The Pros & Cons of Operating a Chain Restaurant

If you think operating a chain restaurant is going to be a

piece of cake, you need to think again. Sure, it can offer

you the chance to have a successful business but you are

going to have to work at it too. In many ways, operating a

chain restaurant can be more stressful than setting up your

own business. Not only do you have to keep your customers

happy, but you have to keep the corporation happy too. Many

people want a chain restaurant because they know consumers

will be excited to come in. This is often true, but it

depends on the particular restaurant you are talking about.

There isn’t any easy answer to this question, and you will

have to look inside of yourself to determine if it is or

not. It can be much easier than trying to build up a

customer base though. You will already have a product to

offer that is in demand. You can depend on the marketing

tactics of the entire franchise to carry you along. Once you

get people into your restaurant you can keep them coming

back by offering the quality that they have come to expect.

However, there may come a time when your particular chain

restaurant experiences negative publicity. They can have a

huge impact on your business because the media takes such

issues and sensationalizes them. Even though it may not be

your particular business that is involved it will reflect on

your image. Think about the Taco Bell rats in New York City

and the finger in Wendy’s chili issues that have come up.

These images definitely make a person lose their appetite

for a while and you can see a significant drop in business

because of it.

Many people are afraid to start their own business because

they have read plenty of material that tells then more than

half fail. While these statistics are true, don’t let them

prevent you from following your dreams. That statistic also

means that half of them didn’t fail – and you have a good

chance of being in that group since you are carefully doing

research instead of jumping in right away.

Even though you will have a steady flow of customers, you

need to take a look at your overhead. The amount of money

that your business earns isn’t important. The amount of it

that falls into the category of profit is what matters. Are

you going to make enough to pay for the chain restaurant and

to earn enough to keep you happy?

You will find the cost of a chain restaurant is going to be

more expensive than starting one on your own. You will be

paying for the exclusive rights to having that business

name. On the other hand, lenders are more willing to offer

you the funding to start up a chain business than your own.

Statistically, there is less risk of the business failing if

it is a known business entity that is thriving in various

other locations. Some chain restaurants even having

financing available through them so you don’t have to work

with an outside lender.

Some restaurant owner’s are very disappointed with a chain

restaurant image. They feel that they lose their

individuality in the process. You will be very limited in

advertising and ways that you manage your business. You may

have to provide specific types of uniforms and a specific

type of layout for the design of the business. You won’t be

able to decorate it to suit your tastes.

If you are serious about operating your own restaurant, you

really need to discover which is a better option for you.

Cover all the bases and see which one comes out in your

favor. Many people are happy and successful operating their

own business. Others aren’t, and do very well when they are

part of a chain restaurant. One isn’t necessarily better

than the other so take your time making this important

decision.