More and more, those who have a desire to open a business of their own are finding that opening a restaurant franchise is very profitable. It is predicted that restaurant sales will reach $577 billion in sales by 2010. The restaurant business industry now employs 8% of all workers employed in america. That comes to about 11 million people, and makes them the largest employer next to the federal government.
Restaurant s have been satisfying the hunger of individuals for a long time, and restaurant franchising is around to increase the growth of the industry. In 1950, Colonel Harlan Sanders introduced his Kentucky Fried Chicken franchise and built a chain of over 600 restaurants by 1960. McDonalds was franchised in 1955, therefore were House of Pancakes, Tastee Freeze, Dairy Queen, and Dunkin Donuts.
Baby boomers (people born between 1946 and 1964) are often the folks opening new restaurants and fast food establishments. They will have sophisticated tastes and the money to make their ideas a reality. They demand fresher ingredients, healthier dishes, and vegetarian options. Seniors are credited with setting the pace for what does and doesn?t work in terms of successful restaurants. When they dine out they want high quality, no matter where they are eating.
More and more people are holding full time jobs, leaving little time to prepare meals in the home. Quick serve restaurants continue to be fueled by the consumer?s ever increasing dependence on convenience. More than half of all adults say they are busy, and convenience is really a critical section of their lives.
While older consumers demand quality, younger customers want convenience. 55% of consumers between your ages of 25 and 34 admit they are usually in a hurry and want fast service. This sparks the growing need for quick service restaurants. Takeout restaurants may also be a growing trend. 78% of all households in the usa use remove or delivery service at least once a month. These people consider themselves very value conscious.
Many investors are buying into co-branded franchises. Co-branding refers to franchising two or more different brands in one location (Taco Bell, Pizza Hut, & Kentucky Fried Chicken). All three are housed in a single building, rather than building three different restaurants. These restaurants have the effect of a lot more than 29,000 restaurants, and much more are popping up constantly. There are also multiple franchising concepts with Dunkin Donuts and Baskin Robbins in exactly the same building.
Some franchisors take their products overseas. Subway has nearly 800 international franchises (not counting Canada). In the event that you add Canada they number around 2,000. How big is the company has contributed to their popularity far away.
Whether you are selling sandwiches across the sea, or have an upscale dining establishment uptown. The outlook looks strong for food franchising within the next ten years. Provided that consumers continue steadily to eat at restaurants, the franchise opportunity will be a gainful one.