Franchising a full service restaurant concept : a case study

This treatise investigates the restaurant industry, entrepreneurship, franchising and restaurant franchising in order to develop a model that will enable a full service restaurant concept to be converted into a successful franchise system. Restaurants play a significant role in our lifestyle, and dining out is a favoured social activity. The industry plays an important role in the transfer of skills as many people start working in the restaurant industry before moving onto more formal careers. The restaurant industry offers many opportunities for entrepreneurial activity as a result of the relatively low barriers to entry. Entrepreneurship is the pursuit of opportunity regardless of the resources at hand and it requires a willingness to take calculated risks in order to build something of value from virtually nothing. The success of emerging economies such as China and India has proven that the only growth sectors in these economies are small and medium enterprises, which are driven by entrepreneurs. Franchising is considered to be a viable growth strategy for small business as it provides a means of raising capital and a method of expanding the business in a relatively low risk manner. There are many well established restaurant franchise brands that originated in South Africa, starting out as successful single outlets and then by means of the business format franchise model, developed into multi unit franchise systems. There are certain basic generic steps that must be followed when developing a franchise system. This was verified by the empirical study of this treatise which was conducted as a single unit case study on the Dulce Franchise Group. Finally, as a result of the analysis of the literature study and the findings of the case study, a restaurant franchise conversion model was developed