Food Franchises

It’s an all-you-can-eat buffet when it comes to choices in food franchises

One of the most popular types of franchising remains the food industry - whether that is fast food franchises, restaurant franchises or coffee franchises. Fast food restaurant sales are expected to top $500 billion in ten years - largely because of baby boomers, who make up the largest population group with the highest per capita spending on food outside of the home. Beyond the boomers, the general public’s clamor for cheap food “on the go” has led to a huge spike in fast food restaurants in recent years.

Most fast-food chains offer franchising opportunities, and some franchisees will purchase more than one outlet to maximize profits. You may wonder whether to purchase a coffee shop, such as the successful and prevalent Starbucks chain; a restaurant, such as IHOP or Denny's; or a fast food joint, such as Pizza Hut or Burger King.

Restaurant, coffee or fast food franchising options: how to choose?

Your decision on which franchise to pursue should be based on the following:

  • The type of food operations that can be found in the geographic area you’ll operate in, i.e. if there are already several pizza joints, maybe that’s not a good franchise to purchase.
  • The purchase/startup costs - a large restaurant will naturally cost quite a bit more than a coffee shop or Subway.
  • How much you enjoy recruitment/hiring, training and supervising employees; a restaurant has a need for much more employees than a fast food place.
  • The kind of food operation you enjoy the most as a consumer may have an emotional effect on the kind of food franchise you buy.
  • As appealing as is the variety of food franchises is, the cost associated with buying a food franchise can be prohibitive. Expect to pay upwards of $100,000 and as much as half a million for a full-service restaurant such as an East Side Mario’s or a Boston Pizza. The costs of staffing, upkeep and accessories (furniture, curtains, artwork for the walls, etc.) will be higher than operating a small coffee, pizza or sub shop, too.
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