Overview of Food Service Franchises

Usually, when you go to a cafe in a network, we don’t even think to whom and on what conditions the institution belongs. And if for ordinary customers, in fact, there is no difference, the main thing is that the food is of high quality, and the service is polite and fast, then this is of key importance for the owner. Meanwhile, about half of all catering enterprises in our country are franchised.

Such a high level of supply in this market is certainly due to corresponding demand. Romir’s research says that 41% of the inhabitants of Russia, choosing whether to stay at home or spend time in a cafe or restaurant, prefer the 2nd option.

Some terminology

Before giving an overview of food service franchises, let's look at what a franchise is. This word means the right to conduct activities under the auspices of a well-known brand and apply all available business technologies of this company. In Russia, this type of entrepreneurial activity is gaining more and more momentum every year, but, of course, we are still far from the United States. Attention businessmen are invited to a wide range of offers from domestic and foreign companies operating in this area.

A variety of franchises in this niche is also due to differences in the terms of contracts, financial characteristics, requirements for premises and employees of potential franchisees. The most positive factor is that they provide an opportunity to realize their ideas both to beginners, young entrepreneurs, and already realized businessmen who want to participate in interesting and highly profitable projects.

Catering franchise or cafe

For the seller, the franchise is a great way to expand without investing in new premises, and for the buyer, the opportunity to make a profit almost instantly using a ready-made business scheme.

What to choose?

The market offers us many options, such as restaurant business, fast food, cafes, and there are franchises of catering in small formats: coffee shops, pubs, bakeries and even shawarma tents. Having good financial support and owning a successful brand, any businessman will be able to achieve excellent success in the field of catering. The main point that should be given all its attention at the very beginning of its path is the selection of a worthy brand from all the variety offered.

What to look for when making a decision?

Choosing which food service franchise to invest in, an entrepreneur should pay attention to both the number of already open establishments under the brand name of this brand and the number of franchisor's own enterprises (the original business owner). Of course, you need to take an interest in the profitability of your investments, look at previous annual reports. Also important is the demand for a particular brand among visitors to catering establishments. You can conduct a sociological survey.

Clear rules - risk minimization

Starting a restaurant business on your own is not easy. Therefore, cautious businessmen who prefer to minimize risks as a rule, most often choose franchising for themselves. This way of doing business guarantees not only instant recognition of the institution, but also gives the right to use the proven scheme, allows you to purchase quality products at low prices from trusted suppliers.

Food Service Franchise

Of course, this type of entrepreneurial activity implies adherence to specific standards and the implementation of predefined rules, but this path assumes that the entrepreneur will make less of his personal mistakes and create a profitable enterprise.

The 9 best food service franchises according to Forbes

  • Tea Funny. The company is implementing a franchise cafe "trendy cocktails." A drink based on tea, coffee or milk, with the addition of syrup and jelly-like bubbles with juice. Institutions work in 75 cities of Russia and some cities of the CIS countries. The company claims that opening its own point will take only 21 days.
  • BurgerCLUB. The franchise format for the sale of burgers, appetizers, salads makes it possible to open a whole cafe, or just a point on a food court. The company claims that the opening of the latter will take about 1.5 months, and the preparation of work in a full-fledged cafe will take about 3 months. Moreover, in any case, reaching the breakeven point should take place after 1.5 months of operation.
  • "Chocolate Girl" is the most popular chain of coffee houses in Russia, which bought in 2014 the main competitor - "Coffee House". Those wishing to open their cafe are escorted in matters of choosing a room, paperwork, in training employees, as well as in promoting the cafe.

top catering franchises

  • In 2008, the first coffee houses of the Vienna Coffeeshop Company network appeared in our country. Currently cafes are open in 18 cities of Russia. An entrepreneur can independently choose the format between an independent coffee shop or a point of “coffee with you”.
  • "A cheerful day." A small-sized food chain specializing in selling pastries and coffee with you. The founders of the company believe that this format is excellent in that it has high profitability with small investments. Partners supply coffee and supplies directly from the company's warehouse.
  • Network "Wok Sushi" selling takeaways, sushi, Asian noodles, and other snacks. In Russia, the company opened its first point back in 2011, and now calls itself the largest enterprise in this format. Guaranteed break-even point - 6 months.
  • "Baby Potato." Basically, this network has only a format that allows you to open a point on the food court. This is due to the fact that the Moscow government is actively removing all the stalls in the city. Nevertheless, the company shows good growth, and in almost every restaurant courtyard of the shopping center you can see their sign.

small format food service franchises

  • "Stardug! S." The company offers potential partners different formats of the diner: from the “capsule” in the shopping center to the kiosk-bus. The most favorable sites for hosting Stardug! S are TPU, railway stations, parks, and metro stations.
  • "33 penguins." A network of cafes that focus on ice cream operate in 170 cities of Russia and the CIS countries. In addition to ice cream, here you can enjoy milkshakes, various soft drinks, desserts. The format is also designed for a mini-cafe with seats, and for the point "with you." But here, of course, it should be understood that this institution is still of a seasonal nature.

Fast food. Bad for health, good for profit?

Of course, the world's most popular franchise is the fast food franchise. According to the NDP Group, in Russia 56% of institutions operating in the fast food segment are open specifically for franchising.

small town catering franchise

It is clear that these investments will be profitable, despite the popularity of this segment among entrepreneurs. A novice businessman must find a recognizable brand that is in demand by consumers. According to statistics, if you open an institution with a successful franchise in a big city and spend about three hundred thousand rubles every month on utility bills, on the purchase of equipment and materials, on employees' salaries, the profit will be from four hundred and fifty thousand.

Success factors

franchise catering fast food

There are certain factors that contribute to the more successful conduct of business for any entrepreneur:

1) A very careful choice of venue - this should be a place with high traffic, away from typical catering establishments.

2) Strict adherence to all recipes - the client must recognize the taste and smell of already beloved dishes.

3) Investing in staff training. It’s not worth saving here, because it depends on how the customer is served, whether he will return to this cafe. Moreover, entrepreneurs running a franchise business do not have an expense item for advertising, because the company itself conducts this activity.

And what about small towns?

For a small city, a food service or cafe franchise is a more complicated method of doing business than in a metropolis.

The thing is that provincial residents, accustomed to those places where they used to spend time before, must now be carried away with a new offer, they should not invite us to pass the evening in a familiar restaurant, but in a new, popular place in a big city. Here you can find resistance in the mood of people, so it is very important to find a niche that will "please" the locals and will be affordable for them. For this, whole studies and surveys are conducted. Promotions are held.

Food Service Franchise Review

You need to understand that a restaurant with an average bill of five thousand rubles will go to a small town. Although in Moscow it can be in great demand. So here it is necessary to open more budget and simple franchises in the segment that is most in demand in this location.

Source: https://habr.com/ru/post/A12911/

All Articles