Franchise Article

Of all the businesses in today’s industrialized society, restaurants are among the most popular of all businesses for sale.  More importantly, they’re also some of the most lucrative ventures you will find.  Because of the tremendous potential for success, it may surprise you to learn that nine out of every ten people who begin their searches in this industry never complete the process.  This is true because they don’t realize how much work it takes to make educated choices and, most of all, make their restaurant a financially lucrative business.  The reality is that potential buyers and new owners get bogged down by all the research and details, forgetting even the most basic principals of running a productive operation.  If you are interested in buying a business in the UK restaurant industry, it is pivotal that you remember the fundamentals, even if you’re experienced.

Your Primary Goal is to Make Money

Before you sort through family recipes and start buying collectibles for décor, keep in mind that your first objective is to decide what kind of business you would like to buy.  It may be easy to get caught up in the nostalgia of investing in a start-up restaurant of your own; however, you have a much better chance of accomplishing your goal if you buy an existing business.  When you open a brand new eatery, you are faced with the tasks of developing it and determining whether guests are interested in dining there.  

In contrast, even a poorly performing restaurant has a history and thus, a starting point from which you may base your decisions.  In fact, if you buy a poorly performing restaurant and aggressively publicize its new ownership, many people who were turned off by it before are likely to give it a second chance.  Of course, it is certainly best to proceed with caution in such a situation.  Still, if you come across an existing business that is losing money, many financial advisors will strongly encourage you to keep looking, especially if you are a beginner.  You may see great possibilities and a chance to turn a failing enterprise into a booming one but it is wiser to resist.  Once again, bear in mind that your chief concern is making money.

It’s best to choose from small businesses where the owner is retiring or just trying something new.  If you explore franchises, you’ll soon find that the amount of research available is unmatched by traditional small businesses.  Franchises, particularly the larger ones, have well documented research about target publics in your area.  What’s more, franchises come with the benefits of an established brand name.  Plus, many franchise opportunities include national advertising campaigns, which are implemented at no added cost to franchisees.  You could be sitting comfortably at home and see a commercial for your restaurant.  You might think, “Ah, one of our commercials.”  The icing on the cake would be that you didn’t have to worry about what message you would send, when to send or who you were targeting.  The franchisor is responsible for most exhausting aspects of marketing, not you.

Once you decide whether to purchase a business for sale by owner or a franchise opportunity, narrow down the most attractive prospects and begin your investigations.  Take the time to meet with the existing owners (only those you are seriously considering buying from) and don’t be afraid to ask important questions.  For instance, you need to know why the restaurant is for sale in the first place, whether it’s generating revenue and condition of all equipment.  Fortunately, the availability of such information is another area where buying an existing facility offers a huge advantage.  

After you decide whether to purchase a private business, franchise or start-up, your next objective is to choose the type of restaurant you would like to operate.  At this point, you have the opportunity to examine your personal strengths and limitations.  Thus, if you are a laid back sort of person, an extravagant restaurant may not be for you.  The high-priced items and wealthy market may be attractive; but, if you’re unhappy or even uncomfortable as the owner, it will show in the way you run the business.  Soon your highly profitable endeavor will become a sinking ship.  Nonetheless, if you have a casual approach to life in general, it’s better to look for eateries that match your personality.  A good example would be a fun, family restaurant.  Of course, many future buyers aren’t sure what they want.  In this situation, it is best to determine which restaurants positively do not appeal to you.

Meet the Most Important Deadlines - Yours!

If your dream of owning a restaurant is genuine, it is essential that you set your own deadlines and meet them.  While most buyers spend an average of 18 months searching through pages upon pages of restaurant listings, you should make a point to finish in six months.  After all, diving into a new business can be overwhelming enough without submerging yourself in thousands of listings, especially when you’re rereading the same material over and over again.

Even if you’re currently employed full time, you can still complete your search in six months.  The task may seem daunting but discipline is the key.  By designating a specific amount of time, you make this phase of your research much faster.  Ten hours a week, for instance, amounts to only two hours a night five days a week.  Or, if you’re a weekend warrior, you can adjust the time accordingly.  Maybe you can search for two hours on Friday evening after work and then four hours on Saturday and Sunday.  The choice is yours as long as you establish a deadline and satisfy it.  Furthermore, you should continue to set time limits throughout the process.  These may include things like getting your financial paperwork together by a certain date, making appointments with x number of sellers, etc.

Choose a Strategically Located Business

We’ve all heard of restaurants that are so delicious and so wonderful that people will drive for miles upon miles just to eat at them.  Such a set up is every restaurant owner’s dream come true.  Their place is always busy and it benefits from the best and least expensive form of advertising, word of mouth.  However, this industry is very competitive and eateries with such powerful reputations are few and far between.  As you have undoubtedly heard before, location is one of the most (if not the very most) important factor contributing to your success.  

You may operate a terrific restaurant with delicious food and great customer service; nevertheless, if no one knows where you are or if nothing else is nearby, its profitability is definitely hampered.  While no location is perfect, there are features that every strategically located eatery possesses.  For example, restaurants nestled near cinemas, shopping areas and/or hotels will always generate business because they are convenient.  Additionally, if they’re visible from busy streets or highways, they will attract hungry passersby.  

Naturally, what you need to keep in mind is that the better your location, the higher your cost.  Your objective here is to evaluate how much you are able invest and what your return will be.  At this point, if not beforehand, you will be best served in seeking a financial advisor.  He or she will be able to help you reach a happy and financially secure medium.

Set Yourself Apart from the Competition

First and foremost, people have very basic (and still very important) expectations when they go out to eat.  They dine out to enjoy tasty food and whichever atmosphere suites them at the time.  They may want to relax and thus, find a casual restaurant with great service.  Or, if they want to celebrate, they may opt for an elegant fine dining establishment where they will feel pampered.  In either case, people expect good food and good service.  Aside from the occasional mishap, these simple details will make or break your business.

Even so, there are plenty of eateries that offer good food and friendly service, which means that your next move should be to give your guests a unique experience.  This is the factor that makes them return to your restaurant instead of that other good one just down the street.  Case in point if you’re looking for a business for sale in London: Books for Cooks offers a truly distinctive dining experience.  Not only can its guests enjoy scrumptious food and heavenly coffee, they get to browse through cookbooks and even sign up for classes.  Each day, different recipes are selected from the cookbooks and made for visitors to enjoy.  If you can find a way to deliver a unique restaurant experience like this one, you’re almost guaranteed to find fame in your community (maybe even beyond).

Decisions, decisions

As you work toward becoming a proud restaurant owner, remember that buying a business in this industry is a process.  So many entrepreneurs enter with the mindset that they will make a couple of crucial decisions.  In contrast, they will make countless choices that are critical in determining how lucrative their businesses will become.  If you begin to feel overwhelmed, take a deep breath.  Consider your research, consult the experts when necessary and stick to your personal deadlines.  Doing these things will help get you through the process with far less anxiety, and most importantly, your careful, deliberate planning will reveal itself in the cash register.