How to run a franchise restaurant: the 10 things you never knew

FAQs: February 3, 2020

Running a franchise restaurant in Australia

The franchise industry has a long history in Australia, and we’re proud of our homegrown franchise brands. A franchise business model is a great option for those who want to be entrepreneurs, but don’t have a specific idea of what they want to do. And a Quick Service Restaurant (QSR) franchise business can be very rewarding for someone with a special blend of skills and aptitude to make the business work.

Here’s why: essentially, owning a franchise business means you pay a company to use its strategy and support, including marketing, operations and troubleshooting skills. Combine that with the right to use their well-known, trusted brand name, and you’ll take out a lot of the uncertainty you’d experience in starting your own independent business.

But what does it really take to run a franchise restaurant? Let’s quickly look at 10 of the top benefits of running a franchise business (compared to starting a standalone business) that you might not have thought of.

Why buy a food franchise in Australia?

Perhaps you’ve got great memories of growing up eating dinner at a chicken franchise restaurant like Chicken Treat? Or maybe you just have a passion for food and people, combined with an aptitude for consistently following business processes? Either way, a QSR could be the perfect franchise for you. Here’s why:

  1. Comprehensive training: Professional franchisors offer extensive training programs before you start your franchise business, and then ongoing support after you open. With the right training, you can be successful – even if you’ve never run a business before.
    Opening is often the most painful part of building a business, so you’ll want support to move through this steep learning curve as quickly as possible. In fact, some franchisees say that support from their franchisor, combined with hands-on experience, is more helpful than months of business school training.
  2. Support from other food franchise owners: When you join a team of franchisees, you’re never alone. You can always draw on each other for support, knowledge and fun!
  3. Easier financing: Lenders may be more flexible with financing for franchise businesses that are part of established brands, such as Chicken Treat. They’re familiar with costs related to opening a food-franchise business and, because you and your franchisor can provide evidence of the proven business model, financing may be easier to get than for an untested business start-up.
  4. Collective buying power: Being under the umbrella of a bigger brand gives you access to lower inventory prices, bulk-buying, and a management team who’ll negotiate your lease agreements for you.
  5. Lower risk of failure: An Australian Small Business and Family Enterprise Ombudsman report states there are 2.1 million small businesses in Australia. Of those, retail businesses seem to be by far the most likely to fail. In fact, the rate of failure for a retail business is more than 50% higher than the average rate of failure across all other sectors.
    Buying a franchise substantially reduces your risk as a new business owner. It lets you get set up more quickly, and then allows you to make a faster profit once you start trading.
  6. Brand recognition and popularity: Professional franchises like Chicken Treat have been part of the Australian landscape for around 40 years. They’re brands you may have grown up with. You might have headed off to eat at one of our restaurants with mates after school, or for family dinners.

This immediate brand familiarity gives you a major advantage as a franchisee, compared to someone who’s trying to establish their own restaurant brand. Unless a customer discovers that a ‘new brand in town’ has now become the must-visit fried chicken place, they’re more likely to just stick with what they know.

  1. Marketing support: You’ll get access to the franchisor’s brand strategy, and see both how their brand tracked historically, and how it’s projected to do in the future. Plus, you’ll also get local insights and access to tested promotions. If you’ve never run a business before, these resources can be critical for you to achieve success.
  2. Proven systems and processes = less trial and error: Consistency is key when it comes to operating a successful restaurant franchise. Like many other QSR franchisors, Chicken Treat uses a retailer-retailer – aka ‘business format franchising’ – model. 

What sets this model apart is that all our franchisees MUST follow the guidelines we set down as they’re running their business. These will include restrictions on aspects like:

  • where to locate the franchise (including territorial limits)
  • the image of the business
  • the quality of the goods and services
  • how the business operates.

These restrictions are necessary to protect our franchise’s brand integrity and ensure everyone’s continued success. They guarantee that our customers get a consistent, uniform experience, no matter which store they visit.

Additionally, the territorial limits we set give you the freedom to focus on developing your business, rather than having to worry about competing brands. So you’ll significantly increase your chances of success by taking advantage of all the established processes, limits and support that we offer. 

  1. An Australian head office: One of the main benefits of joining our team of franchisees is that our head office is based here in Australia. That means we can keep on top of the trends in the local and national market, and implement changes faster than businesses whose head offices are overseas.
  2. The best of both worlds: While you’re still your own boss as a Chicken Treat franchisee, we’ll offer you a huge amount of support and help from our head office. You’ll even have access to your own dedicated Business Consultant – someone you will support you, help you develop your franchise business plan and who you can contact at any time for help with any issues you’re having.

Could a Chicken Treat franchise be the restaurant business for you?

You + us = a great franchise business

Want to know more about Chicken Treat franchising opportunities? Leisha from our Franchising Team is here to help. 

Get in touch today!

Leisha Fontana – Leisha.Fontana@craveablebrands.com – 0408927750