How To Launch—And Scale—A Business

Getting a new restaurant off the ground can be a daunting task—particularly in a location that has seen failure before. Then, turning that restaurant concept into a thriving franchise network is a feat on a whole other level.

Abhishek Mediratta, founder and managing partner of Fresh Burrito, was not daunted in the face of that exact dilemma. When his first quick service restaurant failed, he started anew with one Fresh Burrito location in Kitchener, Ontario—in the exact same space as his previous business. But with shifting strategies, the Mexican food chain took off, and now has 36 locations spanning Canada. He shares the lessons he’s learned, and what it takes to rebound from setbacks and keep growing.

What was the secret to you succeeding in the same spot that another quick service restaurant failed?

In my mind I was thinking—I already have access to this space, and I have a business idea for a restaurant. Why look for another space? So, I convinced the property owner, and we worked out a deal.

The secret here was a few things: having the confidence and knowledge that the new business idea, Fresh Burrito, can flourish in this location and to identify the opportunity in front of me. Since Fresh Burrito is a franchise concept now, for each location, the secret to success lies in the footprint that area gets, competition in the area, availability of raw material and the ease of accessibility for our target audience.

What would you say are the five factors that entrepreneurs should consider before investing in a restaurant business?

These change over time but from my experience of 14 years, here are some that are a must:

Have sufficient working capital. Sixty percent of restaurants fail because they don’t have patience or run out of capital to invest. Make sure you have enough working capital to last for 12 to 18 months and be patient while you wait for results. You must believe in your restaurant and continue to work hard while maintaining consistency and a positive attitude.

Research the market for your restaurant’s location. As a restaurant owner, you should be well versed in your customers’ preferences when it comes to food, demographics and trends.

For example, many customers now want fusion flavors in their food. If your restaurant will be located in a highly diverse area, are you planning on offering fusion food options? If you’re not, what’s the one thing you do better than all your competitors in that area? What is the family size, income levels, taste preferences in the area you’re going to open in? This market research can help you gain an edge when planning and marketing your restaurant.

Have clarity on what your restaurant concept will be. Will it be a QSR or full-service restaurant? For both these concepts, you need high-traffic locations in general but for QSR, you need to consider how strong the Uber Eats/Skip /DoorDash presence is, how much they charge and if they present any challenges.

Have a marketing plan for your restaurant. Set aside a budget and forecast that from your cash flow, even before you start your restaurant. Don’t place marketing on the back burner as in today’s Instagram-influenced market, you will need it.

Know who will be your restaurant’s operator. A restaurant needs a trustworthy and experienced operator. This person will lead the day-to-day management of the restaurant including managing staff, ensuring quality control, managing finances and creating a positive customer experience. This will be one of the most critical resources you will hire.

What does it take to lead a successful franchise business?

One of the most critical things it takes to lead a successful franchise business is a scalable model. The whole point of a franchise business is to scale it. To do so, you need systems that can be repeated over and over again.

That’s the menu, cooking methods, cleaning methods, inventory management, employee training and productivity management. Start creating SOPs and start eliminating anything that can’t be duplicated. The success of a franchise business depends on consistency across locations; that’s how your customers will remember you and come back to you.

What are the lessons that you’ve learned during your career?

They are more than I can ever recall. But here are the ones that always stuck with me:

Play the long game. In business, expecting short-term gains is setting yourself up for failure. Have a vision, believe in it and work towards it every day.

Always look out for your team. They’re the ones running your business. Their livelihood and satisfaction must be important to you.

Hire professional help for areas you’re not proficient in. Whether it’s marketing, legal counsel or data analytics, don’t run away from it and don’t try to do everything on your own. You will save significant time by delegating these tasks, having professionals to turn to in case of crisis and using their expertise to grow your business.

Stay optimistic. You have to believe in your product or brand even when no one does. You are its brand ambassador. A positive mindset can help you ride tough waves and motivate others around you.

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