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Without a doubt, food franchises are the most visible businesses in franchising. When people think of franchising, food franchises are almost always top of mind. Furthermore, a large number of today’s prospective franchise owners begin their general search for the right franchise with franchise opportunities in the food segment.
What follows are three reasons you should consider buying a food franchise.
1. Food is hot!
The number of new food concepts being started is off the charts. There are a couple of reasons for it.
First off, consumers are demanding healthier products. And food happens to be one of those products.
Secondly, when it comes to cooking meals at home, some demographic groups (like millennials for instance), aren’t confident in their kitchen abilities when compared to other generations. So they buy frozen food or purchase their food from restaurants.
Finally, the popularity of televised cooking shows has consumers thinking about food more than ever. Those shows have helped increase interest in things like locally sourced ingredients, low-fat/low-carb meals and plant-based foods. Check out these healthy food franchises.
2. Income potential
If you decide to become the owner of a food franchise in your area of the country and you choose wisely, there’s money to be made. How do I know? The revenue numbers.
For example, according to the 2017 QSR 50, if you owned a Panera Bread franchise in 2016, and your store’s performance was in the middle of the pack (the average) your annual revenue would come in around $2.7 million.
Now, that’s only one example, but there are quite a number of food franchise units that exceed $1 million in annual revenue.
Lastly, you need to know that your profit will vary. Profit margins are impacted by the royalty percentage you pay franchise headquarters, your expenses, the traffic you receive in your location and more.
Tip: Consider owning more than one unit. The more units you have up and running, the greater your revenue.
3. Food Franchises Make Great Family Businesses
If you’re thinking of buying a franchise that you can get your family involved in, consider owning a food franchise. Here’s why:
A. Food franchises require employees.
The employees needed to run a food franchise include:
- Kitchen personnel
- Counter people
- Managers
And if you own a full-service food franchise, you’ll need to have dishwashers, servers and more.
B. Multi-unit possibilities
If you’re able to invest in a multi-unit franchise opportunity in the food service sector of franchising, you’ll need a manager at each location. Who better to have than a trusted family member?
What’s more, if you have a family member in management, and you want to retire, not only will you have an instant buyer for your business, you’ll be able to keep your business “in the family.”
In the end, food establishments will always be around.
Not only do people need to eat, but they need to socialize, too. Food franchises serve both of those needs.
The trick is to find a quality franchise opportunity that’s a good fit for your local area and has room to grow.
The good news is that there are plenty of choices in the world of food franchising. And they can be found here.
The Franchise King®, Joel Libava, is a top franchise expert. He’s written over 2,000 different articles on franchise ownership and personally consults with people who are looking to buy a profitable franchise. Go here to find out how The Franchise King® can help you become your own boss.