Owning a Franchise Restaurant: What to Know Before You Buy

The restaurant business can be very profitable, but it can also be very risky. That’s why many investors choose to buy a franchise instead of building a restaurant from the ground up.

One of the biggest benefits of owning a franchise restaurant is the instant brand recognition.

People are drawn to franchises because they love consistency. They know your product will be the same as what’s sold at other franchise locations. This means you have an established customer base before you even open your doors.

Another benefit of owning a franchise restaurant is the support you get from the franchisor. The company will share their proven strategies to help set you up for success. They provide an in-depth training program to teach you everything you need to know about running the restaurant and help you with everything from site selection to marketing to best business practices. You will save money by ordering your supplies from the company’s contacts.

What to Consider Before You Buy a Franchise

Owning a franchise restaurant is not for everyone. Here are a few of the things you need to know before you decide to buy.

  • The costs can be prohibitive. You need to consider the up-front costs, including the franchise fees, as well as the length of the franchise agreement and the percentage of royalties you’ll owe every year. The costs vary widely depending on which restaurant franchise you decide to buy.
  • You’ll have to sacrifice some of your independence. The franchise model is a very formulaic one; the company knows what’s worked in the past, and by following the formula, you will have the greatest chance at success. You can’t change the menu, the materials you use, the look of your location, or the marketing plan, as all are stipulated in the terms of the franchise agreement.
  • You’ll need to find a franchise that fills a niche in the market. You don’t want to open an ice cream shop if there are already two franchises plus a locally owned ice cream parlor in your small town. If you are thinking about buying a more upscale restaurant, make sure you consider the median income of the population first. Also, take into account how the pandemic has changed consumers’ habits. Fewer people are frequenting shopping malls, so a restaurant franchise with a mall location may not be as profitable as it would have been a few years ago. Fast-casual restaurant models might also suffer depending on how comfortable people are dining in public.
  • All franchise restaurants are different. Just because it’s a well-known name, or you love to eat there, that doesn’t mean a franchise of that particular restaurant will be right for you. Before you decide to buy, talk to other franchisees. They will be able to give you a first-hand look at what it will be like to run one of these restaurants.

The Scooter’s Coffee Difference

Scooter’s Coffee has built its brand on our four core values: integrity, love, humility, and courage. We consider our franchisees to be part of our family; they are brand ambassadors helping to bring our delicious drinks and fast, friendly service to locations throughout the country. We offer them the support they need to help make sure their franchises are successful. Many of our newest franchisees say they were so impressed with our company, they bought their franchises without ever having set foot in a Scooter’s Coffee.

Our drive-thru kiosk model, the company’s original business model, is enjoying even more success during the pandemic, as it allows customers to social distance while still receiving the amazing customer service that Scooter’s Coffee is known for.

Find Out More

If you are considering owning a franchise restaurant and you think a Scooter’s Coffee franchise would be right for you, request more information today.

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