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Beware the Food Based Franchise


Franchise sales foodThere’s little doubt that buying into a franchise is an excellent way to start your own business. There are fewer risks, heaps of choices, and lots of in-house support services to help you find success. But not all franchise opportunities are created equal and finding the right one can be the difference between a happy future as a franchisee and a miserable one.

If you have looked into franchising at all, then chances are you’ve already considered a food franchise of some type or another. After all, they are everywhere! But food franchises come with their own set of challenges and can often be the most challenging businesses to run.

5 Reasons You Shouldn’t Buy a Food Based Franchise

  1. High Initial Investment – Due to their popularity, the majority of food franchises require a significant investment to get started. You’ll also need extra funds to set-up your highly specialised working area, with specific cooking equipment, grease disposal units, industrial exhaust vents and customer seating areas – and that’s just the beginning!
  2. Lots of Employees – Most food franchise businesses require a large number of employees to keep things running smoothly. In order to meet your margins you’ll need to employ primarily low wage employees who are usually young, new to the workforce, require extensive supervision and have high turnover rates.
  3. Strict Health Codes – Working with food means dealing with a whole range of strict guidelines for food handling and storage. This is great news for the consumer, but less great for you. Keeping up with ever evolving guidelines can be time consuming, and you’ll be subject to spot inspections to make sure you’re adhering to restrictions at all times.
  4. Low Net Margins – Compared with service franchises, food franchises tend to have very low net margins which means you’ll always have to focus on volume. Thanks to the ultra competitive pricing of take away and fast food restaurants, and the short shelf-life of food products, you’ll need a consistently large turnover to see profits.
  5. Long Hours – Food franchises require long hours. Most are open all day long and well into the night, not to mention weekends and public holidays. Plus there’s prep before you even open the doors and clean-down at night. Food franchise operators are susceptible to burnout for exactly this reason. And don’t forget – all those nights and weekends mean lots of penalty rates for your staff too!

The Bottom Line: If you want weekends off and prefer to work with a small crew of people you can really rely on, food franchising is not your thing. Consider a B2B franchise opportunity instead (such as a Kwik Kopy franchise of course) and get your work done during business hours!

Did you know that Kwik Kopy is one of Australia’s top rated franchise systems. If you’re looking for a 9-5 franchise opportunity with weekends off, we could be it! Contact the franchise team at Kwik Kopy today to find out how you can start the process.

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