So, you’ve decided to open your own restaurant franchise location. Congratulations! You’re about to take your first step into a lucrative world that is full of entrepreneurial opportunities. You’ll grow your portfolio, your earnings, and achieve a work/life balance you never thought you could have.
However, before the success rolls in, you’ll actually need to know how to effectively manage a food franchise. Sure, common sense goes a long way, but there are some other details you should be aware of so that you can make the most out of your franchise location. Follow these tips, and you’ll be up to speed in no time, with happy patrons lauding your food, your service, and your efforts!
UNDERSTAND THE TERMS OF AGREEMENT
When you first enter into a contractual agreement with your franchisor, you’ll want to look over all the details to make sure you’re on board with what they’re proposing. Franchisors have standardized agreements that apply to every franchisee, and it’s done that way for a reason. The terms of the agreement include such criteria as initial upfront costs, employee training, royalties, etc.
Understand what you’re getting into so that there are no surprises when you finally cut ground and open up your location. If everything looks acceptable, you’ll be in a much better position to anticipate how costs will affect your managerial approach. This will in turn lead to a better execution of your initial business plan. Speaking of which…
HAVE A SOLID BUSINESS PLAN
Yes, even franchisees require a solid and foundational business plan to succeed. It is true that the franchisor acts as a partner in the relationship, but they’re not about to do all the work for you. You’ll still need to take the reins and lead when it comes to things like staff, quality of service, and of course, building your reputation with the local community.
The franchisor is always on hand to help, but they can only go so far. You’re the eyes and ears on the ground, and your actions will have a marked impact on how the local population views your establishment. The more solid your business plan, the quicker you can get your franchise location up to the profitability stage, which is where the real fun begins!
KNOW THE DETAILS OF YOUR FRANCHISE
It’s obvious that running a restaurant franchise location is a lot different from opening your own place. You’ll have to follow the guidelines laid down by the franchisor, many of which have been tested over time for maximum success. Sharing in that same success means going with the flow, and following the franchisor’s lead on everything from menu items, to corporate-crafted promotions, marketing tie-ins, and of course, branding guidelines.
This will help you manage your franchise location better, by capitalizing on a system that has already generated returns for other franchisees around the country. Don’t just nod along with the details, either. Embrace them as part of your own entrepreneurial identity, and you’ll integrate much better with the franchisor’s vision. This will make it easier to adapt to changes sent down from the head office, whether that’s a change in branding guidelines, or something as simple as a menu item.
UTILIZE STRONG MARKETING AND NETWORKING
If you’re not a people person, you may have trouble with the marketing and networking aspect of things. In that case, don’t hesitate to hire someone who is. If, however, you love reaching out and building a rapport with patrons, you’ll want to do so through those same marketing and networking channels. When it comes to marketing, a large chunk of that is taken care of by your franchisor, but that doesn’t mean you should rely on it for success. Instead, market at the local level through various channels in order to maximize exposure, and let your patrons know who, and where you are.
Networking is a bit different, and can be done in numerous ways, from sponsoring local events, to participating in charity drives, or even winning a few local awards for excellent service and reputation. Whatever opportunity comes your way, make sure to take advantage of it. However, be sure to actively explore opportunities you may not be aware of, as these all play a vital role in expanding your reach, and your business.
BE FIRM, BUT FAIR
And finally, no manager worth their salt would ever tolerate problematic employees or sloppy job performance. Don’t hire for the sake of hiring, but rather, try to hire candidates who are serious, enthusiastic, and mature. They’ll quickly demonstrate whether they are committed to the job, or not. Slackers and bare minimum workers can be dealt with in a number of ways, from termination, to denial of advancement until they have pulled their socks up.
It also goes without saying that staff members who are rude and disrespectful to patrons need to be dealt with immediately, as negative word-of-mouth can spread like wildfire. This is especially true in our digitally connected age, where a simple Google review can cause mayhem for your franchise location’s reputation and patronage.
CONCLUSION
Managing a restaurant franchise is a very straightforward affair, but you will need to harness the skills of a good manager in order to turn it into a success. Thankfully, most entrepreneurs only get better at this over time. Just remember the above points, and you should be fine.
Are you ready to open a restaurant franchise? St. Louis Bar & Grill wants to hear from you. We continue to expand into new markets through our dynamic and successful franchising model, and there are plenty of opportunities as we venture forth into the United States market. Contact us today for more information!
