Take away / franchise

[Mb_786]

Hi Guys,

I am 23 years old. I work a 9-5 in the construction industry.

I really want to open a take away franchise in my area or somewhere local but I do not know where to start from at all. My dad has take away experience too which is ideal to start our own business.

Any advice/help would be highly appreciated.

 

[Mark T Jones]

Why do you think this will be a good idea?

What is your long term aim?

What is your actual expectation?

I know a bit about the sector, both owned and franchised through my customers - to anyone not already in the industry my first observation will be 'its not what you think it is'

 

[Mb_786]

Thank you for your response.

Take aways are very good if they are promoted well via social media or if they now meet the ‘trends’ that the younger generation follow.

It is also something my dad has wanted to do too but wasn’t willing to take the risk however I am willing to take the risk. I’ve always wanted my own business from a young age.

There are take aways in my area, but the one I want to open is different to others. There is only one like this in my area and it has a lot of customers. So I would like to open something similar but in a different area/location.

I know it can be stressful and not everyday is a good day.

 

[Shopclicks]

Take aways are very good if they are promoted well via social media or if they now meet the ‘trends’ that the younger generation follow.

There's a lot more to a 'very good' takeaway than marketing on social media. I'm sure you didn't mean to say that but you are showing a your age. And it's not just the younger generation that eat takeaways. Breaking people's eating habits is going to be your major challenge. Why should people buy your takeaway rather than the takeaway they buy now?

It is also something my dad has wanted to do too but wasn’t willing to take the risk however I am willing to take the risk. I’ve always wanted my own business from a young age.

What have you done towards this goal? What customer service experience do you have? What food preparation experience do you have? Wanting a business since you were young is nice but but there's a difference between dreaming and learning skills.

There are take aways in my area, but the one I want to open is different to others. There is only one like this in my area and it has a lot of customers. So I would like to open something similar but in a different area/location.

Have you ever noticed a takeaway that was open one day and gone the next? That happens because people thought if something works elsewhere, it will work here. Absolutely not the case. Without a reputation, you go into this with fingers crossed and not much more.

I know it can be stressful and not everyday is a good day.

Understatement of the year.

Get some industry experience before committing to anything.

 

[Socio South West]

Good ambition @Mb_786. If you contact the Franchise Manager at any of the fast food franchises they will be able to supply details of what is required.

There is usually a fairly hefty capital sum required, or at least evidence that you have access to that sort of money of which only a stated percentage can be borrowed. This covers your initial shopfitting, equipment and stock - all of which will normally have be bought from the franchise's recommended suppliers.
Best of luck with your search!

See Subway Franchise FAQ here - this will be similar for most others (I found this with a quick Google search)

 

[Mb_786]

There's a lot more to a 'very good' takeaway than marketing on social media. I'm sure you didn't mean to say that but you are showing a your age. And it's not just the younger generation that eat takeaways. Breaking people's eating habits is going to be your major challenge. Why should people buy your takeaway rather than the takeaway they buy now?

What have you done towards this goal? What customer service experience do you have? What food preparation experience do you have? Wanting a business since you were young is nice but but there's a difference between dreaming and learning skills.

Have you ever noticed a takeaway that was open one day and gone the next? That happens because people thought if something works elsewhere, it will work here. Absolutely not the case. Without a reputation, you go into this with fingers crossed and not much more.

Understatement of the year.

Get some industry experience before committing to anything.

Hello,

Thank you for your response.

Marketing is one of the key aspects in my opinion. I am active on social media, a lot of the take aways/food places people are hearing about is through social media which is being promoted by influencers on social media.

The take away my dad currently works at get orders from areas where this isn’t open yet. My dad has also been offered a 50/50 opportunity by other business owners to open a similar food franchise in the areas I think would be best suited for this type of take away too.

Also considering my dad has a lot of experience in this field as he has been working in a take away since 2011/12, he would be able to teach me what is needed, I can start off with till work as I have done this before then learn the work behind the tills.

 

[Newchodge]

Hello,

Thank you for your response.

Marketing is one of the key aspects in my opinion. I am active on social media, a lot of the take aways/food places people are hearing about is through social media which is being promoted by influencers on social media.

The take away my dad currently works at get orders from areas where this isn’t open yet. My dad has also been offered a 50/50 opportunity by other business owners to open a similar food franchise in the areas I think would be best suited for this type of take away too.

Also considering my dad has a lot of experience in this field as he has been working in a take away since 2011/12, he would be able to teach me what is needed, I can start off with till work as I have done this before then learn the work behind the tills.

And which of you has experience in running a business?

 

[Mb_786]

And which of you has experience in running a business?

Neither, hence why I have come here to seek advice/guidance.

Only experience is working in a take away and that experience comes from my dad.

Regards,

 

[Mb_786]

Good ambition @Mb_786. If you contact the Franchise Manager at any of the fast food franchises they will be able to supply details of what is required.

There is usually a fairly hefty capital sum required, or at least evidence that you have access to that sort of money of which only a stated percentage can be borrowed. This covers your initial shopfitting, equipment and stock - all of which will normally have be bought from the franchise's recommended suppliers.
Best of luck with your search!

See here - this will be similar for most others (I found this with a quick Google search)

Thank you,

I really appreciate your help and thank you for going out your way to attach the link.

Regards,

 

[japancool]

The take away my dad currently works at get orders from areas where this isn’t open yet. My dad has also been offered a 50/50 opportunity by other business owners to open a similar food franchise in the areas I think would be best suited for this type of take away too.

Hmm. Is this a nationwide franchise brand?

 

[Newchodge]

Neither, hence why I have come here to seek advice/guidance.

Only experience is working in a take away and that experience comes from my dad.

Regards,

Cooking the food and taking the money are things anyone can do. Running the business is what you will need to do. Are you going to lease premises? How are you going to equip the premises? What equipment is vital, what can wait? Ar you going to use Uber Eats or Deliveroo or just ignore those platforms? What margin will you need to make a profit? Where will you source your food and othe supplies? Will you employ any staff?

 

[BobzYourUncle]

I would go and get some kitchen experience before you start. Try and work for someone who is very busy. You will learn loads more about yourself and wether you can handle being under pressure. Your aim is not only to learn about how a kitchen operates logistically from prep to service. But learn how to switch up from 1st gear to 6th gear straight away when all of a sudden you are inundated with 20 orders. Being able to work fast but maintain high standards is a must aswell as multi task be able to work in different stations in the kitchen aswell as out in the front. If you can do all of the above. You have a fighting chance. You will still have to learn about all the other aspect like stock ordering, accounts managing the finances. Some people think that fast food business is easy and go into it blinkered and naive. You will compromise your social life. You will have sleepless nights. You get a mental and physical workout everyday. You don't stop. You are on a continous cycle of rinse and repeat. You may have melt downs when freezers, fridges and fryers breakdown all of a sudden. I'm not trying to put u off. But this is the reality of it.. that being said I enjoy what I do whole heartedly. Going to work now is a joy. It has taken many years to get to this stage. It's a process. You have a lot of downs before going up. Good luck

 

[fisicx]

Marketing is one of the key aspects in my opinion. I am active on social media, a lot of the take aways/food places people are hearing about is through social media which is being promoted by influencers on social media.

Are you sure about that? I find out about local food places through Deliveroo, JustEat, flyers and billboards.

As others have said, you need to work in a takeaway for a year before thinking about getting your own franchise. And even then, running a business is a lot different to cooking/serving burgers.

 

[Socio South West]

I am 23 years old. I work a 9-5 in the construction industry.

The hours will be considerably different than in the construction industry - earth shatteringly so - but your deliveries will still probably be first thing in the morning.

From other replies, some general business management training is going to bring a great benefit to your plans - and something any decent franchisor will be looking for as evidence that you are a fit and proper person to be granted the right to use their brand name.
Beware of any franchise that is not checking this aspect out.

 

[Mark T Jones]

@BobzYourUncle is clearly your inside man here.

my insight comes from dealing with those who run takeaways - sometimes successfully, sometimes not.

and you are not yet talking the language of a successful operator. It can change.

I always advise at this point to start work on a cashflow projection. Dont worry about the outcome on the first few laps, just think about what the numbers actually mean and refer to.

Here is a starter list of things you will need to get your head around and/or pay for professional advice on before you go anywhere near a menu or social media

• Property leases - don't even think of DIYing, you'll be stitched up like a kipper.
• Contracts- negotiating and understanding commercial contracts for a range of things such as utilities, waste, hygiene, equipment leases, justEat etc
• Fit out - what you really need to be both compliant and efficient.
• Licences/ permits /authorities
• Recruitment and HR
• Workflow
• Stock control (wastage is a killer)
• Marketing - hint, posting on social media is the fluffy, fun last 5%. The real work is done well before that

There will be more, but those are the realities of running a business

 

[japancool]

Read this thread, as a cautionary tale:

How to get customers?

Hi everyone. Long shot but I am hoping to get some advice hopefully from people who have been in a similar situation. My family and I opened a restaurant in January 2022. We opened to much fan fare - busy everyday for the whole of January and February, sold out every weekend and many weekdays...

www.ukbusinessforums.co.uk

It's all very well being active on social media, but lots of activity on social media doesn't necessarily translate to customers, and can give a false picture. Getting people to like and comment is easy. Getting them through the door and spending money is harder.

 

[Chris Ashdown]

How do you feel about the unsocial hours working 6-7 days and nights a week, no time for Girl Friends, Family,visits to pubs, starting a business in the first 2 years is a massive commitment to long hours little income and high stress

Can it be done YES will you be prepared for the hours and learning new business skills ????

 

[BusterBloodvessel]

@BobzYourUncle

• Marketing - hint, posting on social media is the fluffy, fun last 5%. The real work is done well before that

This, this, and did I say..... THIS.

All you are able to talk about so far is marketing via social media, and doing something that someone else has done nearby. If that's all you've got to go off and you think that a successful business is going to pop up in front of you then you need a short sharp shock.

Start at the very beginning, start with working out all your costs to lease and fit out somewhere, work out your staffing costs, put together your menu and cost it out to the last piece of lettuce or slice of tomato. Work out your break even point and calculate that back into daily/weekly sales. work out how many customers/orders you are going to need per day. That might open your eyes to the scale of what you need and what you want to do.

Meanwhile, find any way you can of getting some experience in a takeaway. Where your dad works perhaps, or even just as a delivery driver - you will at least get some insights into what's going on in a busy operation.

That's just to get you going.... there will be plenty of other things to consider. And THEN...... you can worry about your social media posts.

 

[fisicx]

I know someone who runs a small Thai takeaway. He hasn't had a holiday in years. Can't ever go out for an evening as he often has to cover for someone who didn't turn up. Staffing is a complete nightmare, most new staff don't last long (can't handle the workload). Food delivery apps suck up a huge chunk of profit but he wouldn't survive without them (because of how people order food). And costs keep going up. The only reason he hasn't given up is because he can't find a buyer and he has bills to pay.

 

[Duke Fame]

I would go and get some kitchen experience before you start. Try and work for someone who is very busy. You will learn loads more about yourself and wether you can handle being under pressure. Your aim is not only to learn about how a kitchen operates logistically from prep to service. But learn how to switch up from 1st gear to 6th gear straight away when all of a sudden you are inundated with 20 orders. Being able to work fast but maintain high standards is a must aswell as multi task be able to work in different stations in the kitchen aswell as out in the front. If you can do all of the above. You have a fighting chance. You will still have to learn about all the other aspect like stock ordering, accounts managing the finances. Some people think that fast food business is easy and go into it blinkered and naive. You will compromise your social life. You will have sleepless nights. You get a mental and physical workout everyday. You don't stop. You are on a continous cycle of rinse and repeat. You may have melt downs when freezers, fridges and fryers breakdown all of a sudden. I'm not trying to put u off. But this is the reality of it.. that being said I enjoy what I do whole heartedly. Going to work now is a joy. It has taken many years to get to this stage. It's a process. You have a lot of downs before going up. Good luck

This ^^^ Get a job working in one on a Friday / Saturday. Watch the takings they make, that times the revenue comes in and how much down time there is.

 

[BillyB]

Opening a takeaway nowadays is a huge uphill struggle and you'll find the hours creep up on you very fast. I opened a small takeaway in January 2020 and it was nothing but a nightmare when I look back, didn't help that Covid happened but ended up going £15k over budget due to unforseen circumstances i.e the floor needing ripped out, damp treatment, new electrics and the list goes on.

When you finally open you then have to deal with staff who don't show up, delivery drivers wanting a bigger cut, increasing gas & electric prices, food & packaging costs, not to mention the book-keeping side of it and making sure your staff are getting paid properly with payslips and everything is up to the law standard.

I was working close to 100 hours per week for £0 pay because there is so much competition and even nowadays we are seeing the likes of Subway, Starbucks, McDonalds etc closing down because people don't have the spare cash for food like they used to. Don't get me wrong some takeaways are still making money but it's usally not much in the way of profit hence why they have multiple sites.

I personally think there's better money to be made in other businesses where there is no major overhead cost. Might be worth while having a listen to the James Sinclair podcast for new business ideas that can be done on the side, I thoroughly recommend it.

 

[Mb_786]

Thank you all for your help and comments! It is very much appreciated

 

[Duke Fame]

Thank you all for your help and comments! It is very much appreciated

Out of interest, I'm reminded that I used to do the accounts for a pizza franchisee and worked for a supplier to a well known sandwich business with franchisees.

The Pizza franchisee only made a living once he had 3 shops. When speaking with the well-known sandwich business, their franchisees only made proper money with multiple sites.

Making money from one take-away seems an impossible task unless you have something unique and in demand.

 

[Mark T Jones]

Out of interest, I'm reminded that I used to do the accounts for a pizza franchisee and worked for a supplier to a well known sandwich business with franchisees.

The Pizza franchisee only made a living once he had 3 shops. When speaking with the well-known sandwich business, their franchisees only made proper money with multiple sites.

Making money from one take-away seems an impossible task unless you have something unique and in demand.

It's generally said that the optimum scale for f & b franchises is 3 to 5 sites to be a 'proper' business

Below that, you are buying a job, much more and you start employing managers to manage managers.

Which of course depends on what you are actually trying to achieve

 

[Greg PW Shearman]

We offer a food retail franchise for a start up of £10k and projected and achievable net earnings are £50k in first year.

People say I lie so carry on .... but its so important for us as a franchisor to recruit the right franchises hence we only have 16 at the moment.

So even if you have the capitol if you don't have the skill set and business acumen a decent franchisor may turn you down.

 

[Greg PW Shearman]

Out of interest, I'm reminded that I used to do the accounts for a pizza franchisee and worked for a supplier to a well known sandwich business with franchisees.

The Pizza franchisee only made a living once he had 3 shops. When speaking with the well-known sandwich business, their franchisees only made proper money with multiple sites.

Making money from one take-away seems an impossible task unless you have something unique and in demand.

high street franchises have big fixed costs

the fit out investment on these big brands is huge so if you multiply that by 3 (as in 3 shops) with interest rates as they are good luck !

 

[The Resolver]

Agree with all the good advice you have been given here, Let me deal with your suggestion of franchising

Franchising involves signing up to a very one sided contract. Only consider that route for major brands (smaller networks rarely have any significant USP or public demand and name to justify the cost of franchising (both in what you pay the franchisor and what you pay in higher expenses due to supply control) and then only after raising due diligence questions (I have a 20 question set you are welcome to have a copy of if you PM me) so as to tie them down to their representations of the business on key issues. You should also go and speak to at least 3 franchisees in the network that you select who have operated the franchise for more than 2 years. The most important section of the Franchise Agreement is the section outlining the process for resolving disputes.

I have drawn up such agreements for franchisors and also negotiated exits/settled disputes for unhappy franchisees. Book in for a free advice call if you like.

 

[Lucan Unlordly]

Marketing is one of the key aspects in my opinion. I am active on social media, a lot of the take aways/food places people are hearing about is through social media which is being promoted by influencers on social media.

A relative who set up a Fresh Fish catering business was very good on social media but made the correct decision to put that side of the business to a specialist agency so that he could focus on the business proper. The agency raised the company profile much quicker and far more consistently than he could have done himself. I'd suggest you do the same.

You may want to consider mobile catering trailers, events etc., There are downfalls and benefits but it may be a cheaper way to get a foot on the ladder and give you something physical to sell on if it doesn't work out.

 

[Greg PW Shearman]

Agree with all the good advice you have been given here, Let me deal with your suggestion of franchising

Franchising involves signing up to a very one sided contract. Only consider that route for major brands (smaller networks rarely have any significant USP or public demand and name to justify the cost of franchising (both in what you pay the franchisor and what you pay in higher expenses due to supply control) and then only after raising due diligence questions (I have a 20 question set you are welcome to have a copy of if you PM me) so as to tie them down to their representations of the business on key issues. You should also go and speak to at least 3 franchisees in the network that you select who have operated the franchise for more than 2 years. The most important section of the Franchise Agreement is the section outlining the process for resolving disputes.

I have drawn up such agreements for franchisors and also negotiated exits/settled disputes for unhappy franchisees. Book in for a free advice call if you like.

Hi you do cover yourself with using the word 'rarely' my network of 16 franchises is great and we are relatively small ! I did try and arrange a call for later today but no availability !

 

[Drax35]

From a recovering fast food franchisee of many years - please don't do it!

Running a food outlet of any kind is something that looks easier than it is, if you're going to do things properly at least. It's even harder when you're dedicated to something and working all hours, then at the end of the week the franchisor takes all your profit away in royalties! ?

I don't know your background, but there's one (major) brand I know of that purposefully recruits non-British franchisees, knowing perfectly well their stores are only propped up by the use of cheap, family labour. Please watch out for this if that applies to you!

I had some high points in my franchisee career, but it all pales in comparison to the corruption, poor decisions from head/regional offices and lack of talent at the top of the company (at the time).

 

[Greg PW Shearman]

From a recovering fast food franchisee of many years - please don't do it!

Running a food outlet of any kind is something that looks easier than it is, if you're going to do things properly at least. It's even harder when you're dedicated to something and working all hours, then at the end of the week the franchisor takes all your profit away in royalties! ?

I don't know your background, but there's one (major) brand I know of that purposefully recruits non-British franchisees, knowing perfectly well their stores are only propped up by the use of cheap, family labour. Please watch out for this if that applies to you!

I had some high points in my franchisee career, but it all pales in comparison to the corruption, poor decisions from head/regional offices and lack of talent at the top of the company (at the time).

You just didn't select the right ones ! I wouldn't touch a Subway franchise but imagine a high margin food franchise with low costs no massive rents and rates !

 

[Mark T Jones]

From a recovering fast food franchisee of many years - please don't do it!

Running a food outlet of any kind is something that looks easier than it is, if you're going to do things properly at least. It's even harder when you're dedicated to something and working all hours, then at the end of the week the franchisor takes all your profit away in royalties! ?

I don't know your background, but there's one (major) brand I know of that purposefully recruits non-British franchisees, knowing perfectly well their stores are only propped up by the use of cheap, family labour. Please watch out for this if that applies to you!

I had some high points in my franchisee career, but it all pales in comparison to the corruption, poor decisions from head/regional offices and lack of talent at the top of the company (at the time).

Whilst I can sympathise (to some extent empathise) with this, the real underlying message here isn't a franchise message, but a research one.

I'm of the strict view that there are only 2 things that go wrong with franchises:

1. The way they are sold.
2. The way they are bought.

As a buyer, it is your job to delve deeply into what you are actually buying, what the terms are and to do your own research. It alarms me massivly when prospective franchisees come to me for finance - when I ask for projections they say 'That's the franchisor's job'

FFS, you are investing your savings, and you are relying on the seller to do the numbers for you!?

 

[Greg PW Shearman]

Whilst I can sympathise (to some extent empathise) with this, the real underlying message here isn't a franchise message, but a research one.

I'm of the strict view that there are only 2 things that go wrong with franchises:

1. The way they are sold.
2. The way they are bought.

As a buyer, it is your job to delve deeply into what you are actually buying, what the terms are and to do your own research. It alarms me massivly when prospective franchisees come to me for finance - when I ask for projections they say 'That's the franchisor's job'

FFS, you are investing your savings, and you are relying on the seller to do the numbers for you!?

A lot of rubbish is written on this forum but this is sensible solid advice !

 

[The Resolver]

Hi you do cover yourself with using the word 'rarely' my network of 16 franchises is great and we are relatively small ! I did try and arrange a call for later today but no availability !

I am not saying that smaller networks are rarely 'great' but that often there is no brand/USP to justify the additional cost and contracted risk. 16 is probably not small espcially if the geographical spread is not large. Are you the franchsior or a franchisee? Call me direct any time on 07885 728801

 

[Drax35]

As a buyer, it is your job to delve deeply into what you are actually buying, what the terms are and to do your own research. It alarms me massivly when prospective franchisees come to me for finance - when I ask for projections they say 'That's the franchisor's job'

FFS, you are investing your savings, and you are relying on the seller to do the numbers for you!?

So very true.

I've spoken with dozens of prospective franchisees over the years and a good chunk, though not all, have become blinded by the "opportunity". They lose sight of the fact that the helpful folks at the franchisor are simply trying to sell to them.

Most are just young, excited and haven't considered that big company's aren't always nicey-nicey. I certainly was like that once!

When it comes to the numbers, I was always amazed at how many prospects used to present me with a blank P&L and ask that I fill the numbers out!

 

[Mark T Jones]

So very true.

I've spoken with dozens of prospective franchisees over the years and a good chunk, though not all, have become blinded by the "opportunity". They lose sight of the fact that the helpful folks at the franchisor are simply trying to sell to them.

Most are just young, excited and haven't considered that big company's aren't always nicey-nicey. I certainly was like that once!

When it comes to the numbers, I was always amazed at how many prospects used to present me with a blank P&L and ask that I fill the numbers out!

I have also dealt with a few agents who are - shall we say - a mixed bag!

Ranging from a former bank manager, who takes it very seriously and will quickly relieve dreamers of their dreams, to a chancer who (I later discovered) has spent time at Her Majesty's for fraud.

They're not just young BTW - one particular franchise was inundated with enquiries from former City workers, who were keen to spend their redundancy on a 'lifestyle change'. A change from catching the 7 o'clock train, to turning up at 5.30 to sell coffee to the people catching the 7 o'clock. The franchisor freely admitted it was difficult stopping them from handing over their redundancy.

We digress only slightly. The fundamental message is the same

Do your homework!