Decision-Making Help Needed: Further Education and Partnership or Going it Alone?

[Mergim94]

Hello everyone,

I am facing a major decision and would greatly appreciate your opinions and experiences. My long-term goal is to own multiple restaurants of the same brand, serving an entire state in Germany (perhaps even nationwide). I dream of spending my days visiting my restaurants and spending time with partners, customers, employees, and guests.

Option A: One of Germany’s largest system restaurateurs, who is currently developing a new concept, has shown interest in having me as a future joint venture and franchise partner. I have been working with him on and off for the past four years and have learned a great deal from him. He also referred me to one of his companies (software for system gastronomy). He has built a hospitality group with over 100 restaurants. The goal would be to open up to six restaurants (Neapolitan pizza) over the next five years. I would act as the operator and also pay a franchise fee. The advantage here is that I could learn from a very experienced and educated individual who has a PhD from MIT and worked at McKinsey for three years. However, I wonder how much time I could actually spend with him, as he has many other projects.

Option B: A smaller restaurateur with two different concepts has one that seems like a potential gold mine to me. One of the concepts (Premium Burgers) is innovative, has had stable revenues for five years, and emphasizes regionalism and other relevant topics. It meets all Fastlane principles and is difficult to copy. I have already brought many regular customers to this concept without personally knowing the owner. In this option, I would initially manage the staff part-time and write a business plan for the potential expansion of this concept. We would also carry out this venture as a joint venture, but without additional franchise fees.

The revenues and margins of both concepts are very comparable. I look forward to your stimulating feedback and thank you in advance for your time and energy. I am grateful to have been introduced to this knowledge early on.

Thank you, Mergim

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[NotFexelcraft]

I would personally choose Option B, there seems a better chance of learning from experience but it will probably be risky. As in option A, you wouldn't be dependent on another person for decisions. From my understanding it's rather about option A as a stable, but less control and option B being risky, but more control. Choose whichever is better considering your family. If you choose option B and miserably fail ( worst case scenario) would you be able to get back to where you were?

 

[MJ DeMarco]

Which option gets you closer to YOUR goals? These appear to be great learning opportunities, but I'm honestly not sure if you're being just motivated by a great leader who needs operators.

Both of these options seem to be great opportunities, but are they great for YOUR goals? I feel like you are taking the role of the cog, not the wheel. Your goal is to be the wheel.

 

[Mergim94]

Thank you very much for your responses. I find it very difficult to make a decision here. With Option A, I would initially commit for the long term, eventually sell the restaurants, and then be able to start my own venture. However, this would certainly take some time. With the other option, I would have the opportunity to be creative, develop additional locations, and if necessary, discontinue them. My long-term goals are, of course, financial independence and, once achieved, to travel the world searching for the best culinary concepts and products. I could either realize these myself or integrate them into the businesses I have built up by then. From my current perspective, I cannot imagine switching to another industry after a potential exit, except perhaps to get involved with local sports clubs.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.