If there's one kind of fast food everyone loves to much on it's a burger. Despite the recent move towards healthy foods it seems burgers still have an undeniable appeal to people of all ages, which is why they don't just provide a tasty meal, but also a lucrative business opportunity.
Indeed burger businesses across America are making millions serving up these fast food treats every year, so why not jump on the bandwagon and invest in a burger franchise.
One of the most important things to consider when setting up a fast food franchise is the fast food competition. There is plenty of consumer demand for fast food, but this means there are also plenty of rivals trying to capitalize on the burger's popularity.
That's why looking carefully at different areas, indeed different fast food franchises, is essential to choose the right burger franchise in the right location. While a huge McDonald's franchise may prove a success one town, it may flop in another. It is important therefore to look at what customers want before diving in.
Often smaller franchises can be more successful than the big players on a regional level. Finding a niche market is vital, and this can often be done in smaller towns where franchisees can build up a local cult following. Whether it is healthy vegetarian burgers or gourmet ranch grill burgers, offering what local consumers want is the key to building a successful burger empire.
So who would be suited to running a burger franchise? It is important that franchisees are motivated, hardworking and intent on being successful.
Investing in a franchise means budding entrepreneurs don't have to have managed their own burger restaurant before. Most franchisers will offer help and support, as well as extensive training, to get their franchisees off the ground. Of course, it's in their interests to make sure the business is a success.
But while burger flipping skills are non-essential, business skills such as account management and organization are. Basic food hygiene certifications and some form of catering experience would also be a great advantage among those seeking a burger franchise.
Above all potential franchisees should ask themselves whether they are prepared to make it work. Franchising is not an easy option and it can fail without strong commitment on the part of the franchisee.
Investors should therefore be prepared to put in a lot of hard work and effort if they wish to make healthy profits and not just sit back and expect the brand name to attract customers.
Having a well-established brand name however is one advantage of going down the franchising route. Marketing and advertising support is given to most franchisees, alleviating the pressure for those who are less experienced in this area.
Franchisees will also benefit from the company's input terms of sales advice, day to day management, employee relations and customer service.
Fast food franchising can offer a world of opportunity, and the burger is one dish that can be adapted to suit every taste. Franchisees dedicated to supplying this timeless foodstuff to the masses can therefore find themselves chomping on some very appetizing profits.
Monday, October 20, 2008
Trends and Facts About Food Franchises
There are as many varieties of food franchises as there are types of foods! Investments can range from the very high end of hundreds of thousands of dollars for full-service restaurants, to a moderate capital outlay for vending machines.
There are franchises that specialize in sandwiches, barbeque, burgers, pizza, ethnic foods, candy, ice cream, smoothies and many other food types.
Food franchising is most often associated with restaurants, even though the industry also includes coffee, candy, smoothies, pretzels and other specialized commodities.
The whole concept of franchising has traditionally been attributed to McDonalds, and restaurant operations are especially adaptable to the franchise concept of consistency and uniformity.
1. The restaurant industry has earned a reputation for high risk and high rewards. Some industry analysts claim a dubious 90 percent failure in the first year. Franchise restaurants based on proven systems have a higher success rate -- about 62 percent over four years – than independent operators.
2. The National Restaurant Association forecasts restaurant revenues of $558 billion in 2008, at 945,000 restaurants nationwide. Restaurant revenue is expected to grow 4.4% in 2008 and make up 4% of the U.S. gross domestic product.
3. The average full-service restaurant in 2005 grossed $833,000. The restaurant industry is the nation’s largest employer after the government.
There are strong trends affecting traditional restaurant franchising businesses in this decade. With the economy slowing, and gas prices rising, people have less disposable income to spend on restaurants.
Construction costs are up, so new building is down. Rather than building new units, many well-known franchises that previously occupied niche markets, such as Taco Bell and Wendy’s, are expanding their offerings with “all-day” menus with breakfast, lunch and dinner specialties as well as free Wi-Fi and high-definition television to attract customers.
4. Research indicates that consumers have strong preferences about choosing where to eat -- with 62 percent saying they look for “environmentally friendly” establishments; 70 percent want offerings not easily duplicated in their home kitchens; and 83 percent express approval of healthier eating options at quick service eateries.
5. The sale of organic foods grew by percent in 2006 and generated $13.8 billion in revenue.
There are franchises that specialize in sandwiches, barbeque, burgers, pizza, ethnic foods, candy, ice cream, smoothies and many other food types.
Food franchising is most often associated with restaurants, even though the industry also includes coffee, candy, smoothies, pretzels and other specialized commodities.
The whole concept of franchising has traditionally been attributed to McDonalds, and restaurant operations are especially adaptable to the franchise concept of consistency and uniformity.
1. The restaurant industry has earned a reputation for high risk and high rewards. Some industry analysts claim a dubious 90 percent failure in the first year. Franchise restaurants based on proven systems have a higher success rate -- about 62 percent over four years – than independent operators.
2. The National Restaurant Association forecasts restaurant revenues of $558 billion in 2008, at 945,000 restaurants nationwide. Restaurant revenue is expected to grow 4.4% in 2008 and make up 4% of the U.S. gross domestic product.
3. The average full-service restaurant in 2005 grossed $833,000. The restaurant industry is the nation’s largest employer after the government.
There are strong trends affecting traditional restaurant franchising businesses in this decade. With the economy slowing, and gas prices rising, people have less disposable income to spend on restaurants.
Construction costs are up, so new building is down. Rather than building new units, many well-known franchises that previously occupied niche markets, such as Taco Bell and Wendy’s, are expanding their offerings with “all-day” menus with breakfast, lunch and dinner specialties as well as free Wi-Fi and high-definition television to attract customers.
4. Research indicates that consumers have strong preferences about choosing where to eat -- with 62 percent saying they look for “environmentally friendly” establishments; 70 percent want offerings not easily duplicated in their home kitchens; and 83 percent express approval of healthier eating options at quick service eateries.
5. The sale of organic foods grew by percent in 2006 and generated $13.8 billion in revenue.
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