With all we’ve faced in 2020, many might be hesitant to get into the world of franchising during a time of economic uncertainty. In fact, that might be the wrong move. Those interested in starting a franchise may be in a prime position to do so, for a multitude of reasons. While general advice centers around playing things cautiously, opening a restaurant franchise could be the exception.
Let’s examine why this particular climate could be the right time to make your franchising dreams a reality. If the criteria line up accordingly, you could be several steps closer to realizing your goals.
#1) The Climate
With so many unemployed, and the economy in such a difficult state, the first inclination is to hold off on franchising. With access to a vast pool of talent that is currently out of work, you can find the right candidates far easier, and with little trouble. Building a team is quick and easy. Second, low interest rates and economic incentives can be leveraged to open your franchise location more quickly, while saving long-term money. Third, the effects of the pandemic seem to be tapering off, despite a resurgence in cases. All indicators point to an exit sometime within the next few months, which means it’s good to strike while the iron is still hot.
#2) The Franchisor
Opening a franchise means you’re never flying solo. You will always have a dedicated company in your corner who has done much of the heavy lifting in terms of branding, market research and growth. Partnering up as a franchisee means having access to this experience and help at all times. Picking the right location is easier than ever, which further reduces the amount of time needed to get started. Your franchisor will work with you every step of the way when it comes to the build, setup and guidelines required to operate your franchise. Post-launch support is a tremendous reassurance, especially for first-time franchisees who may need some help along the way. This provides a unique advantage over opening a restaurant on your own. It reduces risk by magnitudes.
#3) The Economy
The economic ground may not be completely stable yet, but re-openings have helped jumpstart both local and regional economies, and restaurant franchises play a part. People are happy to be out after the lockdown, and they’re ready to get back to the things they used to love doing – including dining out. This has a trickle-down effect into the deepest parts of the economy. As people get out and enjoy themselves, the money they spend provides a massive boost. This is especially important when it comes to stabilizing the overall economy, especially if further temporary closures might be necessary. Shoring up economic strength now helps not just your franchise, but everyone simultaneously.
#4) Opening Another Location
If you are already a franchise owner, the same principle applies if you are considering opening up another location. All the points touched on above can be used to further expand your franchising portfolio, perhaps at a quicker rate. Secondary franchise locations can provide a much-needed boost to the local economies, while also helping out those who may need to find work before the economy spins back up to full. Analyze your current financial situation, and decide whether to take the plunge on another location.
#5) Take Time To Build Your Team
Opening a franchise now will allow you to focus on building your team, which can be an invaluable tool to strengthen your franchising growth down the road. When things are in full swing, it can be hard to concentrate fully on this facet of the business, but right now the belt has been relaxed. Take the time to form your team, evaluate their performance, and optimize your procedures to achieve the best possible results. Then, when things do spin back up to full, your franchise will be more than ready to tackle a huge influx of customers. From there, you’ll be in a prime spot to grow your franchise with more locations down the road, and a methodology that is proven to work.
So, franchising in our current climate doesn’t seem like such a bad idea, after all. In fact, it could be the best decision you’ve ever made! St. Louis is always proud to partner up with talented, ambitious and genuine franchisee owners, which is why we invite you to contact us today so that we can discuss the benefits with you. From there, you could be on a path to an entirely new, lucrative career as a franchise owner!
