When it comes to franchising the obvious heavy weight champions is the fast food industry.
Reputably the best known business format, as well as possibly the first recognizable franchise ever created. The big golden arches of the well-known MacDonald’s embrace landmarks worldwide and is also an international symbol of fast food, as well as a successful business model.
McD’s is only one of the very many fast food restaurants that have established a popular branding and successful franchise reputation. Though these well-known eateries are the big guns when it comes to food franchises, it is certainly not limited to fries and burgers, but the most notable.
Fast Food Industry
Bringing in approximately $191 billion in 2013, the fast food industry is evidently profitable. With name brands and a taste that is well-established throughout the country, it’s an everyday part of the American culture.
We live a fast paced lifestyle and the take out system is the answer to our immediate needs. Everyone is running errands, late for a meeting and have to pick up the kids, fast food helps our society function easily.
There are approximately 232, 611 fast food establishments in the United States alone, while a lot of brands have expanded across boarder, created a worldwide presence.
Though there is a high start up cost, great things come at a price. Most restaurants come with a set of marketing tools created by professionals with proven results, a brand that is already an everyday part of the American home and experienced professionals available for constant support. A fast food investment almost guarantees success, easily making it money well spent.
77 per cent of the market involves onsite restaurants with drive-thrus, while the rest involve take outs and buffet styled restaurants. Both types are equally as successful as the other, especially if associated with an experienced brand.
Beverage and Drink Industry
Every meal is served with a drink and the beverage industry must be mentioned when discussing food. In fact, the beverage industry stretches to many different categories, including retail and restaurant sales and dividing into alcoholic and non-alcoholic drinks.
Total annual sales in the beer industry alone was $91.6 billion in 2014, proving the exponential sales of only one type of beverage.
Americans consumed 3.2 billion gallons of bottled water last year and soft drinks poured in $60 million dollars worth of annual sales. Needless to say, consumers are parched and it’s paying off. Food and drink are necessities and are therefore available in a variety of different venues, allowing for a constant market and accessibility.
For the most part, franchise establishments serving beverages and retail stores selling drinks are not only well-recognized in their own right, but certain beverages alone are branded staples of the American diet.
Beverage franchises come in a variety of forms, including restaurants and bars, retail, wholesale. Living the dream of owning a pub for example, could be easily obtained through a franchise option, with more support and training that opening a small business.
When considering the food market, grocery stores and retail venues are vital portions of the franchise industry. Grocery stores in the U.S brought in $594 billion sales last year, which is no surprise since it’s the one industry that is in demand by every American. It’s a vital necessity and grocery stores dominate the food retail industry.
There are grocers that specialize in specific foods, health focused selection or wholesale products in large quantities. There are benefits to seeking a retail franchise opportunity in a specific retail. One could invest in a passion or possibly have more creative input in a small business model. A grocery store on the other hand is a part of a chain and can provide more than food, turning over a large profit.
As a franchisee, the retail food industry is usually a very safe investment, again with an established and trusted presence and strong customer base, while offering high-end brands. It’s a high-paced industry which may allow for a lot of involvement and support from the franchisee.
Wholesale and Distribution
Food is shipped and received from all over the world. This industry includes those suppliers, as well as companies that ship, store and prepare food. It’s a very intrinsic process that allows different foods to be accessible to many parts of the world.
All other food industries are dependent on the whole sale and distribution of their product in order to remain in business. There is only so much that can be prepared on site, and this type of franchise offers many different venues and likely guaranteed success.
Any industry that has a highly anticipated dependency insures a customer base, allowing a franchisee comfort and the food industry creates a sense of security in most markets.
Wholesale and distribution is a general term that covers a lot of different bases, which allows franchises a huge choice in this field. Though there are a lot of regulations to keep in mind, the franchises are well-experiences and can ensure you follow all necessary protocols, without having to do the leg work yourself. This would provide a constant support system and a lot of help establishing consumers, or an already recognized list of customers.
Though attracting and upholding customers would be established from the beginning, this field may take a lot of hard work, dedication and hours as a franchisee. Trade can run into scheduling issues, there may be long business hours and problems with weather. However, the solution is usually put in place before an issue arises and hiccups in the process runs smoothly for the most part, however a franchisee may find themselves on call a lot of the time.
Food is the root of all money when it comes to business. Everyone has to eat and it has to be provided in so many venues because no one ever knows when a craving will occur. The fast food industry dominates the world of franchises, but it’s not the only option for those interested in finding business that appeals to their specific palate.
An investment in food is a guaranteed success, no matter what your taste.
Look out for our next special feature: Retail Franchising
ABOUT THE AUTHOR: After receiving an English Degree, followed by a Journalism Diploma, Gina Gill became a freelance journalist in 2008. She has worked as a reporter and in communications, focusing on social media. She currently works as a community information officer with Epilepsy Society, while pursuing her writing career at the same time.