Labor - Most food businesses need a lot of employees to function properly and smoothly with the majority of those workers being low-paid. That leads to a workforce of unreliable employees with a high turnover rate. Finding and keeping qualified employees is a major challenge for a food franchise. Low margins - The food industry is very price sensitive, more so in the world of fast food chains. This leaves you with a very fine line to walk with cost of goods and labor and making a profit. It's true that food franchises often see high revenues but the net margins are often overlooked. You are also susceptible to food spoilage and theft along with other issues only found in the food industry. Expensive initial investment - A food franchise will require a substantial investment from you in order to get started. You need to pay for many items up front in order to run the business. Not only do you need to pay for the food and labor but also ovens, grease disposal, venting, furniture, and maintenance among many other expenses.
1. competition If you have lots of restaurants nearby yours...you might have some trouble. 2. Service People you hire might be rude to customers and they also could be stealing your money. 3. Food- If your food is horrible no one would want to come back. 4. Atmosphere- Not good atmosphere you lose customors.