Overview of catering franchises

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Usually, going into a cafe of any network, we do not even think about who owns the establishment and under what conditions. And if, in fact, there is no difference for ordinary customers, the main thing is that the food is of high quality, and the service is polite and fast, then for the owner this is of key importance. Meanwhile, about half of all catering establishments in our country are franchised.

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

A bit of terminology

Before giving an overview of food service franchises, let's understand what is a franchise? This word means the right to conduct activities under the auspices of a well-known brand and apply all available business technologies for 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. Businessmen are offered a wide range of offers from domestic and foreign companies operating in this area.

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

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

What to choose?

The market offers us many options, such as the restaurant business, fast food, cafes, and there are also small-scale catering franchises: coffee houses, pubs, bakeries and even shawarma tents. With 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 you should pay all your attention to at the very beginning of your journey is choosing a worthy brand from all the variety on offer.

What to look for when making a decision?

When choosing which catering franchise to invest in, an entrepreneur should pay attention to both the number of already opened establishments under the brand name and the number of the franchisor's own enterprises (the original owner of the business). Of course, you need to ask about the profitability of your investments, look at previous annual reports. Also plays an important rolethe 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 much as possible, 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 a proven scheme, allows you to purchase quality products at low prices from trusted suppliers.

Of course, this type of entrepreneurial activity involves following specific norms and following pre-written rules, but this path assumes that the entrepreneur will make fewer of his personal mistakes and create a profitable enterprise.

9 Best Food Service Franchises, According to Forbes

• Tea Funny. The company operates a franchise of "fashion cocktails" cafes. A drink based on tea, coffee or milk, with the addition of syrup and jelly-like juice bubbles. Institutions operate in 75 cities of Russia and some cities of the CIS countries. The company says it will take just 21 days to open its own outlet.
• BurgerCLUB. The format of the franchise for the sale of burgers, snacks, salads makes it possible to open both a whole cafe and just a point in the food court. The company says that it will take about 1.5 months to open the latter, and it will take about 3 months to prepare the start of work in a full-fledged cafe. In this case, in any case, reaching the pointbreak-even should take place after 1.5 months of operation.
• Shokoladnitsa is the most popular coffee house chain in Russia, which bought out its main competitor, Coffee House, in 2014. Those who wish to open their own cafe are accompanied in matters of choosing premises, paperwork, training employees, as well as promoting the cafe.

• In 2008, the first coffee shops of the Vienna Coffeeshop Company network appeared in our country. Currently cafes are open in 18 cities of Russia. An entrepreneur can independently choose a format between an independent coffee shop or a coffee to go point.
• "Cheerful day". Small format catering chain specializing in the sale of pastries and coffee to go. The founders of the company believe that this format is excellent because it has a high profitability with small investments. Partners are supplied with coffee and consumables directly from the company's warehouse.
• Sushi Wok chain selling rolls, sushi, Asian noodles, and other snacks to take away. In Russia, the company opened its first point 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 at the food court. This is due to the fact that the Moscow government is actively removing all the kiosks around the city. Nevertheless, the company is showing good growth, and in almost every mall food court you can see them.signboard.

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

Fast food. Bad for he alth, good for profit?

Of course, the most popular franchise in the world is the fast food restaurant franchise. According to NDP Group, in Russia, 56% of fast food establishments are franchising.

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 on utility bills, on the purchase of equipment and materials, on employees' salaries every month, the profit will be at least four hundred and fifty thousand.

Success Factors

There are certain factors that make any entrepreneur more successful:

1) Very careful site selection - it should be a high traffic area away from typical food service establishments.

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

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

How is it in small towns?

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

The thing is that the inhabitants of the provinces, accustomed to the places where they used to like to spend time, now need to be captivated by a new offer, invited to pass the evening not in the usual restaurant, but in a new, popular place in the big city. Here you can meet 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 carried out. Promotions underway.

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