There are three ways to start a restaurant. You can purchase a franchise, purchase an existing restaurant , or build from the ground up. There are advantages and disadvantages to all three of these options, let’s take a look froggies.
Purchasing a Franchise: There are many good and bad things about buying into a franchise. If you want to have creative freedom when it comes to your menu, a franchise would not be the best idea! I doubt Pizza Hut will let you offer your homemade spaghetti as a menu item. Franchises are the most risk free though, especially when buying into a very well known franchise such as McDonald’s. This being said buying a well known franchise ain’t cheap. You may be shelling out up to 250,000 dollars. Just imagine how many Chipotle burritos that could buy. I digress.
Building from the ground up: You do everything on your own here in this concept, to put things lightly. This can either be a great thing, or a not so great thing. You are responsible for putting everything together. If you are organized and have a good team working for you, this is awesome. If, on the other hand, you are disorganized, this is could be bad news bears. You are responsible for creating a concept, menu, etc.
Buying an existent restaurant: This is a happy medium between purchasing a franchise and building from the ground up. When buying an existing restaurant you can do either one of two things: purchase the entire business (concept, location, assets) or purchase the assets only (location and equipment). Let’s talk about purchasing the business. Some good things about purchasing an existing restaurant is that the building is already built. There will be no need to worry about constructing a restaurant and you can start making the moola immediately. Also, if the restaurant has a good reputation, there is a high chance you’ll initially maintain the clientele. You also gain the name, concept, and menu, but unlike purchasing a franchise, you are able to modify or get rid of anything you choose. This is a beautiful thing called freedom. There are some big disadvantages to look at though. If the business has debts, you could inherit these when you purchase the business. It’s vital you have a look at financial records before taking anything on.
Before deciding what route you should take, develop a pros and cons list. Because pros and cons lists are awesome. Once you do decide on what you’ll do, I have a good idea. Come to one fat frog! We can get you equipped in no time 🙂