French fries or stir-fries, make mine a franchise...
posted on 25-Sep-2007
THE POPULARITY of eating out and takeaway food makes fast food franchises seem an attractive way to make money. ‘There is good money to be made, but profit margins are tight in fast food, so you need the right staff and cash controls — and you have to be onsite as much as possible,’ says Andrew Withers of the Southern Fried Chicken chain.
He is looking for more franchisees who already have existing business and staff management experience in takeaway outlets. Investment needed is £30,000-£40,000. Check if franchisors help you find premises. In fast food, which depends for profits on selling high volumes of relatively low-priced food, the right location is vital. And expect long hours, including evenings and weekends. Southern Fried Chicken outlets, for instance, open seven days aweek, in some cases until 2am.
Fast food is a way of life. Mike Arbuckle, of Muffin Break cafe bakery chain, says: ‘Retail involves full commitment for seven days. There will be pressure on family life, finances and relationships, so you must understand the dynamics of owning a small business, be fit and have a hard work ethic.’ Its franchisees bake and sell goods from outlets in major retail centres. Investment is from £185,000, which includes finding premises.
Customer service is paramount, so you must be able to stay chirpy and efficient. Get experience in a few outlets to see if you like it. ‘Ask yourself if you would enjoy dealing with the public and food every day,’ says Fiacra Nagle of O’Brien’s Sandwich Bars, where franchises cost £125,000. O’Brien’s insists applicants work for a spell in an existing outlet before committing themselves. McDonald’s franchisees often manage a big team, and the fast food giant’s outlets are available from £100,000 to those with a business track record and people skills. There is also a £35,000 scheme which involves leasing for three years before buying the premises. The company runs regular open days for potential franchisees. For something different, consider new franchise Wok2Go, which costs £60,000. You need no experience of Chinese cooking as food is delivered ready-prepared. You just cook it for a few minutes.
Southern Fried Chicken(Fast Food Systems) 01189 441100;
O’Brien’s 020 8741 7777;
Muffin Break 01223 308 781;
McDonald’s 0161 253 4116;
‘EXPERIENCE the fast food industry from the shop floor before you start,’ says Rachana Pancholi from Leicester. After a career in marketing, Rachana (above)wanted a franchise that used her marketing skills, and she felt that Subway sandwiches filled a gap in the growing healthy fast food market. ‘Before I signed up, I worked for a month behind the counters of three Subway stores,’ says Rachana, 36. ‘It can be grueling being on your feet all day, but serving 100 customers an hour is exciting. I loved it.’
Her first Subway outlet was in Leicester, followed by two in Kettering, Northants, and a fourth is due to open soon. ‘You must be a hands-on manager. I get into a store every day. It’s vital to find out what customers like so you can cater to local tastes — chicken tikka sandwiches sell well in Leicester but barbecue ribs go down better in Kettering,’ she says. Like most fast food franchises, Subway encourages franchisees to open multiple outlets, so increasing business is vital. ‘Marketing skills are important,’ says Rachana. ‘I visit businesses to promote our business lunches and it helps grow my outlets.’ She has also devised a reward scheme to encourage staff to exceed production targets. Subway’s Alan Whitehead is looking for more franchisees with as little as £4,600 to invest. He says: ‘Food outlets tend to take on the personality of the person running them. Outgoing, friendly people create better environments for customers.’
Subway 0800 0855058.
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