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Have you ever thought about how to start a restaurant business in the Philippines? Owning your own restaurant can be both fulfilling and profitable when the business is run correctly. However, not everyone interested in opening a restaurant has the culinary background to run a successful kitchen. In such cases, buying a food franchise is the best move.
Interested in buying a food franchise? Make sure you ask yourself these questions to help you choose the best franchise for you.
Is the franchise you’re considering popular?
One of the main advantages of opening a restaurant that uses a franchise model is that your branch requires minimal marketing. Your new restaurant will piggyback off of the popularity of the brand as a whole, which is why you’re better off choosing a franchise that is popular.
Where do you plan to do open this franchise?
Location plays a key role in the success of any food business. Will you open it in one of the popular malls or will it be a stand alone restaurant? Will you open it a few kilometers away from home or on the other side of the Metro? Think carefully about where you want to open your restaurant.
Is there a demand for the food business in that area?
Do your research and go around your preferred location. How many competing restaurants are there? How busy is the area during the weekends? Where is the “nearest” branch of your franchise in relation to your chosen location? Answering these questions allows you to see if people will flock to your restaurant as soon as it opens. Similarly, you’ll need to answer these questions in the restaurant business plan you submit when applying for a business loan.
Do you like the food that the franchise serves?
If you believe in what you’re serving, the easier it is to commit yourself to selling it. There’s no point in opening a food franchise if you do not enjoy the food it serves. The best franchise for you is a restaurant you would choose to eat on a regular basis.
Is this just one of the latest fads or is it actually sustainable?
Remember the pearl shake fad of the early 2000s? Most of those franchises have closed shop for good. It’s a cautionary tale for people looking to invest in a food franchise. Look for franchises that can sustain both popularity and demand since these are the ones that will help you profit the most for the longest amount of time.
Do you have the funding necessary for the franchise package?
Different franchises come with different franchising fees. Try to limit your options to the franchises that you can reasonably afford. Set a budget for yourself based on your savings, monthly cash flow, and the amount your preferred bank is willing to lend you in the event a loan is necessary.
Does it have to be a restaurant?
Not all food businesses have to be an actual sit-down restaurant. There are many successful food franchises that operate as kiosks like Potato Corner or Turks. In fact, many successful franchisees opt to own several smaller food stalls placed in strategic locations instead of a full-fledged restaurant. It’s definitely something worth considering!
Do I have any kind of experience to lean on to help with running a food business?
Not everyone has the relevant experience necessary to successfully manage a food business. Fortunately, there are many restaurant entrepreneurship management courses in Manila, including Enderun Extension’s Restaurant Entrepreneurship Management Program. These programs help provide first-time restaurant owners with mentors who can guide them through the twists and turns of opening a restaurant. As a result, you can avoid common pitfalls and help your new business run smoothly from the very start.