Fast Food Restaurant – Few Things You Need To Consider Before Starting A New Restaurant
If you are having a plan to start your own fast food restaurant, then look no further because you’re probably going to want to read this article. In the next several minutes, we’re going to look at three crucial elements that you must consider before you spend any money on your new business. First, we’re going to give you information about some of the most popular fast food franchises currently available then we’re going to compare them with a new and original restaurant of your own. Finally, we’re going to finish up by talking about the ideal location of the restaurant so you can reap the most benefit out of it.
First, let’s start by introducing some of popular franchises nowadays. There are many types of fast food franchise that you might already know. Subway is famous for its submarine sandwiches, Dunkin Donuts is popular as an international donut and coffee retailer, Pizza Hut is known for its pizza along with side dishes including pasta and garlic bread. And I believe more than half of world population knows what McDonald’s is. The advantage of going with an already famous brand for your new fast food restaurant is you are guaranteed with tons of new and recurring customers. The only downside for this is its ridiculously high license cost. I heard that you need at least a half million dollar in your startup capital to be granted a franchise license.
Next, let’s talk about an original restaurant which you may have invented. An idea of opening a brand new type of fast food restaurant might be very tempting. A new restaurant which has never been heard before might invite curiosity among people and eventually attract them to try something new. However, that doesn’t mean your restaurant will stand the test of time. Because there were already lots of new restaurant which goes bankrupt in less than six month and only few of them can break even within a year. The advantage of starting an original restaurant is its capital cost ultimately depends on your decision on how you want to start your new business. The problem is you really need to work on the advertising aspect of your business since your popularity compared to the other restaurants is virtually zero.
Finally, you need to know beforehand the ideal location for your restaurant. This can be done by doing a thorough market research and traffic testing on the location of your choice. If you are planning to open the restaurant in the city then customer traffic will hardly be any problem for you. The real problem comes from your competitors which you really need to be aware of. You also need to know what is the conversion rate would possibly be from the traffic. It’s pretty useless when you have a big traffic down the road but only a few of them want to visit your restaurant. Another factor worth considering is the rental cost. Make sure you can pay them for at least a year. It is hard to tell whether your new business is profitable or not if you only track them only for a few months.
These are the three critical elements you must consider before you start your new fast food restaurant. Check out the popular franchise first, compare them with an original one and then make sure you know everything about the location of your restaurant along with its capital cost and maintenance cost.
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