When talking to people about franchise industry, the first thing that comes into their mind is a fast food franchise. Food industry with variety of concepts is the most noticeable one as we all have a natural need and desire to eat good food.
Franchise concepts within the food sector typically fall into one of several major categories: full-service restaurants, quick-service restaurants (QSR), fast casual (a higher-end variation of QSR that includes counter service), retail stores, mobile and kiosk outlets, and delivery only. Some franchisors offer different business models and multiple investment levels, and others combine food types (a juice bar, smoothie cafe or coffee shop that serves sandwiches, for example), so the definition of franchise concept can be blurry. According to IHS Global Insight, Quick service restaurants represent 26% of the total output among all franchise industry in the year 2014. According to the same report the share of table/full service restaurant from the whole franchise industry output is 7% and share of retail food franchises is around 5%. This means the total output of food franchises constitutes 38% of total franchise industry output in the year 2014.
Why Consider Quick-Service Restaurant Franchises
Diners’ today have both a limited time for meals and are also becoming more cost and health conscious. Today’s consumers are looking for healthful, specialty food restaurants that meet their growing demands for options that offer the ideal combination of better service, higher quality ingredients, and flavor. According to the National Restaurant Association, in 2010 a survey said that 73% of adults say they try to eat healthier now at restaurants than they did two years ago. Plus, 40% of adults agree that purchasing meals from restaurants and take-out / delivery places makes them more productive in their day-to-day life. Fast healthy Casual Restaurants meet this growing demand.
Furthermore, as a recent issue of Entrepreneur magazine states, “Customers looking for alternatives to fast-food burgers and chicken are turning to new concepts and some fast-food Mexican or Asian chains. For example according to Nation’s Restaurant News, a new study reports that the Asian quick casual concept has clear prospects for strong future growth.
Fast Casual restaurants are still only a small segment of the restaurant industry and it continues to grow exponentially, tripling its market share in just the last decade. It is also the only restaurant segment to grow in the last five years, according to analysts. For those investors who see a big chance in being successful in healthy quick service food businesses, we have prepared a list that can be considered when looking into investing in a franchise.
Liquid Capital: $80,000
Teriyaki Madness is a newer fast-casual restaurant concept serving up fresh, flavorful, and healthy Asian food in a hip atmosphere. The Teriyaki Madness business model is uniquely positioned within the Asian food segment, which is poised for massive growth. It offers a lower initial investment cost than other fast casual restaurants with a proven profitability, resulting in a very impressive ROI.
Liquid Capital: $100,000
340 unit, Healthy Quick casual restaurant with balanced business model (50% Smoothie Sales, 50% Food Sales), lower development costs (No deep fryers, grills hooding systems) and high average check to drive gross sales (Over $8). Eat better-Feel better with Tropical Smoothie Cafe.
Liquid Capital: $100,000
Since the beginning, the Great Wraps Way is to deliver fresh, hot meals to the world regardless of race, creed, or lifestyle. We treat customers like family and strive to provide the best experience possible on each and every visit.
Liquid Capital: $110,000
Zoup! is the leading fast-casual soup concept restaurant that is defining the category with its premium and proprietary soups as well as sandwiches and salads. Each location offers 12 hand-crafted varieties each day from its collection of hundreds of proprietary recipes. “Something for Everyone” nutritional options include low-fat, vegetarian, dairy-free and low-points. All recipes feature all-natural, fresh ingredients and complex layers of taste and flavor.
Liquid Capital: $200,000
We are well-positioned to capitalize on the growing trend toward less-costly, healthy dining for active life-styles. Our customers are looking for unique flavor combinations that won’t break the bank and will still provide them high-quality ingredients and healthy meals. As a fast-casual restaurant, we are in a small segment of the restaurant industry which continues to grow very rapidly, tripling its market share in just the last decade. This is the only restaurant segment to grow continually in the last five years, according to industry statistics.
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