A Complete Guide to Trends and Facts About Food Franchises
The food and beverage industry is the UK’s largest manufacturing sector, accounting for 7% of GDP and achieving a whopping turnover of £80 billion a year. The sector has also proved resilient in the face of economic fluctuation, maintaining steady growth and employment figures throughout. People in the UK are also eating out more – the growing appetite for diverse and convenient dining means consumers are forecasted to spend £54.7 billion by 2017, with a predicted growth in the restaurant industry of £10 billion by 2019. Site location in the food business is paramount – find an established brand and open in the right location and you have a significant chance of making a lucrative living.
Basic Franchising FAQs
Food is the largest sector in franchising for a reason – after all, it has an established record of success, providing franchisees with a wide range of opportunities to run businesses with a significant amount of support. This sector can also be the perfect option for those looking for a scalable business, with successful franchisees often evolving from single-unit to multi-unit ownership. This option is particularly applicable to the larger, more rapidly evolving chains and can lead to a very lucrative future for those who fit the bill.
One of the key advantages of a food franchise is sheer number of options available on the market that are guaranteed to have a built-in customer base.
Some of these include, restaurant franchises, takeaway franchises and fast food franchises such as pizza franchises.
One of the most popular food options is the Asian food market, which has been a staple in Britain since the 1950s. Whether it is a restaurant or a local takeaway, Asian cuisine is a firm favorite amongst the public. Even in the last decade, there has been an estimated 20% growth in Chinese, Japanese, and Thai restaurants restaurants in the UK. With such an appetite for Asian food, a thriving Asian food franchise is a smart investment for the future.
Facts About Food Franchises
Fast food will always be in demand, but a key trend which has emerged within the industry is the quest for healthier options by consumers. Not only are many of the fast food chains now providing healthier options, the movement is also further diversifying the range of businesses out there, with a number of smoothie, juice and salad bars, and natural and organic foods restaurants popping up all over the UK.
The demand for vegan and vegetarian foods has been increasing in the UK and worldwide, making this a growing branch of the industry.
Coffee and snacks are also ripe for investment, with their value growing rapidly and businesses getting more creative with their offerings. Coffee addiction seems to be going nowhere, and providing busy folks with their daily fix can prove another very lucrative option for business owners.
Food Franchise Trends
Drink and food manufacturing in the UK is rapidly growing. There is a strong demand for contemporary and unique products in supermarkets. This is due in part to the amazing food culture that was made more modern and has been crafted for current tastes and preferences.
With thousands of new products launched each year, manufacturers in the UK regularly adapt to the changing tastes of diverse audiences. Additionally, new technologies that prolong shelf-life and product traceability have made these delicious foods and drinks accessible to investors and consumers worldwide. As a result, the net profit of all food industries in the UK. is around £18 billion.
With a recognised brand name, a franchise is able to take advantage of the global market in ways that independent food producers are not.
Franchising Vs Independent Businesses
Independent companies are less likely to draw start-up capital from banks easily. Moneylenders rarely grant them loans with reasonable borrowing rates, which has the potential to jeopardise their ability to stabilise and prosper from the start.
Independent companies rarely can prove that their business idaea has market potential and sustainability. Franchises, however, can demonstrate their viability in the market.
With the high costs of ingredients, marketing, and staffing, independent businesses in the food industry require start-up collateral provided by established partners.
What It Takes for Food Franchises to Succeed
At a failure rate of 15.5%, opening and owning a restaurant is often riskier than other new businesses in the UK. Setting up and developing a food franchise business takes the following:
- Commitment to the business
- Feasible plan
- Hard work
- Sufficient capital
Word-of-mouth promotions always help, but having the carefully targeted marketing strategy from the franchisor will help your food franchise remain solvent.
Choosing a Franchise? What You Should Seek
When deciding what food franchise to invest in, you should compare how much and what types of support the franchisors offer on an initial and ongoing basis. The most common services offered by the franchisor include but are not limited to the following:
- Advertising and marketing strategy
- Advice and business support
- Assistance in choosing and developing the franchise location
- A well-known brand name
- Headquarters and field support
- Management training
- Operating manuals
- Quality food standards
- Research and development of new foods and services
Franchises are independently-owned businesses. With a recognisable brand name and logo, high-quality signage, and other support materials provided by the franchisor, you will be able to focus your efforts on the everyday aspects of running the business. This includes staffing and managing the company and ordering supplies, and selling and passing on the product.
Therefore, whether your food franchise is a success or failure is based entirely on you and your ability to run the company.
Buying Into a Food Franchise
People buy into food franchises for many different reasons. Suppose you are enthusiastic about owning your own business and offering various tasty treats and beverages to the community. In that case, franchising may be the best method for making your dreams come true.
Bring some diversity to your neighbourhood by exploring our appealing selection of food franchises today.
Our opportunities represent a range of some of the most potentially lucrative and on-trend food and beverage franchises available.
- Is a food franchise a good opportunity?
- What are the pros and cons?