Introduction to Food supplement article, look out for part 2 in December.

1. F
OOD Fr a nch ises
Food for Thought:
Welcome to The Food Supplement, Part 1
Often times when
someone hears the
word “franchise” the first
thing that comes to mind
is food, and reasonably
so! With thousands
upon thousands of
food franchises in many
different shapes and
sizes, the options are
endless.
From fast food monsters to fine dining
gems, the diversity in food franchises is
just as diverse as the food itself. Seeing as
food is a major part of every culture, it’s
simple to see why there is such diversity
in the various types of food franchises
available today. So if food is your passion
and you’re looking to start a career in it,
you’ve chosen the right industry.
Food franchises became popular in the
mid-1900s with the dawn of the baby
boomers, which was around the same time
Franchising USA
that people began moving to the suburbs.
Lacking restaurants in these remote areas,
fast food chains began moving outside
of the cities to develop in the newly
populated areas- and thus, food franchises
came to be.
While it may seem like an easy win to
invest in a food franchise considering
society’s universal love for food and the
vast number of restaurants available, it’s
important to consider what type of food
franchise is first, of interest to yourself,
and second, going to thrive in your area.
Just because you think it’d be great to have
an all-you-can-eat Asian restaurant in the
middle of Little Italy, or a Vegan Bistro
in rural Texas, doesn’t mean the market is
right.
Nonetheless, if you find a niche and the
right location there are some wonderful
advantages to owning a food franchise,
the first being that your customers come
to you. Also, since food franchises have
been around for over 60 years, many times
multi-unit companies will have a track
record available detailing their highs and
lows. Through due diligence it should be
easy to see if your concept is a winning

2. “The ideal situation, and perhaps recipe for
success, is to choose a category that not only
suites your needs and your markets needs, but
also serves a unique niche.”
one, or if your dream job is likely going to
follow suite of the seventeen predecessors
that have been there, done that… and it
didn’t work.
Another highlight of buying a food
franchise is that often times the process
will run like a well-oiled machine.
In many cases franchisors invite new
franchisees to train in an existing location,
providing them with a step-by-step hands
on experience. Here they will also learn
the equipment and business operations,
all the while able to ask their questions as
they arise.
While it’s also important to consider the
initial investment, overhead costs, zoning
codes, labor laws, and cost of goods; one
of the best things about food franchises
is that if plan A. doesn’t fit your budget
there are infinite other options available
to you, so surely you’ll find something to
call your own. The costs of owning a food
franchise will vary widely depending on
the restaurant, its location and the physical
materials needed. A big brand could set
you back millions of dollars, while a newer
or smaller chain could cost substantially
less, weighing in at a few hundred
thousand.
Taking a look at some of the different
kinds of food franchises on the market
today, these can be broken down into four
general categories: fast food (or, quick
service), causal dining, fine dining, and
mobile. Different types of food, customer
bases, atmospheres, and hours of operation
can then break down these categories
further.
For example, quick service food franchises
can include anything from the corporate
monsters that clutter highways, to
convenience stores selling taquitos, your
morning coffee shop or favorite deli
market. Typically serving foods such as
burgers, pizzas, and sandwiches, these
franchises can then be broken down
further into niche groups such as take-out,
drive thru or serve yourself.
To paint the picture further for you, causaldining franchises could be considered
anything from a local sports bar, to seatyourself diner, while fine dining is usually
associated with champagne glasses and
hefty bills. Mobile food franchises may opt
to serve the standard fries or shawarmas
from their food trucks in a busy parking
lot, or perhaps they choose to set up
shop in central park, serving pretzels or
bibimbap. A rising trend in the mobile
sector is food kiosks. Found in shopping
centers, hospitals and airports, while many
franchises refer to these locations an “nontraditional” units, the flexibility and ease
of operating a this kind of franchise has its
benefits.
While food franchise categories sound
straightforward there are many types of
businesses that can fit in several of these
depending on their product. Catering
companies for example, or wedding
cake parlors, where do these fit in? To
complicate the matter even further, these
categories can overlap. For example, the
concept of fusion menus featuring dishes
that marries two or more ingredients, from
various different cuisines to create a new
dish, is exploding across North America.
Or, as recognized by Forbes, the category
of fast-causal niche restaurants is on the
rise.
The ideal situation, and perhaps recipe for
success, is to choose a category that not
only suites your needs and your markets
needs, but also serves a unique niche. This
may sound like a mission but in today’s
evolving society niches can be found from
street corner to street corner. If you want
to buy a pizza place, make sure it serves
gluten-free, or if you’re thinking about a
frozen yogurt shop, why not look into a
DIY concept? These tailored franchises
may seem tedious and over zealous but
how are you going to stand out in a hungry
metro area if you don’t offer something
different, something special. Yes, you
could buy into a monster chain with a
proven success rate, but if you don’t have
the means in which to buy the billiondollar-brand, what is your plan? After all,
you’re the new kid on the block and if
you’re not giving your potential customers
a reason to leave their favorite burger joint
to try yours, how do you expect to generate
business?
At the end of the day, the most important
thing to be sure of before you sign the
papers and choose your site, is that you are
happy. Asides from investing a large sum
of money into your new business, you’re
also going to be investing your time, hard
work and dedication to the brand. Make
sure this is what you want to do, because
the saying goes, “Money can’t buy you
happiness.”
Stay tuned for The Food Supplement,
Part 2 coming in our December issue!
Jessica Spoto
Editor, Franchising USA
Franchising USA
FOOD Fr a nch ises
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