When businesspeople like you decide to become a franchise owner, they often find themselves spoiled for choice. Franchising has found its way into nearly every industry, from retail sales and real estate to professional services and healthcare. In fact, there are so many different franchise industries available to you, it can become daunting to pick one to start. Being spoiled for choice can lead to being paralyzed by indecision as you try and figure out which franchise is right for you. Buying a franchise is a considerable investment of money, time, and effort and should be considered carefully. Let’s take a look at one particular type of franchising, restaurant franchising, to see if a franchise like Antioch Pizza Shop could be a good fit for you.
The Benefits and Challenges
Going into restaurant franchising can be a lucrative venture, as well as very rewarding for businesspeople with the right mindset. The statistics bear this out; market analyst company IBISWorld shows that as of October 2023, the most recent report available, the U.S. chain restaurant market alone had a value of $164.1 billion in revenue. In comparison, the pest control market reached $24.1 billion by the same time, outlet stores were at $64.6 billion by 2024, and the household appliance store market was valued at $35.1 billion by 2024.
Of course, every business opportunity has its pros and cons. Restaurant website developer Restaurant Engine makes note of a number of the most common advantages and challenges:
Pros
- Restaurant franchising is often considered a turnkey business. Thanks to having an established business model, menu, layout guidelines, and other pre-prepared elements, starting the franchise is simply a matter of following the process.
- Restaurant franchisees receive assistance from their franchisor in the form of various services. Franchisors like Antioch provide initial and ongoing training to franchisees, as well as marketing and advertising for promoting the brand at large. This is a big help with building a customer base.
- Banks and lending institutions are much more inclined to grant loans to restaurant franchisees. Thanks to having a proven business model and the support of a franchisor, lenders consider them more secure investments than independent restaurants.
- A brand with a good reputation will help a restaurant franchisee attract customers, especially ones who are loyal to the brand. Antioch, for example, is a brand with a mission to “serve people goodness” and “make everyone a regular.” This sort of mission fosters a customer-first attitude that your guests will value and appreciate.
- Owning a franchise restaurant gives you access to the brand’s purchasing power, which can lead to cost savings on supplies, a serious boon for a food franchise since you need a regular supply of ingredients.
Cons
- Franchise restaurants can sometimes have a high initial investment compared to an independent restaurant. This is partly due to the additional fees the franchisee has to pay, such as franchise fees and initial purchasing requirements.
- The restaurant industry has a high employee turnover rate. Even with a franchise, you may be faced with difficulty keeping your location(s) fully staffed.
- Restaurant owners, whether independent or franchisees, have to face the reality that they’re reliant on perishable products. Ingredients can spoil, food can be left over from orders, and kitchen mistakes can all result in unnecessary costs, leaving the franchisee with a lower profit margin.
- It’s important for a restaurant franchisee to be passionate about their business, because running a restaurant of any kind is a substantial time commitment. Hours can be long and require the franchisee to put in overtime (especially if the location is understaffed).
- Restaurants must comply with strict regulations, especially health and safety regulations. Cleanliness and keeping your kitchen safe to work is vital to keeping your restaurant from being fined or ending up in trouble.
The Restaurant Franchisee Experience
As you’ve contemplated restaurant franchising, you’ve probably wondered what the day-to-day experience is like for the franchisee. Franchise news site 1851 Franchise described fast-food franchise ownership as a career where “no two workdays are ever the same.”
It’s a business venture where successful franchisees take a hands-on approach to management and familiarize themselves with the duties of each position to manage things effectively. A competent staff will help you find a good work-life balance, but you should be prepared to put in extra hours if things get busy or unexpected complications come up, especially if you end up owning multiple locations.
Owning a fast-food franchise is a venture where, from one day to the next, you may be called on to handle cooking, business administration, customer relations, local marketing and advertising, or logistics, among other tasks.
As an entrepreneur, your passion for the work and the brand will be a valuable asset. You’ll have a variety of duties to handle, but a good franchisor will provide you with training, both initial and ongoing, to develop those skills and keep them sharp and up to date.
Alternatives
If you feel a food franchise is not for you, there are other franchise industries to consider, each with their own advantages and drawbacks. For example, a beauty and wellness franchise has the benefit of good repeat business potential, with customers becoming very loyal to their favorite salons, spas, etc. However, unless your franchise also sells retail products, you’ll be very reliant on in-person service, which, as the COVID-19 pandemic has shown, is a business model that can suffer in difficult economic situations.
Entertainment and recreation franchises have seen both significant growth and innovation in recent years (much like the restaurant industry), but many of them (like indoor activity franchises) have substantial space requirements, which can also lead to higher starting costs. Senior care franchises provide a lot of service options, and thereby lots of revenue streams, but often require specialized training, especially medical services. Lastly, home improvement franchises also offer a wide range of services to attract customers, but many of them are seasonal, require technical training, and have strict licensing requirements.
Let Antioch Provide You a Recipe for Franchising Success
We at Antioch Pizza want to offer you the chance to find success in restaurant franchising by joining our team. Let us provide you with the knowledge and experience we’ve gained in the pizza industry since our founding in 1977. Our franchise is growing, and you can join us as we expand into the many different local markets available to our franchisees. Submit a franchise form today to learn more about your franchising opportunity with Antioch Pizza.
