Trends and Facts About Restaurant Franchises
Good quality food is always in demand, so if your passion is to create delicious treats for hungry customers, then the humble restaurant can provide one of the most satisfying environments to work, experiment, and prosper.
Chain restaurants produce food from all around the world with a standard and quality that customers have come to expect and demand. So, it seems only natural (if you’re looking for a food business with an oven-ready customer base) that you should explore the possibilities of a restaurant franchise.
Whether your passion is for fast, healthy, and delicious lunches, or decadent, luxurious dining experiences, there’s a franchise that will help you establish your reputation in the food world.
Fine dining or quick, convenient takeaways, the food industry offers a great way to make a living while sharing your passion.
Why Franchising?
Franchising offers a stable and reliable approach to setting up a new business.
Companies that start from scratch often struggle in their early years to gain traction in markets that are already awash with competitors.
Established companies offering franchises, however, provide recognizable branding and a reputation for quality and innovation, helping you build your new business in a crowded market.
Franchising helps reduce the risks associated with start-ups, allowing your new business to benefit from the hard-earned reputation of existing, trusted companies.
Start your business with a track record of profit and sustainable growth, and enter difficult-to-penetrate markets with the support of established and knowledgeable partners.
Simply put: franchising offers security for the development and financial sustainability of your company.
Banks Lend To Franchises
Banks tend to lend more readily to franchise businesses because they produce a return on investment. The franchise model means that you inherit a track record of profitable turnover, reassuring your lender that there's intrinsic stability in your business.
Banks and private investors consider franchises a lower financial risk because they have:
- A track record of growth
- A tried-and-tested business model
- Inherent potential to expand
Other stats:
- The Asian food & beverages sector is expected to achieve over $44.1 million in 2020.
- The growth rate in food businesses throughout Asia is a whopping 9.5%; leading to a market value of almost $63.5 million by 2024.
- Consumer penetration of the restaurant sector is over 25% and projected to increase to over 35% by 2024.
What can I do as a restaurant franchisee?Restaurants are food businesses with eat-in facilities - as opposed to takeaways, providing meal services for customers who consume their products off the premises.
However, with the emergence of companies such as Deliveroo, restaurants are also penetrating the hugely lucrative home-delivery market.
Restaurants are as diverse as the imagination, so if you’re looking to express yourself in the culinary arts, restaurant franchising can provide an outlet for individual creativity.
Many restaurant franchises, however, come with ready-made menus, meaning that you don't need to go through a long development process to build your offering.
With franchises, all of the hard work has been done. The supply chain for your ingredients is already in place so that you can get started straight away.
For a ready-to-go concern, restaurant franchises offer a great way of making a living from food.
Franchise vs. Independent
People want reassurance that your product offers value for money, along with excellent service.
If the public has a choice between what they know and what they don't, they're more likely to rely on a brand they’re already familiar with and trust. This makes franchising an attractive prospect for people going into business.
Over half of all independent restaurants go into receivership within the first two years while they struggle to establish themselves in a crowded marketplace.
Franchising provides a more stable route to growing a new business.
Ready?
Explore our restaurant franchises, and get started with your new business idea today.
Purchase a franchise today from Franchise Direct.