According to Statistica, quick-service restaurants are the largest segment of the franchising industry. His segment comprises more than $241 billion of the industry’s total economic output.
Part of the reason why this segment continues to do well is that it is adapting and evolving to suit the ever-changing needs of consumers. In our article, our team at Franocity has spoken about three things that are changing the face of the foodservice industry.
We have done this because we want those interested in becoming foodservice franchise owners to have the knowledge they need to decide if this franchise niche is right for them. So if you’re considering buying a franchise, this article will likely be of interest.
What Are The Three Things Changing The Face Of Food Service Franchises?
It might surprise you to learn that significant changes are occurring in the foodservice franchise industry. Below we have discussed three of the most significant changes you need to know if you’re considering becoming a food service franchise owner.
An Expanding Adoption And Availability Of Delivery Services
The expanding adoption and growing availability of delivery services are one of the key elements changing the face of foodservice franchises. More and more restaurants are deciding to offer outsourced delivery services alongside or in conjunction with their own delivery options.
Suppose you’re considering buying a franchise in this industry. In that case, you need to find out their delivery methods because it won’t help you invest in a franchise that does not offer delivery services.
Since most people want to have their food delivered, especially in the age of Covid-19, it makes perfect sense to invest in a franchise that has taken the time to take advantage of the latest delivery methods.
You also need to determine how much revenue a franchisor makes from offering deliveries. This will allow you to determine how successful their delivery service offerings are. This information will also help you establish why delivery revenue is low or high and how to increase delivery profits.
Convenient Cashless Payments
The second thing that is changing the face of food service franchises is cashless payments. It is predicted that more franchises will choose to go cashless shortly for many reasons.
For example, a restaurant that has decided to accept cashless payments has improved employee safety. They have also become more space-efficient by getting rid of clunky cash equipment and have helped streamline their sales by ensuring faster-moving lines.
Additionally, franchises with cashless payments also save money on processing cash because they cut out the up to 10% in overhead costs needed for this task. These are some of the reasons why it would be a good idea to invest in a franchise that has already gone cashless or is doing so.
Fewer Sit-Down Restaurants
It might be somewhat challenging to believe, but the age of sit-down restaurant franchises is almost over. More and more franchisors are choosing to create new restaurant designs that don’t involve dining room areas.
This is primarily because many people don’t want to be dining in during a pandemic. According to Burger King and Taco Bell, more guests want to dine off-premises, do takeaway, and use drive-thrus. These franchises and many others have used their considerable resources to analyze restaurant trends and consumer preferences to provide innovative restaurant designs, many of which have no dining room or only a small dining room.
Whether a franchise without a dining room is right for you will depend on many factors, but it is one of the key elements changing the face of foodservice franchises currently. Before investing, you need to consider a franchise’s current design or design plans to determine your consumer base’s dining needs.
With these changes and many more to occur, it’s important to make the right foodservice franchise decision. At Franocity, we can help you make your franchise dreams come true by helping you choose the right franchise for you.
We’re committed to working alongside you to determine your wants, needs, preferences, and budget to match you to the best franchise opportunity. You can speak to one of our franchise consultants by contacting us at 561-609-6200.