Restaurant Franchise Opportunities in the United States of America

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Restaurant Franchise Industry Overview

With the average American household spending around $3,000 per year on eating out and around 58% of American adults eating at a restaurant at least once a week, it’s no wonder that the fast food and restaurant industry brings in around $800 billion to the US economy every year, accounting for 4% of the national gross domestic product (GDP). 

As for revenue, around $250 billion is brought in by the fast food sector alone, considered to be at the top of all franchise restaurants. 

The US restaurant industry is so large that in 2020, there were over 660,000 restaurants in the country. However, this figure has quickly jumped to one million. 

With this in mind, it’s also worth considering that the restaurant industry employs around 10% of the total population, while almost 50% of adults have worked in the industry at some point in their careers.

And with ample restaurant franchise opportunities available, now is the perfect time to purchase your own food franchise business opportunity.

Restaurant Industry Trends in 2023

For those considering restaurant franchises for sale or fast food franchise opportunities, it’s important to keep one’s pulse on the industry. This means taking into account important trends and factors influencing the business model of fast food restaurants or full service restaurants. Here’s what you need to know before you get started:

  • The Covid-19 pandemic may have halted sit-down or dine-in restaurant experiences but that’s not to say that fast food franchise opportunities didn’t thrive. That’s because they were able to accommodate drive through requests, takeout orders, catering, and off-premise services. 
  • Among the main innovations in the fast food franchise industry specifically catering to drive-through concepts are the addition of digital menu boards, the expansion of drive-throughs into dual lanes to accommodate more customers, as well as incorporating tools such as artificial intelligence. 
  • Automation is also becoming increasingly important in fast casual restaurant franchise opportunities as many franchise owners are gearing up. For example, as recently as 2020, mobile food ordering raked in $38 billion in revenue for that year alone. Digitalization is therefore becoming increasingly important. 
  • Further developments in the general and franchise food industry include developments related to delivery services. Whereas some franchisors have implemented in-house delivery, others have opted for third-party delivery services. Curbside pick-up is another innovation.
  • Franchise restaurants are also increasingly opting for the “ghost restaurant” concept, which means that these restaurants enable owners to enjoy low operational costs because they do not need to pay for rent and premises, pay large teams on their staff, or purchase furniture and decor. 
  • A further innovation in fast food and restaurant franchised businesses involves providing eco-friendly fast food services. Using recyclable materials such as paper instead of plastic or foam cups for paper cups, there is a great shift toward using more sustainable materials. 

Why you should consider a restaurant franchise opportunity

Restaurant franchise opportunities are highly beneficial for aspiring entrepreneurs in that with practically immediate earning potential, they can recoup their investment in a very short space of time. But there’s more to where that came from when it comes to restaurant franchises for sale. That’s because these franchises offer the following perks as well:

  • Starting out with restaurant franchises for sale comes with tons of options. From burger joints and pizza to deli and bagels and specialty food counters, there’s something for everyone.
  • The fast food and restaurant franchise business model is proven, tried and tested, as well as profitable.
  • With fast food franchise restaurants, you will be able to enjoy strong brand recognition by your customers, ensuring you don’t have to painstakingly build a brand from scratch or look for new customers. Since they already know your brand, your customer base is covered.
  • Enjoy strong buying power from the relationships your franchisor has established with suppliers to keep your costs low.
  • Buying a franchise is much easier than starting from scratch. That’s because you have the full concept, recipes, branding, and everything else in place when you get started. All you have to do is focus on your operations.
  • Another reason why you should consider a restaurant franchise opportunity is because you will get access to multiple resources including software, systems, recipes, suppliers, marketing, and more.
  • The support system at a franchise restaurant is strong. You will not only get help from corporate headquarters but also from the relationships you establish with the remaining franchisees in the network.
  • Many franchisors in the industry also provide incredible marketing and advertising support as well as resources.
  • Because fast food franchising restaurants often require a physical location, your parent brand should be able to assist you with connections to real estate expertise.
  • Of course, you will not go without world-class training to accompany your investment and to ensure that you develop the right skills to deliver the best possible meals that are expected of the brand.
  • You will also likely have access to a business and HR support package that will help you adhere to tax and industry regulations.

How much does it cost to open a restaurant franchise business?

With hundreds if not thousands of fast food and restaurant franchise opportunities available on the market, it’s only natural for you to wonder how much it will cost you to get started. On average, for your initial franchise fee, you are looking at anything from $50,000 to $6,000,000. Even though you can find franchises on the lower end of the spectrum, most popular chains start in the $200,000 to $300,000 range. Even though there are many concepts that can range from small-sized operations such as kiosks or vending machines, others are larger and will require solid equipment, real estate space, and more. In addition to your franchising fees therefore, you also need to have a certain amount of funds expressed as your net worth. As such, your initial investment will vary greatly depending on the model, format, type, products, and services that your chosen franchise brand offers.

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