Choosing the right ingredients for a F&B venture

The restaurant business is a popular choice for would-be entrepreneurs looking to strike out on their own. After all, everybody eats out, right?

The fact is, more fledgling restaurants fail than just about any other type of business. And one of the most common causes of failure relates to branding.

In a marketplace as crowded as the restaurant scene, making an impression is key. If your concept doesn’t stand out, it won’t stand up.

For many people, franchising is seen as a shortcut to branding success. After all, it allows you to purchase an established brand with a proven track record, which will likely come complete with a ready-made marketing strategy.

Marketing aside, franchisees also benefit from additional support, including systems, training, and product sourcing. In many cases, there is the added benefit of bulk-buy discounts from suppliers.

On the face of it, it seems that franchising is a ‘no brainer’. Who in their right mind would risk the considerable capital, both financial and emotional, required to develop a restaurant brand from scratch when the chances of failure are relatively high?

The answer is a very particular type of person. The type for whom ‘no risk’ means ‘no reward’. A person who draws satisfaction from the creative process, and for whom building a brand — from the early midnight-oil fuelled concept sessions through to the triumphant launch phase, and beyond — is what business is all about. In short, the creative entrepreneur.

In my experience, restaurateurs in general (and chefs in particular) are among the most creatively driven of all entrepreneurs. And opening a restaurant is, ultimately, a creative endeavour — creating the menu, the interiors, the atmosphere, all things that ultimately contribute to the overall brand.

For these people, every new business venture is like a newborn child. It needs to be nurtured, cared for and guided if it is to fulfil its true potential and make its way in the world. For the creative entrepreneur, going it alone is often the only way to true satisfaction.

Of course, this kind of return demands huge investment, if not in capital then in time, energy and the emotional input required. The uncertainties involved can deter even the most hardheaded business type.

So the first step to branding success in the world of catering involves a good deal of honest self examination. What kind of business person are you? What fires you up — seat-of-the-pants creativity or the safety net offered by a big-brand franchise?

It may be that you have a pot of cash to invest, or that you lack industry experience. Your business background may mean that you feel more comfortable in a corporate setting. Or you may not feel confident (or, indeed, be interested) in building a brand from the ground up. If so, then the franchise model may be just right for you.

If, on the other hand, you see yourself as an aggressive go-getter, a workaholic, a creative trailblazer, then you may have what it takes to build a brand strong enough to take on all-comers.

The risks are great. But the rewards are greater still.

Credit: The writer is Creative Partner at North 55, a branding and web design agency.