The Health Food Franchise Industry
<blockquote>“We’re seeing the health trend continue to rise, and it’s become increasingly important to provide a set of options for consumers that are satisfying in taste and in line with a low-calorie diet.”
~ Captain D’s Chief Development Officer, Michael Arrowsmith in a QSR interview</blockquote>
Many consumers are looking for a way to incorporate better eating habits into their daily routines. However, it can be difficult to find time to shop for and prepare nutritious food, though, especially when you’re working or going to school. So many people want to but can’t seem to find enough time to cook healthier food—and food franchises are doing their best to develop menus that accommodate those desires.
The proof consumers are increasingly focused on healthier options is in the numbers. In fact, plant-based food retail sales rose 27% in 2020 to $7 billion, according to the Plant Based Foods Association (PBFA) and The Good Food Institute (GFI). The growth was nearly double the overall growth in overall U.S. retail food sales for the year, which was 15%.
Part of that growth stems from the fact that it’s not just vegetarians that are eating vegetarian-friendly fare anymore. “Nearly one-third of the consumer identifies as either flexitarian or say they limit or avoid animal proteins,” says Patty Trevino, senior vice president of brand marketing for CKE Restaurants Holdings, Inc., which includes Carl’s Jr., Hardees, Green Burrito and Red Burrito.
Well-known companies in the health food franchise industry include: Frutta Bowls, Garbanzo Mediterranean Fresh, Jamba, Jimmy John’s, Jon Smith Subs, Lean Kitchen Company, Masti, Nekter Juice Bar, Saladworks, Smoothie Factory, Smoothie King, Subway, The Great Greek Mediterranean Grill, Togo’s and many, many more.
Main Segments of the Health Food Franchise Industry
Though any food franchise can introduce healthier options—see the quote above, as well as consider the plant-based menu items at franchises like McDonald’s and KFC—there are some food categories that more naturally lend themselves to the segment. Here's a look at a few.
The first of those segments is juice and smoothie franchises.
The original healthier alternative, juice and smoothie franchises are over a half century old and still going strong. According to Research and Markets’ report, the industry is only expected to continue growing due to “rising health consciousness in confluence with the adoption of healthier lifestyles, consumers are altering their everyday diet. They are shifting from carbohydrate-laden food products toward healthy protein-enriched snacks and meals. In addition to this, they are consuming more functional foods and beverages like smoothies to meet their daily nutritional requirements.”
Another long-standing division of health food franchises are sandwich franchises.
Sandwiches have long been considered a healthier on-the-go meal option when compared with other fast food and quick service restaurants (QSRs). Also, the ability to customize their sandwich is often noted as one of the principal selling points of these franchises for consumers, who have numerous options to choose from.
While other fast food and QSR franchises have taken heat about serving unhealthy foods, sandwich and bagel franchises have benefited from the array of fresh produce toppings often offered. In fact, the
Recent years have also seen the rise of acai bowls.
“Our industry is not a bang-and-bust,” says Justin Bitner, chief operating officer of Frutta Bowls, a franchise that sells bowls made with acai and other “superfoods” such as kale and pitaya. Instead, he thinks it reflects a shift in how Americans are eating.
Another healthy bowl food franchise segment making waves is poke bowls.
The Hawaiian dish has been around for centuries, but it’s only been recently that poke bowls have made their way to the mainland mainstream. Traditional poke bowls are made of cubed raw fish seasoned to the consumer’s taste, served with or without sushi rice. Since gaining a larger following, the dish has picked up more contemporary ingredients like quinoa, zucchini noodles, and tomatoes – a point of contention with Hawaiian food purists.
Initial Investment and Opening Costs for Health Food Franchises
The amount necessary to open a franchise varies depending on the unique business system and execution requirements. The opening costs for a health food franchisee can depend on many factors, including but not limited to: the franchise fee, land and building costs, training expenses (such as travel and living expenses, not the actual training courses), grand opening advertising and marketing costs, and more.
One of the most important variables in how much it costs to open a franchise is the type of franchise being opened and how big it is. Commonly, the two types offered are traditional and non-traditional. Traditional franchises are usually the biggest option. They are typically standalone buildings where the service of the franchise is the only business offering. Non-traditional franchises are smaller, and typically located within another building like an airport or gas station. Other franchise types include kiosks, food trucks, and satellite locations.
Franchisors offer estimates in their FDD based upon their experience establishing, and in some cases operating, units. However, prospective franchisees should keep in mind these estimates are just that – an estimate. Prospective franchisees should review the figures presented with a business advisor, taking into consideration their unique circumstances, before making the decision to enter into a franchise agreement.
Top Benefits of Being a Health Food Franchisee
The benefits of owning a franchise can be numerous vs. independent operation. Here are a few of the top benefits for those who decide to own a health food franchise instead of going at it alone.
Name Recognition: People tend to deal with people and places they have a familiarity with. Franchises tend to have established brand names that, in many instances, have been around for years. If you buy a health food franchise, you will be given the right to associate your business with that franchise company's name, trademarks, and logo.
Advertising: Getting your name out there can be expensive and sometimes it can be hard to know where to spend your advertising and marketing budget. With a franchise, national advertising is typically done by the franchisor. In addition, though in general local advertising is up to you, you’ll have guidelines in place.
Training & Support: A popular feature with all franchises is the training provided. While in business, franchisees will have access to the franchisor’s operations manual, computer systems, and other items designed to help you successfully manage your health food franchise. Remember the franchisor can’t be successful without you!
Find Out More About Health Food Franchise Opportunities Today!
Becoming a health food franchise owner is a great way to invest in yourself, your financial future, and the health of your community. You will enjoy the benefits of being your own boss and offering delicious food that your customers will love. We’re sure you’ll find an option that you’ll love, so search our listings today and request more information.
You can also check out many more Food Franchises here on Franchise Direct, such as: