How to Successfully Run a Restaurant Franchise: Daily Operations Checklist

Owning a restaurant franchise provides motivated business owners with multiple opportunities for learning, growth, and success. That being said, it is important to fully understand how this business model works, including its pros and cons, before you make the required investment of time and money. Once you do, you can develop a daily operations checklist to follow as you embark on this exciting journey.

Franchising explained

Particularly in the restaurant industry, franchising is a popular way to operate. It involves the parent company (the franchiser) giving permission to a third-party partner (the franchisee) to use their brand, systems, and operations. When successful, this model allows the franchiser to grow their reach, while the partner is able to take advantage of a tried-and-true business model.

From the perspective of the franchiser, this model has upsides and downsides. Because they gain capital from franchisees’ fees and investments, expansion can occur quickly and at minimal expense. The franchisee’s knowledge of local market conditions helps them to place the restaurant in an optimal location, leading to a stronger brand. However, when the franchiser loses control, they can experience quality assurance challenges, added reputational risks, and can be hit with initial training and support expenses.

The spectrum of advantages and disadvantages also applies to franchisees. Startup risks and costs are lower when they can work from an established brand and business model. With training and support provided by the franchiser, there is a reduced chance of failure. Downsides include higher initial costs, less control, ongoing royalty fees, and limited growth potential. Additionally, the franchisee’s success is permanently linked to that of the brand as a whole.

Steps in opening a franchise

As you are contemplating entering into the franchising ecosystem, take a long look at your strengths and challenges. This should include an examination of your financial capacity, skills, goals, and capital. What you learn will show you whether you are a good candidate for this model.

Next, it’s time to look at potential available franchises. Focus on their prior success, reputation, financial performance, and market saturation levels. Also, do your best to learn how current franchisees are treated.

After taking the reins yourself and doing initial homework, it’s now time to bring in the big guns. Seek advice from professionals such as legal experts who can dive into the tax implications of each option. Then spend time talking to existing franchisees to gain insiders’ viewpoints of taking this step.

After deciding on which franchise you want to pursue, it’s time to find financing. Depending on the franchise, you can expect to pay anywhere from tens of thousands to millions of dollars to cover fees, costs for equipment such as a restaurant POS system, improvements, and operational expenses. Commonly, franchisees look to personal savings, business loans, or investment partners to obtain the capital they need.

Upon securing your funds, you can sign the franchise agreement. This document outlines the rights and responsibilities of both parties, including details about franchise terms and fees, territory, training, and support. Before you sign anything, consult with a legal professional with expertise in franchising.

There will then be a period of orientation and training that is commonly sponsored by the franchiser. This is the time to ask questions, set up your environment, and hire staff.

Upon completing this step, you are now ready for your grand opening. Be sure that employees are fully trained in all procedures and protocols, including how to use your contactless pay at the table options. Create an environment where quality and customer service in line with brand expectations are a top priority, and you can look forward to growth and success.

Daily operations checklist

Before opening, prep food items, verify, and log temperatures of all appliances. Rotate food items using the First-In, First-Out (FIFO) method. Turn on ovens, fryers, etc. Sanitize everything. Power on the smart terminal, and count and log the starting cash in all drawers. Sanitize the dining area, restock condiment and beverage stations, and bathrooms. Be sure that all supplies are well-stocked.

During rush hour, replenish food items regularly, conducting ongoing quality control. Be sure that dishes are being washed and waste removed. Clean tables when customers leave. Restock condiment and beverage stations, making sure that trash cans are emptied. Check with guests to ensure satisfaction.

After closing, complete the prep for tomorrow. Deep clean all kitchen equipment, and organize coolers and dry storage areas. Wash, sanitize, and store all cookware and utensils, and mop the floors. Sanitize the dining area, beverage and condiment stations, and bathrooms. Take out trash and recycling. The general manager should count and reconcile cash drawers and prepare the daily bank deposit. He or she should also complete a daily sales report, turn off lights and equipment, lock doors, and set the alarm system.

Running a franchise restaurant provides the right entrepreneur or team with the potential for profits in a fast-paced and dynamic work environment. As long as you enter into the process fully aware of your abilities and challenges, your potential customer base, and the franchise into which you are entering, there is an excellent chance for success.