Posts Tagged ‘Shopping Malls’

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 Franchises – From Fast Food Outlet to Up-Market Cuisine

Friday, May 8th, 2009

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.