More and more, those who have a desire to open a business of their own have found 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 the United States. That comes to about 11 million people, and makes them the biggest employer next to the federal government.
Restaurants have already been satisfying the hunger of individuals for a long time, and restaurant franchising is around to add to the growth of the. 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, and so were House of Pancakes, Tastee Freeze, Dairy Queen, and Dunkin Donuts.
Baby boomers (people born between 1946 and 1964) tend to be the folks opening new restaurants and fast food establishments. They have sophisticated tastes and the amount of money to make their ideas possible. They demand fresher ingredients, healthier dishes, and vegetarian options. Baby boomers are credited with setting the pace for what does and doesn?t work with regards to successful restaurants. If they dine out they want high quality, no matter where they’re eating.
Increasing numbers of people are holding full time jobs, leaving little time to get ready meals at home. Quick serve restaurants continue to be fueled by the buyer?s ever increasing dependence on convenience. More than half of most adults say they’re busy, and convenience is a critical part of their lives.
While older consumers demand quality, younger customers want convenience. 55% of consumers between the ages of 25 and 34 admit they are usually in a rush and want fast service. This sparks the growing need for quick service restaurants. Takeout restaurants are also a growing trend. 78% of all households in the United States use take out or delivery service at least once a month. These folks consider themselves very value conscious.
pizza 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, instead of building three different restaurants. These restaurants are responsible for more than 29,000 restaurants, and more are popping up all the time. 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). If you add Canada they number around 2,000. The size of the company has helped with their popularity in other countries.
Whether you are selling sandwiches over the sea, or have an upscale dining establishment uptown. The outlook looks strong for food franchising within the next ten years. As long as consumers continue steadily to eat at restaurants, the franchise opportunity is a gainful one.