Franchise Spotlight: Restaurant
Analysis shows that restaurant franchises are robust business models during economic uncertainty.
In 2020, the restaurant industry was predicted to reach an impressive $899 billion in sales in the US. Furthermore, it is a business model that lends itself perfectly to franchising, with the restaurant industry being one of the biggest franchise sectors in the US.
Restaurant franchise industry analysis
Americans love food! From pizza, tacos and curry houses, to ice cream, coffee shops and sandwich bars, there’s plenty to choose from when setting up your restaurant franchise. Assess the demographic and consumer demands in your area. Moreover, franchisors will usually have limits on the number of restaurants they will allow in a certain area. Do your research to ensure the right brand for you and your success.
2020 has seen a dip in industry revenue in the restaurant sector, as the pandemic has meant that people have been unable to gather and eat out socially in the same way. However, as restrictions ease, analysis predicts a boom in this area, as people will want to gather and socialize over food once again. Furthermore, those restaurants that have been able to adapt and offer takeaway and delivery options have been better able to weather the storm.
Industry trends show that franchises tend to fare well during times of economic uncertainty. Customers want competitive prices and a recognized brand name they know and trust when times are tough. The franchise model offers up a less risky business opportunity than perhaps an independent restaurant.