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What You Need to Know About the Food Franchise Industry Report 2016

It’s that time of year again. Every year, we go through the details of the food franchise industry, and provide an overall report on what’s working and where there are opportunities for growth so that you can stay on top of what’s happening.

Here are some key findings in this year’s report.

Food Franchise Industry Report 2016

Focus: Three Core Areas

This year’s industry report focused on the three core areas that make up 33% of the total franchise establishments: full service food franchises, quick service and retail food. This year, each these are each expected to see expansion.

  • Full service: 6.3% growth

  • Retail food: 1.5% growth

  • Quick service: 1.5% growth

These broad numbers are important when tracking the industry, but franchise owners want to know which franchises specifically will experience the growth and by how much. In the report, we outline the most popular franchises and their projected growth. This varies more dramatically. For example, Dairy Queen has seen slower growth over the last three years, whereas Jimmy John’s has seen more substantial growth.

Trends Driving Growth

As always, we discovered there were certain trends contributing to the growth in the food franchise industry.

Trend #1: Breakfast

All day breakfast menus are a major trend in the food industry right now. McDonald’s used its addition of all day breakfast to grow their profits by 35% last year. Dunkin’ Donuts has also incorporated breakfast items with lunch time menus, by offering options such as chicken and waffles.

Trend #2: Meal Deals

For a few years, value meals took a backseat. Now, they’re making a comeback. Many fast food franchises, including Burger King, Carl’s Jr., Wendy’s, and Sonic have introduced (or reintroduced) these discounted combos on their menu. The goal? To make consumers choose the discounted franchise over the competition.

Trend #3: Customization

One segment of the fast food franchise that’s seen tremendous growth in particular is the custom pizza segment. The customized menu has proven popular with a 10% annual growth. That’s triple what other restaurants have seen.

Trend #4: Snack Bites

More Americans are opting for smaller on-the-go meals rather than large sit-down dinners. This has opened a new segment in the food franchise industry. Now, snacking makes up 18% of all restaurant dining.

Ready to be a Part of the Food Franchise Growth?

If you want to be a part of the tremendous growth taking place in the food industry, investing in a franchise is a smart approach. To learn more about what you can expect from the food industry and the costs associated with food franchises, see more from our 2016 Food Franchise Industry Report.

Susan Payton is the President of Egg Marketing & Communications, a marketing firm specializing in content writing and social media management. She’s written three business books, including How to Get More Customers With Press Releases, and frequently blogs about small business and marketing on sites including Forbes, AllBusiness, The Marketing Eggspert Blog, and Tweak Your Biz. Follow her on Twitter @eggmarketing.

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