Succeeding with Breakfast Restaurant Franchise Opportunities

Looking to invest in a breakfast franchise opportunity?

Ihop staff and building

Follow these proven six steps to best assess your options:

  1. Business Plan
  2. Location
  3. Team
  4. Franchise Relationships
  5. Industry Trends
  6. Customer Service

My expert insights on breakfast restaurant franchises guide you through the decision-making process. Start your journey towards a successful venture today.

Ready to Move Forward?

At IHOP, we would love to hear from you! Get in touch with us for international and US opportunities.

The Growing Trend of Breakfast Restaurant Franchises

It’s not uncommon for people to have their 'spot,' their favorite dinner spot, their favorite spot for coffee, and of course, their favorite breakfast spot. According to a recent study, the breakfast food market is expected to witness a CAGR of 5.2% during the next five years (2023-2028) [1], meaning the right time to enter the breakfast restaurant industry is now!

It's also no secret that the breakfast industry is constantly changing, and as with any evolving thing, there are trends you need to stay on top of. For breakfast franchises in 2023, the most popular trend is customers looking for healthier options, along with a wide variety of items to start their day. This is achievable with a franchise as its menu has been developed to stay up to date with the latest trends in the breakfast industry!

Strawberry Banana FrenchToast Stack.

Definition of Breakfast Franchises

A family dining / breakfast franchise mirrors a standard franchise setup (a business model where a franchisee pays fees to a franchisor for the right to operate a business under their trademarks) but focuses on family oriented, full service restaurants, offering a menu that includes a variety breakfast items, such as pancakes, waffles, omelettes, and more.

IHOP Building Front Entrance

Advantages of Owning a Breakfast Franchise

Considering a franchise opportunity in the US? IHOP may be a fantastic choice for you. With restaurants nationwide, we have conducted in-depth research on growth markets [1] we want to take advantage of. While places like San Francisco, CA, and Nebraska appear on our Growth Markets target list, we are always open to hearing suggestions on other markets we can break into.

Starting a Breakfast Franchise - Steps to Consider

Starting a breakfast franchise is just like starting any other franchising business. The first significant thing you need to remember is to pick a good franchise fit for you and your business goals. Don't pick a franchise just because it suits you on paper.

Once you've decided on a potential breakfast franchise to partner with, you will want to conduct profound research into the business. It's important to establish early in the process that the franchise has a track record of success and provide the franchisee with support and training.

You'll then be able to start applying for your franchise!

Learn more about Owning a Franchise

Factors to consider before investing

Before you sign on the dotted line; you need to consider a few things before deciding to invest in a breakfast franchise:

Growing Markets When you conduct your research about the franchisor, you should be able to identify the areas they are looking for growth. If your ideas align, the breakfast franchise may be the right choice.

Franchisor Requirements The majority of Franchisors have stipulations in place to qualify potential franchisees. If publicly available, review these requirements and perform a self-qualification before deciding to invest.

Cost Opening and running your breakfast franchise is a costly undertaking. So before investing your money into a business, you must ensure you are stable enough to take on the financial responsibility.

Breakfast Franchise Costs

Overview of the Costs and Fees Associated With Owning a Breakfast Franchise

The costs associated with owning a breakfast franchise can vary depending on factors such as the franchisor, location, and franchise size.

In the breakfast franchising industry, each franchisor will set its own fees for starting a new franchise. These costs and fees may include:

Blue circular icon with blue dollar sign in the center. Initial upfront cost

Blue circular icon with blue dollar sign in the center. Royalty fee

Blue circular icon with blue dollar sign in the center. Advertising fee

6 Tips for Success with IHOP Breakfast Franchise

Tip 1: Develop a Solid Business Plan

Developing a strong business plan is crucial for your IHOP breakfast franchise. It should consider all the critical factors affecting your business, from your target market to your financial projections. A strong business plan will provide you with a roadmap to follow and will help you stay on track to achieve your goals.

Tip 2: Choose the Right Location

When opening a breakfast franchise, you want to ensure you're in a location with high foot traffic and high visibility. Ensure you get to know the area you're opening in and research the demographics. You need to understand the customers you'll be serving in that location!

Tip 3: Focus on Building a Strong Team

Your team is critical to your success, so building a great team is essential. They will be responsible for your day-to-day operations and will be the face of the business! Establishing this team will also provide excellent customer service to your consumers, and they'll be more efficient, saving you time and money.

Tip 4: Create Relationships With Other Franchises

Once you become a breakfast franchisee, you will be able to communicate with other franchisee owners! These other owners will have invaluable information to assist you and guide you to make better decisions for your business. You'll also be able to rely on this community when you have questions in the future, as most of them will have been through the same process as you.

Tip 5: Keep Up With Industry Trends and Changes

The breakfast franchise industry is constantly evolving and changing! To stay relevant and competitive, you need to make sure you're keeping up to date with any trends and changes that may come along. By doing so, you can benefit from increased sales by staying ahead of the curve!

Tip 6: Provide Excellent Customer Service

Most people who experience excellent customer service will be a customer for life. When working with a franchise, there will be certain expectations around the level of customer service provided to your consumers. Still, at the end of the day, as the owner, it's your responsibility to ensure that the standards are being met. Excellent customer service will keep customers returning and encourage referrals from those people.

Learn more about the Advantages of Franchising

Key Takeaways

While taking the leap into opening your own breakfast franchise opportunity can be daunting, there are certain decisions you can make along the way that will set you up for success. Make sure you research the franchisor you want to go into business with and choose an industry you know you'll be passionate about for some time. Conduct your research, consider your finances, and you'll be well on your way to running a successful franchise in no time.

For over 60 years, IHOP has been where people connect over breakfast food. We have world-famous pancakes and a comprehensive offering of options on our menu. Our brand is an American icon with many favorites that customers love. If you've been considering partnering with a franchisor, discover the opportunities available with IHOP.

FAQs About Franchising Breakfast and Pancake Restaurant Chains

Are breakfast franchises profitable?

Opening a breakfast franchise can be a very profitable venture. In the US, the average profit percentage for franchises is 8-15% of sales [2], which is a substantial amount for a new business. Franchises are a perfect way to get your foot in the door when you want to start your own business and begin with a successful business model.

What is the initial investment required to open a breakfast franchise?

The initial investment required to own a franchise can vary greatly depending on the franchise type and the franchisor's specific requirements. For IHOP, the upfront investment required is $50,000 for a single restaurant in a domestic location, and for an international site, the fee is $40,000. Remember, there are also additional fees like royalty fees and advertising fees.

What are the qualifications for owning a breakfast franchise?

Each franchise will have its own acceptance criteria for approving prospective franchisees. There is usually a list of stipulations they will release to ensure prospects are sure they fit the requirements. 

Does owning a breakfast franchise mean that you own your own business?

Absolutely. When you sign a franchise agreement, you own a business that is part of a more extensive franchise system. This means you have the right to use the franchisor's name, trademarks, and business models, but you are subject to the franchisor's rules and regulations.

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Do You Want to Know More About Franchising With IHOP?

With all that information considered, we hope you’re interested in franchising with IHOP. We have a dedicated Franchise Development Department that can assist with questions you may have concerning a franchise agreement with IHOP.