Interested in owning a QSR franchise? It can be a great investment if you avoid several common pitfalls. Learn what to watch out for as a new franchisee.
The sticker shock of buying a quick-service restaurant may deter some prospective owners, but initial investments must be measured against the less predictable alternative: an independently owned restaurant. Fast food franchises can offer massive return on investment, but many require significant upfront and ongoing expenditures to operate successfully. QSR franchises generally set minimum net worth and liquid assets thresholds for potential franchisees, ranging anywhere from $100,000 to multiple millions. This presents a barrier to some prospective restauranteurs. Fees can range anywhere from $10,000 to $50,000 or higher, with ongoing royalty and marketing fees.
Before you head for the door, consider what these investments pay for. Even though the cost of owning a restaurant can appear to be overwhelming, owners gain the advantage of having a franchisor that will detail the costs and ongoing expenses, as well as provide the average amount of time it takes to hit the break-even point, all of which is valuable information that you wouldn’t have as an independent restaurant owner.
Franchisors provide the comprehensive training, marketing guidance, and ongoing operational support that you won’t receive when building a restaurant on your own. With an initial franchise fee of $35,000, a cash requirement of $125,000, and an estimated initial investment between $350,000-$450,000, Wayback Burgers is well within the range for prospective investors who are dissuaded by the seven-figure price tags common in QSR. For this reason and many more, Wayback is an appealing franchise opportunity for both new and seasoned entrepreneurs.
A restaurant franchise owner should understand that expanding their business might be limited due to the parent company’s territorial restrictions. Wise franchisors do not want multiple franchises competing with each other, so geographic growth might be limited for an owner.
However, the potential to expand upon the success of one established location is built into the DNA of many QSR brands. Some franchisors even provide discounted rates for franchisees seeking to expand their footprint, inspiring owners to grow their business within a winning brand.
Independent restaurateurs are in full control of their restaurant’s concept, menu, location, and more, and retain the rights to change anything on a moment’s notice. QSR operators must adhere to a set of guidelines laid out by the franchisor that will cover everything from menu updates to staff uniforms.
Being told when to change your menu, which vendors to employ, or how your employees should dress may sound confining, but remember that your franchisor is equally invested in the success of your business and has an established track record that informs their decisions. If a change is being made company-wide, it has been researched, planned out, piloted, and found to increase revenue and/or profit after months of work to determine and implement a final version.
In general, the restaurant industry turnover rate hovers around 70%-80% annually. In QSR, since the pandemic, those rates have gone up drastically, according to Business Insider. Among the reasons for such high turnover is seasonal work, low pay/long hours, and the reliance on younger and less specialized labor pools, which typically have less incentive to stay at a franchise for longer periods of time.
The best QSRs value their employees from day one, prioritizing their wellness and a sense of camaraderie that carries throughout the restaurant. When employees feel valued and respected, whether through appropriate compensation, benefits programs, or a generally pleasant workplace, they are more likely to invest themselves into the business.
TOO MUCH OF A GOOD THING
Another common concern of prospective franchisees in the QSR segment is market over-saturation. The balance between finding the right brand and the right locations is nothing to be ignored. If there is an excessive amount of a brand’s locations within one zip code, that can detract from the company’s appeal and a franchisee’s potential sales. However, the right QSR franchise retains a team of experts whose sole mission it is to optimize your potential.
OPEN A FRANCHISE WITH WAYBACK BURGERS
Wayback Burgers franchise is a standout QSR opportunity for our reasonable cost of entry, scalable model and comprehensive support. Our deliciously juicy old-fashioned burgers don’t taste mass-produced, and that keeps guests coming back for more. Wayback Burgers provides prospective restauranteurs with a winning blueprint to make their business a success.
To learn more about franchising opportunities with Wayback Burgers, get started today.