The UK has a traditionally conservative palate; before the middle of the 20th century, the British menu was a relatively bland combination of starchy carbs and gravies. But as we headed towards the millennium, the hunger for exotic flavours drove the restaurant industry to explode with offerings of traditional dishes from around the world.
Nonetheless, this abundance of foreign flavours has brought with it a renewed appreciation for the uber-satisfying dishes of past generations. Fish and Chips remains the favourite of the nation, as does the traditional Sunday lunch; closely followed by Asian cuisines, of which we just can’t get enough. Throw into the pot a cornucopia of Western European fare from the familiar Spanish, French, and Italian tables to the less widely-known cuisines of Eastern Europe.
There's barely a corner of the planet that doesn't share its flavours with the UK. Go to any big UK city and be utterly spoilt for choice. Venture into the smaller towns around the UK, and you find enormous opportunities to introduce perfectly prepared food from exotic climes.
However, setting up a restaurant business is a risky affair. Of 11,500 restaurants surveyed at the beginning of the 2010s, only 58% of them remained in operation after three years. So, if you're a foodie hoping to go into business for yourself, you should carefully consider whether a restaurant franchise might just help you survive in this saturated, challenging marketplace.
Franchise Process Explained
When deciding whether buying a restaurant franchise is a wise investment for you, you need to thoroughly understand everything that business ownership entails. Combining the best qualities of corporations and a sole proprietorship, franchises are often the easiest organisational structure to find business success.
The company's name recognition and reputation are the franchisor's most valuable assets. When choosing where to dine, potential customers weigh their thoughts, feelings, and previous experience with other franchises of the same company. The favourable reputation increases the brand recognition among customers in the new location, making it more likely to experience a degree of popularity more quickly than it would otherwise.
The licenced name and business system are developed by the franchisor, who then sells the right to use them to franchisees. Along with a one-time initial payment, the franchisee pays periodic royalties for continued use of the trade name and provided methods of operation.
What to Look for When Choosing a Franchise
When you are determining which restaurant franchise to invest in, you want to compare the types of initial and continuing support each franchisor offers. Some of the most popular services provided by the parent company may include:
- A recognised restaurant name
- Business advice and support
- Help to choose and develop the site of the new franchise
- Home office and field support
- Management training, including operating manuals
- Marketing strategy and continuing advertising
- Quality food and preparation standards
- Development of new foods and services
- Research of contemporary cooking, prepping, and serving procedures
Franchises are independently-owned businesses, and you, as the franchisee, would be responsible for all day-to-day decisions. Therefore, whether the restaurant franchise sees a loss or is a smashing success is based solely on you and your abilities.
Franchising FAQs
Restaurant franchises offer a range of excellent opportunities. Perhaps the most salient benefit is the franchise's precisely-developed menu; designed to appeal directly to a specific market niche. Your menu is ultimately what attracts a customer to walk through your doors - if your selection feels too unfamiliar, then you run the risk of alienating your potential audience.
Sure, you might thrive on the idea of being experimental, but consider the overheads of running a restaurant. And then calculate how many covers you need to break even.
Restaurant franchises provide the best of all worlds:
- familiar branding that your customers instantly recognise, bringing instant curb appeal to your premises;
- a familiar menu that your patrons are likely to have already tried, tested, and approved;
- a reputation for excellent quality food and fantastic customer care.
Restaurant franchises offer a range of support packages to help your new business thrive, including world-class training to help you deliver expert products; HR and administrative support; and compliance with all the necessary food and business regulations.
Starting up from scratch can be a challenging route. Gaining access to a decent, reliable supply chain can be tricky; all of this is ready to go with a restaurant franchise.
Facts About Restaurant Franchises
Consumer spending in restaurants has exponentially risen over the past decade, reaching £88 billion in 2017, with a net profit of around £18 billion.
Eating out at restaurants, and eating-in from take-aways and deliveries make the highest proportion of leisure sector revenue in the UK. Towards the end of the 2010s, the average UK citizen spent £19 a week on cafe and restaurant meals, indicating that the food franchises are a mouth-watering investment opportunity.
Quick-Service Restaurants serve 44% of the available customer base, including the likes of popular American fast-food chains and many much-loved British brands.
Branded restaurant chains are the most popular choice for UK consumers, with a decline in visits to independent brands between 2008 and 2016.
Restaurant franchise brands dominate the "casual" dining sector (sit-down restaurants from the likes of Tony Macaroni and Mary Brown's Chicken & Taters, and pub-based franchises).
Restaurant Franchises Explained
Opening and owning a business can be risky, and new restaurants have a higher rate of failure than many other types of businesses. Restaurants and pubs are about three times more likely than other businesses to fail. In fact, 15.5% of hospitality businesses in the UK fail every year compared to 5.25% of companies as a whole.
Setting up a business takes a viable plan, commitment, hard work, money, and time.
Having a familiar brand name, a recognised logo, and quality signs and support materials that the restaurant franchisor provides allows you to focus on the day-to-day aspects of running the restaurant.
Although the word-of-mouth endorsements of satisfied diners help, it is unlikely enough to generate enough business to keep your restaurant solvent. The franchisor will provide a carefully targeted marketing strategy for your eatery.
Franchising Vs Independent
Franchises are more likely to attract start-up collateral from moneylenders and banks. Independent firms often struggle to achieve reasonable borrowing rates, potentially jeopardising their viability right from the start.
Franchises can demonstrate market viability and sustainability; whereas independent companies rarely have any evidence that their business model has market potential.
So, in the restaurant sector, the high-costs of premises, ingredients, staffing, and marketing set up a perfect storm for independent businesses starting up without the support of established partners.
Restaurant Franchises
People purchase restaurant franchises for a range of reasons. If you are passionate about owning a business and providing delicious food to the neighborhood, this may be the right option for you.
Explore our delectable selection of restaurant franchises, and bring a little diversity to your high street today.