Multi-unit franchise ownership has quickly become the norm in the foodservice industry. More than 75 percent of restaurant franchises are now run by multi-unit owners.
Whether it’s a franchise owner who runs two or three locations in their hometown, or an investment group that owns dozens of locations across the country, there are many reasons why becoming a multi-unit owner presents a strong opportunity for growth and wealth creation.
Here are more of the benefits driving the trend in multi-unit franchise ownership, and why Angry Crab Shack is the perfect investment for multi-unit owners:
Increased Profit Potential and Revenue Diversification
Understandably, one of the main reasons franchise owners invest in multiple units is because of the greater revenue potential. After seeing success with one location, many franchise owners look into owning multiple units as a way to strategically grow their business and multiply their wealth creation. As the business expands, they are able to increase their share of the market in the specific location. Often, multi-unit owners see their profitability grow relatively quickly with each new location open.
In addition to the ability to generate more income, many multi-unit owners also appreciate the revenue diversification that comes with managing more than one franchise location. Multi-unit franchise ownership can sometimes mean a safer investment, since they don’t rely on one location to make all the revenue.
Stronger Work-Life Balance
Multi-unit franchise owners are often able to realize a stronger work-life balance. As they move away from the owner/operator model of single-unit ownership, franchise owners are able to put a strong team in place. This generally includes a restaurant manager and district managers that are able to run the day-to-day operations of each location.
By putting a strong management and employee team in place, multi-unit owners are able to instead focus on higher-level business objectives, such as expanding their footprint and continuing to grow their business. They no longer need to be in their restaurant location each day, handling the daily operations and making sure their franchise is running smoothly. For that reason, they are often able to reap the benefits of a better work-life balance, as well as a more flexible, manageable schedule.
A Real Estate Strategy That’s Right for Multi-Unit Owners
For most franchise owners looking to expand with multiple units, lack of capital is their most significant barrier to entry. While the payoff can be greater for multi-unit ownership, franchise owners may struggle to come up with the initial investment necessary for a multi-unit agreement.
However, within our model, franchise owners benefit from minimized startup costs, particularly with respect to real estate. At Angry Crab Shack, we seek out second and third-generation sites to build our brand. This saves our franchise owners hundreds of thousands of dollars in kitchen construction and zoning fees, more quickly positioning them to achieve a strong ROI.
Streamlined Operations for Multi-Unit Owners
Beyond helping franchise owners save time and money when scaling their business, our streamlined operations and proven systems also make it much easier to run multiple Angry Crab Shack restaurant franchises at once.
We have even created robust training programs specifically to prepare franchise owners for multi-unit ownership. This training offers comprehensive business and operational management best practices, outlining everything from staff hiring and training to managing payroll and inventory for multiple locations. That way, franchise owners are quickly positioned for success when scaling their business.
Finally, we’re continually improving our systems to simplify operations and improve efficiencies.