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Many people have a dream of opening a restaurant.&nbsp;But it’s a dream that requires a hefty amount of planning, commitment and sacrifice — not to mention capital. You’ll be working long hours, especially in the beginning, meaning you’ll be forced to miss certain holidays and family gatherings.&nbsp;Opening a restaurant also isn’t for the faint of heart, with&nbsp;<a href="https://pos.toasttab.com/blog/on-the-line/restaurant-failure-rate?utm_source=1851franchise.com&utm_medium=article&utm_campaign=want-to-start-a-restaurant-heres-what-you-need-to-know-2718879" target="_blank" rel="nofollow">recent statistics</a> showing that nearly a third fail within the first year.&nbsp;Considering the potential pitfalls that go along with opening a restaurant, it’s important to be honest with yourself up front: Will this lifestyle work for me? Is now the right time? Can I make it work financially?All that said, the allure of being your own boss and bringing your dreams to life can often outweigh the risk. While there’s not a one-size-fits-all strategy to successfully launching a restaurant, there are a few basics to keep in mind. Consider this a roadmap for turning your restaurant dreams into a reality.<h4>1. Consider current trends in the industry</h4>Before starting out, it’s essential to take a step back and review some of the trends affecting the restaurant industry in 2022. Here are a few major trends to keep in mind.<ul><li>Online sales continue to soar.&nbsp;Consumers continue to order online in droves in the post-pandemic world. Recent&nbsp;<a href="https://www.zippia.com/advice/food-delivery-industry-statistics/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=want-to-start-a-restaurant-heres-what-you-need-to-know-2718879" target="_blank" rel="nofollow">research</a> from Zippia shows that online ordering has grown 300% faster than dine-in since 2014 and now accounts for nearly 40% of total restaurant sales. The same study found that almost 60% of diners expect to order more online in 2022.</li><li>Online reviews go a long way.&nbsp;Aside from ordering online, customers also increasingly use the internet to decide where to place their orders. A&nbsp;<a href="https://www.brightlocal.com/research/local-consumer-review-survey/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=want-to-start-a-restaurant-heres-what-you-need-to-know-2718879" target="_blank" rel="nofollow">study</a> by Bright Local revealed that nearly 93% of consumers went online to find local businesses — and of that 93%, about nine out of 10 read online reviews when narrowing their selections.</li><li>Eating healthy is in. Consumers continue to be more health-conscious across the country. A&nbsp;<a href="https://www.nextbite.io/forty-six-percent-of-consumers-plan-to-eat-healthier-in-2022-according-to-new-survey-by-nextbite/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=want-to-start-a-restaurant-heres-what-you-need-to-know-2718879" target="_blank" rel="nofollow">study</a> by virtual restaurant company Nextbite found that nearly half of customers plan to order healthier options in 2022, primarily to boost immunity and ward off illness.</li><li>Shortages are creating big headaches. Times are tough for restaurants, no doubt. From labor shortages to rising inflation to supply chain issues, owners are dealing with many issues beyond their control, including drastic increases in food costs.&nbsp;</li></ul>All told, opening a new restaurant comes with plenty of risks these days. But it also presents a few unique advantages. In particular, it allows you to meet industry trends and consumer demands from the start, giving you a leg up on the established competition.<h4>2. Choose your location wisely.</h4>No matter how good your food is, a bad location can break a business. Where you’re located could significantly influence things like your menu, concept and marketing efforts. A few things to keep in mind when choosing where to open up shop:<ul><li>Accessibility and visibility are crucial. This is the big one. You want a location that’s easy for customers to access and has good visibility via vehicle and foot traffic. Ideally, the site has plenty of parking spaces nearby and a convenient way for customers to pick up to-go orders. Also, consider that outdoor dining has become an increasingly big draw and select a site that can accommodate it.</li><li>Dissect the demographics. Simply put, the demographics in your area need to sync up with your restaurant’s concept and target market. Demographics will also determine how much you spend on labor, as places with high living costs will require higher wages to attract good employees.</li><li>Consider leasing. Buying a location is a significant investment, which is why many new restaurant owners opt to lease and work their way up to buying their site once they’ve established a steady clientele. Not only does this allow for more flexibility, but it will also enable you to focus your money on things such as marketing efforts and kitchen equipment when starting.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</li></ul><h4>3. Select a creative concept</h4>Crafting your concept is the fun part of creating a restaurant, but don’t go into it blind. Remember that just because you’re passionate about something — say, French cuisine — doesn’t mean locals will be.&nbsp;The best concepts tend to balance an owner’s passion with customer demand. Consider looking at what works for other restaurants in the area, then determine how to build off that and create something unique. This balance should extend to the menu, which ideally includes a mix of familiar and unique items. Putting a new spin on old favorites is always a good bet.Additionally, if you plan to open a franchised restaurant, the concept needs to be replicable. Customers expect the menu and overall atmosphere to be consistent regardless of location. <a href="https://1851franchise.com/5-common-operational-blunders-and-how-to-avoid-them-2708113">An operations manual</a> with recipes, pricing info, employee guidelines, vendor tips and general aesthetic advice should be considered a must.<h4>4. Consider the initial investment</h4>Opening a restaurant can often lead to sticker shock for would-be owners. A recent&nbsp;<a href="https://www.restaurantowner.com/public/Survey-How-Much-Does-it-Cost-to-Open-a-Restaurant.cfm?utm_source=1851franchise.com&utm_medium=article&utm_campaign=want-to-start-a-restaurant-heres-what-you-need-to-know-2718879" target="_blank" rel="nofollow">survey</a> from RestaurantOwner.com showed that initial expenses could range from $175,000 to nearly $750,000, depending on the type of restaurant you open. If you’re looking to open a franchised business, <a href="https://www.costowl.com/b2b/franchise/franchise-restaurant-cost/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=want-to-start-a-restaurant-heres-what-you-need-to-know-2718879" target="_blank" rel="nofollow">research</a> shows startup costs can run from $100,000 to several million depending on the brand, with most falling between $500,000 and $2 million.What do you do if you’re short on money? A good place to start is a Small Business Administration loan (<a href="https://www.sba.gov/funding-programs/loans?utm_source=1851franchise.com&utm_medium=article&utm_campaign=want-to-start-a-restaurant-heres-what-you-need-to-know-2718879" target="_blank" rel="nofollow">SBA loan</a>), offered to individuals who need immediate funding for their business. You could also consider opening in a restaurant incubator to save on overhead expenses. Many incubators also have built-in support systems and training programs, which can provide you with invaluable advice and feedback on your concept.<h4>5. Build a winning business plan</h4>Like any new business, starting a restaurant requires a solid plan. Your business plan should describe all the aspects of your restaurant, including your concept and menu, management structure, labor needs, marketing strategy and competitor analysis. When creating your plan, you’ll also be forced to confront problems you hadn’t previously considered, such as issues with health codes, tax laws and licensing. Luckily there are plenty of resources online to help you get started, such as this free-to-use&nbsp;<a href="https://eforms.com/restaurant/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=want-to-start-a-restaurant-heres-what-you-need-to-know-2718879" target="_blank" rel="nofollow">template</a> from eforms.com and this comprehensive&nbsp;<a href="https://www.restaurantowner.com/public/How-to-Create-a-Winning-Restaurant-Business-Plan-2.cfm?utm_source=1851franchise.com&utm_medium=article&utm_campaign=want-to-start-a-restaurant-heres-what-you-need-to-know-2718879" target="_blank" rel="nofollow">article</a> from RestaurantOwner.com.<h4>6. Obtain the right permits and licenses</h4>Acquiring the proper permits is among the most critical things you can do to avoid penalties and sanctions. While the types of licenses and permits you’ll need vary by business, common requirements for restaurants include a business license, fire permit, zoning permit, food service license and liquor license. You’ll also need an employee identification number (EIN) for each of your workers to set up payroll. Because of the complexity involved in obtaining permits&nbsp;—&nbsp;and the consequences if you don’t get it right — seeking legal counsel to assist with the process is highly recommended.&nbsp;* * *&nbsp;Get all that? Unfortunately, that’s just the tip of the iceberg when it comes to opening your own restaurant. After taking these initial steps, you’ll also need to:<ul><li>Hire the right staff</li><li>Invest in the right technology</li><li>Select your food supplier</li><li>Set up your website and social media</li><li>Create a marketing plan to get the word out</li></ul>So, yeah. It’s a lot of work. But owning a restaurant can be rewarding and profitable if done right.&nbsp;After all, food has a powerful ability to bring people together. Creating a place for people to connect and celebrate can make all the hard work and long hours worthwhile.&nbsp;

Want to Start a Restaurant? Here’s What You Need to Know

1851 Franchise

Current trends, basic guidelines and pitfalls to avoid when starting your own restaurant.

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Pet Wants

3 Keys to Franchise Success with Pet Wants: Passion, Support, and Hard Work

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How This Health Care Professional Turned a Personal Pet Problem Into a Growing Business With Pet Wants

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Lawn Doctor

Photo of former Lawn Doctor franchise owners Todd & Janis Rucker

Former Lawn Doctor Employees Journey Back to Ownership Led to Succession Success Story

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FSC Franchise Co.

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The Brass Tap: Why This Bar Franchise Thrives with Strong Margins and Evolving Offerings

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Keke's Breakfast Cafe

How Keke’s Breakfast Cafe Builds Local Demand Through National Marketing Leadership

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Prince St. Pizza Partners With Dave’s Hot Chicken Franchisee for National Growth

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KKR to Acquire Nothing Bundt Cakes in $2 Billion Deal -  1851 Franchise

KKR to Acquire Nothing Bundt Cakes in $2 Billion Deal

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FTC Settlement Puts New Focus on Franchise Disclosure Standards - 1851 Franchise

FTC Settlement Puts New Focus on Franchise Disclosure Standards

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Applebee’s Franchisee Files for Bankruptcy as Dine Brands Moves to Acquire 53 Units - 1851 Franchise

Applebee’s Franchisee Files for Bankruptcy as Dine Brands Moves to Acquire 53 Units

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Why Skilled Trades Are Emerging as the Economy’s Most AI-Resilient Careers

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<a href="https://princestreetpizza.com/">Prince St. Pizza</a> has partnered with a&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-daves-hot-chicken-franchise-costs-fees-profit-and-data-2723529">Dave’s Hot Chicken</a> franchisee to support its national expansion,&nbsp;<a href="https://www.pizzamarketplace.com/news/prince-st-pizza-partners-with-daves-hot-chicken-franchisee-for-national-expansion/#:~:text=Prince%20St.%20Pizza%2C%20a%20New%20York%2Dbased%20pizzeria,the%20country%2C%20according%20to%20a%20press%20release.">Pizza Marketplace recently reported</a>. The New York-based brand has joined forces with&nbsp;<a href="https://www.linkedin.com/in/lawrencekourie/">Lawrence Kourie</a>, founder and largest franchisee of Dave’s Hot Chicken, to grow its footprint across the country. Kourie’s experience opening and operating locations in multiple markets will help the brand as it enters new territories."Lawrence has built and operated one of the fastest-expanding restaurant concepts in the country, but what stands out is his disciplined approach to growth and brand integrity," said&nbsp;<a href="https://www.linkedin.com/in/lawrence-longo-342856/?skipRedirect=true">Lawrence Longo</a>, CEO of Prince St. Pizza. "He understands how to develop a concept without losing what made it special in the first place, which is critical as we enter this next phase."The expansion will use Kourie’s existing infrastructure and operations to introduce Prince St. Pizza into new markets. Each location will aim to reflect the same experience as the brand’s original Nolita shop."I have spent years evaluating restaurant concepts, and it is rare to find one that delivers both a strong product and a clear identity," Kourie said. "What Prince St. has built is difficult to truly replicate. The focus now is on growing the brand in a way that preserves that foundation while introducing it to new communities."Kourie is a key operator within the Dave’s Hot Chicken system,&nbsp;<a href="https://1851franchise.com/daves-hot-chicken-sold-to-roark-capital-in-1-billion-deal-to-fuel-global-expansion-2729557#stories">which Roark Capital acquired in a $1 billion deal in 2025</a>. The partnership connects Prince St. Pizza to an operator with experience scaling a brand that has attracted major private equity investment.Read the full article&nbsp;<a href="https://www.pizzamarketplace.com/news/prince-st-pizza-partners-with-daves-hot-chicken-franchisee-for-national-expansion/#:~:text=Prince%20St.%20Pizza%2C%20a%20New%20York%2Dbased%20pizzeria,the%20country%2C%20according%20to%20a%20press%20release.">here</a>.Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="http://www.1851growthclub.com">www.1851growthclub.com</a> and start your journey.

Prince St. Pizza is teaming up with a leading Dave’s Hot Chicken franchisee to expand nationwide, tapping proven operator experience to drive growth.

According to a&nbsp;<a href="https://www.businesswire.com/news/home/20260312305776/en/RF-Expands-Residential-and-Commercial-Services-Portfolio-with-Investment-in-Precision-Garage-Door-Service-Franchisee">recent release</a>,&nbsp;<a href="https://rf-partners.com/">RF Investment Partners</a>, a group focused on flexible capital solutions and value-add support to lower-middle-market businesses, has teamed up with&nbsp;<a href="https://www.burlingtoncp.us/">Burlington Capital Partners</a>, a group focused on family, founder and operator-owned lower-middle-market businesses, to acquire a prominent multi-territory&nbsp;<a href="https://franchise.neighborly.com/precision-door">Precision Garage Door Service</a> franchise.The investment marks the seventh platform for RF within the service space. Precision Garage Door Service, which is part of the larger&nbsp;<a href="https://www.neighborly.com/">Neighborly</a> ecosystem, specializes in the installation, maintenance and repair of garage doors.&nbsp;“We are proud to partner with management and the Burlington team to support continued growth by investing in people and operational excellence,”&nbsp;<a href="https://www.linkedin.com/in/peter-fidler-6787143">Peter Fidler</a>, managing partner and co-founder of RF Investment Partners, said in the release. “The sector continues to present compelling opportunities given the essential nature of garage door repair, and we look forward to building on Precision’s strong foundation to drive long-term value.”This deal is part of the broader trend toward institutionalized multi-unit and multi-territory operators. Previously, franchising was largely viewed as the place for “mom-and-pop” businesses. And while franchises remain small, local businesses, the aggressive entry of private equity firms focused on operators (franchisees) rather than the brand (franchisor) is bringing new energy to small business ownership.Read the full release&nbsp;<a href="https://www.businesswire.com/news/home/20260312305776/en/RF-Expands-Residential-and-Commercial-Services-Portfolio-with-Investment-in-Precision-Garage-Door-Service-Franchisee">here</a>.Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="http://www.1851growthclub.com">www.1851growthclub.com</a> and start your journey.

Design with Precision Garage Door Service team members

The strategic investment marks the seventh residential services platform for RF and reflects a growing institutional desire for high-potential, operator-led franchises.

RF Investment Partners and Burlington Capital Join Forces to Acquire Top Precision Garage Door Franchise

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<a href="https://www.linkedin.com/in/tractnumerouno/">Craig R. Tractenberg</a> recently wrote in an&nbsp;<a href="https://www.law.com/thelegalintelligencer/2026/03/24/ftc-secures-17m-settlement-against-xponential-fitness-for-franchise-disclosure-violations/">article for The Legal Intelligencer</a> that the Federal Trade Commission secured a $17 million settlement against&nbsp;<a href="https://www.xponential.com/franchising">Xponential Fitness</a> over alleged franchise disclosure violations, a case that could send a clear message across the franchise industry about the cost of incomplete or misleading pre-sale information.The FTC’s complaint took aim at multiple aspects of Xponential’s franchise sales process, including how the company framed the path to opening. Franchisees were led to expect they could get a studio up and running within six months. In reality, many spent more than a year trying to open, and some never got there. That delay left some franchisees carrying unexpected costs such as rent and interest payments before they could generate revenue.Federal regulators also alleged that Xponential failed to disclose material background information about key executives, including prior fraud lawsuits tied to a former CEO and a bankruptcy history involving a former president of franchise development. The complaint also alleged that Xponential did not fully identify former franchisees who had left the system. In some cases, the contact information it provided was outdated, limiting what prospective buyers could learn during due diligence. Regulators also said the company failed to provide franchise disclosure documents within the required 14-day review window before collecting money or signing binding agreements.Under the proposed consent order, which remains subject to finalization by the U.S. District Court for the Central District of California, Xponential would pay $17 million to provide relief to affected franchisees. The order would also bar the company from making similar misrepresentations and require full compliance with the FTC Franchise Rule going forward.For the broader franchising industry, the case could have a lasting effect even if Xponential proves to be an outlier. It reinforces that franchise growth cannot come at the expense of clear, timely and accurate disclosures. It may also encourage franchisors to take a harder look at their FDD practices, executive disclosures and sales language before regulators do it for them. For franchisees, it is a reminder that legal review matters, but it also shows how vulnerable buyers can be when critical information is never disclosed in the first place.Read the original article&nbsp;<a href="https://www.law.com/thelegalintelligencer/2026/03/24/ftc-secures-17m-settlement-against-xponential-fitness-for-franchise-disclosure-violations/">here</a>.Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="http://www.1851growthclub.com">www.1851growthclub.com</a> and start your journey.

The $17 million case against Xponential Fitness could sharpen compliance expectations across franchising and raise the stakes for pre-sale transparency.

Private equity firm&nbsp;<a href="https://www.kkr.com/">KKR</a> has reached an agreement to acquire bakery franchise&nbsp;<a href="https://www.nothingbundtcakes.com/franchise-opportunities/">Nothing Bundt Cakes</a> from&nbsp;<a href="https://www.roarkcapital.com/">Roark Capital</a> in a deal valued at more than $2 billion, including debt, according to multiple reports.The transaction, first&nbsp;<a href="https://www.wsj.com/business/deals/kkr-strikes-deal-for-nothing-bundt-cakes-e02bcdb9">reported by The Wall Street Journal</a> and later&nbsp;<a href="https://www.reuters.com/business/retail-consumer/kkr-acquire-nothing-bundt-cakes-over-2-billion-wsj-reports-2026-03-25/">confirmed by Reuters</a>, marks another major move in the restaurant and franchise investment space as private equity firms continue to target brands with strong unit economics and scalable franchise systems.Founded in 1997 by two mothers,&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-nothing-bundt-cakes-franchise-costs-fees-profit-and-data-2721459">Nothing Bundt Cakes</a> has grown from a small, homegrown concept into a major player in the specialty dessert category. The brand now operates more than 500 bakeries across the U.S. and Canada, offering a range of customizable cakes in flavors such as red velvet, confetti and banana pudding.Roark Capital acquired the Dallas-based brand in 2021 and has since overseen its continued expansion. The company is well known for its deep portfolio of restaurant and franchise investments, including&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-subway-franchise-costs-fees-profit-and-data-2722471#stories">Subway</a>,&nbsp;<a href="https://1851franchise.com/daves-hot-chicken-sold-to-roark-capital-in-1-billion-deal-to-fuel-global-expansion-2729557#stories">Dave’s Hot Chicken</a> and&nbsp;<a href="https://inspirebrands.com/">Inspire Brands</a>, the parent company of&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-jimmy-johns-franchise-costs-fees-profit-and-data-2724295">Jimmy John’s</a>,&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-arbys-franchise-costs-fees-profit-and-data-2720798">Arby’s</a> and&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-dunkin-franchise-costs-fees-profit-and-data-2720835">Dunkin’</a>.According to Reuters, Nothing Bundt Cakes is expected to generate approximately $120 million in earnings before interest, taxes, depreciation and amortization this year, highlighting the brand’s financial strength and appeal to investors.Recent restaurant deals suggest buyers are still willing to pay for brands with room to grow.&nbsp;<a href="https://sycamorepartners.com/">Sycamore Partners</a> bought&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-playa-bowls-franchise-costs-fees-profit-and-data-2725001">Playa Bowls</a> in late 2024, the same year&nbsp;<a href="https://1851franchise.com/blackstone-acquires-majority-stake-in-jersey-mikes-signaling-ambitious-growth-plans-2727945">Blackstone made its move on Jersey Mike’s Subs</a>. Nothing Bundt Cakes fits that same pattern. Its franchise model gives investors a brand with an established footprint and a business that can keep expanding without taking on all of the cost at the corporate level.KKR has historically been less active in restaurant investments but has made selective moves, including a 2024 investment in cloud kitchen platform&nbsp;<a href="https://www.rebelfoods.com/">Rebel Foods</a>.Neither KKR nor Roark Capital commented publicly on the transaction, according to Reuters.Read the original WSJ article&nbsp;<a href="https://www.wsj.com/business/deals/kkr-strikes-deal-for-nothing-bundt-cakes-e02bcdb9">here</a>.Read the original Reuters article&nbsp;<a href="https://www.reuters.com/business/retail-consumer/kkr-acquire-nothing-bundt-cakes-over-2-billion-wsj-reports-2026-03-25/">here</a>.Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="http://www.1851growthclub.com">www.1851growthclub.com</a> and start your journey.

The deal underscores continued private equity interest in franchise-heavy restaurant brands with predictable revenue and room to scale.

How much can franchisees make? It’s a question many prospective owners ask before investing in a franchise. While earnings tend to be driven by variables such as industry, location and general management skills, a proper understanding of the key factors driving profitability can help franchise owners develop expectations that are realistic.&nbsp;Multi-unit franchisee&nbsp;<a href="https://www.linkedin.com/in/mangesh-patel-9368569/">Mangesh Patel</a>, who’s readying the launch of six&nbsp;<a href="https://www.beefobradysfranchise.com/">Beef ‘O’ Brady’s</a> restaurant locations in the Macon, Georgia area, shares insights from his franchising experience.<h2>Understanding Franchise Income</h2>Keeping operational costs in check can have a major impact on overall earnings. Taking a proactive approach to expenses such as food and labor, as well as payroll and scheduling, can help align actual franchise income with general expectations for the business.“I just had a meeting with a couple of people, and they said, ‘You talked about a 25% profit margin, but I’m only doing 12%.’ So, I looked at the figures they sent me,” Patel said. “Their&nbsp;<a href="https://1851franchise.com/calculate-restaurant-franchise-profit-2730476">restaurant</a> food cost was running at 37%, which should be around 30%. The national average is about 32%. If I do things correctly, my average food cost needs to be at or below 30%. And payroll should run around 18%. But many people run 25 to 28%.”So,&nbsp;<a href="https://1851franchise.com/unraveling-franchise-earnings-how-much-can-you-really-make-2723935">how much can franchisees make</a>? Here are five areas to consider.<h2>Practical Tips for Prospective Franchisees</h2><ol><li>Control Costs From Day One:&nbsp;It’s important to monitor payroll, food and supply costs closely. Overstaffing and inefficiencies can quickly reduce profits.</li><li>Plan For The Opening Surge:&nbsp;Traffic within the first few months of opening is likely to be higher. It’s important to adjust staffing and inventory accordingly, and pay close attention to how those levels change as time goes on.</li><li>Invest In Training:&nbsp;Properly trained workers can help reduce waste and improve overall service, which has a direct effect on net income.</li><li>Understand Your Market:&nbsp;Each market is unique and revenue potential will vary depending upon location, demographics and competition.</li><li>Track Metrics Regularly:&nbsp;Food cost percentages, labor ratios and weekly sales data act as key indicators operations may need to be adjusted.</li></ol><h2>What Profitability Really Comes Down To</h2>Patel notes that if franchise owners manage labor and costs properly, it’s not impossible to achieve strong cash flow even in the first year, bucking some franchising trends.So,&nbsp;<a href="https://1851franchise.com/how-much-can-you-make-as-a-franchise-owner-2724761">how much can franchisees make</a>? While results tend to vary, careful planning, disciplined operations and a proactive approach to assessing initial costs are essential. But by grasping and guiding the elements that drive franchise profitability, franchise owners can maximize overall business earnings, scaling a business that’s sustainable financially over the long term.Want to learn more about franchise opportunities on 1851 Franchise? Be sure to visit our&nbsp;<a href="https://1851franchise.com/power-rankings">Power Rankings</a> to read more on brands making moves.

How much can franchisees make? This guide explains what drives franchise earnings and how to manage costs, with expert tips from multi-unit owner Mangesh Patel on maximizing your franchise income.

How Much Can Franchisees Make? A Guide for Prospective Franchise Owners

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<a href="http://meltingpotfranchise.com">Melting Pot</a>, the 93-unit fondue franchise, recently celebrated its 50th anniversary. As it continues strategic growth nationwide and looks toward its next 50 years,&nbsp;<a href="https://1851franchise.com/meltingpot/info">Melting Pot’s</a> loyal fan base, hospitality focus and unique dining experience set the stage for its continued success. While many brands are measuring success by the speed of the drive-thru or the efficiency of an online order, Melting Pot is doubling down on the human element — something its leadership team knows technology will never be able to replicate. By leaning into its “superpower” and owning the Perfect Night Out, Melting Pot has nurtured a brand that creates lifelong memories and is passed down through generations.“Melting Pot is a restaurant, but it is so experiential and unique that we are filling more than an appetite. We are satisfying a craving for a unique social dining experience,”&nbsp;<a href="https://www.linkedin.com/in/dan-stone-cfe-b6b2808">Dan Stone</a>, chief business officer, told 1851 Franchise publisher&nbsp;<a href="https://www.linkedin.com/in/powills/">Nick Powills</a> on a&nbsp;<a href="https://www.youtube.com/live/9FYPdaORvEw">recent episode of the “Meet the Franchise” podcast</a>. “You look at a typical table and the kids are not on their phones or tablets. If they do have a phone out, it’s because they are filming the magic happening at the table. They are very engaged with one another.”After its 1975 founding, Melting Pot quickly grew to be synonymous with fondue dining across the U.S. and is still known for the multi-course, communal dining experience it provides today. In recent years, the leadership team has embraced changes that keep Melting Pot current like modernizing the interior design and adjusting the menu to include items that feel more approachable for “just because” visits, but the heart of the brand has stayed true.“Our brand’s purpose is celebrating life with the people you care about,” Stone said. “People don’t buy what you do; they buy why you do it.&nbsp;What we do is fondue. And that drives our engine. We’re better than anybody on a national scale at fondue. But the&nbsp;why we do it is to celebrate life, and that can be anything from a report card to a birthday or 10-year anniversary.”With over 90 locations in more than 30 states, Melting Pot offers a unique proposition for entrepreneurs: a restaurant model that is known and cherished among guests nationwide, and one that prioritizes leadership capacity and hospitality spirit over specific restaurant experience in its prospective owners. As the brand looks forward to its upcoming growth and considers what the next 50 years may hold, the strategy is simple. While Melting Pot will implement new tools and technologies and adapt to the changing business landscape as needed, it won’t forget its heart. Maintaining a focus on its niche, Melting Pot proves that, in a crowded food service landscape, being in a category of one is the ultimate competitive advantage.A transcript of Stone’s interview with Powills appears below. It has been edited for content, brevity and style.Nick Powills: All right, Dan, I like to start with you, and then we'll get into the brand. Question one is scripted; everything else is not. But I know you have a great story. How did you accidentally fall into franchising? What is your franchise backstory?Dan Stone: I’ll keep a long story short. I am obsessed with roller coasters and theme parks and have been since I was a kid. I wanted to major in theme park management, so I went to my guidance counselor in high school to figure out what colleges offered it. I was really disappointed to learn that didn't exist, and the closest thing to it was hospitality management — hotel and restaurant management.I went to school for hotel and restaurant management, and for the first 10 years of my career, I worked for a hotel management company. Most hotel brands are franchised, so we managed hotels for owners who were franchising Marriott, Embassy Suites, Hilton and other brands. That was my exposure and introduction to franchising. I then took my franchise and food and beverage background from the hotel side to Melting Pot when I joined nearly 20 years ago.Powills: That’s crazy. Before I get to Melting Pot, I’m curious — and this relates back to what franchisees and even what I go through — I wanted to be a baseball player who rode a motorcycle. I had to be good at baseball for that to happen, so it wasn't going to happen. But you have this dream. There are games like RollerCoaster Tycoon that allow you to build your theme parks. Flash forward: How do you let go of that dream and let it evolve into a 20-year career at Melting Pot and still look in the mirror in the morning and say, "I did live my dream"? How do you go through that mentally?Stone: Great question. Obviously, I’m not managing a theme park today, but I have manifested elements of that dream by making a point to travel, visit theme parks, ride new roller coasters, and stay up to date with the industry. The dream has become more of a passion and a hobby outside of work.The hospitality industry is very similar to a theme park. While I’m not managing roller coasters, I am very much in the people business; I just happen to be in the business of fondue versus thrill rides. If you strip that away, most everything else is the same. It’s about managing people, getting the right people on the team, and delivering an experience to the customer that they’ll never forget. Melting Pot is so experience-based that the dream shifted. I’m still satisfied 20 years later with this detour and how I’m getting my theme park fix.Powills: If I think about the feeling a human gets from a theme park or a roller coaster, it’s an emotion. Restaurant brands that can deliver a similar emotion create a memory, and a memory is what eventually brings them back or builds an affinity for the brand. Even though a bite of food is not the same as a ride, there are a lot of similarities.When I accidentally fell into franchising as a journalist, I found it fascinating that almost everyone who bought a franchise had to go through some sort of pain or breakthrough to say, "I’m going to quit my job and open a business for myself." I found it rewarding to find a similarity in my passions so that I wouldn't have regret. Food and hospitality must align with the experience of a theme park or a roller coaster to work, right?Stone: Absolutely. In a typical restaurant, most guests are there primarily to fill a need and satisfy an appetite. Their body says it’s time to consume, so they go eat. That drives a lot of dining out. Melting Pot is a restaurant, but it is so experiential and unique that we are filling more than an appetite. We are satisfying a craving for a unique social dining experience.You look at a typical table and the kids are not on their phones or tablets. If they do have a phone out, it’s because they are filming the magic happening at the table. They are very engaged with one another. In a typical restaurant, the kids feel like it’s the last place they want to be; they aren't having conversations with their family. That is the magic of Melting Pot.Powills: I didn't know your affinity for theme parks. That experience is part of the magic a franchise buyer sees when they buy into Melting Pot. They see something different. You can see it when the kids are engaging at a table and not stuck on a phone. They aren't just going there to feed an appetite; they're going there to feed the emotion.Stone: Exactly. Our brand’s purpose is celebrating life with the people you care about. I remember the Simon Sinek TED Talk about starting with the "why." People don't buy what you do; they buy why you do it. Why we do what we do is celebrating life; what we do is fondue. We are better than anyone on a national scale in fondue, but the "why" we do it is to celebrate life, and that can be anything from a report card to a birthday or 10-year anniversary.So many guests get engaged at Melting Pot because their first date was there. We see them every year on their anniversary. Our franchise owners have an opportunity to be a part of milestone moments that people keep forever. The emotional connection our brand has with our guests is truly something special. The people who join our system are energized by enhancing whatever occasion someone chooses Melting Pot for. That’s how the brand continues to grow 50-plus years later. There are not many brands that have been around 50 years, particularly in the restaurant space.Powills: I think about my own Melting Pot experience. I love it, and I used it as my "date spot" early on. I can go back to a memory instantly. I like Olive Garden, but there is no memory there other than a recognition that I enjoyed the taste.The challenge is that while I have great affinity, Melting Pot is not in the normal mix for me due to proximity or my schedule. How does a brand like this take the stickiness of that memory into the next 50 years?Stone: It is a double-edged sword. When Melting Pot is your special occasion place, we see you every anniversary like clockwork. The flip side is that some guests don't want to dilute that destination by going on a Tuesday night. We own the fact that we are a special occasion restaurant; we would rather have that consistency every year than a hot-and-cold customer.The challenge in a competitive landscape is to attract new customers who also choose us as their special occasion restaurant. Because we aren't a concept where the average guest comes once a month, we must ensure we deliver on the "Perfect Night Out"—our service mantra—so they return for the next occasion. It often permeates into other occasions, like a child’s Sweet 16.Powills: It’s a volume play. A theme park only works if you have that continuing build-up. It turns into a challenge to reintroduce the brand to customers and say, "You haven't been here in a year and a half; come back for X, Y or Z because we have a new ride." It turns into a volume game.Stone: 100%. Universal and Disney are good for each other because they try to outdo each other with new attractions, which is good for Orlando as a whole. Rising tides lift all boats. We need to continue giving guests reasons to come back because there is no shortage of options or larger brands with commercials on TV.Over the last six years, we’ve focused on a major remodel and refresh of our restaurants called "Melting Pot Evolution." It is the single biggest investment into the brand’s physical plant to stay relevant with today’s and tomorrow's consumers. That includes a refreshed logo, changes to the menu, and approachable areas of the restaurant so you don't need a major occasion to visit. We are nearing the completion of that evolution, with about 15 stores left out of nearly 100 set to finish this year.On the food and beverage side, we are focusing more on food trends. We did a Dubai chocolate fondue this past year, and we now have a cadence for food trends. We are also introducing seasonal "Big Night Out" menus — our most popular four-course experience — to offer limited-time flavor profiles.Powills: If Melting Pot is around 50 years from now, what do you think the next big "X" factor is?Stone: If Melting Pot stays true to its North Star and its superpower—which is fondue—it will be around for the next 50 years. If we try to be all things to all people and dilute our superpower, it will water down the magic and weaken our differentiation. For me, it’s not about a 90-degree turn; it’s about honoring our niche. Don't apologize for it; lean into it.Powills: I agree. It’s like the scene in Apollo 13 where they throw everything on the table and say, "This is what we have to get the boys home." If we look at the menu, you can get it all at Melting Pot, plus the experiential side.There is also the opportunity with "kids of kids." After 50 years, we remind the next generation of what it felt like to be a kid in Melting Pot. Now it’s your turn to hand that experience down to your child.Stone: Two things on that. First, on innovation: The cheese course is where most guests start. What if the entree is served with cheese and you dip your proteins into it? That’s using the existing menu but offering it in a way that is not traditionally done.Second, on the nostalgia: A lot of people love Disney World because of the memories they created as a kid. If you go for the first time as an adult, there’s a disconnect. At Melting Pot, kids are actually encouraged to play with their food. They love it for homecoming, prom, and graduations. We might lose them a bit in college when they are on a budget, but they re-engage as young professionals and then bring their own kids. It’s an interesting cycle.Powills: I want to swing into the franchise positioning. What is the value to a franchisee looking at this opportunity?Stone: We do not require a restaurant background. Despite being a restaurant with high-level service and a healthy check average, you do not need to be a restaurateur or a chef. The guest does the cooking. You need to be people-oriented. We are in the people business; we just happen to serve fondue.Having an entrepreneurial spirit is important — someone who can become the "mayor" of their community. As a brand, we gave over $1.2 million to St. Jude Children's Research Hospital this year. We believe in giving back. Franchising is about being in business for yourself, but not by yourself.Melting Pot won't be on every street corner. This is not a burger, pizza, or sandwich shop. In many markets, one or two locations fill the need. You have an opportunity to own something truly unique that isn't a cookie-cutter concept. You can own the only one in your entire metro area.Powills: It’s more than a "widget." It takes a special buyer. On the positive side, you're in a category of one; on the negative side, you're in a category of one.Transparency and expectation-setting are critical in business. The only way you get to 50 years with franchisees who stay in the system and advocate for the brand is if you set expectations. You've done a tremendous job with the customer, the community, and the franchisee. If you've ever thought about owning something where you feel good about it, it costs nothing to reach out. Any closing thoughts?Stone: If we do not have a Melting Pot in your backyard, I encourage you to check out our locations during your travels. We are in 32 states, coast to coast. There is nothing quite like the experience itself; words cannot properly capture it.Watch the full podcast above or on&nbsp;<a href="https://www.youtube.com/live/9FYPdaORvEw">YouTube</a>. To find out more information on costs to buy this franchise, please visit&nbsp;<a href="https://1851franchise.com/meltingpot">https://1851franchise.com/meltingpot</a>.&nbsp;

In a landscape where many brands prioritize speed and technology over the guest experience, the iconic fondue franchise is staying true to its hospitality roots and experiential dining model.

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