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4 Reasons a Restaurant Franchise is Easier to Run than Traditional Restaurants

  • May 22, 2016

Entrepreneurs interested in managing their own restaurant franchise are faced with two options: start a new business from scratch or get involved with an existing restaurant franchise. The total independence of running your own startup is appealing in some ways, but there are a number of reasons why a restaurant franchise is significantly easier to run.

It is true that franchising has its own set of challenges, but many people needlessly fear that running a restaurant franchise is a nearly impossible undertaking. Below, we give four advantages that a restaurant franchise has over startups, with a focus on the classic franchise, so commonly seen at fairgrounds and on beachfronts, Hot Dog on a Stick.

a group of businesspersons

1. Brand Recognition

Franchises are a known quantity to consumers. Consumers are familiar with the food and service at their favorite chain restaurants, and they feel they are taking little “risk” when they stop by a franchise for a bite to eat. Hot Dog on a Stick, for example, has been in the business since 1946, and its delicious, sizzling beef franks on a stick and perfectly mixed lemonade are favorite foods of millions.

Not only the name but also the colorful uniforms (“stripes and the hat”) Hot Dog on a Stick employees wear contribute to the franchise’s hard-earned brand recognition. When you start a new franchise restaurant, you have a ready and waiting customer base as you tap into the fruits of the franchise’s reputation.

2. A Faster Beginning

While exact startup times vary, on average, a franchise restaurant can be set up much faster than a totally new enterprise. This is because the franchise has a ready-to-go plan for establishing new locations that it has put into action numerous times in the past. The process is honed, streamlined, and guided step-by-step by experienced staff.

All in all, getting started faster means less stress and greater revenues. It also allows you to get your foot in the door of the local market in an optimal season and during a boom that may be underway.

3. Fewer Upfront Expenses

Financing a new restaurant of any kind will involve significant financial investment, but the assistance obtained from the franchise lessens the cost of a franchise restaurant startup compared to traditional restaurants. You may be able to avail yourself of reduced prices on necessary equipment, supplies, and even the building itself. Your orders can often enjoy the benefit of bulk-rate reductions since they go through the franchise, and it is often easier to convince creditors to give you a loan when a trusted brand name stands behind you. Furthermore, the marketing expenses of a restaurant franchise are reduced because the franchise handles much of the marketing.

4. An Extensive Restaurant Franchise Support Network

It’s easy to tell yourself you can just go it alone, but all of us need help and advice from those more experienced than ourselves. Hot Dog on a Stick has over 80 locations both in the United States and abroad, has decades of experience, and has an organization that will network with you to assist in managing, training employees, and knowing when and how to expand.

You can learn from others who have run a hot dog franchise and from those who have faced the same problems you are facing, helping you avoid rookie mistakes.

To learn more about franchising with Hot Dog on a Stick, visit our website and download our free franchising brochure. You can also call 877-639-2361 to ask any questions you might have about how to get started on a restaurant franchise.

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