Posts Tagged ‘restaurant franchising’

The diversity of a restaurant franchise

Wednesday, June 3rd, 2009

Restaurant franchising is branching out! Until relatively recently, pizzas, burgers, curries, chips and fried chicken were the staple fare associated with restaurant franchises. Following on from this, themed food became the order of the day, with Chinese, Japanese and Italian menus topping the popularity charts. Then came specialist coffee shops, ice cream parlours, sushi bars, and bagel and donut kiosks. Now restaurant franchising has been taken one step further, as it seems that literally any food can now be franchised. Examples of recently launched food franchises include ice cream cupcakes, pretzels, cookies and crepes and the trend looks to increase further. To add to this, the health food business is the latest to join the franchise market, with sales on the up and outlets opening throughout the country.

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.

Franchises bucking the trend

Thursday, May 28th, 2009

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.

Healthy eating franchises:continued

Tuesday, May 19th, 2009

Restaurant franchises specialising in healthy eating typically attract customers who are environmentally aware or concerned about animal welfare and who are looking for a healthy meal at an attractive price. Food is often organically sourced and/or locally produced, with many businesses using Fair Trade and free-range products where possible. Consumers are becoming increasingly concerned about the food they are eating. More people are presenting with food allergies or sensitivities and are demanding, for example, wheat-free or dairy-free alternatives. Many customers are also weight conscious and opt to eat at a restaurant franchise specialising in healthy fare because they know they will be able to enjoy a tasty meal, snack or drink that is low in calories but high on taste. Healthy menu choices, which are filling without being fattening, can include Italian flat-bread pizza with reduced fat cheese, grilled free-range chicken breast with organic spinach salad, vegetarian nut and mushroom risotto or a fresh basil and tomato soup with wheat-free bread.

With the rapid expansion of the healthy eating restaurant franchise sector, it is clear that many consumers are demanding a fast-casual eating experience that is healthier than the traditional greasy burger and fries or fat-laden pizza. Outlets range from a “kiosk” approach on major concourses, shopping malls, rail and bus stations, outdoor events etc, through to a full “cafe” environment. This restaurant franchise opportunity has enormous growth potential and is likely to continue growing in the foreseeable future.

Restaurant franchise . The healthy option

Sunday, May 10th, 2009

The restaurant industry has been facing difficult times recently, with the ravages of the declining economy having prompted price reductions in several ways: new items at lower prices, more small-plate and half-serving options, and more fixed-price offerings. Yet, amid such difficult times, it is the restaurant franchising businesses which are continuing to thrive. There has been a significant rise in popularity of the fast-casual healthy eating experience. Consumers are becoming more health conscious, but do not want to spend a fortune on eating out. Therefore, their primary criteria when choosing a place to eat are the quality of the food combined with value for money. They also take into consideration such factors as a great atmosphere, which is neither too formal nor too fussy, efficient friendly service and a varied menu.

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.