What Are the Advantages & Disadvantages of an Independent Restaurant?

Save on Franchise Fees

One of the biggest advantages of starting your own independent restaurant is that you don't have to pay franchise fees. When you join a franchise restaurant, you have to pay a potentially large fee on the front end. You also have to pay franchising fees every year. This may be a percentage of the sales you generate, or it could be a flat fee. Either way, this is money that you're able to keep when you start your own independent restaurant.

Another advantage of starting an independent restaurant is that it helps you avoid any restrictions on what you can do. If you buy into a franchise, you have a specific menu that you must serve and specific policies that must be followed. When you start your own independent restaurant, you can make up your own menu and your own rules. This gives you more freedom to do the things you want to do with your business.

One of the potential problems of starting your own independent restaurant is that you don't have a built-in reputation to help drive traffic when you open. When you buy into a franchise restaurant, you already have a customer base ready to frequent your store: People may have already eaten at other franchise locations and know what to expect. If you choose the right franchise to buy into, it can provide you with a steady stream of income from opening day.

If you start your own independent restaurant, the process of getting started without any support may be difficult. When you buy into a franchise, you have a proven system that has worked in the past. If you need help with anything, you can contact your franchisor for assistance. If you start your own independent restaurant, you handle everything on your own. You likely don't have any relationships with suppliers, and you have to develop your own inventory and training systems. When buying into a franchise, you may also get special deals and assistance with your marketing and advertising efforts. With an independent restaurant, you have to figure out how to market your business on your own.