Are Restaurant Franchises Profitable?
Restaurants can be profitable, but it takes more than a good idea to run a successful restaurant operation. Like any business, making a profit is predicated upon a winning combination of demand, location, marketing, and the skills of the operator. “The critical key to a success operation is experience and training,” Peterson said. “Some franchisees fail even with a franchise system.” A comprehensive grasp of the restaurant industry and your targeted market is essential when determining whether or not a restaurant franchise is the right choice for you. “When people think of franchises they generally think of restaurants,” said Kevin Hein of Snell & Wilmer L.L.C. who works extensively within the restaurant industry as an attorney and speaker on franchise issues. “People can go into a restaurant during a busy time and do a head count, they can see the line is out the door but this could be off the mark.” “A lot of people think you can put up a sign of a well-known business and they will b
