trends and facts about food franchises
there are as many varieties of food franchises as there are types of foods! investments can range from the very high end of hundreds of thousands of dollars for full-service restaurants, to a moderate capital outlay for vending machines. there are franchises that specialize in sandwiches, barbeque, burgers, pizza, ethnic foods, candy, ice cream, smoothies and many other food types. food franchising is most often associated with restaurants, even though the industry also includes coffee, candy, smoothies, pretzels and other specialized commodities. the whole concept of franchising has traditionally been attributed to mcdonalds, and restaurant operations are especially adaptable to the franchise concept of consistency and uniformity.
the restaurant industry has earned a reputation for high risk and high rewards. some industry analysts claim a dubious 90 percent failure in the first year. franchise restaurants based on proven systems have a higher success rate -- about 62 percent over four years – than independent operators.
the national restaurant association forecasts restaurant revenues of $566 billion in 2009, at 945,000 restaurants nationwide. restaurant revenue is expected to grow 2.9% in 2009 and make up 4% of the u.s. gross domestic product.
the average full-service restaurant in 2006 grossed $867,000. the restaurant industry is the nation’s largest employer after the government. there are strong trends affecting traditional restaurant franchising businesses in this decade. with the economy slowing, and gas prices rising, people have less disposable income to spend on restaurants. construction costs are up, so new building is down. rather than building new units, many well-known franchises that previously occupied niche markets, such as taco bell and wendy’s, are expanding their offerings with “all-day” menus with breakfast, lunch and dinner specialties as well as free wi-fi and high-definition television to attract customers.
research indicates that consumers have strong preferences about choosing where to eat -- with 62 percent saying they look for “environmentally friendly” establishments; 70 percent want offerings not easily duplicated in their home kitchens; and 83 percent express approval of healthier eating options at quick service eateries.
the sale of organic foods generated $33 billion in revenue in 2008, and dropped off slightly in 2009 with the global recession.
food is a franchising force. when it's time to eat, people want a restaurant they can identify and trust. entrepreneurs know this and today food franchises of all flavors and cuisines enjoy global prominence. choosing the right food franchise involves extensive research, and so franchise direct has performed definitive analysis on the entire food franchising industry to make this decision easier for you. for our food franchise reports, we have assessed the franchise disclosure documents (fdds) of food franchises of all shapes, tastes and sizes, while carefully studying published industry sources. these reports are essential reading as you find the food franchise that is perfect for you.
we have produced the following 9 exclusive food franchise reports:
full service restaurant
health food restaurant
take-out and delivery
combined, these reports explain food franchising in full. these studies provide a comprehensive data breakdown on each food category. you'll find industry information as well as an overview of the estimated initial investment to open each food franchise. you'll also find individual franchise profiles with in-depth, specified information on each restaurant.
food franchises are a major player in the american economy, and as such continue to be a compelling investment. the food industry serves over 135 million americans every day and generates half a trillion dollars in annual sales. the sales for the food industry outnumber the us agricultural industry, airline industry and the motion picture industry combined. the food industry, which has created 2 million jobs in the last decade, has employed over half of all americans at some stage in their lives, and now employs over 13 million americans .
before deciding to invest in a food franchise, it is necessary to research the franchise and the industry carefully. these 9 reports provide a top-down examination of food franchising, from fast-food to full service and beyond. explore our reports to find out which food franchise will suit your dreams of success.
 national restaurant association
abstracts from food reports:
the term “full service” can encompass anything from a family-style eatery to an elegant restaurant; from casual dining to fine dining. with over 250,000 restaurants, full service restaurant industry sales were projected to reach $182.9 billion in 2009, up 1% over 2008.
a fast food restaurant, also known as a quick-service restaurant, is an establishment where food is packaged for immediate consumption, on or off the restaurant premises. the us leads the global fast food market, accounting for over 50% of the market's overall value.
fast casual restaurant
the fast casual restaurant sector, while being the newest and the fastest growing sector of the food industry, is a recent phenomenon. the fast casual industry caters to current consumer needs by offering a cheaper alternative to more expensive restaurants while offering customization and quality ingredients. the fast casual restaurant industry outperformed all other categories of the restaurant industry in 2009.
take-out and delivery
take out and delivery sales account for approximately 6% to 12 % of total sales in restaurant franchises that primarily cater for on premises business. nine in ten family and casual-dining operators and three-quarters of fine-dining operators offer food for takeout, according to the national restaurant association
the us pizza market is a mature, developed market and highly competitive. franchised pizza chains account for around 60% of the market and 93% of americans eat at least one pizza per month. this indicates that there is still a huge demand for pizza, whether it is delivered to your home or at a restaurant.
the coffee industry includes 20,000 stores with combined revenue of $11 billion. daily consumption of coffee beverages among consumers remained consistent in 2009 with 54% of the overall american adult population partaking. with more than 400 billion cups consumed per day coffee is the most popular beverage in the world.
ice cream shops are situated in an affordable treat niche market. the main target market for ice cream is children and families. 34% of such households consume 4 or more quarts of ice cream per month which is significantly higher than the 20% of the family-units without children.
the term ‘retail-food’ encompasses many types of store outlets, including candy stores, bakery stores, sandwich stores and convenience stores. the u.s. retail specialty food industry includes approximately 20,000 businesses, accounting for revenue of $20 billion annually.