According to a survey carried out by Franchise India Holdings Ltd (FIHL), there are currently over 400 brand franchisors of which seventy per cent were concentrated in Delhi, followed by Western India with 386 brands, with the majority being from Mumbai and Gujarat. 250 brands were in the south, with the majority in Bangalore and Chennai and 58 brands in the eastern region, the majority being concentrated in Kolkata.

However, it would be hard to beat the eco-friendly credentials of one new restaurant franchise, which has taken the whole green concept to a new level. All of its fixtures and fittings are environmentally friendly, from seat cushions made from soybean oil to counter-tops made from recycled detergent bottles. Utensils are made from potatoes and containers from cornstarch, both of which biodegrade in 30 days. Ninety-eight per cent of all food served is organic and discounts are offered to customers who return pizza boxes for recycling. The building even meets environmental standards created by the US Green Building Council. Whilst this may be an extreme example of eco-friendly restaurant franchising, all the trends point to more businesses following eco-friendly policies.

In Britain, a government sponsored “Green Achiever Scheme” has been created to enable companies to demonstrate their environmentally friendly credentials to suppliers, customers and other bodies interested in green business. In the United States, federal tax incentives and recycling programs have been set up to facilitate those companies wanting to improve their green credentials. The number of restaurant franchises opting into such schemes in both countries has been steadily growing, as business owners take note of the public’s demands when it comes to the environment.

Consumers are becoming more aware of the environmental impact of their personal choices and, when it comes to opting where to spend their cash, are increasingly influenced by ethical business practices. Restaurant franchises have started to realize how important green credentials are to customers and investors alike. Environmentally friendly practices are gradually being introduced into every aspect of the restaurant franchising businesses. These practices range from installing solar panels, reducing carbon emissions and using non-toxic cleaning products to eliminating non-recyclable packaging and reducing the amount of all packaging used, filtering cooking oil for reuse and sourcing local, fair trade or organic produce.

With obesity a major health concern in the United States, maybe Americans need the truth about what they eat at restaurant franchises. After all, shouldn’t restaurant food have the same labelling standards as the food we cook in our own homes? Nutritional information on packaged foods is required under law by the Nutrition Labeling Education Act (NLEA) and much in the same way, the new Labeling Education and Nutrition Act (LEAN) will create a national standard for the restaurant industry. Up until now, various states have enforced their own standards, which has created an inconsistent, patchy and confusing set of local laws. The LEAN Act will provide a national standard through the United States and will compel restaurant franchises and other eaterie chains with at least twenty locations to display the calorie count of its food items. Chains would also be required to give customers additional nutritional information, including fat, sodium and cholesterol content. It is, however, expected that there will be some exceptions. For example, many restaurant franchises have self-serve buffets and, in such cases, the nutritional information disclosed is likely to be based upon an “average” serving. The nutritional content of multi-serve items (such as pizzas intended for two or more persons) would be on a per-serving basis.

For many people, cooking is a chore, especially in households where both partners work long hours. Anyone who works full-time will understand that planning and preparing fresh lunches and dinners seven days a week, 365 days a year, is often simply impossible. In addition, the traditionally affluent middle classes are feeling the financial pinch in these difficult economic times and fast food restaurant franchises offer cheap, tasty, value for money food, which is often less expensive than making your own meals from scratch.

As for the newer products being added to the restaurant franchising market, it seems there is room for them too. Ice cream cupcakes, cookies, pretzels and so on have a universal appeal. It is human nature, even amongst the health conscious, to desire a sweet treat. Maybe we have had a stressful day and need to cheer ourselves up, or perhaps we have something to celebrate – a birthday or passing an exam. Or maybe we have been very good, having eaten a healthy soy bean casserole lunch at one of the healthy restaurant franchises, and need to reward ourselves accordingly!

So, should traditional restaurant franchise businesses be worried by this latest development? Is the consumer going to forego his or her burger and fries in favour of sushi and salad or (if not concerned about the waistline), cookies and cupcakes? Well, the latest research undertaken seems to indicate that, where restaurant franchising is concerned, everyone can have a slice of the pie. Despite the innovative healthy restaurant franchises that have been sprouting up in recent years, it appears that consumers have not moved significantly away from fast foods. The adage that old habits are hard to break may be true here, with surveys showing that one of the main reasons consumers visit fast food outlets is because they crave the taste of fried foods. In fact, it has long been argued that fried food is addictive. Other reasons given by consumers of fast food are value for money, generous and filling portions, convenience and impulse. On the other hand, consumers eating at healthy restaurant franchises are less likely to act on impulse or because they crave a particular food. Their purchase is likely to be premeditated and they are more inclined to be concerned about nutritional value than monetary value.

Restaurant franchises is bucking the trend when it comes to the economic downturn, especially for those who have always sold themselves as giving value for money. Certainly customers are more value conscious of late and the budget menus continue to be overwhelmingly popular. Despite predictions that jobs in franchise businesses could fall by 2.1 per cent (around 207,000 positions), restaurant franchising is still seen as one of the strongest sectors and lesser known brands are starting to pick off prime spots.

According to market research, restaurant industry traffic overall dipped two per cent in the last quarter of 2008, although quick-service restaurant franchises are faring better than full-service stores. The slowdown has opened up opportunities for some in the restaurant franchising business, who see less competition for prime locations and more willingness to negotiate on the part of land owners. Still, for many restaurant franchisees, access to money is what could make a difference in how many new sites start serving up food or how various operators weather the downturn.

A recent success story in the restaurant franchising business is the concept of “healthy fast-casual” dining, which is expanding throughout America. These restaurant franchises provide a healthy and tasty alternative to the traditional burger and bun, such as an array of quick and nutritious options including salads, wraps, rice bowls and soups in a “build your own” format. Food is typically served in a fast, fun, hip and environmentally sustainable atmosphere. Such chains are actively seeking restaurant franchise partners who have a passion for promoting healthy living in a fast paced world.

Meanwhile, other restaurant owners have decided to franchise their businesses. There are some tremendous deals in real estate right now and a lot of smart, qualified people who have been downsized from their jobs are looking to start their own business. This could be risky, however, as the legal and administrative costs associated with restaurant franchising can present a burden during a time when consumers are eating in. But with fast-casual and quick-service establishments seeing increases in business and with breakfast food being the fastest growing segment in the fast-food industry during the last two years, restaurant franchising may be the best move. While most of the restaurant franchise fee goes toward development, a sizeable revenue fee will be received from each location. In addition, a small business footprint and simple menu make for low start-up costs. That, it has to be said, is an attractive selling point for those looking to run their own restaurant franchise.

The health food industry is increasing year on year and this is reflected in the fast-casual healthy concept, which is rapidly expanding throughout the country. These restaurant franchises serve nutritious yet tasty food including salads, organic steaks and burgers, risottos and soups. Vegetarian, vegan, gluten-free, dairy-free, low fat or low carbohydrate meals will often be menu options. Drinks on offer may include vitamin-packed fruit smoothies, specialist coffees, detoxes and herbal teas. Skimmed, soya and rice milks may be offered as substitutes for full-fat cow’s milk.

Many different types of restaurant franchises are to be found on our high streets and in our shopping malls. There are fast-casual outlets, where made-to-order sandwiches, panini, salads and desserts are prepared, catering for the busy office, factory or construction worker or shopper. Cheap and cheerful fast food outlets are always plentiful, offering burgers, kebabs, fried chicken or pizza for those on a budget or in a rush. There are specialist coffee houses, offering an array of freshly brewed coffees from around the world, along with a tempting selection of muffins, cookies and cakes. Then there are restaurant franchises offering more substantial and up-market cuisine, often specialising in food from a particular country such as China, Italy or Japan. Although still reasonably priced, a meal at such an outlet will cost more than at other restaurant franchises, with marketing strategies directed principally at white collar workers and premises often sited near government complexes, universities and hospitals.

Restaurant franchisors enter into franchise agreements, which grant franchisees the exclusive right to develop and operate businesses at certain locations. Initial franchise fees are recognized as revenue when all material services and conditions required to be performed by the head office have been substantially completed, which is generally when the restaurant franchise opens. Franchisees are required to pay royalties to the head office, based on a percentage of gross sales as reported through the franchisees’ point of sales systems. The royalties are recognized as revenue in the period corresponding to the sales reporting period. Typically, weekly reports on sales at each franchise location are received by the head office and revenue is calculated directly from those reports. Franchisees are usually required to contribute to an advertising fund, typically at a rate of up to 2% of total franchisee gross sales. ]]> http://www.newfranchiseonline.com/restaurant-franchise/restaurant-franchises-from-fast-food-outlet-to-up-market-cuisine/feed/ 1