Can franchising be the solution to the restaurant crisis?

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MasudIbne756
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Joined: Sat Dec 21, 2024 3:56 am

Can franchising be the solution to the restaurant crisis?

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Keeping your cash flow management under control by making realistic sales forecasts also helps you get an idea of ​​how much money you expect to receive in a given period.Unsustainable expansion : many brands open new stores to “guard the territory”, without a real market analysis and without considering long-term profitability.

5. Cost of goods sold too high : the obsession with high-quality chinese overseas british data ingredients and DOP certifications leads to an increase in the cost of products, which negatively impacts profit margins.


Catering Crisis? Franchising is the Solution

Restaurant franchising is proving to be a winning strategy to overcome many of the critical issues that affect large restaurant chains. This model allows for the format to be standardized , introducing clear and replicable operating procedures that minimize waste and optimize cost management. Another great advantage is the reduction in the impact of fixed costs : unlike traditional chains, the economic burden of rent falls on the franchisees , lightening the balance sheets of the parent company.
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