Essay, Pages 3 (644 words)
Getting a food cart franchise package: what are the advantages? Why food cart Franchise? Potential franchisees sometimes wonder if franchising is a necessary process, and may ask why they couldn’t simply start a business on their own. The findings of the government suggest that franchisees enjoy a significant competitive advantage over the stand-alone or single business operators. They showed a study that 88% of franchise companies which opened in the previous five years were still in business under the same owner and only 4% of these businesses failed.
Also, a survey in that same article showed 60% percent of all new businesses that started over a 10 year period dissolved within their first six years. The percentages of success may vary with the study and that there maybe other studies out there but still reach same conclusion most suggest that a franchised business have a higher chance of success than independent, start-alone businesses.
Here are some of the advantages of having a Food cart franchise: Food cart franchise are cheaper and have less lease or rent cost.
Food cart franchise are transferable, since they can be moved easily or if the location is not profitable. Food cart franchise are easy to operate and manage.
Food cart franchise requires one to two personnel only.
Food cart franchise needs a small space/location so it is easier to find one. Food cart franchise are easy to maintain, lowering overhead costs. Food cart franchise are ideal for businesses offering limited products or services. Food cart franchise can capture a wider market because location is along the walkways of malls and commercial centers.
Expansion is easy since it needs less capital.
Reasons contributing to this include:
A food cart franchise is a “copy” or “duplicate”, if you may, of an already successful business. The true value of a food cart franchise is the experience, know-how, and the operation procedures that comes with it. In franchising, there is the value added advantage of brand name recognition. There are also support structure from the franchise company that the franchisee can take advantage of. A franchise avoids the costly trial-and-error periods that causes so many start-up businesses to fail and close up.
The Effect of the Marketing Practices on small shops in South African townships i.) A complete “paradigm shift” in managerial thinking, in terms of service quality deliverance through the continual education and training of staff in fields such as customer care, customer satisfaction and customer service. ii.) The product offering needs to be more consistent and reliable, ensuring that an overall perception is created within the minds of consumers. Attention needs to be given to details (such as checking expiry dates) in delivering services and products. iii.) owners/managers need to spend more time building “relationships” with their customers.
This will assist in receiving regular feedback from customers in terms of customer satisfaction. It helps to develop customer loyalty as customers enjoy personalized attention. Shops in Mdantsane should, therefore, be more sensitive to the unique needs of their customers. iv.) The pricing policy of the shops in Mdantsane should also be based on accepted accounting procedures and not only on intuition.
Owners/managers of shops in Mdantsane indicated low levels of adoption of the marketing strategy concept. This suggests that an opportunity exists for these owners or managers to be educated on how to adopt marketing strategies that enhance profitability. Furthermore, grocery shop owners/managers also regarded price as the most important aspect when applying the marketing strategy mix. This implies that grocery shops in Mdantsane compete primarily based on price. According to the study findings, these grocery shops also need to adopt the other 3 Ps of the marketing strategy, namely product, place and packaging in order to be more profitable. The owners/managers of grocery shops did, however, indicate that they lack the necessary funds to embark on extensive marketing practices.