Restaurant Chains Key Terms

Understand important concepts before you buy or start a restaurant chain

By Laurie Edwards

If you are looking to buy a franchise or start a restaurant chain you need to be savvy about marketing and the financial outlook of restaurant chains. Know what foods people are buying and what kinds of chain restaurants are most popular. Do your homework before you invest in a franchise or a start-up restaurant chain; be sure it appeals to consumers and is branded properly for its main clientele.

Repositioning

Repositioning is a marketing strategy that changes various aspects of a restaurant's products or brand to give it a better market position and change customer perceptions of the chain.
Try: IMEC defines strategic repositioning and explains how it is beneficial for businesses.

Relevance

One key concept for restaurant chains is relevance. Restaurant owners need to consider the changing marketplace and be sure their restaurant chain appeals to the market they hope to attract. If they hit on a trend, they may become a popular chain, but once the concept that launched their chain's success is no longer relevant, a chain will lose revenue.
Try: Chain Leader discusses how restaurants that failed to stay relevant declined in popularity.

Outsourcing partnership

One trend in the restaurant industry is developing an outsourcing partnership. A restaurant chain partners with a hotel to increase both businesses. The hotel benefits by having an in-house restaurant without the expensive overhead and staffing issues. The restaurant has a built-in clientele and a place to do business.
Try: Hotel Online delves into outsourcing partnerships and their benefits.

Branding

Branding is key to restaurant chain sales. By establishing a certain image in customers' minds, chains can ensure that diners will continue to come into their restaurants. A brand makes advertising uniform for all stores and fulfills customers' expectations when they enter the chain.
Try: Zagat shares how one graphic designer helped to build a restaurant brand.

Sustainability

One of the buzzwords of today's businesses is sustainability, and nowhere is that more important than for restaurant chains. Sustainability is more than just offering organic menu items. Many chains have developed a planned approach to conserving resources and reducing their non-recyclable waste.
Try: Chain Leader presents suggestions for how restaurants can go green.

Franchise

Chain restaurants often offer franchise opportunities. Advantages of a franchise are that the parent company usually provides the business plan and advertising, establishes the brand, and buys supplies and uniforms in bulk.
Try: Quantified Marketing Group provides advice on franchising your restaurant concept so you can turn it into a chain.