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Investment Opportunities

Ever thought of opening your own restaurant, but aren't sure where to start? For some investors franchising seemed to answer their questions. But even though franchises offer a turn-key opportunity for owning a restaurant that has built-in name recognition and a proven track record of success, they also have drawbacks.

One of the reasons restaurant franchises are so expensive is that they are turn-key ready. The kitchen layout, dining room design, menu, even the marketing campaign are already put together for you. This is one of the most positive aspects since you don't have to work at building name recognition and that's much of what you are paying for.

Consistency is the name of the game when it comes to restaurant franchises. Customers expect the same service, food and atmosphere, whether they are in Dallas or Denver. To keep everything consistent in all the individual restaurants , most franchises come with a rather large rule book containing the do's and don'ts for that particular restaurant franchise. So when you agree to the purchase of a restaurant franchise, you are also agreeing to adhere to all these rules - which doesn't leave much to the imagination.

If you like to cook, create new dishes and have hands on involvement in all aspects of your restaurant - like menus with regional dishes, staff attire and other specifics, the rigid structured set up of a restaurant franchise may not be creative enough or be lacking in freedom - should you want to make some of your own rules and try new things - forget doing that in most franchises.

The point of the franchise concept is to provide a model for your success, but it can often feel more like a strangle-hold.

A franchise will benefit from the collective buying power of the parent company as the franchisor can buy in bulk and pass the savings along to franchisees. Your inventory and supplies will cost less than if you were running an independent company and buying in smaller quantities.

Besides the original franchise fee and royalties, a percentage of your franchise’s business revenue, will need to be paid to the franchisor each month. The franchisor may also charge additional fees for services provided, such as the cost of advertising.

Red River Steakhouse® derived its great success from a formula that allowed the owners to succeed and prosper. The success of our restaurant can have the same success in other locations as it did for us in in McLean, Texas and is now experiencing in our second location in Amarillo, Texas. Many of the benefits associated with franchising would apply to joint investors in the same steakhouse being opened in other locations but with none of the franchise downsides.

If you would like more information on investment opportunities in a Red River Steakhouse® in your area send us an e-mail with your name, phone number,city and state. We would love to hear from you and show you how you can invest in a successful steakhouse in your own town. Click here to contact us.



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