Surround yourself with qualified experts who can help you develop the right strategies.

A recent International Franchise Association report shows that franchising continues to have a substantial, positive impact on the U.S. economy. The restaurant industry has always been fertile ground for franchise success. Restauranteurs looking to expand their concept should consider franchising as an option.

Franchising a restaurant concept can offer significant benefits, including new revenue streams, accelerated growth with lower capital expenditures, and increased customer acquisition and retention. Franchising revolves around brand recognition, plus established processes, systems, networks, and support.

To successfully build and scale a restaurant franchise:

Evaluate franchise feasibility. Before you commit to franchising, determine whether your existing restaurant concept is profitable, with a solid operational infrastructure, a desirable (and replicable) concept, and consistent customer demand. Also, take an honest look at how to finance a franchise (loan, investment capital, etc.) Depending on your profitability, location, and existing systems and infrastructure, the cost to develop a franchise program can range from $15,000 to $100,000.

Make a franchise-specific business plan. If you decide to move forward with franchising, create a detailed, franchise-specific business plan, outlining the operational goals, revenue, costs, profitability projections, and market analysis of the franchise system and your franchisees. The most important element of a franchise system is to position franchisees to be financially successful. Also, the plan should include franchise sales goals and projections. You’ll need to develop well-founded business, regulatory, and transactional strategies to unlock your successes, so work with trusted experts – including a franchise attorney – who can help you understand the franchising game. Your advisors can also help you develop and implement effective market-based strategies for a profitable, sustainable franchise system.

Build a strong local and regional brand identity. A strong brand identity enables you to boost visibility, awareness, and credibility. Customers are more likely to trust—and visit—a familiar brand, even if it’s a local or regional franchise. Boost brand identity by providing consistent brand experiences across your network. Additionally, develop a narrative that resonates with—and engages—customers. Explain your mission, values, and compelling backstory to create an emotional connection with your customers that drives them to your restaurants.

Develop a scalable model. A scalable business model ensures that you’ll maintain consistency and excellence as you grow, so guests have consistently good experiences, regardless of which location they visit. To accomplish this, create systems and processes that can be easily replicated at scale. Develop and distribute a franchise operations playbook that documents and standardizes everything in your business. The playbook should cover things like recipes, customer service standards, quality control, and training. By establishing clear, replicable systems and processes, you’ll empower each location to provide gold standard food, service, and quality that will keep customers coming back. This helps ensure that menu items are always prepared the same way, each location is similarly designed, and marketing materials are aligned—all things that support the brand.

Invest in technology. Leverage innovative tech systems that optimize operations, standardize systems, and centralize data. Tech solutions enable consistent workflows and streamlined processes across the network. Plus, centralized data allows you to measure key metrics and make more informed business decisions to drive growth. Modern tech solutions are far more efficient and effective than trying to scale using manual or outdated tools and systems.

Support your franchisees. The appeal of the franchise model is that it provides the infrastructure and support necessary for franchisees to thrive. Give franchisees what they need to succeed, including training, marketing, and networking support to scale strategically. For instance, provide the proper tools to train staff on restaurant operations. Training should be comprehensive, covering food preparation, customer service expectations, your systems and technologies, and so forth. By providing ongoing support, you help franchisees – and your brand – succeed, accelerating growth, profits, and customer loyalty.

Research before expanding. When deciding where/when/how to scale, don’t make crucial decisions based on instinct. Analyze demographics, competition, and demand in the areas you’re considering. Is one of your restaurant locations so busy that it makes sense to open another unit nearby to meet the overwhelming demand? Are you at risk of oversaturating a market that has direct competitors with similar restaurant concepts? Do extensive research before making a move.

Collaborate with the right experts. It’s essential to collaborate with trusted, experienced experts, from accountants to franchise attorneys. When franchises work with specialized experts and strategists who guide them through transactional solutions and business strategies, they can create sustainable and scalable businesses. Without proper advisors—and protections—in place, franchisors and franchisees face risks and obstacles that could be costly and damaging, potentially derailing their expansion efforts. Work with experts that educate and empower you, supporting your business growth and successes.

There’s a lot to consider when building and scaling a franchise, and it can be easy to get overwhelmed. But if committed, franchising can really expand a concept’s revenues and profitability. The keys to success are developing a franchise-specific business plan, creating a replicable business model, and building the right infrastructure. Also, surround yourself with qualified experts who can help you develop the right strategies, guide your growth, protect your assets, and maximize your wins.

Carlos White, Founder of The Impactor, is a leading franchise attorney in Dallas and the first Franchise Impactor Ambassador in the U.S., appointed by Dallas Mayor Eric Johnson.

Source https://www.qsrmagazine.com/story/tips-to-successfully-build-and-scale-a-restaurant-franchise/