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The Changing Face Of American Restaurants

The New York Times has published some compelling statistics on the American restaurant industry which prove that food franchises are a smart investment.


Quoting a January survey from the market research company NPD Group, the Times have reported that the number of restaurants in America dropped by 1% from autumn 2009 to fall 2011. This is a pretty serious decline and proof of the growing consolidation in the industry. What’s interesting though for franchisees is that, by and large, the majority of restaurants that have closed are independently run. Food franchises are proving resilient though.


For any entrepreneur ready to open a restaurant, this study is proof of two things. One – that the market is competitive, hugely so. But you probably knew that already. But the second point – that the support of a franchisor is invaluable – should be taken pretty seriously, I think. If you want your business to not only survive, but thrive, a food franchise may be the wisest investment.


This quote from NPD VP Harry Balzer was incredibly informative, we thought. It's proof that the demographic shifts and market consolidation favor a boost for franchises.


“At some point, when the economy turns, we’ll have a larger population than 10 years ago, but fewer restaurants to go to, because they closed the doors. This means restaurants are going to get crowded, and we can expect longer waits.”

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