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Food Franchise Industry Report 2015

Food Franchise Report 2015

These are interesting times for food franchises. Consumer tastes are shifting and changing, leaving the heads of these companies to wonder, “How do we respond?”

Fortunately, because eating is a necessity, food franchises will always have a well-funded place. For 2015, food-related franchises (quick service restaurants, full service restaurants and retail food) are estimated to account for an estimated $341 billion of economic output in United States. In addition, franchises in these categories account for 33% of all franchise establishments in the U.S. Food franchises directly employ almost 5 million people, which is 56% of direct franchise employment, according to IHS Global Insight.

Overall Food Franchise Economic Output Estimates by Year in BillionsOverall Food Franchise Economic Output Estimates by Year in Billions

Fast Food/QSR Franchise Economic Output Estimates by Year in BillionsFast Food/QSR Franchise Economic Output Estimates by Year in Billions

Full Service Restaurant Franchise Economic Output Estimates by Year in BillionsFull Service Restaurant Franchise Economic Output Estimates by Year in Billions

Retail Food Franchise Economic Output Estimates by Year in BillionsRetail Food Franchise Economic Output Estimates by Year in Billions

Distribution of Franchise Establishments in the U.S. by IndustryDistribution of Franchise Establishments in the U.S. by Industry

Distribution of Food Franchise Establishments in the U.S. by SegmentDistribution of Food Franchise Establishments in the U.S. by Segment

Direct Franchise Employment in the U.S. by IndustryDirect Franchise Employment in the U.S. by Industry

 

For prospective food franchise investors, however, the sheer size of the food franchise industry makes the process of choosing the right opportunity for them a daunting task, as illustrated by the following overview of the major divisions of the food franchise industry:

Fast Food Franchises

With about 20% of the total of all U.S. franchise establishments, fast food is the most common franchising segment. Food production in fast food restaurants, also known as quick service restaurants (QSR), is focused on immediate consumption. Fast food meals are commonly taken out or delivered, yet may also be consumed on-site.

Full Service Franchises

Full service franchise restaurants encompass anything from a casual family-style eatery to an elegant restaurant. Meals from full service food franchises are typically eaten on-site, although takeout or delivery service may be provided.

Coffee Franchises

The coffee franchise industry is well developed and competitive, and maintains strong consumer demand. Coffee is second only to water in beverage popularity in the U.S., and consumption continues to increase. Many coffee franchises have other sources of revenue – including pastries or sandwiches -- in addition to coffee.

Pizza Franchises

The four main types of pizzerias are full service, limited service, non-traditional and take-and-bake. The fast food pizza market is a $32 billion annual industry by itself, according to Crest, the food service unit of NPD Group.

Ice Cream & Frozen Yogurt Franchises

The demand for frozen desserts is more evenly distributed throughout the year than it was a few decades ago. Customization has become a feature of many ice cream franchises as those franchises are taking lessons from the surging frozen yogurt franchise segment.

Bakery Franchises

These franchises offer specialties to customers, with menus that feature full sandwiches, soups, and additional items. Others focus on certain areas e.g., bread, muffins, bagels, croissants, pastries, donuts and other sweet goods.

Food Franchise Report 2015

And those are just the major segments. There are other food segments, including food gifting, juice and smoothie franchises, and vending machine food franchises. Even convenience stores have made an entrance into the mix by increasing their food offerings in recent years.

To assist you with your research process on this vast industry, we’ve compiled information on a few notable industry trends and investment data, including sample franchise costs.

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Food Franchises...

Sertinos Café Sertinos Café - get a taste of what we're all about! It all starts with great food. Read More Min. Cash Required:
$100,000.

TacoTime® Live your dream of business ownership with TacoTime, the quality leader in Mexican QSR! Read More Min. Cash Required:
$100,000.

Tracks & Records Tracks & Records redefines casual dining and reinvents the sports bar! Taste the real Jamaican vibes! Read More Min. Cash Required:
$300,000.


Shakeaway Shakeaway is the world’s largest MilkShake Bar company and the original re-inventor of the milkshake, shaking since... Read More Min. Cash Required:
$75,000.

Cold Stone Creamery® Bring The Ultimate Ice Cream Experience to your neighborhood with Cold Stone Creamery! Read More Min. Cash Required:
$100,000.

Simple Simon’s Pizza® Simple Simon's Pizza is simply the best place to be — for customers and franchise owners! Read More Min. Cash Required:
$50,000.



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