Food Franchising Part 2
The food market is well known in the franchising world; in fact the majority of the top ten biggest franchises in the world involve food. Modern franchising truly started growing in the U.S. once the food market came into play, and it’s been a staple of the franchising world ever since.
As with any business, food trends have come and gone, or grown within the industry. Drive thrus were eventually established and created new profits and ideas, while nowadays food franchises are partnering with other companies for food delivery. Between fast food, beverages and gourmet high-end meals, there are many different options for franchisees to consider for investment.
Now more than ever, people are choosing to leave their homes and experience a restaurant at dinner time. At one point, eating out was a means of convenience, or a last option. But now people are consciously choosing to take a meal at a sit down restaurant and enjoy the experience. It’s become somewhat of a trend for people across the board. Young couples, families, retired folks are taking the time to forget the dishes and enjoy company at supper time.The National Restaurant Association predicted a 3.6% jump in restaurant sales in 2019, and money being spent on food is going into the pockets of restaurant owners.
Franchise chains used to dominate the restaurant industry but there is now a competitive market with personal restaurant owners. More people are taking the leap and opening their own place to cater to the many demands of restaurant consumers. People are looking for different aesthetically pleasing atmospheres, with a variety of high end food choices including health food options and appeasing to allergies.
Though small business owners are a competitive market, franchise restaurants have responded to the need for well designed locations with carefully determined menu options. Franchises used to be cookie cutter copies of one another that appealed to the repetitive nature of consumers, but a lot of restaurants are now answering customers needs for variety and uniqueness.
Restaurants are now partnering with giant delivery systems to gain an extra profit; if you are interested in such a franchise, inquire if there is a delivery partnership and inquire about the cost of such an add on.
With a need for more choice and consumer desire for variety, the franchise market has tapped in heavier to the ethnic food opportunity. People are more open to trying new foods and testing out menus than ever before. They want a breadth of experiences and are willing to add new pieces to their fill their appetite.
Similar to sit-in restaurants, ethnic food franchises are competing with small business owners who may know more about a country’s food than a franchisee. Researching the menus and going directly to a franchise to experience the food and atmosphere personally could help determine whether or not one is interested in such a particular investment.
Having the opportunity to franchise an ethnic food restaurant opens a lot of new doors for franchisees, and would be a great option for real foodies who would like to serve up plates with more than just a burger.
It’s become more common to stroll through a mall or downtown center and come across a bakery specializing in one particular baked good: cinnamon buns, soft pretzels, cup cakes or cookies. Baked goods restaurants have taken a particular dish and stepped it up to the next level. With the increased interest in cooking shows, people are interested in dessert.
A consumer report on desserts stated that 40% of respondents are eating desserts after a meal at least twice weekly, which is up from 36% three years beforehand (source). When people head out the door for the evening, they are willing to pay for the experience and eat their cake too.
A franchise that specializes in one type of dessert or a place offering mainly baked goods is a great option for work life balance as it doesn’t hold the same late hours as restaurants. Competing with small markets and local businesses in this area could be of concern. Reviewing the territory to get an idea of the competition would be advised, while also taking a look at different franchise menus to get an idea of new items to bring to the table within your community.
Social media has allowed bakers to put forward their products without overhead costs and could be a competitor in your community. Ask consumers and businesses about local products to see how a franchise would be accepted within the area.
For someone who has a great passion for baking and wants to mix business with pleasure, a baked goods restaurant is a great bet, plus it doesn’t have the huge overhead costs of other food locations.
Smoothies and Juices
Another trending franchise is a juice and smoothie bar. They are starting to gain traction and are seen almost as often as a coffee shop. A healthier alternative to most fast food restaurants, the smoothie shop gives consumers a different and lighter option in the middle of the day. The industry’s total revenue was over $2 billion in 2018 and is projected to rise.
While most restaurants are competing with local businesses, franchises have dominated the juice industry. A lot of smoothie bars now offer fruit bowls and appeal to the health conscious customers by ensuring their products are made with real fruits and offering other great post- workout products.
It would be wise to review a juice bar and see what extended products are offered. A lot of juice bars have great contracts with locations that bring in numerous customers- shopping centres, airports, downtown in the middle of the city hub, for example. These opportunities could increase profit margins significantly.
The food industry is synonymous with franchising and now more than ever there are so many choice to for those interested in such an endeavour. The sit-in restaurant has evolved over the last decade, changing as customer desires progress. New upbeat atmospheres with gourmet menus and a variety of choices are bringing in a wider variety of customers. While franchises have also opened their doors to new menus from all over the world, and customized baked goods and juices.
The food industry doesn’t stop there. Franchisees can pick a place that works for them, or invest in a food that they are passionate about. Research all the possibilities, seek out current locations and taste the menus, then choose a place that best suits your palate.
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ABOUT THE AUTHOR: After receiving an English Degree, followed by a Journalism Diploma, Gina Gill became a freelance journalist in 2008. She has worked as a reporter and in communications, focusing on social media. She currently works as a community information officer with Epilepsy Society, while pursuing her writing career at the same time
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