To say that this year has been interesting would be an understatement. Across the board, each industry has been affected differently by the effects stemming from COVID-19. The restaurant industry in which Famous Dave’s operates is no exception. However, a recent article from franchising expert Brent Dowling highlighted why the current climate has actually bred the “perfect storm” for franchise sales, especially within the food and retail industries. Keep reading to learn exactly what this means for our BBQ restaurant franchise.
Brent Dowling is the Founder and CEO of Raintree, a franchise development agency that has worked to grow some of the biggest names in franchising. After a year of heavy analysis and reflection on the industry, he and the Raintree team are expecting new Franchise Owners to produce average bottom line profit percentages higher than ever before. Furthermore, as Dowling details in his article, the real estate industry is booming and in his own words, “commercial real estate supply will far exceed current demand” and “commercial real estate will continue to become more affordable over the coming months.”
Naturally, one may wonder, what exactly does this mean for a BBQ restaurant franchise like Famous Dave’s? As Dowling details, it means that we are in the midst of a perfect storm for restaurant and retail franchising, based on a variety of factors. These include pent up consumer demand (stemming from the lack of accessibility during the pandemic), access to prime real estate with affordable lease agreements, cheap money, and lack of competition (due to closures of mom and pop businesses). As we begin to return to a sense of normalcy as we ease out of the COVID-19 situation, these rates and levels of demand will begin to return to their typical levels, and franchise ownership may become a more difficult venture.
To conclude, Dowling, originally from Australia, offered a comparison to a classic Australian football (soccer) term. In his own words, when Australian football players use the term “raise your eyes”, they, “Don’t just kick the ball to the closest target because it’s the easiest and most obvious option. They look further down the field, past a couple defensive lines – and when they hit that target, they score much more often.” Dowling uses this as a metaphor for Franchise Ownership and the current business climate. When investing in a franchise, it may take a bit longer than an average business venture to get started, but if potential Franchise Owners can see past that, they will reap the benefits for years to come, much more so than a typical investment.
Aside from the strong potential for long-term success, our Franchise Owners enjoy a variety of benefits that simply cannot be found in other types of business ventures. For starters, they can realize tremendous growth and profitability. In 2019, our Franchise Owners saw average unit volumes of $2.6 million* with our highest performing locations earning $6.2 million per unit*. With an initial investment starting at only $481,750, one can see the potential for a quick return on investment.
Better yet, as a Famous Dave’s BBQ restaurant Franchise Owner, your reputation precedes you. Our Founder, Famous Dave Anderson, is a world-renown pitmaster and has won over 700 awards and counting. When we say that we’re the most awarded barbecue in the world, we really mean it! So, what does this mean for our Franchise Owners? It means that when they bring our barbecue to their local communities, it’s a big deal! They’ll be the talk of the town for weeks as people from all over their area flock to their new restaurant and lines stretch around the block. They’ll be known as more than just business owners. They’ll be seen as leaders in their communities as they get to know returning customers and host local events!
Arguably best of all, however, as a Famous Dave’s BBQ restaurant Franchise Owner, you get to be your own boss. Gone are the long days of sitting in an office, waiting for the clock to strike 5. As a Famous Dave’s Franchise Owner, you get to work on your own schedule and do things your way. This means spending more time with your family and taking time off when you need it. Although you enjoy the freedom and flexibility of small business ownership, you have our tremendous corporate support team behind you 24 hours a day, seven days a week. If any problems or challenges arise, we’ve got your back and you can rest easy at night knowing that you’re not alone in this business venture!
So what are you waiting for? Set yourself up for long-term success and start the career that you’ve always dreamed of as a BBQ restaurant Franchise Owner with Famous Dave’s. Visit our dedicated franchising website for more information.
*Numbers obtained from 2020 FDD Document