Restaurant Franchising: Advantages and Disadvantages

Lets start with the definition of the word “Franchising”. So, franchising is the practice of using another firm’s successful business model. This strategy has advantages as well as disadvantages. Look through this information to make the right choice.
1. Instant Business. It means that a restaurant franchise offers you an instant business. So the owner won’t be worried about the name, the decor, the menu or the marketing. It’s all done by the brand establisher.
2. Support. As a rule, fanchise comes with support from the head office. You may ask them about anything you like – from color of napkins to brand clothes.
3. Better Buying Power. It’s well-known that restaurant franchises have bigger buying power.
4. Name Recognition. This is a huge benefit of a restaurant franchise. You may not be worried about start-up costs for advertising.
1. Money. To buy the right to use brand name, you must have a lot of money. Most of bigger restaurant chains require at least a million dollars in assets.
2. Lack of Creative Freedom. It means that you can not include something from yourself to the menu, the decor, or the signage of your restaurant. You must follow the brand standards.
3. Numerous Rules. You must follow all the rules and regulations franchises have.
4. Royalties. When buying franchise, you must pay royalties, which include the advertising, menu flyers, and other support the restaurant corporation gives you throughout the year.

Best Ideas for Restaurant Promotion

It’s not a secret that to open a restaurant is just a beginning. To be successful, you must have a great marketing plan. Restaurant promotions are a great way to attract customers. Remember, that you must be creative in choosing the promotion srategy. As a rule, customers like new creative ideas more than the old traditional ones. Lets examine the most popular ways of promotion.
1. Promotional items. Every customer would be happy to receive such promotional items as mugs, T-shirts, key chains, baseball caps, and other inexpensive products with restaurant logo. This will help you to give the restaurant free publicity.
2. Restaurant website. It’s a very good option of restaurant promotion. As the importance of online resources is growing, usually people look for all information in the Internet. So, build a website that educates and informs people about your location, hours of operation, menu samples, and other special information you’d like to share. You may link the restaurant website to social sites such as Twitter, Facebook, and MySpace. Update all the information regularly and set the facts about what is taking place at your restaurant such as when you have specials and events taking place.
3. Special menu for inexpensive meals. It means that you may offer one meal each day that is quite cheap.
4. Special discounts. Set special discounts on certain dishes. Also the system of discounts is appropriate for those who may visit your website and become subscribed.
5. Advertising. Try to spread the the name of your restaurant. The advertising campaign may include text messaging, local newspaper, business flyers and other low cost methods of marketing.

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Five Myths about Owning a Restaurant

It’s very delicious idea to open your own restaurant. Owning a restaurant is fun and exciting, a great way to make money and perhaps even become famous. But face it, owning a restaurant requires lots of difficult and hard work. Today we’ll discuss some of those restaurant myths that may influence on you decision.
The Myth #1. It’s a Fun Job!
Everyone thinks that leading their own business is all fun and games. But it is a false opinion. It more looks like work and stress. When you own the restaurant, it meas that you have to be busy most of your time dealing with different questions  like food delivery, staff employment, branding, menu and more. Moreover, you may forget about holidays and your relatives’ birthdays – almost all those day are work days so chances that you’ll manage to party with them are almost zero.
The Myth #2. I’ll be Rich!
When you hear “I have my own restaurant”, you think that the owner is very rich person. It’s not true. Restaurateur must pay payroll, sales tax, insurance, rent, mortgage, food purchases, liquor purchases, utilities, repairs, etc. So you can just imagine how much money he/she spend on it. Yes, restaurants can earn a lot of money, however, they spend almost all that they make.
The Myth #3. I Love to Cook, so I Should Open My Own Restaurant, Right?
This thesis is very widespread. Maybe sometimes it’s true, but according to my researches the fastest way to ruin a favorite hobby is to make it your living. Well from another side, doing something you truly love can inspire you to work harder. But you should clearly divide cooking for close friends and family and restaurant business. It is not the same.

The Myth #4. I Will Have a Place to Hang Out With my Friends!
As for me, it’s the funniest myth. I think if you like partying with your friends, it’s not a good idea to invest lots of money into a business you have no intention of overseeing.
The Myth #5. I am Going to be Famous!
Well, sometimes this myth may become the truth but in most cases it’s a fantasy, not a reality. If the main purpose of the opening restaurant is to become famous, probably you’ll be disappointed.