More and more, anyone who has 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 most workers employed in america. That comes to about 11 million people, and makes them the biggest employer next to the government.
Restaurant s have already been satisfying the hunger of people for ages, and restaurant franchising is around to add to 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, and so were House of Pancakes, Tastee Freeze, Dairy Queen, and Dunkin Donuts.
Seniors (people born between 1946 and 1964) tend to be the folks opening new restaurants and fast food establishments. They have sophisticated tastes and the money to make their ideas possible. 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 full time jobs, leaving little time to prepare meals at home. Quick serve restaurants continue being fueled by the consumer?s ever increasing dependence on convenience. More than half of all adults say they’re busy, and convenience is really a critical section of their lives.
While older consumers demand quality, younger customers want convenience. 55% of consumers between the ages of 25 and 34 admit they are usually in a hurry 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 United States use take out or delivery service at least one time a month. These people consider themselves very value conscious.
Many investors are buying into co-branded franchises. Co-branding identifies franchising several different brands in a single 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 more than 29,000 restaurants, and much more are popping up constantly. Additionally, there are multiple franchising concepts with Dunkin Donuts and Baskin Robbins in 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. How big is the company has contributed to their popularity in other countries.
Whether you’re 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 to eat at restaurants, the franchise opportunity will be a gainful one.