5 Reasons to Invest in Food Franchises with Smaller Footprints
We’ve all heard the famous adage “Bigger is better.” But is this timeless piece of wisdom true for restaurant franchises? As any restaurateur will tell you, the benefits of owning and operating a food franchise with a smaller footprint are huge.
For example, the popular Wingers Restaurant & Alehouse franchise provides the same quality experience as much larger restaurants, but in a smaller, easier-to-manage space (4,000 – 4,500 square feet). Wingers rebranded itself and found the smaller footprint, coupled with a focus on quality food and local craft beers, positively impacted its bottom line.
In today’s post-pandemic world, even household fast-food names like McDonald’s, Chick-fil-A and Taco Bell have experimented with smaller locations with to-go-only options.
With that in mind, here are 5 reasons to invest in food franchises with smaller footprints.
1. Fewer Employees
Staffing can be a big expense for restaurant franchises. With fewer employees, this cost goes down, freeing up owners to invest in other aspects of the business such as local advertising and overall growth.
2. Lower Operating Costs
From furniture and light fixtures to wall treatments and floor coverings, there are countless expenses for restaurant owners. With a smaller footprint, restaurant owners have lower operating costs and have less worry about replacing or repairing items.
3. Fewer Headaches
Let’s face it; running a restaurant comes with a lot of stress and headaches. From security and landscaping to managerial tasks like staffing and retention, these issues are exasperated in bigger operations. With a smaller restaurant, these problems become much more manageable.
4. Increased Revenue
When operating costs decrease, revenue generally increases. This means that both franchisors and franchisees win with a better bottom line.
5. Local Engagement
Restaurants of any size tend to be pillars of the community and are great meeting places for family and friends. With smaller operations and a more intimate feel, business owners and staff can make stronger connections with customers. Word-of-mouth recommendations can go a long way for small restaurants since customers strongly value the way a brand makes them feel and the experiences they bring.
As you can see, even if you go small, you can still make it big in food franchising. The benefits of owning a restaurant with a small footprint are enormous, and the countless success stories of food franchise owners prove that.
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