The New Rules of Restaurant Franchising: Customer Is Key
CHARLOTTE, N.C., Dec. 10, 2013
CHARLOTTE, N.C., Dec. 10, 2013 /PRNewswire/ -- Opening a franchise restaurant
has long been assumed as an easy way to make money; a straightforward
investment: put up the money, put up the signs, start raking in the loot. Many
would-be franchise owners see it as a prepackaged opportunity to be the head
of a business, requiring only the pull of a ribbon to roll out and be
successful. However, this belief is just what dooms many new franchise owners,
as franchise restaurants can fail just as easily as independent ones. While
owning a franchise offers advantages such as group advertising, established
brand equity and supply infrastructure, there are a plethora of factors that
need to weighed by a potential owner-operator that can easily result in its
success or failure, such as location selection and competition, market
saturation and most importantly, the unforeseen reception by the would-be
Most important to any business should be its customers, and it's no different
for franchise restaurants. That's why location is so crucial, because
customers differ with their respective location. A restaurant's name and logo
cannot be expected to sell itself wherever it pops up; it has to be
strategically placed where there's a need or a strong desire for its presence
and its product. For instance, just because there's always a line at the local
McDonalds, doesn't mean that the new one being built down the road will draw
customers and turn a profit, and similarly, before opening a new Subway
location, the targeted area should be scouted for local deli's, whose
potentially large and loyal customer base could react negatively to the
intrusion of a new franchise in town.
Mike Pruitt, Founder and CEO of Charlotte, NC-based Chanticleer Holdings,
knows all about successfully finding new and unpredictable locations for
existing franchise chains. In a few short years, his Company has built, owns
and operates 7 international Hooters restaurants in countries like South
Africa, Hungary and Australia. "While researching locations, we wanted to
target places where the Hooters culture -- with our beach-theme, chicken wings
and sports fan atmosphere -- would be welcomed and embraced as a new addition
to the community," said Mr. Pruitt.
However, once he started building them, he realized that local consumers would
never embrace the restaurants if they were identical to their American
counterparts. "We knew we couldn't keep the menu the same," he added, "so we
incorporated local favorites like ribs and steak in South Africa." He then
tinkered with the appearance of some of the stores in order to adhere to local
preferences, like the addition of vast patios and outdoor seating in his
Budapest, Hungary location.
"I've learned that while customer's needs, tastes, and preferences may change
with geography, but their willingness to go where those particular tastes are
catered to remains universal," Mr. Pruitt concluded.
For more on Chanticleer Holdings and its international expansion of the
Hooters brand, visit www.chanticleerholdings.com, who paid for the writing and
dissemination of this release.
Contact: Anna Rofsky, Dian Griesel Int'l
SOURCE Chanticleer Holdings
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