What is a Semi Franchise?

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Owners of F&B outlets are always very proud of their own businesses, having created their own business brands and having built them up from zero with many customer followings over the years. However, very often in the F&B industries, because of the pressure to increase sales, many F&B outlets will diversify into offering as many varieties of dishes as possible, in the hope that customers will find something that they will like. We hear of the wise old saying, “Jack of all trades, master of none) and that is exactly how the consumers feel when walking into an F&B outlet that offers everything. However, this need not be the case. If the restaurant owners can offer different varieties of the best dishes from the best restaurants, then their customers will always know that they will get the best.

This is where the idea of a new business partnership model was mooted. A model where a business can retain its own name and branding and yet offer the best dishes offered by easily recognized brands in the industry. From this, we created the modern day business partnership model, called a Semi-Franchise. 

Coffee. Cafe operations

A Semi-Franchise offers proven business practices with a recognizable brand and sub-menu items that F&B outlets can take on to enhance their outlet offerings. Unlike a full franchise model, a Semi-Franchise does not require the franchisee to adopt the franchise brand name and to conform strictly to their specific model of running the business. It only requires certain brand appearances within each outlet, standard operating procedures in the preparation and presentation of their menu dishes and strict adherence to sourcing of ingredients for these dishes.

The advantages of this new business model have many folds. Most importantly, from the F&B owners perspective, they do not need to change their own brand and operating procedures, they only need to add the new Semi-Franchisor’s brand and adopt their procedures in the preparation of the franchised dishes. Semi-Franchisees now have a new brand to attract customers to their outlets. In a way, they are doing so with cold beverages as most F&B outlets now sell drinks from Coca Cola or Pepsi because these are brand names that will attract and entice customers to order a drink. A Semi-Franchisor will also want to help market their partners’ outlet because to increase their visibility and sales. It is a Win-Win arrangement for both parties.

Coffee sales is the most natural segment if you are running a F&B to consider a Semi-Franchise partnership. While coffee sales offer a very high margin, it is often a neglected product because it constitutes a small percentage of total sales. Many diners will hop over to another cafe after a meal to have a cup of coffee because they perceive restaurant coffees are not up the mark with cafes. If restaurants can offer a branded cafe quality coffee menu, it will have high potential to increase its sales tremendously.

If you are the owner of a F&B business, do explore the feasibility of a Semi-Franchise arrangement with a provened and recognised brand. It is a good way to win with a brand and without losing your own.

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