Trends in Restaurant Franchise Opportunities

Do You Have What It Takes To Operate a Restaurant?

Another misconception about the food industry is that it is all glamour. "There is a mystique to being in the food business," said Hein. "But people underestimate how much work it is. The hours are harrowing and it is tons of work." The consensus appears to be that in order to reach a heavy profit margin, your store must have a prime location and you must be up to the task. "If you have a bad location people will never find you; you can have a good location but a bad operator and you won't make any money," Hein said. "A good restaurant operator is good at being social and willing to take a lot of slack. You will be dealing with customers who want things perfect every time and with low wage employees, oftentimes students."

Treliving agrees. "You have to love what you do and you have to like people," he said. "This is a job for a true 'people person.' You have to be enthusiastic about the restaurant, your food, and your people; if you believe in it, it will show. Most importantly, you have to 'live it' and surround yourself with those who share your passion."

Many of us have worked in the restaurant industry in some capacity, whether it was bussing or waiting tables part time during high school and college, however, making a commitment to dedicating all your efforts into the food business requires a different frame of mind than in the mainstream business world. "If you are going to be running a restaurant, you need to be prepared to transition from a corporate mindset to a retail mindset," Heard said. From an operational perspective restaurants have the same requirements as other businesses regarding legal disclosures and offering circulars, according to Hein. The content, however, is driven by the type of business. Restaurants, for example, often have higher opening costs that other types of operations because the store location's interior must be built out to accommodate grease traps and other devices to meet city and county codes for food preparations. "If you sell liquor, you have to qualify for a license," said Hein. "There are certain risks associated with selling liquor and there are insurance requirements."

"There are three key components to being a good restaurant operator: strong operating experience, multi-unit management experience, and financial where-with-all. Real estate development experience is also important," said Peterson.

Page 1 | 2 | 3

Related: Top 10 Restaurant Franchises