The fast-food franchise business is a business with ‘ready made’ customers which entrepreneurs can easily jump on and explore. The business involves partnering with a ready-made fast food brand such as Mr Biggs, Chicken Republic etc. and pretending to be the brand in an area you deem good for business. It doesn’t come cheap but it’s a lucrative and highly profitable business with good turnover within a very short period of starting.
Why should you start a fast food franchise business?
Fast food restaurants, otherwise known as quick service restaurants or eatery, are preferred by all age-group of consumers and its primary target audience is the ever busy and highly paid individuals such as Bankers, Medical Personnel, Programmers; and not leaving out those who want to impress their date for the first time.
There are a lot of values you offer as a fast-food entrepreneur to your target market, one of such is that it is fast and efficient. This means that people can get food on-the-go, without wasting time and the food can be packed and ready for takeout at any time. Likewise, it’s is convenience and affordability. Consumers don’t have to go through the stress of preparing their own meal.
For example, I a very busy city like Lagos, people working at a far distance have to leave their homes very early in the morning and by this time they cannot do any cooking of their own, they resort to buying food from fast food restaurants, which is a plus for you as a business man or woman. Running a fast food restaurant business in a strategic location will boost patronage and grow your business exponentially.
According to the president of the association of fast food and confectioners of Nigeria: Fast foods contribute up to N200 billion in the growth of the economy annually and that all its members pay up to N1 billion in taxes and levies.
So what’s a fast food franchise business and how does it work?
The franchise model is often described as working for yourself, but not by yourself. The concept is a simple one, whereby a successful business or successful brand has chosen franchising as a way to expand rapidly but has chosen a business model that works with local owners of local businesses.
The benefits of buying a franchise a huge compared to starting your own thing from the scratch.
- You don’t need to worry about whether customers will like your product.
- You don’t need to worry about how much you should charge for your service.
- You don’t need to worry about designing a logo, or writing sales literature. All this will have been worked out for you, leaving you to run the business on a day to day basis.
- When you buy a franchise you will, right from the start, have a network of people who can help you make the business a success, as well as testimonials from happy clients from customers in different parts of the country.
How much does it cost to own a fast food franchise business?
Owning a fast food franchise can be an incredibly lucrative business, but it requires a lot of cash. You must have at least N23,000,000 in liquid assets to open a McDonald’s or Taco Bell restaurant, for example. To open a KFC, your net worth must be at least N300 million.
On top of initial investments that can exceed N300 million, most chains charge monthly fees that can cost up to 12% of gross sales. We compiled a list of some basic financial requirements for becoming a franchise owner, based on information provided by six major fast food chains.
Following the name of each restaurant chain is the total startup costs to obtain franchise rights and open one restaurant in the Nigeria. Source franchisedirect.net.
- Taco Bell: N20,000,000.
- Wendy’s: N40,000,000.
- KFC: N45,00,000.
- McDonald’s: N45,000,000.
- Pizza Hut: N25,000,000.
- Subway: N15,000,000.
If you are looking for a business to start with less risk of success and fast cash returns, investing your money in one of this well known fast food vendors can be a good move for you.