How To Choose food Franchise According to Region Behaviors
Franchising is one of the most popular ways of doing business around the world. Restaurant franchise is one of the most popular forms of franchising. Food is such a huge part of everybody’s life; people spend a big portion of their days dining out, ordering takeout, or just enjoying a quick meal on-the-go. As an investor, you should study the behavior of the region really well in order to make the most out of your investment and not skip on any good opportunities. Getting a franchise can offer many advantages that aren't available to the entrepreneur starting a business from scratch. However, conduct a market research before entering a market is fundamental to have a greater confidence of what is a demand for your products, what is your customer profile according to the culture as well as having a clear picture of your competitors. Each market is different, failing to do an adequate market research is one of the biggest mistakes to avoid to handle the challenges of your business.
What is a franchise?
The term ‘franchise’ a form of business where a parent company with an existing concept, named the franchisor, licenses other operators, named the franchisee, the right to use the company’s trademarks and business strategies in exchange for a fee. This license gives the franchisee access to the trademark, knowledge, and everything related to the franchisor. This is all in exchange for an initial start-up as well as an annual fee. This concept is very well-known around the world. The advantages of getting a franchise are pretty obvious . Franchisees get many privileges like strong market penetration, business systems, operational manual, marketing techniques, trademarked materials, and the software. As they say, you will be in business for yourself, not by yourself.
Types of restaurants franchises?
There are different types of restaurants franchises opportunities. Among the main categories there are the fast food, fast casual, and full service. Fast Food or Quick Service Restaurant are the most popular food franchises, offering quick, affordable meals with no table service. Customers order directly to the counter and can choose to take out their food or dine in the sitting area. Fast-casual concepts are positioned between fast food restaurant and casual dining restaurants. They provide counter service and offer more customized, freshly prepared and high quality food than traditional QSR in a more inviting sit down atmosphere. This includes places like cafes and takeout restaurants. A full service, as the name suggests, is for memorable dining experiences; customers get to choose their preferred food and drinks, eat in the restaurant, and pay at the end.
It’s better to check the market trends and the dominating preferences of customers, as well as their purchase power and living standards, before starting with the practical steps mainly if you want to develop a franchise in a new market. Before diving right into a market you have to collect local insights. This step is really important for you to figure out which restaurant structure to choose.
Choosing the right franchise structure
Running a franchise requires lots of studying, especially if you’re moving way far from the home market, speaking different languages, or operating under different legal systems. Cultures differ widely from one country to another, if not within the same country. Since these factors vary from one market to another, to run your business successfully your franchise structure might be different according the area you will choose. If you want to open a franchise in the home market, direct franchising or area development is the simplest form to invest in business ownership and might be the right structure to choose. If you’re thinking about an international expansion with multiple locations, master franchising might be your better choice to operate a number of locations in a defined area. It will also give you the power to contract locations/units to single franchisees. However, this structure is the most complex one, agreement won’t be the same and your skills and strategy need to be strong.
Getting a franchise from YYT Food Corp
YYT Food Corp has been in business for 20 years now. The company manages and operates 9 different brands, 146 stores, and 915 employees, in 5 different markets. Since 2018, Vanellis, Teriyaki, Al Mangal Express and Pad Thai are ready to franchise. All these brands have good chance in standing out everywhere around the world, we are willing to expand in GCC, MENA, Asia, and also Europe. YYT Food Corp is always on the look for new franchisees who have ‘passion for fabulous food and a commitment to great customer service’. If you think you’re up to it, we would love to welcome you on board with us.