One of the most popular franchise categories are restaurants and fast food establishments, but why is that? First, ask yourself if you have eaten at a Subway, Dunkin’ Donuts, Pizza Hut, or Burger King recently. If you have patronized even one, that might help answer why restaurant franchises are so popular.
Many food and restaurant franchises come with immediate brand recognition. Thus, when an investor is considering investing in a franchise opportunity, the know that brand recognition will contribute to a greater chance of success. But maybe even more than that, people need to eat!
Where and how people choose to eat matters because it will directly impact how much revenue is brought in by the franchise owner. Many food franchises capitalize on the fact that these days, many people need to eat quickly and may not have time to sit down and spend a lot of time in a restaurant.
The franchise segment that caters to these types of consumers even has its own name, Quick Service Restaurants (QSR). QSRs are so popular, they pretty much dominate the restaurant franchise segment.
Still, operating a food-based franchise doesn’t come without a lot of hard work. From long hours to fluctuating food costs, operating a food franchise isn’t – no pun intended – a cake walk. Yet it can also be incredibly rewarding and lucrative.