Restaurant types and characteristics

Broadly speaking, restaurants can be divided into the following categories:

1 chain or independent (indy) and franchised restaurant. McDonald's, Union Square Cafe or KFC

2-Express Service (QSR), Sandwich. Hamburgers, chicken, etc .; convenience stores, noodles, pizza

3 – Fast Leisure. Panera bread, Atlanta bread company, Au Bon pain and so on

4-family. Bob Evans, Perkins, Friendly, Steak Shake, Waffle House

5-Recreation. Applebee & # 39; s, Hard Rock Caf & # 39; e, Chili & # 39; s, TGI Friday & # 39; s

6-Food. Charlie Trotter, Morton's Steakhouse, Fleming, Palm, Four Seasons

7- Other. Steak, seafood, ethnic, dinner houses, celebrities and so on. Of course, some restaurants fall into several categories. For example, Italian restaurants can be casual and ethnic. The leading restaurant concept has been tracking magazine restaurants for many years in terms of sales


Chain or independent

Impression that several huge fast-chain restaurants completely dominate the business is misleading. The chain restaurant has some advantages and some disadvantages of the independent restaurant. Advantages include:

1 – Identification in the market

2-Larger Advertising Influence

3 complex system development

4 – Discount Purchase

When joining, provide various kinds of assistance. A separate restaurant is easier to open. All you need is a few thousand dollars, knowledge of restaurant operations, and a strong desire

Success. The advantage of independent restaurant owners is that they can "do their thing" in concept development, menus, decorations, and so on. Unless our habits and tastes vary dramatically, there are plenty of separate dining room spaces in some places. Restaurant to come and go.

Once a small chain grows and is popular, they are likely to be acquired by a large company or will be able to obtain financing extensions. The temptation to start the restaurant owner is to observe big restaurants in big cities and believe that their success can be repeated in the secondary cities. Reading restaurant reviews in New York City, Las Vegas, Los Angeles, Chicago, Washington, DC or San Francisco may give the impression that unusual restaurants can be replicated in Des Moines, Kansas City or major US towns. Because of demographics, these upscale or ethnic restaurants will not click on small cities and towns.

5-going training from bottom to top, covering all operating areas of restaurants involves minimal financial risk because the form of the restaurant, including architectural design, menus and marketing programs, has been tested in the market . Franchise restaurants are not likely to be better than stand-alone restaurants. The reason is that the concept is proved and all (or most) kinks have been established for the operating procedure to be established. Provide training, and provide marketing and management support. However, increasing the likelihood of success is not cheap

There is a requirement for franchise fees, royalties, advertising fees and a large number of personal net worth. Franchising may be a way to enter the restaurant business for those who do not have substantial restaurant experience – as long as they are prepared to start from the bottom and attend an emergency training course. Restaurant franchisees are entrepreneurs who like to own, operate, develop and extend existing business concepts through a business arrangement called franchise.1 Several franchise stores end up with multiple stores, A great success. Naturally, most aspiring restaurant owners want to do their thing – they have a concept and can not wait to go.

Here is a sample of costs involved in franchising:

1 – Miami Subs Traditional restaurant costs $ 30,000 with a usage fee of 4.5% and requires at least five years of experience as a multi-unit operator , $ 1 million in individual / corporate equity and personal / business

Net assets $ 5 million

2-Chili Monthly fees are required, based on restaurant sales (current service charge is 4% of monthly sales) plus (a) basic monthly rent [McDonald'sneeds$200000innon-borrowingpersonalresourcesataninitialcostof$45000plusamonthlyservicechargebasedontherestaurant'ssalesperformance(about4%)andrentalswhichisa$19000

Percentage of monthly basic rent or monthly sales.


4-Pisa Factory Express units (200 to 999 square feet) require a license fee of $ 5,000, a royalty of 5% and an advertising fee of 2%. Equipment costs range from $ 25,000 to $ 90,000, miscellaneous expenses range from $ 3,200 to $ 9,000 and open inventory is $ 6,000.

5 Earl's sandwiches have a unit net worth of $ 750,000 with a liquidity of $ 300,000; five units with net assets of $ 1 million and liquidity of $ 500,000; 10 units of net assets
$ 200 million and liquidity of $ 800,000. The royalty is $ 25,000 per site, and the royalty is 6%.

What do you get for the money? The license will provide:

1 - Help with choosing a website and reviewing any suggested sites
2- Assist in design and construction preparation
3- Help Preparing to Open
4 - Training of management personnel and staff
5- Planning and implementation of marketing strategy before the start
6-unit access and ongoing operational advice

There are hundreds of restaurant franchise concepts that they are not without risk. A restaurant owned or leased by a franchisee may fail even if it is part of a very successful well-known chain. Franchisees also failed. A typical example is the highly regarded Boston market, which is located in the Golden State of Colorado. In 1993, when the company's stock was first offered to the public at $ 20 per share, it was eagerly bought to raise prices to a high of $ 50 per share. In 1999, the company announced bankruptcy, the stock fell to 75 cents. The contents of many stores were auctioned
A fraction of their cost.7 The wealth is created and lost. A no-loss investment banker is an investment banker who sells the shares and receives a substantial service charge.

Offer group also performed well. They are able to sell their shares when the stock is high. Fast service food chains, such as Hardy and Carl Jr., also experienced periods of red ink. Two companies, now an owner called CKE, have gone through a period of up to four years, as a company's actual income is negative. (19459003)

In the mid-1970s, A & W Restaurant, a restaurant, a restaurant, a restaurant, Inc., of Farmington Hills, Michigan, had 2,400 units. In 1995, the number of chains exceeded 600. In the year after the acquisition, the chain expanded by 400. Some of the expansion takes place in non-traditional locations such as kiosks, truck stops, colleges and convenience stores, and a full-service restaurant experience does not matter. The restaurant concept may do well in one area, but not in another.

Most franchising activities require a lot of hard work and long hours of work, many people think that these jobs are chore. If the concessionaire lacks sufficient capital and leases buildings or land, it may be possible to pay more leases than the business can support. The relationship between franchisees and franchisees tends to be strained even in the largest companies. The goals of each are usually different; the franchisee wants the most cost, while franchisors want to maximize support for marketing and franchising services such as employee training.

As franchise companies have established hundreds of franchises across the United States, some regions are already saturated: more franchisees are built than the region can support more than the region can support. Existing franchisees complain that adding more franchises is only to reduce the sales of existing stores. For example, pizza hut stopped selling
The franchise can take on many employers besides good employers. Overseas markets are a huge source of revenue for several fast service chains. As can be expected, McDonald's has been the leader of overseas expansion in 119 country units.

About 30,000 restaurants serve about 50 million customers a day, and about half of the company's profits come from outside the United States. Many other fast service chains also have a large number of franchise units abroad. While the start of the restaurant owner quite rightly focused on the success here and now, many bright, ambitious and vibrant restaurant owners think of foreign possibilities in the future. Once a concept is established, the entrepreneur can sell it to the franchisee, or, through a lot of guidance, take the format overseas through a franchise. (19459004)

McDonald's success story in the US and abroad illustrates the importance of adapting to local conditions. The company opens units in unlikely places and closes those that do not do well. For example, during the Indonesian crisis, imported french fries must be removed from the menu and replaced by rice. The life story of a large franchise may indicate that once the franchise matures, the way is clear. Dominica The pizza founder Thomas Monaghan tells a different story, once the chain has accumulated $ 500 million in debt Monaghan is a devout Catholic who says he changed his life and gave up his biggest

changed his life and the sense of good and evil for "personal and lasting." Fortunately, in Mr. Monaghan 's life, he is proud of himself and is committed to "God, family and pizza. Of the 7096 Domino Pizza stores worldwide with annual sales of about $ 3.78 billion, Monaghan sold most of his interest to the company for about $ 1 billion and announced that he would use his own In the recent past, most food service millionaires are franchisees, but a large number of potential restaurants, especially those in the hotel and restaurant management college degree courses, for a fast Service franchisees are not excited.

They prefer to own or manage a full-service restaurant. Potential franchisees should review their food experience and their money and decide which franchises are right for them . If they have little or no food experience, they can consider starting their restaurant business with a cheaper franchise, offering start-up training. For those who have experience, want a mature concept, a friendly chain, in 1999

Let's emphasize once again that working in your favorite restaurant may want to follow suit in your own restaurant.

Let's emphasize this again: work in your favorite restaurant and maybe want to follow in your own restaurant. If you have enough experience and money, you can go out on your own. Better yet, work in a successful restaurant where there may be a partnership or an owner, or the owner is considering retirement, and for tax or other reasons, May be willing to collect payment over time.

McDonald's sells fast service chain throughout the system, followed by Burger King. Wendy, Taco Bell, Pizza and KFC. As one of the hundreds of franchisees, the subway has total sales of $ 3.9 billion. There is no doubt that after 10 years, the highest sales of the company's listing will be different. Some of the existing leaders will experience a decline in sales, some will be merged with other companies or other companies to buy - some of which may be engaged in the restaurant business before the financial giant