The total investment into Bavarian Beerhouse full franchise will be around 200,000 USD which includes the franchise fee, all support activities to launch your business, with included estimated working capital for 2 months and all the equipment. If you already have most of the kitchen equipment needed, this figure will be lower.
Franchisees of good standing should be able to borrow up to two thirds of this from a bank.
More detailed investment structure will be provided in the Franchise Offer, and projections of revenue generation when we meet.
Licensing fees and consultancy fees are lower.
No, they were closed in 2018.
There are several reasons for the closure.
Just to name the most important ones:
- BREXIT: The UK voted for BREXIT in June 2016. The following years were a political rollercoaster causing huge uncertainty.
- Less foreign (German, Austrian, Switzerland) students were coming to London and we had difficulties finding waitresses and bar tenders speaking German (which always was a key to our concept in the UK)
- Beer and Food importers were increasing their prices to prepare for the (uncertain) future
- Revenue decreased. People seem to go out less and to keep their money in their pockets to prepare for the (uncertain) future
RULES and regulations: Throughout the 14 years (from 2004 – 2018) rules and regulations changed a lot! Not only the UK, but the European Union implemented more and more rules such as “how to run your kitchen” = 650 pages of regulations we had to go through. “Fire exit and emergency evacuation” = 350 pages to follow. And many more.
Increased Rent and Business Rates: In 2018 our 25 years rent contract we due for renewal. The landlord (Network Rail) asked to increase the rent by 85% (from Pounds 110K to 204K). All negotiations failed. In the same time the Business Rates increased by almost 100% as well.
Personal reasons: All of the above made us tired. After 14 very intensive years we were tired. We are entrepreneurs and love to set up businesses from scratch. After 14 years, all we did was following (some silly) rules, and ‘fighting’ with the authorities, landlords etc. We didn’t enjoy it anymore.
As they say: When you lose passion for your business, it is time to exit.
We did try to sell the business, but because of the uncertainty of Brexit it did not sell – it was the wrong time. Hence, we decided to pull the plug in the UK.
In the future: We don’t want to run restaurants ourselves anymore! But we would like to use our knowledge and expertise to help other people to run succesful restaurants and we would like to create a global restaurant brand. Working behind the scenes gives us much more time to concentrate on expansion, rather than dealing with authorities.
Yes, we know great people we worked with over the years. We could approach a core team (the-best-of-the-best) and ask if they are willing to move. Either on a project basis for a few month (for the set up) or for a longer period of time. It’s obviously a question of contract, money and possibilities.
1. Our ideal franchise partners are:
Dynamic personality with a healthy view of life and passion for learning Clear identification with our Bavarian Beerhouse brand and your role as brand ambassador You enjoy being the host for your guests You have natural entrepreneur and leadership skills You are a people person You have a decision-making personality You are highly stress-resistant
2. Professionally You are interest in a long-term business partnership with Bavarian Beerhouse You have the willingness and ability to join a multi-national franchise system You have substantial experience in complex restaurant operations You have local market knowledge and a large network You have experience with real estate industry and development You know how to do P&L and KPI’s
3. Further requirements You have a proven ability to finance complete project investment You have enough funds / money
You don’t need to have a formal food & beverage education and background – but a business passion and a “can do” attitude is a must.