Pros and Cons of Owning a Food Business


     Opening up your own business is not without hassles and problems. There are dilemmas you encounter in certain fields that may make you think that you made a mistake of even deciding to become a businessmen. The food industry is particularly tricky in this sense because, while it is a commodity and never goes old, modern taste differ from what the old people are used to.

     Nowadays, the food industry is dominated by fast food chains which expand their grasp through providing franchising. This sort of “partnership” in business entails contract and several conditions between the franchiser and the franchisee that it may give the latter a headache. Meanwhile, founding your own restaurant can also be difficult since you are beginning from scratch and gives you a lot of ground to cover.

This is why when considering all your options in your business venture, you always weigh its possible advantages and disadvantages.

Pros of Franchise

1. Franchising provides an instant expertise on the chosen industry since it provides tried and tested product image, marketing strategies and such, making it the perfect choice for those with less or without any experience at all in the food business.

2. There is a guaranteed support system for the franchise since the franchiser is set on maintaining the name and reputation of his company by keeping their franchises in check and well-supported.

3. Venturing on business which has already established a name such as franchises pose less risk than creating one from scratch.

4. Franchising provides a great training ground for newbies in the business both in the managerial and technical side of things.

5. Some franchisers also offer financial assistance in forms of credit for the franchise’s supplies and commodities.

Pros of Self-proprietorship

1. Owning the name and the right to your restaurant’s unique taste after creating it from scratch is something to be proud of and considered as the most fulfilling benefits of entrepreneurship. It also has the added perk of accepting compliments knowing that it is brought about by your own ideas and hard work.

2. The freedom from any rules and regulations set by other people like a franchiser can also be considered one of the best perks of starting your own food business from scratch. With this setup, you may do as you please without thinking about implications to another company. It also removes the pressure of following conditions posed by other people which sometimes are contrary to your own principles.

3. While many franchisers allow the franchisee to choose their own employees, there are still others that take too much control over the manpower of the franchise. Though their intentions may be in the right place, having the freedom to choose who to work with is a thing considered as an advantage for food businesses built from scratch since they are able to build a community within the establishment.

Cons of Franchise

1. Franchising may cost more than building your own business from scratch since it entails buying the right to use an established brand name owned by another company.

2. There is also the fact that you need to pay certain royalties to the franchisers which will come out of your gross sales, leaving less for you and your employees.

3. Rules and standards of the food franchise you have chosen may restrict certain changes you wish to make. It also leaves your hands tied to follow through with their demands with regards to changes in the franchise.

4. Success is not solely dependent on your hard work alone. Believe it or not, your food business success is actually more dependent on how the franchiser handles their company and their other franchisees.

Cons of Self-proprietorship

1. Starting a business from scratch is not easy task and requires plenty of sacrifices and hard work.

2. Since you do not have a ready support system like that which is provided by franchisers, you would need a whole lot of people to help you with your business venture.

3. Another disadvantage of self-owned food shops and restaurants include the uncertainty of profit. Contrary to franchising, owning a restaurant founded from scratch needs a hardcore marketing and branding plan to achieve its projected profit.


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