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Old 03-18-2013, 03:46 AM
Location: Cape Coral
301 posts, read 416,725 times
Reputation: 440


Former HU Grad, worked for MickeyDs from 15 to 25. They paid for college and my first home.

You have one common goal in all restaurants, corporate, franchise or privately owned.

Food cost less than 25%, Paper cost less than 5% ( hence $2.00 soda) and labor less than 25%. That leaves 45% GM to pay rent, electricity, insurance, water and marketing or franchise fees.

MickeyD : Franchise Fee and Rent can be 18% swept directly from the account, no float, pay me.

It is all about maintaining ratios and capturing sales.

How you do that is what distinguishes you in your market place. Training and hiring the right people is how I did it. If you focus on your people and set the tone for the experience, customers come back.

LSM (Local Store Marketing) is the community outreach you see in every restaurant.

Regional Marketing is the sole reason you pay franchise fees (3% of package goes to marketing) they call this Co-Op. The rest of your franchise pays for the policing of the brand. A regional manager who insures you are following SOP and you live up to Brand Standards, this is called Q-S-C, Quality-Service-Cleanliness.

ALL RESTARUANT CHAINS FOLLOW THIS HIEARCHY. MickeyDs blazed this trail for everyone and created the most successful franchise system ever. McDonalds Corp. is a real estate management business not a hamburger business. The Corp. owns everyone of those Golden Arches, even in China. They lease the space inside to a OwnerOperator. The Operator owns the equipment and they manage the people according to the Big Black Book, the operations & training manual.

The core differences you see in private vs. corporate are minute. Every restaurant has to follow a design/ build model so that you have that familiarity when you visit. The Decor may change, but the basic flow is the key to keeping people comfortable. The two models everyone is used to, Greet & Seat or Counter Service.

If you read this far your are ruined for life, you will now dissect every restaurant you patronize.
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Old 03-19-2013, 03:24 PM
Location: Georgia, USA
21,522 posts, read 26,139,087 times
Reputation: 26513
Originally Posted by FelixTheCat View Post
That's a big word. You must be smart. Jack in the Box is tasty, but the food is low quality. Food can be tasty an crap at the same time. I like their tacos, but I looked up the ingredients and the meat has a lot of fillers, ie not really meat. Some privately owned chains sell quality and tasty food for a low price. Chick Fill A is 100% unprocessed chicken and In n Out is 100% beef burger. The difference is they keep it simple, They have a much smaller menu. Their marketing is word of mouth.

I think you under estimate the power of marketing. It allows businesses to sell low quality products.
You must not live in a Chick-fil-A market. They have TV commercials, billboards, coupons, calendars, and promotions like father-daughter days and dress like a cow for a free meal.

Chick-fil-A "Eat Mor Chikin" Cow Parachutists - YouTube



Marketer of the Year Runner-Up: Chick-fil-A | Special: Marketer of the Year 2010 - Advertising Age

Chick-fil-A: Cow Appreciation Day

I am not in the restaurant business. I see it only from the consumer point of view. If I am traveling, I will most often choose a chain because the food is predictable. With a local restaurant, the quality is less so. You might get reheated canned veggies or fresh local produce. Whether the chain is publicly or privately owned does not seem to make a great deal of difference. For fast food I am not expecting a gourmet experience, and it is possible to make choices which are nutritionally decent at many fast food places these days.

Five Guys had a store in my community that did not last very long. I was not impressed with the food and the sum total of about five items on the menu was not an enticement to go back after my first and only visit.

A privately owned chain with a good concept may outlive its original owners. Their kids may not want to run it. I think that is often the impetus for the business to go public. The motive is to make money. the only difference is whether the profits go to an individual or a group of stockholders.
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