More and more, those who have a desire to open a small business of their own are finding that opening a restaurant franchise is very profitable. It really is predicted that restaurant sales will reach $577 billion in sales by 2010. The restaurant business industry now employs 8% of all workers employed in the United States. That involves about 11 million people, and makes them the largest employer next to the government.
Restaurants have been satisfying the hunger of individuals for a long time, and restaurant franchising is around to increase the growth of the industry. In 1950, Colonel Harlan Sanders introduced his Kentucky Fried Chicken franchise and built a chain of over 600 restaurants by 1960. McDonalds was franchised in 1955, therefore were House of Pancakes, Tastee Freeze, Dairy Queen, and Dunkin Donuts.
Baby boomers (people born between 1946 and 1964) tend to be the people opening new restaurants and fast food establishments. They will have sophisticated tastes and the money to make their ideas a reality. They demand fresher ingredients, healthier dishes, and vegetarian options. Seniors are credited with setting the pace for what does and doesn?t work in terms of successful restaurants. When they dine out they want top quality, no matter where they’re eating.
More and more people are holding regular jobs, leaving little time to prepare meals at home. Quick serve restaurants continue to be fueled by the buyer?s ever increasing need for convenience. More than half of most adults say they are busy, and convenience is really a critical section of their lives.
While pizzeria demand quality, younger customers want convenience. 55% of consumers between the ages of 25 and 34 admit they are usually in a rush and want fast service. This sparks the growing need for quick service restaurants. Takeout restaurants may also be a growing trend. 78% of most households in the usa use take out or delivery service at least once a month. These people consider themselves very value conscious.
Many investors are buying into co-branded franchises. Co-branding refers to franchising several different brands in one location (Taco Bell, Pizza Hut, & Kentucky Fried Chicken). All three are housed in one building, instead of building three different restaurants. These restaurants have the effect of a lot more than 29,000 restaurants, and more are popping up at all times. Additionally, there are multiple franchising concepts with Dunkin Donuts and Baskin Robbins in exactly the same building.
Some franchisors take their products overseas. Subway has nearly 800 international franchises (not counting Canada). In the event that you add Canada they number around 2,000. The size of the company has contributed to their popularity in other countries.
Whether you are selling sandwiches over the sea, or have an upscale dining establishment uptown. The outlook looks strong for food franchising within the next ten years. Provided that consumers continue steadily to eat at restaurants, the franchise opportunity is a gainful one.