Restaurant franchises are among the most popular franchises available for prospective business owners, yet how do they compare to starting a staffing franchise? Entrepreneurs looking for the best business opportunity, may be considering different kinds of franchises, including these two different choices. To help clarify these choices, here are 5 reasons to start a staffing franchise vs. restaurant franchise:
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Lower Initial Investment
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Simplified Workflow
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Meaningful and Fulfilling Service to Community
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Less Equipment to Buy and Maintain
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Regular Work Week Schedule
1. Lower Initial Investment
The total initial investment needed to start a franchise is a big factor for any entrepreneur. Sometimes it’s a matter of preference, while other times the lack of financing limits the choices. Even with the recognizable brand, ongoing support, and proven system – owners still need to make the loan payments every month for years to come.
Restaurant franchises are typically double, if not ten times more than a staffing franchise! For example, a Carl’s Jr. franchise has an initial investment of $1.3m to $1.9m, while Nextaff is around $60k to $160k, according to Entrepreneur.com. The low-end of restaurant franchises are basically the high-end of staffing franchises (Dominos: $120k to $461k). So, it’s easy to conclude that starting a staffing franchise is typically much less than a restaurant franchise.
2. Simplified Workflow
Staffing franchises don’t have to deal with preparing and serving food, which simplifies the workflow processes from day-to-day. Businesses that serve food must abide by state and federal food safety laws, which means employee training, upgraded equipment, and tedious protocols. Staffing agencies, on the other hand, are simply ran from an office environment, which is a lot cleaner and easier to deal with than a commercial kitchen and dining room.
3. Meaningful and Fulfilling Service to Community
What would help the community more: a fast food restaurant or a staffing agency that helps connect businesses with employees? Staffing agencies provide owners a meaningful and fulfilling business opportunity, which will positively impact the communities they serve.
Basically, staffing agencies are match makers for employees and employers, helping workers find temporary work to get by, and/or permanent positions for long rewarding careers. Staffing agencies help businesses be more productive, and help people find jobs to support themselves and their families.
4. Less Equipment to Buy and Maintain
This goes along with the simplified workflow processes, because staffing agencies have much less equipment than restaurants. Restaurants need: an entire commercial kitchen, registers, safe, walk-in freezer, and more. Staffing agencies only need office equipment, such as: computers, printer/copier/scanner, desks, chairs, telephones, etc.
This is an important factor to consider because equipment needs to be financed and maintained for years to come. This means restaurants need to have vendor relationships with equipment technicians, suppliers, and manufacturers – in order to keep vital equipment going. Putting this in perspective: the cost of buying commercial kitchen equipment would typically cost about as much as the initial investment for a staffing franchise.
5. Regular Work Schedule
Staffing franchises are open during regular business hours Monday through Friday, because they cater to the business community. This means owners can enjoy a regular work week and take time off every week, without having to supervise or worry about their business.
Restaurant franchises are open 7 days a week and often 24 hours a day, which means owners always have the wheels of business running. This is an important distinction for entrepreneurs to consider, so they can invest in a business they can viably sustain long-term.
Summary
There are many different types of franchise businesses that entrepreneurs can invest into, yet not many offer the benefits of a staffing franchise. Restaurant franchises may be one of the most popular type because of the brand recognition of popular food chains, yet are lacking when compared to staffing franchises. Of course, the success of either depends on the owners ultimately.
The demand for staffing franchises has been growing, as more employers are looking to outsource their human relations departments to find temporary or permanent workers. Staffing agencies make hiring simple for businesses and workers, especially as hiring laws and regulations become more complex. The necessary role staffing agencies are playing is filling a growing demand for lower cost hiring practices.
Entrepreneurs may not, generally, consider investing into a staffing agency — as often as they consider restaurant franchises — yet the 5 reasons discussed are good reasons why they should. Staffing franchises are a gem of an opportunity in today’s shifting economy, and compared to a restaurant franchise, it’s a more viable option too. If interested in learning more about starting a staffing franchise, please contact us today.