OPERATIONS

8 hot-shot tips from foodie franchisees

Anthony Stahl and Daniel Mesiti own five Boost Juice franchises. Here are their best tips on what to consider before you buy a food franchise.

1. BE READY FOR BOOT-CAMP

Make sure you enjoy working with food. It’s simple but important. Working with food means always being on the go, from constant prep to continual cleaning, so make sure you go in with your eyes open.

And cleaning will be a big part of your job! Dishwashers and cleaning equipment, sanitiser and detergents, mops and buckets go hand in hand with the food industry. Expect to get dirty.

New franchisees we have trained in the past have often shed many kilos within the first few months. Understand that if you’re coming from a corporate role or retail fashion environment, your lifestyle is about to change. Expect 12,000-plus steps per day. It does mean you save at the gym though!

2. CHECK THE DETAILS

You’ll also need to understand food safety … preparation, storage, allergens, stock control. These are all things that will require attention every single day. You will need a level of detail orientation to keep on top of this.

3. UNDERSTAND THE BUSINESS

Where are the sales coming from and what time of day is the store busy? Food is a battle of margins, so you need to know how profitable the categories are.

Find out how delivery impacts on margins. Uber takes up to 35 per cent and can be more than 50 per cent of revenue for some businesses.

You’ll need to know how much labour is required. This will be one of your top two highest expenses along with the cost of goods sold (COGS). This is influenced by when the business trades and when it is actually busy. Food business often involves lots of preparation and food handling and these can be at times when your business may not be trading, so how does this affect your labour costs? Can you open early or close late to help drive sales?

Do you understand the production process and stress points in delivering great food quickly?

Get to know the cash flow and weekly wages required.

4. EQUIP YOURSELF

Food equipment costs can be considerable. Setting-up costs – kitchens, grease traps, cooling equipment, ice machines, plumbing and fitouts – can add up quickly. So know your numbers.

Search online to find typical prices and check the quality before you purchase either new or used equipment. It’s important to consider where the equipment is made and assembled and how easy and costly it is to access servicing and parts.

5. UNDERSTAND THE CUSTOMERS

It's actually important to get along with and like serving your customers, particularly at the start when you should be heavily involved. Get to know what they are looking for and be the backbone of the operation.

Think about how you will market to them. What promotional strategies will they respond to? How will you build loyalty? For your customers, what is more important: speed, quality or convenience?

6. BE A GREAT TEAM LEADER

Understand the team required to deliver this. The ability to lead a great team is absolutely essential and will make all the difference to your business.

7. PREPARE FOR THE LIFESTYLE

Consider the impact of business ownership on your lifestyle, family and friends. The food industry is notorious for long hours that are not family-friendly. Any business owner can feel isolated but add the food service hours involved and this can be amplified. Be aware of this and have a strategy to deal with it.

8. CHASE THE DREAM

Get out there and find something you think you could purchase or replicate. Walk the streets in your target area and talk to owners and business brokers. Be proactive in chasing what aligns with your goals of owning a food business.