Opening a Franchise in the Restaurant Industry: Our Advice
Do you want to start a business in the restaurant industry and are you considering franchising? That’s a thought! It is a solution that ensures maximum returns with appropriate costs and requires less time and energy investment compared to other types of businesses.
At BEFED Brew Pub, we strongly believe in franchising and in the spirit of collaboration.
We offer an original, all-Italian opportunity that focuses on quality and sharing.
With our expertise and experience, in this article, we want to explain how franchising works in the restaurant industry, its advantages, and the points to consider during the opening phase. This way, you can get a more precise idea about this world and evaluate if it is the most suitable solution for your goals.
How Franchising Works in the Restaurant Industry
Before investing in a franchise, it is crucial to understand how it works. It is a commercial affiliation between two parties, and one party grants the other the right to market products and services under the brand name and also provides their know-how, consulting, and support.
The main players in franchising are:
- The Franchisor: The owner of the brand and products and/or services.
- The Franchisee: The affiliate who receives the concession to use the brand and manage and market products and services, inherits the company’s know-how, and benefits from the franchisor’s strategic consultancy.
Like any business relationship, there is a contract. The franchisee pays the franchisor an entrance fee and agrees on a percentage of the revenue (annual royalty). In return, the franchisor provides the brand, products and services, as well as their industry expertise, ensuring quality and efficiency.
The restaurant industry is the realm of franchising. From bars to pizzerias to fast-food chains, breweries to sushi restaurants, and even ice cream parlors, there are plenty of options to open a successful franchise. Choosing where to invest your resources can be challenging.
BEFED franchise is the perfect choice if, like us, you believe that food means sharing, joy, and fun, and if you dream of a venue that can become a reference point for enjoyable evenings with good food and friendship. By joining BEFED, you can offer your customers a differentiated, unique, and original experience, thanks to our incomparable Galletto, the first and only one in Italy. You can open a franchised location that stands out from traditional pizzerias and burger joints while maintaining a low business risk.
Speaking of which, we have discussed how franchising works from a regulatory point of view. Now, let’s delve into the pros and cons of this type of business.
The Benefits of Franchising in the Restaurant Industry
So, what are the advantages of opening a franchise in the restaurant industry? We have identified six main points.
1. Established Brand
Starting a business, whether in the restaurant industry or any other sector, involves dealing with various activities, starting with the brand. You have to take care of naming, graphic concepts, and defining a consistent and impactful communication strategy.
By joining a franchise, you acquire the right to use an existing brand that already has a well-defined image and recognition among the target audience.
2. Proven Work Method
As a franchisee, you gain access to procedures and methodologies that have been developed and tested by the franchisor. In the restaurant industry, this also means inheriting a delicious and enticing menu that has been carefully designed. They will also provide you with guidance, recipes, and ingredients.
3. Generally Low Food Cost
Looking at the economic aspect, when opening a business, it’s essential to manage expenses and revenue. In the restaurant industry, one of the crucial factors to consider is the food cost, which is the ratio between the cost of ingredients used in the preparation of dishes and the selling price.
For a franchise business, the food cost is generally low. This is certainly the case in our franchise, thanks to a proper balance between the cost of ingredients and optimized staffing.
4. Training and Assistance Opportunities
The franchisor provides every affiliate with support and training. This is crucial if you are new to the industry and lack experience, but it is still a significant advantage for established businesses.
The franchisor stays updated on market trends and provides you with useful guidance and suggestions to help grow your business. If you decide to collaborate with BEFED, our staff will be by your side throughout the affiliation process, providing continuous training and support.
5. Streamlined Supplier Relationships
Choosing suppliers is always one of the most critical phases in the restaurant business. Finding quality supplies at advantageous prices requires a lot of time, energy, experience, and expertise.
In franchising, you will have access to suppliers chosen and selected by the company. For example, at BEFED, we monitor orders and deliveries through a controlled supply chain and facilitate management through a centralized platform.
6. Access to Defined Marketing and Advertising Strategies
In franchising, the parent company supports you with its experience and consultancy in advertising and marketing activities. This means you can benefit from well-structured and comprehensive strategies and allocate your advertising budget to grow your business locally.
At BEFED, we also provide support in this area. We assist our franchisees in managing local marketing activities, offering tailored advice and materials, as well as assisting with store setup.
Three factors you need to consider if you decide to open a restaurant franchise
We want to be completely transparent: as with all entrepreneurial activities, it is important to keep in mind certain key points when deciding to open a restaurant franchise. If you decide to venture into this world, it is important to consider that:
- There are initial costs for opening a location that should be taken into account. Often it is thought that a franchising business does not require investments in the initial phase. However, entrance fees and setups must be considered. These costs are certainly lower compared to other types of businesses, and are usually recovered quickly, but they still need to be budgeted.
- You will be working with a structured brand, with all the advantages that we listed earlier. The franchisor will support you with guidance and consultation for the strategic direction. This does not mean that you cannot voice your own opinions. For example, at BEFED, we are always happy to listen to ideas and proposals and base our relationship with our franchisees on complete collaboration.
- Attention will need to be paid to the setup of the sales point. In a franchise, the brand must always be recognizable, so the space setup must be in line with other chain sales points. In this case too, you will have the opportunity to make your own contributions. At BEFED, we help you set up the location with specific suggestions, but we always adapt the needs of the brand to your specific requirements.
Join the world of Galletto: BEFED Franchise
Good food, quality Italian products, fun, and carefree moments: if you share these values, BEFED Brew Pub is the right choice for opening a franchise restaurant. You will join a well-known and expanding brand, with over 35 pubs in Italy and abroad. The star of our menu is the Galletto, a healthy, genuine chicken cooked over an open flame that keeps it always appetizing and tender. And it’s meant to be eaten with your hands!
All the offerings on our menu can be enjoyed alongside craft beers produced at BEFED’s facility in Piedmont; our beers are unpasteurized, fresh, and with a unique character, all crafted with the passion and careful attention of our master brewers.
With BEFED, you can choose between two franchise dining formats:
- Original, with spacious venues that become gathering points, where you can welcome large groups and celebrate events;
- Easy Pub, with venues designed for quick meals, suitable, for example, for shopping centers.
Are you curious? Discover more about opening a BEFED pub through franchising and don’t hesitate to contact us for more information.