Chew on This

CHEW ON THIS

Hungry for a new opportunity? Dive into the sumptuous world of food franchises.

By Lisa Welko

From French pastries to chicken teriyaki to French fries beneath golden arches, food franchises are popular and here to stay. They account for 36 percent of all franchise establishments and 48 percent of the annual financial output of the U.S. franchise industry, according to the 2018 Franchise Direct Food Franchise Report.

The industry promises growth, because everyone eats. According to Statista, 20 percent of Americans visit a quick-service restaurant at least once a week and 72 percent visit at lunch. Food franchises can be some of the most challenging franchises to build, but also some of the most rewarding. A well-known food franchise has built-in product demand and recognition, proven success, and marketing power.

While fast-food franchises are estimated to make up 25 percent of franchises in the country, they are not the only entrée on the menu. You can also consider coffee, smoothie, and juice franchises; full-service franchises; pizza franchises; corporate catering; and vending-machine franchises, to name a few. And all have growth potential, which we’ve outlined here.

Full-Service Franchises: This category includes casual family eateries and upscale restaurants—think of restaurants like The Melting Pot or Steak ’n Shake. Food is usually eaten on-site, although delivery and takeout also may be available.

The full-service restaurant industry has experienced steady growth over the past five years, according to IBIS- World. The fine-dining segment has done especially well due to an increase in the number of wealthy consumers and a growing corporate sector.

Fast-Food Franchises: Also known as quickservice restaurants (QSR), these franchises serve food quickly, whether inside the building, in your car, or through delivery. In the U.S., the fast-food industry is worth about $198.9 billion, according to Statista. By 2020, growth is expected to exceed $223 billion.

Food Trucks: The modern food truck craze started around 2008 in Los Angeles and has been spreading across the country ever since. Unlike traditional restaurant owners, food truck franchisees can drive around and go where the customers are. From sporting events and concerts to festivals, food trucks are able to get to hungry crowds. And they offer much more than burgers and tacos. Options include high-end lobster rolls, gourmet grilled cheese, and a host of creative and international cuisine.

Coffee Franchises: Next to water, coffee is the most consumed beverage in the country, with no signs of slowing down—must be all that caffeine. According to Research and Markets, the U.S. coffee franchise market is expected to reach $13.96 billion by 2025. These franchises also rely on baked goods or sandwiches as other sources of revenue. Who doesn’t love multiple income streams?

Lisa Welko helps aspiring business owners determine which specific franchise opportunities align with their strengths, goals, and values. For more information, visit www.integrityfranchisegroup.com