Franchise Business Models: Food vs. Non-food (Food for thought!)
I’m tackling advice on another big decision you may have to make when researching franchises to buy. Should you buy into a food-based company or stay far away?
Having been in the franchising industry a long time, I’ve seen franchisees go through both models and have seen firsthand the pros and cons of each. So, I’ve put together my top 4 benefits of each type of franchise. I hope it will help you along the road to becoming a business owner.
Top 4 Advantages to Owning a Food Franchise
- If you are already interested in or working in the food industry, you can probably find a franchise model that will meet your needs. This is due to the large variety of restaurant franchises.
- In the food industry, your support staff often works on tips and commission. They can make or break your restaurant, so finding friendly, reliable, trustworthy employees can be a challenge. And keep in mind, low-wage food industry jobs tend to have a very high turnover rate. So if you find good employees, incent them to stay with you.
- Many restaurant owners find the lifestyle to be a huge benefit in food franchise ownership. It’s not for everyone, but these owners often love the hustle and bustle of a restaurant and don’t mind late nights or early mornings.
- Often, a food franchise company will have several locations in one city. So, you can usually share the burden of marketing and building brand awareness. This can also be true for non-food franchises, depending on the industry.
Top 4 Benefits of Buying a Non-Food Franchise
- When people hear franchise they often think of food first. But there are a ton of non-food franchises to choose from. Name a business and there’s probably some kind of franchise associated with it. Trust me, a solid franchise system will give you all the support you need so you don’t make costly mistakes starting from scratch.
- In a service or retail company, you don’t have to deal with the headache of food storage and spoilage which can be very costly.
- Regulation and paperwork surrounding non-food franchises is often much easier to manage than in the food industry where you must constantly deal with licensing and inspections.
- Food franchises tend to have much higher start-up costs than most other businesses, so you can usually get started in another industry with less initial investment.
Additional advice? More questions about food vs. non-food or want another business model question answered? Leave them in the comments.