Food franchises are everywhere. They’re in just about every country in the world. And, they’re almost always on the radar screen for anyone looking to become the owner of a franchise business. But, why?
Why Food Franchises Are Popular With Consumers
On the consumer side, food franchises are popular for the following reasons:
It’s always good to see a familiar sign/logo. Subconsciously, it provides consumers a level of comfort that’s tough for a non-branded small business to compete with.
“Brand equity is an intangible asset that depends on the interactions made by the consumers. It is the built up value that a brand possesses.” More
When consumers patronize a food franchise, they expect the food to look, smell, and taste the same as the last time they visited the business. It’s why they’re comfortable opening their wallets. As long as their expectations are met, they’ll be back for a repeat visit.
FYI: It’s crucial for the franchisee to not get creative with the recipes. There’s a reason why franchise businesses always include a franchise operating manual for franchisees to follow. In the case of a food franchise, the manual contains the recipes-and more.
Today’s consumers want to associate themselves with brands that make them feel good. Some brands are better at it than others. And, the “feel good” part of the business may have nothing to do with the food.
The Glen Bell Scholarship Fund for Taco Bell employees provides a way for hourly employees to get financial aid for college.
Panera Cares® community cafes operate on a pay-what-you-can-afford sliding scale. Meals for guests who can’t afford to pay are covered by guests before them who can afford to pay a little extra.
Arby’s participates in Share Our Strength’s “No Kid Hungry” program, which is focused on ending hunger.
Food Franchises Are Popular With Franchise Seekers
About half of the people who contact me for franchise ownership advice have specific food franchise opportunities in mind. About half of them have never set foot in the business area of a food-service business. I make sure to tell them what I know when they ask me about the food-service business. (I was in food-service for many years)
This: The food-service business is a tough business. It requires the franchise owner to have a ton of energy. The days are long. It’s not a “lifestyle” business. Employee turnover is high. But, there sure are a lot of restaurants around. What does that tell you?
A lot of people eat out, or grab takeout if necessary, because they are starved for time.
Soccer games. Dance recitals. Parent-teacher conferences. I haven’t even gotten into busy couples without children who are rapidly climbing their respective career ladders which usually include the 10-12 hour days needed to do the actual climbing.
The bottom line: People are busier than ever these days and they’re looking for convenience. If you can offer them food that’s fairly (or really) healthy, and get it in front of them relatively fast, you have a shot at being a profitable food franchise owner.
When you’re searching for a good food franchise to buy, make sure you aren’t looking at concepts that could go from hot to cold. One way to do that is to subscribe to one or two food-industry publications, including newsletters. Doing so will help you become a trend-watcher. In addition, start paying closer attention to radio and television advertising that features food franchises. Who’s spending their marketing money? Who’s not?
Becoming the owner of a food franchise business can be a good thing. You could end up owning multiple-units and building quite a business. Just make sure you’re prepared for very long days and nights. If you’re willing to work harder than you’ve ever worked in your life, and you find a winning franchise concept, the sky’s the limit.
The Franchise King®, Joel Libava, is a top franchise expert. If you're looking to buy a franchise, be sure to check out his private consultations, his popular books, and his comprehensive new franchise ownership course. Go here to learn more about The Ultimate Franchise Course and the extraordinary offer he just put together.