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Fast Food Chains
Small Business Advice
How do I start a food chain business?
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A free food chain sample business plan – by Upmetrics
, Co-founder & COO at Your Retail Coach (2012-present)
Its a long list, but not endless, as follows:
Menu: Decide the food cuisine and dishes you want to serve in your restaurant. Do not proceed further before finalizing it, as many factors & decisions are very crucial which major depends on your menu. You have to be very clear what you want to serve and your target audience I.e. customers.
Location: This is the another important factor for a new restaurant. Make sure the locality suits the food menu you have decided to serve. I have seen many cases wherein restaurants have failed because their menu was not the preference of people in the area where the restaurant was opened, whereas the same restaurant (another branch of same brand) was doing wonderful business in another area (which was just 5 km away from the area where it failed to do business). Now next thing is how do you identify it??? The answer is simple: Visit each & every restaurant (especially which are more than 1 year in existence) in the area you wish to open and analyse the menu. You will get the food preference of people in that area.
Business Plan Evaluation: Calculate your ROI, cash flows and breakeven point of your business and evaluate whether will you be able to achieve more than breakeven?? If yes, then is your ROI being achieved at minimum 30%. If it fits in this criterias then its a good business model, otherwise give it a thought again. Business Model Evaluation is also important to evaluate the areas wherein you need to get control on cost. To know more about cost control refer How Do I Reduce My Operating Cost?
SOP (Standard Operating Procedures): Define your SOPs in advance before starting the restaurant so that you dont get involved in daily business operations & can concentrate on business development activities. To know more refer How to organize business & Business Process Management
Staff recruitment & training: Make sure you start staffing activities a month before restaurant opening and recruit staff 2 weeks before the opening. Start with classroom training on hr policies, sales, products, sop, etc. If you avoid this step then be ready to face hr issues later. To know more read Why do we need to manage our staff efficiently?
Marketing activities: Always come with a bang in F&B Business. Plan your opening day activities very carefully. Plan your ATL & BTL activities strategically. To know about marketing planning read How to write standard operating procedure for marketing?
Moat: There has to be an USP in your business. Without an USP your brand will not outstand in market for long. In f&b business your USP can be your service, quality, taste, etc. To know more about how to create a USP refer 6 Ways To Grow Your Business
Vision & Business Strategy: Do not think that defining your vision & further growth strategy is too early at this stage. This is the most common mistake made by an f&b entrepreneur. You have to be very clear on your vision & future growth strategies. To know more read How to develop business growth strategies and manage growth?
Franchising: In f&b business, franchising is one major growth strategy. If you wish to take this route in future to expand, then do not miss out on any factors explained above, which will overall help you to create a strong brand. To achieve success in franchising, you will have to organise your business and create a brand. To know more about franchising read Is a Franchise Business Profitable?
If you mange it with proper strategies and SOPs aligned, the growth can be sky high.
If you wish to take professional advice then you can contact http://www.yourretailcoach.in
For any further queries or clarification on any points mentioned above, you can message me…ill answer the same.
Regards & Wish you success !!!
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At the initial stage of any food business you need to know few key terms of starting a business. It is necessary that every business should go accordingly. Let us find few easy and simple steps for the inception of your food business.
There are 4 major P’s which has to be reminded for every business:
Product – It is necessary that you should have a clear grasp of exactly what your product is and what makes it unique before you can successfully introduce it to the customers.
Price – Once we start understanding the product, offering for it can be established we can start making some pricing decisions. Price determinations will impact profit margins, supply, demand and marketing strategy, man power required.
Place – Often you would have heard that business is about putting the right product, at the right price. It is necessary to find an appropriate place for selling a product and where you can get your target audience easily.
Promotion – We’ve got a product and a price now it’s time to promote it. Promotion includes elements like: advertising, public relations, social media marketing, email marketing, search engine marketing, video marketing and more. Each touch point must be supported by a well positioned brand to truly maximize return on investment.
Licensing – At every initial stage of the business we need to complete with the documentation part. We should have every needed legal documents. The required documents will be such as given below
a) Shop act – If the business is initiated in a shop then it is mandatory to have a sop act license
b) Company registration – Every business or a company should be registered under company registration.
c) Rental agreement – If the premise where you started your business is on rent then you need make rental agreement
d) FSSAI License – As it is the food business then you should have a food license which will maintain transparency between you and the customer.
As soon as you are ready with these terms you can proceed with the next step,
- You need to know the capital which you are earning is enough or not, is it recovering all the expenses you made, if yes then it is a great idea to move ahead, but if no then you should make sure whether you need to switch the business.
- You should select a dedicated staff as its a startup, it is mandatory to provide them with proper training, this can surely help you to fasten your service.
- The service which you provide should be quick and satisfy the customers.
- Nowadays, every business should have a USP (Unique selling point) in it, which leads the product among others.
- You should be clear with your goals & visions, what changes you want to make in future and how will you grow your business, you need to recover your ideas as per the changing trend.
- Making franchises will help to grow your business all over the world, you can make franchises for your business which will help to spread your brand all over.
For any business you should be ready with proper planning and perfect execution, same goes with food chain business.There are various examples of food chain business which have lead to a success such as Mcdonalds, KFC, Starbucks etc. Take the help of these points and start your business and planning today itself.
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, International F&B Market Entry Strategist
Food and Beverage Franchising Opportunities
India has witnessed a sharp growth in the Food and Beverage Industry (F&B Industry) over the past few years, with food production expected to double by 2020. The entry of multinationals, the aggressive rise of commodity branding, an opening up of the retail sector, increase in local players and the low cost of technology is changing the economics of the food industry.
Quick Service Restaurants (QSR) and casual dining chains are the two most popular F&B formats in India that form 45% and 32% of the overall market respectively. The key drivers to this growth are – changing demographic of the country, rise in disposable income, steady growth of retail chains, and urbanisation.
A number of international QSR chains have flocked to India, with specific cuisines and product offerings, fuelling the market’s growth.
Owning a Food and Beverage Franchise in the given conditions is one of the smartest options for investors who can enjoy a rate of return of 4–5x on an average.
I would recommend that you should visit The Archadin Group’s website. They deal with several such prestigious International F&B brands who are looking into entering the Asian markets, including India.
All you need to do is fill a simple form on their website showing your interest, and their team shall get in touch with you to schedule a consultation for free. It’s worth exploring opportunities in this sector.
Hope this helps. Cheers!
, Business coach/consultant at Backbone America (2016-present)
Great question. I’ve worked with quite a few business individuals in the food business. The information I’m sharing with you is applicable if you’re running your business in the United States.
I would start with a bit of research. Most states require you to register your business. You can do this through the Secretary of State (SOS). There are two states that require you to register with the Lieutenant Governor. Off the top of my head, I can’t remember which ones. However, if it’s not at the SOS, you know where to go next. The Lt. Gov. Investigate how you want to register your business and the costs associated with registering your business.
Running a food business also requires special licenses. You’ll want to look for licenses at the state level, county level, city level, and local level where you want to run your business. If you’re a mobile food company, remember to check the rules and regulation for each city/locality where you want to serve your business. Don’t assume you’ll be covered, just because you picked up a state license. The Attorney General is a good place to start for licenses. Then you can work your way down from there. For example, city hall would be a place to check for city licenses.
Be sure to ask questions at each level. Obtaining and keeping a licenses requires that you follow certain guidelines. For example, you may need a fire and health inspection to get up and running. If you miss any step, you can find your business shut down in a blink of an eye. You can be open for lunch, happily serving guests, and the next moment, you’re being asked to turn off your grills and send your customers away.
My biggest suggestion is to research, research, and research. Come up with a financial model. Understand your costs, really understand your costs. I’m talking down to the cost of a single plastic forks you send with a customer who order take out.
Those are some areas to get you started. If you’re in need of hand holding, feel free to contact me at the link below:
Business Coach & Consultant
, former Consultant
Finalize a food which needs to be packaged,
Finalize the place and install the machinery
Also make a proper website for your product
Get the licencing done like food licence and other licences
Print the FSSAI number of the packaged foods
You are good to go with your product and business.
For expert consultation you can connect on Legal Documents Online , i had the same query the person at legal-docs are very knowledgeable, helped me to resolve the same. They not only help you with licence part but also guide you on set up of your business
, Business Development Officer at Mukunda Foods (2017-present)
Very interesting question. Food business is something everyone thinks of. It is one of the easiest and very flexible business. Also, easy returns as it is a daily commodity. To start any particular business, you will first need to have an idea. Then analyze the possibilities of the idea, your market then maybe consult people already existing in the business.
Once you’ve done the ground work, start preparing your own business plan. After that, maybe come down to a proper plan of execution. Now think of existing business modules for the same. After all it has been done, carefully design the market for your unique food product/service. Reach your audience through online/offline marketing.
There are few firms which help you with all the business development & consulting & market research, ex – nielsen . Also there are firms which help you start your own franchise and then expand to a chain. ex – Dosamatic .
There are a lot of ways on the internet and in real life, once you decide on starting your own startup. Also, its the will which makes you do so much.
Hope this helped 🙂