First time restaurant franchise owners have plenty of reason to get excited. This entrepreneurial pursuit is a massive departure from the bustle of the 9-5 workday, not to mention a portal through which massive success can be achieved with some good old fashioned managerial skills and hard work. However, some franchisees parlay that initial success into the opening of multiple restaurant locations to build their portfolios and wealth.
Multi-unit restaurant franchise ownership is a path many entrepreneurs are choosing, and for good reason. If you’re curious about exploring the exciting world of multi-unit restaurant franchise ownership, you should be fully aware of the inherent benefits that come with it, and they are plenty!
A LARGER INCOME STREAM
One of the key advantages of multi-unit restaurant franchise ownership is the opportunity to create diversified income streams, and this is little more than a numbers game. After all, owning multiple units situated at different locations allows franchisees to reach even more patrons, especially those who aren’t keen on traveling so far to reach your first location. The more money coming in, the greater the ability to mitigate risks associated with economic downturns or changes within certain locales.
When one restaurant franchise location faces challenges, as will inevitably pop up from time to time, other locations can act as a shore up mechanism that provides stable income. Take heed, however. You’ll want to run all your restaurant franchise locations at peak efficiency and competency, twenty-four-seven, so you can guarantee solid business and consistent revenue.
CONSOLIDATED COSTS
Owning and operating multiple restaurant franchise locations of the same brand can provide several unique advantages related to daily costs. For instance, bulk purchasing power and centralized management lead to reduced operating costs, since you’ll possess greater powers of negotiation with suppliers, while streamlining administrative tasks.
Setting the standards at your initial franchise location will have trickle-down effects for your other locations, and this will cut down on a lot of wasted time, effort and money. This efficiency can – and will – translate into increased profitability for each location, since you’ll be dictating those standards from the top down.
GREATER BRAND RECOGNITION
Multi-unit franchisees benefit from the established brand recognition of the franchise in question, which is one of the main draws of the entrepreneurial model. Patrons are more likely to visit a franchise restaurant based on the trust they place on the brand, quality of food, atmosphere and service. This built-in customer base can significantly reduce the time and resources required for marketing and advertising, allowing you to focus on what matters – growing your franchise portfolio. Word will eventually get out that you own and operate multiple franchise locations of the same name, which in turn will have a marked effect on your reputation as a whole. The more success you have, the more people you employ, and the more money you contribute to your local communities.
DON’T FORGET THE FRANCHISOR
Franchisors are renowned for providing extensive training and support modules which are designed from the ground up to help their franchisees succeed. After all, your success is their success, which makes the partnership both practical and logical. When franchisees own multiple locations, they are better able to leverage those resources across their entire portfolio, since they will have built up their reputation for having a successful model.
This level of support can include everything from initial setup and operational guidance, to marketing strategies and ongoing assistance that come straight from the top. When in doubt, always remember taht franchisors are fully invested in your success, which in turn speaks volumes about the success of their brand as a whole.
SCALABILITY MADE EASY
Multi-unit franchisees understand the ease at which expansion and growth can be attained in a very short space of time. Once you’ve ironed out the flaws and streamlined the operations of one location, you can easily replicate that success when opening additional locations. This level of unprecedented scalability allows franchisees to experience greater levels of growth and earnings, without having to start from scratch. The best part? You can only get better at this over time, not worse.
APPRECIATIVE ASSETS
Restaurant franchise locations very often appreciate in value over time, especially if they are located in prime areas with high foot traffic. Your franchisor can help you get your foot in the door to the best areas in town, which in turn will set you up for another level of success down the road. Multi-unit franchise owners end up building not just a steady income stream, but growing their existing assets which will undoubtedly increase in value over the course of a few years. This can be particularly appealing if you plan to exit the business, or leverage your current assets for the sake of future investments.
CONCLUSION
Multi-unit restaurant franchise ownership is an extremely rewarding business model that relies on the exciting self-destined appeal of entrepreneurship, as well as the stability and support of an established franchisor. When franchise owners follow a path of hard work, smart thinking and optimal daily operations, they’re opening themselves up to numerous financial rewards and investment opportunities that can last a lifetime.
If all of this sounds exciting to you, you aren’t alone! St. Louis Bar & Grill is proud to have many multi-unit franchisees as part of our family, and we’re not stopping. In fact, we continue to break ground in one territory after another, further making a household name for ourselves across Canada. The sky’s the limit both for St. Louis, and for franchisees who want to share in our success. If you’re ready to join our franchising family, we want to hear from you, so give us a call.
