Turnkey Restaurant: Your Fast Track to Owning a Restaurant

The hospitality industry is a fast-moving place where entrepreneurs move as quickly as they can. For these fleet-footed restaurateurs, taking over a turnkey business is often the best and easier way to get a restaurant up and running.

In the world of business, moving slowly can sometimes mean that business operators miss out on great opportunities. Turnkey businesses allow businesspeople to get into the thick of it almost immediately.

In this blog, we'll be taking an in-depth look at turnkey restaurants and how a budding restaurateur can use them to quickly get a foothold in the hospitality space. We'll also be looking at some of the pros and cons that come with these sorts of businesses.

What are turnkey businesses?

Don't worry if you've never heard of a turnkey business before, as it is a fairly niche term within the retail and hospitality industries. In short, the term "turnkey business" refers to a business that the new owners can open and operate with little-to-no effort. It will usually be an existing business with products, equipment, and a business model already in place.

"Turnkey" refers to the fact that all the new owners need to do is to turnkey the key in the door of the business and open it up. While it isn't exactly as easy as that, turnkey businesses are certainly the easiest way to start a business.

In the case of turnkey restaurants specifically, these businesses will often operate as franchises. A big brand, such as Starbucks or Subway, will either build a location orlease restaurant  space, fill it with all the relevant equipment and furnishings, and then sell it to a local operator.

If the restaurant didn't start its life as a franchise business, it will often be sold by the original owners so that they can retire or start a new operation.

The pros of turnkey restaurants

If you're thinking of buying a turnkey operation, you'll want to know the advantages of obtaining one of these businesses. There are a number of benefits that come with buying a turnkey restaurant as opposed to developing a new business from scratch. These businesses can start generating revenue from the first day they open.

Proven business model

Building your own business comes with some uncertainty. There's no guarantee that your idea will work and your business will be a success. Both franchise and established restaurants cut down on that uncertainty.

For franchise restaurants, name recognition and public support comes with a certain level of reduced risk. Franchise restaurants are popular with the general public and name brand recognition means you won't have to do your own marketing.

Established restaurants come with their own set of regular customers and employees. Operations at established restaurants are already in place so you'll be able to walk in and start working.

Franchise support

Support from your parent company is one of the best aspects of running a franchise restaurant. It's in the best interest of your parent company that you succeed so they'll go further to make sure you turn a profit. With a franchise restaurant, you'll never have to worry about marketing and you'll always have a full inventory.

Built-in customer-base

Whether it's a local favorite or an easily recognisable franchise, turkey restaurants often come with a built-in customer base. This improves the failure rate of turnkey businesses over completely new businesses.

The cons of turnkey restaurants

While turnkey establishments can be solid investments, there are a few negatives you need to consider. Always do your own research when buying a business to see if it's right for you.

Initially expensive

Both established restaurants and franchises often require a substantial initial investment. This means you'll need to raise quite a bit of capital to enter the industry. This expense is generally because you're buying the brand as much as you're buying the physical building.

Restrictive franchise agreements

Franchise contracts are often very restrictive. Owners are required to pay a monthly franchise fee, serve the franchise menu, and sometimes buy new equipment when the parent company requires them to. These contracts are impossible to get out of so you'll be tied to them as long as you operate your restaurant.

Improvement cost

Established restaurants often come with older kitchens and decor. While this will be okay for a while, you will eventually need to spend substantial money on upgrades. To save some money, you may consider leasing restaurant equipment.

The right POS system for turnkey restaurants

By investing in an advanced POS system for hospitality businesses, you give yourself a greater chance of success. The Epos Now Complete Solution is designed with the needs of your restaurant in mind.

Epos Now provides POS systems for the retail and hospitality indsutries. Our restaurant POS includes features such as payment processing services, inventory management, and a suite of powerful integrations.

If you'd like to hear more about Epos Now, get in touch with our team of experts below.