March 3, 2008 – Mesa, AZ – US Franchise News. Pizza. Burgers and fries. Tacos. Specialty coffees. Sandwiches. It seems that no matter how many of these fast food and casual restaurants are around, there’s always room for one more. Why? What’s the appeal of convenience foods for the customer and, just as importantly, how is running a low cost food franchise advantageous to the franchisee?

Joe Spillman, founder of Wings-Pizza-N-Things, shares some of his insights: “I find the food franchise to be a very positive type of business. If you do a good job, the customer is always loyal. In a restaurant, people are nice to you and your workers. It’s a great environment. When service and quality are good, you have satisfied customers. You’re with family.”

Quality food offered at affordable prices and served by an efficient, friendly staff is definitely the key to developing a growing pool of satisfied—and loyal—customers who will gladly recommend your establishment to friends and family. A fast casual restaurant setting, a sandwich and coffee shop, or a full-service restaurant could provide a top franchise opportunity for you. The basic ingredients for developing customer loyalty are the same regardless of what type of operation you run: delicious food, competent and courteous employees, a clean establishment, and a great atmosphere.

Americans love to eat out, and trends show that restaurant outings continue to grow in frequency. According to figures provided by the USDA Economic Research Service, in 2006 Americans spent eight times more on eating out than they did in 1976. And the National Restaurant Association predicts that restaurants will continue to be a driving force in national and local economies, with expected combined national sales of $558 billion in 2008.

Gary Lynch, President of FranConsultant, frequently shares a wealth of franchise information with both franchisors and franchisees. He notes that, “Many of the clients we work with initially consider a food franchise as their first choice of business ownership, and understandably so. Food and restaurant franchises are among the oldest, most prestigious and sought after franchise opportunities around; they come in varying degrees of complexity and investment levels and, as such, the experience requirements vary per franchisor and franchise opportunity.

“Opportunities range from the simplified sandwich and coffee shop with minimal food preparation, few employees, low investment and limited food licensing to the ever popular fast-casual neighborhood restaurants requiring a varying degree of food preparation, typically with the use of grills, ovens and fryers, standard food licensing and typically a larger investment.

"For those experienced restaurateurs looking on a much larger scale, the full-service dinner-house restaurant will typically fit the bill. This sizeable operation engages much more complex food preparation, full and experienced kitchen/floor staff, stricter licensing compliance, and a substantial investment level.”

Many franchisees new to the food industry opt for a low cost food franchise to start with. As with any industry, there are pros and cons to running a food franchise that you’ll have to weigh carefully. In the beginning, you may feel a bit overwhelmed by the restaurant industry’s strict regulations, food codes, operating permits, and food service guidelines. However, an established restaurant franchise has plenty of experience with codes and permits and will carefully guide you through this maze. Another point to keep in mind is that a food service franchise needs you to be very hands-on in every facet of the operation, at least until your business is well established.

Spillman offers the following advice before you select a specific food franchise: “You need to find out how hard it will be to get financing. At Wings-Pizza-N-Things, we have loans available. You also need to ask, how difficult is it to get a particular location? And make sure to taste the franchise’s food before you buy a unit! Is the food fresh or frozen? It’s vital that a franchise maintain its quality of food over the years.”

In addition to the casual restaurant setting, another popular choice for a low cost food franchise is the combination coffee shop. Successful combos include coffee and sandwiches, coffee and dessert, and coffee and breakfast items. All of these models are available through Sonoma Coffee Café. Ron Wermes, the company’s CEO, emphasizes that business success comes from dedication.

“People need to have a very realistic appreciation of their financial, personal and emotional assets,” Wermes stresses. “The best franchisor may have plenty of guidance and afford a wonderful template for someone to follow, but that in and of itself is not a substitute for hard work, ability to communicate with others, and when things do go badly, rise to the occasion and, just like the bulldog, be tenacious to dust yourself off and get back into the fight. Entrepreneurs should be willing to commit to themselves more than they committed to their job as an employee.”

Interestingly, prior food service experience is not essential for running a successful restaurant franchise. Management experience is far more important. Wings-Pizza-N-Things’ Joe Spillman states, “People with management experience, including teachers and trainers, tend to do an excellent job training employees. You can easily teach somebody how to make a burger or a pizza, but it’s much harder to teach someone to be a good manager from the start.”

Sonoma Coffee Café’s Ron Wermes points out that food is a very enjoyable experience for the vast majority of people, making a low cost food franchise—or any restaurant franchise, for that matter—highly appealing to customers and franchisees alike. “For many Americans,” he observes, “food is a cultural event, a social bonding time that everyone enjoys. If food is a necessity, it may be one of the most sensual and social commodities in our society that nourish our bodies as much as our souls. Serve food with a smile, and serve it good, and the world is yours.”

If you have some level of management or supervisory experience, and the many aspects of food service, from the practical to the creative to the social, appeal to you, then a low cost food franchise may be right for you.

 “As you can see,” FranConsultant’s Gary Lynch notes, “food and restaurant franchises can be an excellent business opportunity for the right person; however, this is not a ‘one-size fits all’ industry. Those who will thrive in this environment will be those willing to educate themselves on the triumphs and pitfalls associated with this industry, identify the skills required of them to succeed, and who clearly define the level of opportunity which suits their abilities and overall lifestyle.

“At FranConsultant we pride ourselves on our unique consultation process which helps our professionals to closely match their clients’ traits, skills and financial qualifications to a franchise opportunity that will offer them the greatest chance for success, whether that results in the restaurant industry or another.”

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Staffwriter: Graciela Sholander

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