How to Start a Fast Food Business

Starting a fast food business can be a difficult, yet rewarding, experience if done correctly. According to the 2001 book "Fast Food Nation" by Eric Schlosser, Americans spent around $110 billion on fast food in the year 2000. The fast food industry is highly competitive, so it's important to have a sound business strategy in place.

Instructions:

1.Identify your target market. Think about who your target customer is and consider different generational differences and preferences. Understand what types of potential customers tend to frequent fast food restaurants; research online or hire a company to provide a market research report for you.

2.Determine what type of fast food business you would like to operate. There are many options, including burger-and-fry fast food restaurants, chicken fast food restaurants, fish fast food restaurants and sandwich fast food restaurants. You have the option of either starting your own fast food restaurant or buying a fast food franchise. A franchise is a good option for those who want the parent company to handle some of the operational and marketing responsibilities. Keep in mind there are up-front fees and royalty fees you will need to pay the franchisor.

3.Write a business plan. Include a detailed description of your fast food business concept and target market; a market analysis; pricing and menu options; hiring strategy and employee training; and financial projections.

4.Secure funding by working with investors or fronting your own money. Plan to pay for expenses such as building rental or mortgage payments, insurance, equipment, supplies, food, employee salaries, marketing and advertising. Consider other sources of funding such as family and friends or government programs as well.

5.Choose a location. Take into consideration factors such as volume of traffic in the area, customer accessibility, local laws and ordinances, parking, site history, lease terms and sales projections.

6.Design your fast food restaurant layout. Take into account the amount of restaurant, storage and office space you will need. Do research or hire a professional design company to help draw your building plans and create layouts for both your dining and production areas for your fast food business.

7.Understand safety and legal implications. Consult a lawyer to walk you through the legal process for owning a fast food business.

8.Locate suppliers who will source your food and office supplies. Negotiate to get the best terms possible and work out agreements so that if you reach a certain sales volume, your rates go down.

9.Hire and train employees. You will need to recruit and train managers and other employees and determine the pay scale for all employees in your restaurant. Consider things like employee training, bonuses, benefits and career paths for prospective employees.

10.Develop a detailed marketing plan outlining strategies you will use to advertise your fast food business. Consider marketing mediums like print, television, radio and Internet-based marketing. Once you have launched your marketing strategy, your fast food business is ready for the grand opening.

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