is very high. A lot of places launch with high hopes and aspirations, only to close their doors a few months or a year or two later. It’s an interesting case, seeing as how food is not a luxury item but a necessity. That speaks, to a degree, to the amount of competition you face.
One way to get around that competition is to join it. Instead of starting your own operation, do you want to open up a franchise? Would that give you a better shot to make it?
It may. Studies have found that the failure rate for franchise restaurants is lower than the failure rate for independent operations. The biggest part of this equation is likely the brand recognition. People see a new place they have never been, and they may feel skeptical to test it out. What if they don’t like it? They have an idea of what they want, and they’re not interested in spending money to be disappointed. When they see a franchise, they know exactly what they’re going to get. The franchise offers consistency and set standards.
Of course, starting a franchise does require a lot more money up front, and it also means that there are extra steps you’ll need to take. Make sure you really understand the whole process if you want to use it.
