The whole restaurant can be divided into several categories:
1- Network or independent (indium) and franchise restaurants. McDonald & # 39; s, Cafe Union Union, or KFC
Quick service 2- (QSR), sandwich. Burger, chicken and so on; shop, noodles, pizza
3- Quick random. Panera Bread, Atlanta Bread Company, Au Bon Pain, etc.
Some 4 & # 39; I. Bob Evans, Perkins, Friendly & # 39; s, Steak & # 39; n Shake, Waffle House
5- casual. Applebee & # 39; s, Hard Rock Caf'e, Chili & # 39; s, TGI Friday & # 39; s
6- The elegant dining room. Charlie Trotter & # 39; s, Morton & # 39; s The Steakhouse, Flemming & # 39; s, The Palm, Four Seasons
7- rest. Steak, seafood, ethnic, dining, celebrities and so on. Of course, some restaurants fall into more than one category. For example, an Italian restaurant can be random and ethnicity. Restaurant magazine in terms of sales for several years monitored the magazine Food &
Chain or independent
The impression is that several large quick-service chains completely dominate in the restaurant business. Chain restaurants have some advantages and some disadvantages compared to independent restaurants. The advantages include:
1- Recognition of the market
2- wider advertising effect
3- Sophisticated systems development
4- Purchase Discount
When the franchise are available various forms of assistance. Independent restaurants are relatively easy to open. All you need is a few thousand dollars, knowledge of restaurants and a strong desire
succeed. The advantage for independent restaurateurs is that they can "make their case" in terms of the development of concepts, menu, decor and so on. If our habits and taste sharply changes, in some places there is plenty of room for independent restaurants. Restaurants come and go. Some independent restaurants turn into small networks and large companies will buy out small network.
Once a small chain demonstrate the growth and popularity, they are likely to be bought out by a large company or be able to obtain financing for expansion. The temptation for the novice restaurateur – watch the great restaurants in major cities, and believe that their success can be duplicated in the secondary cities. Reading reviews of restaurants in New York City, Las Vegas, Los Angeles, Chicago, Washington DC, South Korea and San Francisco, it may give the impression that unusual restaurants can be replikavany in Des Moines, Kansas City or in the Main Town USA. Because of the demographic data in these small towns and villages such high-style restaurants or ethnic style will not go and see.
5- passes from below upward through and covers all areas of the restaurant. Franchising involves the least financial risk, since the format of the restaurant, including building design, menu and marketing plans have been tested in the market. In franshyznyh restaurants are less likely to cause stomach as compared to the independent. The reason is that the concept has been tested and established working procedures with all (or most) reworked obstacles. Training is provided, and marketing and managerial support available. However, increasing the probability of success is not worth the cheap.
There is a fee for the franchise, royalty fee, royalty and advertising claims significant personal net worth. For those who do not have significant experience in the restaurant, a franchise can be a way to get into the restaurant business, provided that they are willing to start at the bottom and undergo emergency training. Franchisee for restaurants – are entrepreneurs who prefer to owner, exploitation, development and expansion of an existing business concept through the form of contractual business agreement called franchising. Several franchises have appeared in several stores and a great time. Naturally, the most novice restaurateurs want to do their job – they are referring to the concept and can not wait to receive it.
Here are examples of costs associated with the franchise:
1- Traditional restaurant Miami Subs has a fee of $ 30,000, a royalty of 4.5 percent and requires work experience of at least five years, as the operator of numerous divisions, personal / business capital in the amount of $ 1 million and personal / business
net worth of $ 5 million.
2- Chili & # 39; s require a monthly fee based on the sales performance in the restaurant (currently a service fee of 4 percent of monthly sales), plus more (a) a monthly base rent or (b) the percentage rent, which is not less than 8.5 percent of monthly sales.
3- McDonald & # 39; s needs 200 thousand dollars of personal resources without loans and down payment of 45 thousand dollars, plus a monthly fee for the service, based on the effectiveness of the sale of the restaurant (about 4 percent) and rents that
monthly base rent or a percentage of monthly sales. Equipment costs and pre-opening range from 461 000 to 788 500.
4 express centers Pizza Factory (from 200 to 999 square feet) require a franchise fee of $ 5000, a royalty of 5 percent and pay for advertising of 2 per cent. The cost of equipment is from 25 000 to 90 000 dollars, various expenses from 3200 to 9000 dollars and opening inventory in 6000 dollars.
5- graph sandwich has options for one unit with a net requirement $ 750,000 and $ liquidity 300,000; 5 units required net worth of $ 1 million and liquidity of $ 500 000; 10 units, the net asset value
in the amount of $ 2 million and liquidity of $ 800,000. franchise fee is $ 25 000 for a seat, and royalty – 6 percent.
What do you get for all that money? Franchisors provide:
1 Help in choosing a site and a review of any proposed sites
2- Help in the design and preparation of buildings
3- Help in preparing for the opening of
4- Training managers and staff
5- Planning and realization of the previous marketing strategies
6 Division of visits and ongoing advice on use
There are hundreds of franchise concepts of the restaurant, and they are not without risk. The restaurant is owned or leased franchisee may fail, despite the fact that it is part of the famous network that has a great success. Franchisors also fail. The point is this – touted Boston Market, based in Golden, Colorado. In 1993, when the company's shares were first offered to the public at $ 20 per share, willing to buy it, increasing the price to a high of 50 dollars per share. In 1999, after the company declared bankruptcy, the stock price fell to 75 cents. The contents of many of its stores put up for auction
koshtu.7 part of their fortune had been lost and lost. One of the groups that have not lost were the investment bankers who collected and sold shares and received substantial fees for services.
Group offers also succeeded; they were able to sell their shares until the shares have been high. Food fast service network, is well known as the Hardy and Carl Jr. also went through a period of red ink. Both companies, who now have one owner called CKE, experienced periods of up to four years, when the real income of the company was negative. (Individual shops, companies that belong to any franchise, however, could have done it in the days of rest.) There is no guarantee that the franchise network will thrive.
At one time in the mid-1970s, A & W Restaurants, Inc., a Farmington Hills, Michigan, numbered 2,400. In 1995, the network consisted of a few more than 600. After the redemption of the same year, the network has expanded to 400 stores. Some expansion occurred in non-traditional locations, such as in kiosks, truck stops, colleges and shops, where the experience of full-service restaurants are not important. restaurant concept might work in one region, but not in another. style of work can be very compatible with the face of a single operator, and not the other.
Most franchise operations requires a lot of hard work and long hours, which many perceive as insincere. If the franchisee lacks sufficient capital and rents a building or land, there is a risk to pay more for rent than the business can support. The relationship between the franchisor and franchisees are often strained, even in the largest companies. each goal are usually different; franchisees want maximum charge, while the franchisees want maximum support in marketing and franchise services such as staff training. Sometimes, franchise network involved in legal proceedings with its franchisees.
Since the franchise companies have created hundreds of franchises across the United States, some regions are saturated: more franshyzavanyh units were built than the area can support. The current franchise owners complain that adding additional franchises only serves to reduce the sales of existing stores. For example, a pizza-house stopped selling
franchise, with the exception of well abtsasavanyh buyers who can take on multiple units. Foreign markets are a great source of income of several quick-service chains. As would be expected, McDonald & # 39; s the leader in overseas expansion, representing 119 countries.
With approximately 30,000 restaurants, which serves approximately 50 million customers, approximately half of the company's profit comes from the United States. A number of other quick-service chains also has a large number franshyzavanyh units abroad. While a novice restaurateur quite rightly focuses on the success of the here and now, many bright, ambitious and energetic restaurateurs think about future opportunities abroad. Once the concept is created, the owner can sell the franchisor or by means of many of the recommendations, take the format abroad through franchises. (Stupidity build or buy in a foreign country without a partner, which is financially protected and well-versed in local laws and culture.)
History of McDonald's success in the US and abroad, shows the importance of adaptation to local conditions. The company opened offices in unlikely places and close those that are not working well. Abroad, the menu adapted to the local customs. For example, in the Indonesian crisis fries, which had to be imported, has been removed from the menu, and the rice was replaced. Reading life stories of big winners of the franchise, we can assume that as soon as the franchise is well established, the way is clear floats. Thomas Monaghan, founder of Domino Pizza, tells a different story. At one time in the chain of accumulated arrears of $ 500 million. Monaghan, a devout Catholic, said he had changed his life, giving up the greatest sin, honor and redirect their lives on "God, family & # 39; w and a pizza."
Meeting with Pope John Paul II changed his life and the sense of good and evil as "personal and unchangeable." "Fortunately, the recovery has gone well in Mr. Monaghan. Worldwide, there are 7096 outlets Domino Pizza with sales of about 3.78 billion dollars a year. Monaghan sold most of their company in the company for $ 1 billion, and announced that he uses their wealth for future affairs of the Catholic church. in the recent past, most millionaires service food was a franchisor, but a large number of possible restaurateurs, especially those studying at higher education courses in the field of hotels and restaurants, n very excited by the fact that quick-service franchise.
They prefer to own or operate a full service restaurant. Prospective franchisees should review their experience of food and access to money and decide which franchise will come to them. If they have little or no experience of power, they can think about the beginning of the car & # 39; sphere in the restaurant with a less expensive franchise, which provides start training. For those who have experience, who want a proven concept, the chain Friendly, which began franchising in 1999, could be a good choice. The network has more than 700 units. The restaurants are considered family meals, where there are dishes of ice cream, sandwiches, soups and fast food.
Let us once again emphasize this point: I work in a restaurant that you like, and maybe you want to emulate in your restaurant. If you have enough experience and money, you can strike out on their own. And even better to work in a successful restaurant, where possible partnerships or property or where the owner thinks about retirement, and tax or other reasons, may be ready to make payments over time.
In fact, the franchisees with the & # 39 are entrepreneurs, many of which create a network in the networks.
McDonald had the highest sales in the quick-service network, and behind them, and Burger King. Next were Wendy, Taco Bell, Pizza House and KFC. Metro is one of hundreds of the franchisor to give a total of & # 39; sales of $ 3.9 billion. There is no doubt that 10 years from a list of companies with the highest sales, will be different. Some of the present leaders will feel the decline in sales, and some merge with other companies or redeem them, some of which may be financial giants that have not previously engaged in the restaurant business.