The strenght of the brand: why is it better invest in a franchise than a new format

  1. For the franchisor, the most obvious benefit is the rapid expansion that he is able to give to his brand without resorting to large investments. Thanks to the standardization of procedures at the opening of a new store, the franchisee learns to carry out the business very easily and quickly, thus increasing the chances of success on the market.
  2. The franchisee can exploit the advantages of economies of scale: those who decide to invest in a franchise can in fact obtain supplies at more advantageous conditions than an individual format, with consequent competitive advantage.
  3. Typically, anyone who accepts business affiliation is a small business owner who enters a system that has already started. The know-how of the franchisor is therefore transferred to him in terms of organizational processes, service standards, product quality, communication, commercial agreements, supplier network and procurement. Knowledge, errors and improvements of a system made up of different points of sale coordinated among them is in fact to create a wealth of experience useful for limiting every aspect of management, forming a know-how already tested on the market.
  4. Who invests in an existing format chooses a new but tested system of doing business, limiting the risk of business. The franchisee – as an entrepreneur – is not however immune to risks, which in the franchising sector come from both its own management and from elements inherited from the brand owner.
  5. The value of image and trust of consumers towards a reality already existing on the market (the so-called “brand loyalty”) allows affiliates to propose to customers already loyal to the brand. Investing in a franchise therefore means being able to benefit from the rapid acceptance of the product by the market.
  6. In a well-managed affiliate network, the franchisee can focus on selling the product while the parent company continues to study to improve the business and ensure that investing in a franchise is more advantageous and attractive.

Franchising in the restaurant sector

One of the most promising sectors for franchising, as shown in the table, is the restaurant sector. The growth of Food in recent years has been unstoppable, recording a + 9% between 2015 and 2016. And it is precisely on this reality that we asked the experts at Afa Arredamenti to express themselves.

La forza del brand - Perché è meglio investire in un franchising rispetto a un format nuovo e indipendente

Those who work every day in the field of interior design, creating successful concepts, know that the design, study and design of an attractive format is crucial for the future of a chain. According to Afa, a catering format with immediate recognition differs mainly in two aspects: the quality of the raw materials used and the originality of the design. In other words

  • an excellent selection of raw materials and recipes is able to meet the needs of international customers with strictly Made in Italy products, now recognized and appreciated all over the world;
  • creating a welcoming commercial space with a strong identity allows us to establish a link with consumers and guides them in the buying experience.

 

What does it mean to have a strong brand identity?

The experts at Afa have tried to translate the importance of brand identity by demonstrating with some case studies how they have come to create successful premises:

  • BACCANALE is a format of Afa Arredamenti created to offer an all-day service where diners can sit down and taste their menu suggestions, but also request them as they wish. Each recipe is prepared at the moment with the most varied combinations present thanks to the presence of an operator always at the service of the “eater” clientele.
  • MARKEAT is a contemporary food space that hosts the concept store of Italian gastronomy, a store in which there are sales and supply activities of various foodstuffs, products and Italian specialties ready to be tasted or taken away.
  • VEGGEAT is a local bio-vegetarian born to meet the needs of today, the search for more and more healthy food, offering a wide selection of healthy ingredients and recipes able to satisfy the tastes of the most attentive international clientele. To be eaten immediately or to take away.
  • LIVE VIOLA beer & food: this is an innovative concept where good craft beer goes well with Italian food. Viola Beer is a place where you can relax for an exclusive aperitif or spend a jovial evening with friends, all starring the birraviola, unique and unmistakable product for those looking for those flavors that only in the craftsmanship you can find.
  • CABRA FRITTA belongs to the Street Food world and comes from a long experience in the world of catering, from the most sought after cuisine of Italian meats and fish from our seas to the fast and delicious Spanish tapas.
  • SOGNI DI LATTE is a specialized format where, starting from the milk, you can discover and appreciate all its derivatives: cheese, yogurt, creams and ice creams, alongside jams, craft beer, wine and bread.
  • LOVE TRUFFLES combines the elegance of a refined range of truffle products with the know-how of Italian gastronomy. A concept that allows you to taste the delicacies based on the products “La Rustichella Tartufi” and not only, with the ability to buy the ingredients and to propose them at home, stimulating the creativity of the customers.

 

And would you feel like investing in a franchise? Tell us yours!

Article written by the Sharing Tourism Team – GPStudios