More and more, those who have a desire to open a business of their own are finding that opening a restaurant franchise is quite profitable. It really is predicted that restaurant sales will reach $577 billion in sales by 2010. The restaurant business industry now employs 8% of most workers employed in america. That comes to about 11 million people, and makes them the largest employer next to the federal government.
Restaurants have been satisfying the hunger of individuals for a long time, and restaurant franchising is just about 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, and so were House of Pancakes, Tastee Freeze, Dairy Queen, and Dunkin Donuts.
Seniors (people born between 1946 and 1964) tend to be the people 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. Seniors are credited with setting the pace for what does and doesn?t work with regards to successful restaurants. If they dine out they want top quality, no matter where they’re eating.
More and more people are holding full time jobs, leaving little time to get ready meals in the home. Quick serve restaurants continue being fueled by the consumer?s ever increasing dependence on convenience. More than half of all 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 may also be a growing trend. 78% of most households in the usa use take out or delivery service at least one time a month. These folks 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). Salon de coiffure are housed in a single building, rather than building three different restaurants. These restaurants are responsible for more than 29,000 restaurants, and more are popping up constantly. Additionally, there are multiple franchising concepts with Dunkin Donuts and Baskin Robbins in 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. How big is the company has helped with their popularity far away.
Whether you’re selling sandwiches across 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 to eat at restaurants, the franchise opportunity is a gainful one.