Newspress.com reported earlier this week that children of McDonald’s franchise owners are letting go of their different chosen careers and are slowly going back to their family business. Such information was given by Corey Luering, McDonald’s Florida’s regional training lead. “McDonald’s has been in the business for 56 years, and with that age, many of our franchise owners are already meaning to retire,” she said. “The next generation is now coming in and is taking a good look at the possibilities that McDonald’s can offer.”
A program called “Next Generation” has been offered by McDonald’s since way back to guide and instruct prospective franchise owners in running the business. Most of the current trainees are offsprings of McDonald’s franchise operators. The program takes two to three years to complete, depending on how experienced the candidates are in running a fast food restaurant business. Many of these children, after graduating from school, initially had grand dreams of owning a bar or restaurant, but never really thought of running their own McDonald’s restaurant. But as they work their way up in restaurants, bars and nightclubs around America, developing their establishments’ menu, menu covers and all other aspects of the business, they are thumped with the reality that numerous restaurant businesses quickly fail. And they get to compare that with the stability that McDonald’s has.
Stability is among the many advantages and beauty of franchising. McDonald’s is just one of the numerous restaurants in the U.S. that offer franchise opportunities. To date, McDonald’s have a total of 32,000 restaurants across the globe and out of that, 80% of them are franchised.
A lot of people are drawn to this type of investment because franchising, experts say, is a combination of professionalism and profitability. Here are a number of good reasons why many business owners prefer to buy franchise restaurants than run their own independent places:
• Franchising has a well defined investment and cost breakdown—you shall be saved from the many surprises you would encounter, as opposed to operating an independent restaurant.
• Those surprises and guessing games –which are highly anticipated in running a restaurant – has already been done by those ahead of you.
• Marketing statistics and data on customer preferences are already accessible.
• Franchising makes sure that the business operation devices and tools are in place –menus, menu covers, marketing displays and all others– with the realization that operating a restaurant business has two sides: the running of the restaurant itself and operating the business side of it. With franchising, the systems and procedures involved to run both sides are already set-up.
• It includes training of the staff (and yourself), minimizing the risk of customer service slip-ups.
• You get to have an experienced professional who serves as your guide and mentor in running the business.
• You don’t have to do heavy promotion – the brand is already established and recognized.
• Franchising has tried and tested formulas for success.
• Your advertising cost is minimized, as advertising campaigns are done per region.
• Franchise restaurants have strict accounting and bookkeeping methods, allowing more chances of profitability. It’s also easier to sell once you choose to liquidate the business.
Among the top successful fast food chains in the U.S. now, other than McDonald’s, are Subway, Starbucks, Pizza Hut, Burger King, Dunkin’ Donuts, Wendy’s, Taco Bell, Kentucky Fried Chicken and Domino’s Pizza.
The only concrete drawback most people see in franchising is the expensive initial investment required from the business owners. The cost, however, covers the minimized risk premium you get out of the business, still making it one of the better investments you can make these days.