More and more, anyone who has a desire to open a small business of their own have found that opening a restaurant franchise is quite 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 comes to about 11 million people, and makes them the biggest employer next to the federal government.
Restaurants have been satisfying the hunger of people for a long time, and restaurant franchising is around to add to the growth of the. 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) are often the folks opening new restaurants and fast food establishments. They will have sophisticated tastes and the amount of 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. If they dine out they want high quality, no matter where they are eating.
Increasing numbers of people are holding full time jobs, leaving little time to get ready meals at home. Quick serve restaurants continue being fueled by the buyer?s ever increasing need for convenience. More than half of most adults say they’re busy, and convenience is really a critical part of their lives.
While older consumers demand quality, younger customers want convenience. 55% of consumers between your 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 are also a growing trend. 78% of all households in america 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 identifies franchising two or more different brands in a single location (Taco Bell, Pizza Hut, & Kentucky Fried Chicken). All three are housed in a single building, instead of building three different restaurants. These restaurants have the effect of more than 29,000 restaurants, and much 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). If pâtes add Canada they number around 2,000. The size of the company has helped with their popularity far away.
Whether you are selling sandwiches across the sea, or have an upscale dining establishment uptown. The outlook looks strong for food franchising within the next ten years. Given that consumers continue steadily to eat at restaurants, the franchise opportunity will be a gainful one.