If you have ever thought about getting into either the food delivery or restaurant business, you might like to hop on this webinar about how to start a restaurant meal delivery business for much less cost than buying a franchise. Here’s the link:
The webinar is about a client of mine, Dine-In Delivery, and how their “license” model allows people to get into the restaurant meal delivery (RDS) business for less than $20K, as compared to the $100K + cost of opening a franchise.
Another huge difference is that franchises charge a royalty on your sales and a national advertising royalty that in this industry add up to 8 – 10% of your sales.
Dine-In Delivery charges no sales royalty or national ad fund.
So, this is one reason I like them as a client! I’d rather sell something for $20K when my competitors are at $100K + for the same thing and then offer a 0% sales royalty vs an 8 – 10% royalty.
This is all possible by being a license instead of a franchise.
If you have a business you are thinking about franchising, consider using the licensing model instead – much less expensive for you and your customers. Watch the webinar and give me a call if you’d like to use this model for your own business . . .
or, of course, call if you like the idea of opening a RDS business in your area!
The Dine-In Delivery opportunity is an inexpensive license opportunity you can start and own for MUCH LESS than a franchise.
And, since the Dine-In Delivery start up cost is low and there are no royalties to pay on sales, your return on investment is higher than a franchise and you can get to positive cash flow in months instead of years.
Why Dine-In Delivery Instead Of a Franchise?
You can run the business from home, no expensive location needed
You can be open taking orders for $20K or Less
Your costs are all variable, no high fixed costs like a franchise
Your break-even point is much lower
Your gross profit margins are 50% higher than franchises in the same business
No accounts receivable, no inventory
Gain instant credibility by dealing with national chain restaurants everyone knows
The Dine-In Delivery Market
National Restaurant Association surveys have shown that the restaurant meal delivery business is the most underserved segment of the $583 Billion restaurant industry. 83% of all households would order from their favorite restaurant to be delivered if they could, but only 7% of all households can.
Not only that, but American Express has recommended to all restaurants that take their card, that they should be using a restaurant meal delivery service to maximize their profits.
So you can provide a service already in demand in your area where no one provides it now.
To get the full details, click here to go to the Dine-In Delivery corporate web site where you can get the details.
Openings For Dine-In Delivery National Developers
Where franchises charge the big bucks to become an Area or National Developer, the Dine-In Delivery offers that opportunity at no extra charge to their operators.
Understand that you do not have to operate at all, you can resell your “review” to someone else and recover your entire investment. You will have then become an Area Developer or National Developer at no cost to you.
Click herefor more details on being a Dine-In Delivery National Developer.
Or call me at any time at 720-890-8760 and I’ll go over the details with you on the phone personally.
Have you ever considered buying a franchise? The idea of franchising is to buy into a proven business system that maximizes your chances for success.The downside is that the franchisor knows how much you can make and adjusts their costs and fees accordingly.
It’s interesting in that it usually comes out to you making about 5 times what the franchise costs per year after having run it well for 5 years.
I met a guy in an airport bar in Houston on my way back to Denver (I know, not quite the most authoritative source). However, the guy next to me at the bar watching the NFL playoffs, when I asked him what he did for a living, told me he owned 9 McDonald’s franchises here in Colorado.
I believed him because of the details he told me, and, if was making it up, he would probably would have said he owned one because they cost a couple million dollars each . . .
Here’s what I learned from him.
The typical Subway franchise costs $200K to get open and the typical McDonald’s costs 10 times that. The typical Subway owner makes $25K/year and the typical McDonald’s owner makes 10 times that . . .
Coincidence? I don’t think so.
The income is directly proportional to the investment. Just like in any market, supply and demand – and return – works itself out to be roughly equivalent over different business models.
But . . .
There are exceptions, and that’s where the money is made. When people find opportunities that return much better profits compared to money invested, they have the opportunity to make much more!
So, how do you find those?
Look outside the traditional franchise model into licenses.
(In the spirit of full disclosure, what follows is a license that I sell, so I am, of course, biased in it’s favor . . .)
One example is a business called Dine-In Delivery (DID). What they do is deliver food for restaurants that do not offer delivery themselves. A typical Dine-In Delivery operator may deliver meals for 30 or more restaurants including national chains like Subway, Chili’s, Outback, etc.
What make a business like this unique in comparison to a franchise are:
1. The cost to get started and get open is much less in the restaurant meal delivery business, operators can open for as little as $12,500, where a franchise that does the same thing would cost 10 times that.
2. A franchisee usually pays a 10% royalty/ad fund fee Licensees do not pay a royalty based on sales, only a small fixed annual fee for using the name. In the restaurant meal delivery business, that means a franchisee operates with a 20% gross profit, while a licensee makes 30% – essentially 50% more.
3. Franchises dictate operational details to their franchisees This can end up being very expensive and not necessarily the best solution for a specific local market. Licensees are licensing the name to operate under, but are free to choose their operational policies to best fit their local market.
So, before buying a franchise, make sure to check into whether there is a license available in the same industry. You may find you can save a lot of money, get open cheaper, and get a higher gross profit.