Transcription
2014 FranchiseNowConfidentialRestaurant Operations Manual1
How to use This Manual to Develop Your OwnRestaurant FranchiseAbout this ManualIn the following guide you will find the foundational building blocks necessary to create anoperations manual for your company. A well written operations manual enables yourrestaurant franchise branches to represent your brand consistently and profitably. It alsoprovides a great opportunity to clearly define your business operations. While everysuccessful business has a general idea of their operations, few know their business to thelevel of detail which the operations manual demands. If you invest the necessary time andresources to complete this manual, not only will you be on your way to franchising, yourexisting business will benefit greatly as well.The Importance of Developing Standard Operating ProceduresAs you read through this manual, you will begin to understand the importance of developinga set of standard operating procedures (SOP’S). A key factor in building a successfulrestaurant franchise is standardization. Regardless of the restaurant franchise location andownership, customers will always be met with a consistent experience. For example,McDonald’s is regarded as one of the world’s most successful restaurant franchises.Because of standardization, their food is the same whether you’re in Baton Rouge, Louisianaor Albuquerque, New Mexico. You will always know what to expect when you see thosegolden arches.The Purpose of this ManualThis manual was created using a generic restaurant franchise company named ABCRestaurant! This content was provided to provide an example of a typical operations manual.As you customize the document to reflect your business, the name and many of the detailswill change. We recommend you save multiple copies through the writing process. This willallow you to refer to this document as the master template and your document as the newcustomized operations manual.Guidance BoxesWe’ve also included valuable text boxes with questions, notes and additional information tohelp you write each section. Read each box carefully before beginning each section. Anexample of a guidance box:Guidance Box 2014 FranchiseNowConfidentialRestaurant Operations Manual1
Intro PagesAt the beginning of each chapter you will find a page outlining the goals, questions to askyourself, required materials and other important information to review.Guidelines for Preparation of the ManualRemember, the operations manual is a living, breathing document. As such, the contents willcontinue to change over time right along with your restaurant franchises standard operatingprocedures. Therefore, prepare the manual in manner that facilitates updates as they mayoccur from time to time.Many new franchisors do not have a written set of SOP’s. Your restaurant franchisees willlikely have little existing knowledge of your industry. The manual should be written in amanner that is easy to understand, even for the complete layperson. Manuals that are toocomplex or overly technical will be of little or no use to your restaurant franchisees.Leave no stone unturned, no detail unaddressed, and no procedure left to the discretion ofyour restaurant franchisees. Detail, detail, detail.You manual should address different operating procedures, if any, accounting for thedifferences in geography, population, and other conditions that could affect the successfuloperation of a restaurant franchise.Maintain consistency between the manual and FDD/Agreement. Discrepancies between thetwo documents could lead to legal trouble down the road.Obtain legal review. It is absolutely critical that you acquire local legal council to review youroperations manual, restaurant franchise agreement and FDD. We are not legal experts,entering into franchising with legal oversight is an accident waiting to happen. Becausefranchising is such a litigious industry it is critical you do not skimp when finding an attorney.Your attorney must have a long track record of specializing in the restaurant franchiseindustry.Let’s get started! 2014 FranchiseNowConfidentialRestaurant Operations Manual2
Table of ContentsHow to use This Manual to Develop Your Own Restaurant Franchise . 1Table of Contents. 3CHAPTER 1: INTRODUCTION . 5How to Use This Manual . 5Confidential Disclosure Agreements . 6CHAPTER 2: WELCOME TO ABC RESTAURANT . 10History of ABC Restaurant . 11The ABC Management Team. 12Legal Advisory and Franchisor’s Management Support . 13ABC Restaurant Mission Principles & Promises . 14CHAPTER 3: SUPPORT RESOURCES . 16Franchisee Support Matrix . 17Restaurant Franchise Corporate Officers . 19CHAPTER 4: PRE-OPENING TIMETABLE & OBLIGATIONS. 20CHAPTER 5: FRANCHISEE TRAINING REQUIREMENTS . 21ABC Restaurant Orientation Training . 22ABC Restaurant Qualified Certifications . 25Additional Training / Refresher Courses . 25Annual ABC Restaurant National Sales Meeting . 26CHAPTER 6: STAFFING YOUR ABC RESTAURANT FRANCHISE . 28Staffing Your ABC Restaurant Franchise. 30Position Descriptions with Profiles . 30CHAPTER 7: OFFICE POLICIES . 32Quality Standards of Services . 33Handling Typical Complaints and Problems . 34Employee Appearance (Trade Dress) and Hygiene . 34Computer Usage . 35CHAPTER 8: RESTAURANT OPERATION AND MAINTENANCE . 36General Housekeeping. 37Opening Procedures . 37Closing Procedures . 38Cleaning Procedures . 38Miscellaneous Restaurant Franchise Duties and Responsibilities. 38Administration Major Activities Listing . 39Administrative Management Checklist . 41Alarms, Locks, and Keys . 42POS System . 42Safety . 42Restaurant Operations Checklists: . 43CHAPTER 9: RESTAURANT EQUIPMENT, COMPUTER SYSTEM, INVENTORY, & SUPPLIES. 44Office Equipment . 45Equipment “Starter Package” . 49 2014 FranchiseNowConfidentialRestaurant Operations Manual3
CHAPTER 10: ADMINISTRATION . 50Record Keeping . 51Accounting Services . 54Prime Cost . 56Manage Critical Numbers . 57Collections and Accounts Receivable Management . 57CHAPTER 11: REPORTS, AUDITS & INSPECTIONS . 58Franchisee Reports . 59Records and Reports . 60Failure to Report . 60Audits and Inspections . 60Contact with Others . 61CHAPTER 12: VEHICLE ADMINISTRATION . 62Auto Theft & Carjacking . 64Leasing . 64CHAPTER 13: MARKETING . 65Target Marketing with Selected Media . 70CHAPTER 14: SALES & PRICING . 81Intro . 82Phone Selling . 82Referrals . 85Pricing Policies And Fee Structures . 87CHAPTER 15: INSURANCE REQUIREMENTS & RISK MANAGEMENT . 88General Insurance Coverage . 89Risk Management . 91Managing Risk at the Restaurant Franchise Location or Job Site . 92Restaurant Franchisee Site Security . 92Reporting Incidents . 93CHAPTER 16: CORPORATE STRUCTURE AND FINANCING . 94Setting Up Your Entity . 95Legal Business Structures. 95Types of Structures .
operations manual, restaurant franchise agreement and FDD. We are not legal experts, entering into franchising with legal oversight is an accident waiting to happen. Because franchising is such a litigious industry it is critical you do not skimp when finding an attorney. Your attorney must have a long track record of specializing in the restaurant franchise industry. Let’s get started .
