Want to know how to turn a local culinary business into a successful franchise? In this article, we'll thoroughly explore tips and tricks for expanding your food business so it can move up a notch. Let's dive into the steps!
Understanding Scale Up
Scaling up a business or company means that the company is increasing its operational business scale. This can include, among other things; opening new branches or outlets, increasing production capacity, exploring new target markets, or as we will discuss in this article, changing its business model to become a large-scale franchise.
Referring to the Corporate Life Cycle model by Danny Miller and Peter H. Friesen, the scale-up process of a company or business is in the "Growth" phase.
Read also about 4 Stages of the Business Life Cycle.
Things to Consider Before Scaling Up to a Franchise
1. A Unique and Original Concept
Kopi Kenangan has a contemporary coffee concept that's just right for local tastes. They offer a wide variety of flavors, from the very popular gula aren milk coffee to other coffee variants. The prices are also wallet-friendly, so it's no wonder many people like it.
Besides tasting great, they are also innovative in their presentation and use local ingredients that set them apart from others. No wonder Kopi Kenangan quickly became one of the top coffee franchises in Indonesia.
Apart from Kopi Kenangan, another local franchise with a fairly unique concept is Bakmi GM, which is very famous in Indonesia. They have various types of noodles with delicious toppings and broths. Their concept combines traditional flavors with modern presentation, making it a favorite spot for noodle dining here.
Learn also about Business Strategies of these 7 Local Culinary Franchise Brands that you can emulate!
2. Strong Brand and Marketing Strategy
J.Co Donuts & Coffee has a store concept that's comfortable to hang out in, and the place is also cool for Instagram photos. That's why, from young people to families, many are attracted to this place.
They also frequently collaborate with influencers and participate in cool events to make their brand more well-known. No wonder J.Co Donuts & Coffee has become one of the favorite hangout and snack spots in Indonesia.
Excelso, a favorite cafe for many, indeed has a great marketing strategy. They've created a cafe with an elegant yet cozy atmosphere for coffee or hanging out.
For promotions, they are very active on social media, often offer discounts, and hold cool events. In addition, Excelso also supports community events, so they become more well-known to many people. In short, the place is great, the promotions are on point, so it's no surprise that Excelso has become one of the most popular coffee cafes in Indonesia.
3. Standardization of Quality and Operations
Standardization of quality and operations are two very important aspects in maintaining consistency and efficiency in a business. With clear quality standards, a company can ensure that the products or services they produce always meet customer expectations.
Meanwhile, operational standardization helps in optimizing business processes, from production to customer service, thus reducing the risk of errors and increasing productivity. By implementing good quality and operational standards, a business can build a strong reputation and maintain its competitive edge in the market.
4. Profitable Revenue Scheme Calculation
If we want to calculate how to make our franchise business profitable, it's really important to carefully calculate the revenue scheme. One way to do this is by calculating operational costs. And one solution is to use the Opaper Point of Sales application. This is because the app really helps in stock management, food order management, and payment using barcode at the table. So everything becomes more efficient! With this, our business can run more smoothly and profitably.
5. Technology Innovation
Technology innovation is also an important aspect to consider before scaling up a business into a franchise. This is crucial because technology can be the key to success in managing and growing a business, especially on a larger scale like a franchise.
By using the right technology, business owners can improve operational efficiency, enhance customer experience, and optimize profits.
Opaper App is a concrete example of how technology innovation can assist businesses in the scale-up process to become a franchise. Features such as an advanced payment system, easy-to-understand financial reports, efficient inventory management, accurate data analysis, and multi-outlet management allow business owners to manage their businesses better and more effectively.
6. Strong Supply Chain
A strong supply chain is also important in managing a franchise business. A robust supply chain ensures that all raw materials and products are consistently and timely available at each franchise outlet.
This allows the business to maintain the quality of products and services, as well as meet customer demand effectively. With a strong supply chain, a franchise business can optimize operational efficiency, reduce costs, and increase customer satisfaction.
Therefore, it is important for franchise business owners to pay attention to and manage the supply chain properly so that the business can grow and compete well in the market.
Opaper App has a new feature, namely purchase order to suppliers integrated with WhatsApp notification.
Potential of Indonesian Culinary Franchise Brands
In 2022, data from the Ministry of Trade (Kemendag) recorded that there were 138 brands offering franchises with a total turnover reaching IDR 26.5 trillion.
Furthermore, there were 31,188 brands that have been operating through the franchise system, which has significantly created job opportunities for 53,670 people.
The franchise industry in Indonesia shows promising growth with turnover reaching trillions of rupiah and tens of thousands of brands operating, contributing to the creation of thousands of jobs. However, according to Kemendag, the potential of this industry has not yet been fully tapped.
Therefore, there is ample room for further development to maximize the contribution of franchises to the national economy. Increased synergy between the government and franchise business players is needed to accelerate growth and achieve the full potential that exists.
Conclusion
From the above review, it can be concluded that transforming a local culinary business into a franchise is a promising step in increasing existence and revenue. With a larger scale, franchises allow business owners to reach more markets and offer a consistent experience to customers.
Through this scaling process, local culinary outlets can develop their brands more broadly and expand their market presence. Thus, not only expanding market share but also creating opportunities for sustained growth and success for the culinary business.
If your culinary business is ready to move up from a local outlet to a franchise, Opaper App will be the solution that will help your franchise brand grow.
Schedule a demo with the Opaper App team now!