If you’re interested in running your own business and want to invest in a dynamic and in-demand sector, then look no further than starting your own takeaway franchise. In this article, you’ll find a comprehensive guide to launching a takeaway franchise, covering everything you’ll need to consider along the way.
Food takeaway and delivery is a hugely popular sector in the UK, worth £19 billion and employing over 395,000 people [IBISWorld]. If you’re looking to enter this competitive market and become a franchisee, here’s everything you need to know about how to make a career change with a food takeaway franchise successfully.
What does a franchise in the food takeaway industry do?
Franchising in food takeaway is a lucrative option, but it won’t be something you can do successfully without investing your time, money and effort. Before you sign a franchise agreement and make a legal commitment, it’s important that you understand exactly what you’ll be doing as a franchisee with a takeaway company. Common daily tasks you’ll likely have to undertake include:
- Organising shifts and rotas for staff
- Managing stock and budgets
- Working closely with food and drink suppliers
- Ensuring the business is following licensing, hygiene, and health and safety rules
- Recruiting and training staff
- Dealing with customer complaints
- Marketing your franchise
- Testing new recipes
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Why start a takeaway franchise?
So, why start a takeaway franchise? If you love food and steady profits, you’ll find you’re able to combine both with this kind of franchise. The industry is booming and growing year on year, and you’ll never be far from a customer waiting to try your tasty treats. Further advantages of running your own takeaway franchise include:
- The chance to be your own boss
- The chance to work in a sector full of growth opportunities
- The access to cutting edge food preparation equipment
- The access to a profitable and working business model
- The ability to obtain funding support
- The high degree of franchisor support and guidance available to you at all times
The COVID-19 crisis forever changed the way in which the food industry operates. Rather than being down in the doldrums though, the sector has rebounded impressively, with enormous opportunities now presenting themselves for those considering investing in a food franchise.
- Food Fun Travel
How to start running a takeaway franchise
With an understanding of what a takeaway and delivery franchise does within the food service industry, and many advantages to franchising in this area to consider, it’s time to answer that all-important question: How do I actually go about starting my own takeaway franchise? The following four steps will lay it out for you, and in no time, you’ll become one of the top food takeaway franchises in the UK.
1. Find your niche in the vast takeaway industry
There are so many diverse and varied takeaway food options out there, and that’s a big advantage when it comes to finding the right fit for you – but it also means you’ll have to give your investment a lot of consideration before you make it. Britain’s favourite takeaway is Chinese, with 25% of those surveyed rating it their favourite. Indian is the runner-up at 17%, with fish and chips just behind at 16% [YouGov].
But what’s your favourite takeaway? What kind of niche do you see yourself working in everyday? Currently industry trends suggest that you’d find the following options to be particularly profitable:
- A franchise that offers healthy food options
- A franchise that offers vegan food options
- A franchise that caters to a wide range of allergies and dietary requirements
- An eco-friendly franchise with biodegradable packaging
2. Do your research
Having identified the area you’d like to occupy, it’ll be time to find out more about the sector and the opportunities available to you within it. What consumer trends are dominant right now, and how profitable could they be for you? What are your potential competitors doing in the space, and what market gaps can you identify? Which franchise opportunities speak to you, and how can you narrow down your list of options based on what your research tells you (i.e choosing the more profitable of two different but similar sub-sectors)?
Before you decide to buy a franchise, you need to determine the extent of the demand for its products or services. By systematically collecting, analyzing and interpreting market data, you can uncover key trends, form a better understanding of the franchise's market, customers and competitors, and make an educated decision.
3. Handle the financial side of things and do your due diligence
All this time, you’ve been narrowing it down and searching for the perfect takeaway franchise opportunity. At this stage, you’ll have to make your final call from a selection of very strong investment options. Carefully consider costs as you do this, as the worst thing you can do is overinvest. Don’t just think about the initial fee - think about ongoing fees and overheads, too. Here are some examples from the takeaway industry, to give you an idea of what you’re working with:
- Auntie Anne’s - Auntie Anne’s requires a minimum initial investment of £40,000, with franchise fees of £18,000 and a total investment cost of £145,000.
- Caprinos Pizza - Caprinos Pizza requires a minimum initial investment of £85,000, with franchise fees of £5,000 and a total investment cost of £95,000.
- Robunmo - Robunmo requires a minimum initial investment of £15,000, with franchise fees of £15,000 and a total investment cost of £25,000.
- Wok & Go - Wok & Go requires a minimum initial investment of £100,000, with franchise fees of £20,000 and a total investment cost of £200,000.
Once you know you’re on strong financial ground and your industry research is complete, don’t forget to do your due diligence and ensure that you’re getting exactly what you pay for when you make your investment.
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4. Create a business plan
After investing, make your next step the creation of a solid franchise business plan. A business plan is important when starting any franchise, but especially crucial when you’re looking to enter such a competitive space. Make your takeaway franchise’s business plan is your bible, and ensure that everything contained within it is approved and understood by your franchisor.
Your business plan, if you construct it well, will help you to make important decisions, allow you to set clear objectives and benchmarks, and provide you with a deeper understanding of your market and your competition. It should include all of the following key elements, some of which you’ll have a headstart on thanks to earlier research:
- An executive summary
- A business description
- Product/service descriptions
- A management summary
- Some market analysis
- Operational details
- Sales and marketing plans
- Business premises plans
- Financial projections and needs
Become a franchisee in the takeaway sector and start running your own business today
At this stage, you should have a strong idea of where to start in your journey towards building a successful takeaway franchise from the ground up. From Mostro Pizza to Rooster Shack, there are now a million different takeaway franchise investment opportunities waiting for your perusal.
Cara Squires, Point Franchise ©