10 Ways to profit from the food business without the high cost of a restaurant franchise With the high risk and large investment to open a restaurant franchise, some people have found a way to profit from the food business without the investment or risk. The restaurant meal delivery business allows you to deliver meals for restaurants and make nice profits without the investment or risk of owning a restaurant itself. A restaurant meal delivery business works by you negotiating a discount from the restaurant for delivering their food. Your profit comes from this discount and your drivers get paid from the delivery charge and their tips. Knowing the right discount percentage to get and knowing how to get it are the most critical parts of this business. Do this wrong and your business is guaranteed to fail. You can get help from franchises and other opportunities in this industry. This article is about how one of the available business models, called a license, can help you get in the business for a lot less money and risk than a franchise. Here are the 10 reasons to consider this business model: 1. The cost to get open is the lowest. The company offering this model, Dine-In Delivery, allows you to get open for only $20K. 2. Another reason the license model is attractive is that there are no royalties on your sales. A typical franchise has a 6% royalty and a 2% ad fund for a total of 8%. That means, should you be successful and gross $1 Million per year, you will be paying $80,000 every year to the franchisor. 3. You are quicker to profit. Low to no overhead, no royalties, low investment and no employees (drivers are typically independent contractors) means you can hit break even quickly and be profitable at a very low level of sales. 4. Your restaurant meal delivery business can be run from a low overhead location or even your home. All you need to start is a desk and a phone. You can also start part time without leaving your day job. 5. A franchise can terminate your franchise if you dont follow their procedures and systems. A Dine-In Delivery license allows you to operate however you like and whatever way is best for you and your market. 6. Profit from multi-units. A Restaurant franchise can cost $250,000 up to many millions and if you would like a second one, you will have to pay that again. A license from Dine-In Delivery will cost you $20,000 to open the first one, but only $2,500 (plus licensing a larger territory) to open the 2nd, 3rd or 4th. 7. Interested in being an Area Developer? Area Developers profit by helping the franchisor or licensor find more operators. With a franchise, becoming an Area Developer requires a large additional investment. With Dine-In Delivery, they make you an Area Developer for free. 8. Franchises have “transfer” or “closure” fees. That means with a franchise, if you want to sell, will require you to pay a fee and also have the buyer be approved by the franchisor. Amazingly, some franchises even charge 6 figure fees to close your business if its not working! With a Dine-In Delivery license, its your business and you can sell it or close it without getting their permission or paying them any money. 9. Protected territories. If you have a Dine-In Delivery restaurant meal delivery business you will get a protected territory that you define, not them. Unlike some franchisors who put new units right next to existing ones, that will never happen. Your territory is your territory. 10. Getting confidential financial and operating information. Those considering a Dine-In Delivery license , if they are financially qualified, will have a personal meeting at their location with a corporate representative who will share all the critical operational and financial details before you make your decision. Franchises only give you this information after you pay your money.
Please Rate this Article 5 out of 54 out of 53 out of 52 out of 51 out of 5
Not yet Rated
