The restaurant industry is a tough industry to break into, but it is made easier with the help of a franchise. A franchise opportunity will provide you with the support, guidance, and know-how not typically afforded to those who go it alone. Entrepreneurs interested in opening a restaurant franchise can take a look at the facts and trends below to learn more about the bustling restaurant franchise industry.
The restaurant industry is separated into three main categories:
- Quick Service Restaurants (QSRs): QSR franchises are more commonly known as fast food restaurants. They are the most common type of restaurant in Canada. You can identify a QSR franchise by the functionality of the concept: menus are typically limited, customers order at the counter, interior design is simple, and there is often a drive-thru component.
- Full Service Restaurants (FSRs): FSR franchises are the smallest segment by number of locations in Canada. These restaurants cover a wide range price range, from casual family restaurants to fine dining, and are characterised by providing table service to their customers.
- Fast Casual Restaurants: Fast Casual restaurant franchises are a little like QSRs and a little like FSRs. They aim to offer higher quality food at lower prices while still maintaining a casual atmosphere and quick service. Fast Casual restaurants do not typically have standard table service, but they may bring food out to their customers’ tables.
Healthy food is a huge trend in the restaurant industry. Canadian consumers look for restaurants that have fresh foods, no hormones or antibiotics, and local beef and produce. Restaurant franchises have been responding to consumer desires by getting rid of artificial preservatives and unhealthy ingredients.
Why You Should Consider a Restaurant Franchise in Canada
When you think of eating out, you probably think of Tim Hortons, Pizza Pizza, or Montana's. These are all restaurant franchises that are well-known across Canada.
Starting a food franchise business is a great way to get started as a restaurant owner. As a franchisee, you'll benefit from the brand name of the restaurant, access to their suppliers and expertise, and comprehensive training to help you get the business off to a good start.
When you join a franchise, you become part of a team of motivated entrepreneurs representing the same brand. You'll benefit from the knowledge and purchasing power of the franchise owners and the scale of their marketing campaigns. If you've found a prime location to open a franchise, you could find yourself with a lot of footfall from an established customer base and the chance to generate a strong income quite quickly.
How Much Does It Cost to Start a Restaurant Franchise?
Startup costs for a food franchise business in Canada can vary from as little as $30,000 to over $500,000, depending on the type of business you choose. The franchise fees for the biggest names tend to be higher, but they may offer financing options to help you get started.
The franchise fee will cover things like the legal costs associated with the franchise agreement, any training you might receive, and access to the supplier network. In addition to this up-front fee, there may be ongoing fees, either on an annual basis or as a percentage of your turnover.
While it's sometimes possible to find a franchise restaurant for sale that's already up and running, allowing you to simply take over that location, not all opportunities work like that. You may need to invest in a property, fixtures and fittings, signs, decorations, staff uniforms, and other important aspects of branding up-front.
In the long term, you'll benefit from the strength of the brand, having access to an existing loyal customer base, and the combined marketing power of yourself and other franchise holders.
How Franchise Direct Can Help You Get Started
Being part of a food franchise is an excellent opportunity to run a restaurant with a limited amount of experience coming into it or none at all.
Franchise Direct has a large database of franchise opportunities, including nationally recognized brands and independent, local franchise opportunities. There are franchise opportunities for large and small budgets, and they cover everything from table service to fast food.
When comparing food franchise opportunities, be sure to look at the investment required and what the franchisor offers in return for that investment. In addition, consider the location where you'd like to open the franchise business and what other restaurants are already available in the area.
Franchise Direct can help you find a wealth of opportunities and is a great starting point for your research, but for the best chance of success, you'll need to combine that research with knowledge of the demographics in the area you'd like to open your business.