Price. Convenience. Taste. Like all industries the food retail sector can sometimes be turbulent, but these three words are the key factors that make fast food franchises your most sensible investment options.
For the last seventy years the fast food industry has been the most recognizable and popular food industry in the world. It represents products that are loved by all and each restaurant’s own specific varieties of such products are part of the American zeitgeist.
Having a renowned parent company handle the marketing and brand-development aspects of your business is assurance for any investor that due attention can be given towards producing a consistently quality product that will ensure that customers will return time and time again.
“What kind of fast food franchise should I invest in?”
Whilst it can cost upwards of two million dollars to invest in some of the most well known franchises, smaller, rapidly expanding family-owned businesses can offer you lower start-up costs and unlimited potential for growth.
Knowing a little more about the different kinds of franchises out there can help you make a sound investment.
Recent years have heralded an increase in the popularity of ‘gourmet’ fast food, and sandwich franchises have attempted to capitalize on this. Although these are more expensive than standard fast food franchises they are more likely to attract ‘foodie’ style customers.
6. Confectionary items.
In 2014 it was projected that the U.S confectionary market was to see an increase in sales to the tune of around six billion dollars, proving that the American tooth is sweeter than ever. Chocolate is rated as the most sought after confectionary item.
5. Ethnic cuisine.
Over three quarters of Americans eat ethnic cuisine at least once a month, the most popular choices being Chinese and Mexican food. They are particularly popular with younger generations (around 18-35 year olds).
4. Juice bars.
Rarely heard of thirty years ago, juice bars have increased in popularity with the rise of the health-minded fast food consumer. Juice bars attract customers who seek more ‘wholesome’ products that are marketed for their nutritional benefits. They are also able to tailor products to target specific consumers (the ‘post-workout smoothie’, for example).
There was once a time when the fast-food chicken industry only meant greasy, fried chicken, but the recent rise of chicken as ‘a healthy alternative’ – grilled chicken, chicken salads, wraps etc. – put chicken franchises third in our list. In recent years chicken has been cheaper to purchase, making a chicken franchise an attractive investment.
According to a recent survey pizza is the third most popular food in the United States. They’re variable, cheap (the average American pizza costs less than $14) and, crucially, one pizza feeds a whole group of people, which is perfect for attracting the family market. A pizza franchise would be the perfect place for your investment if it weren’t for …
Our top suggestion is hardly a surprise. The hamburger is a huge cornerstone of the American culinary spectrum and McDonald’s no.1 selling meal worldwide is a hamburger with fries. Of the top twenty fast food restaurants in the U.S., eight sell hamburgers, and hamburger franchises are accountable for around a third of the market shares for quick service restaurants. Pizza shops, in second place, account for less than half as much.
Hamburgers can be marketed towards customers who prefer ‘gourmet’ options, with more eclectic ingredients, or served as a basic cheap and cheerful option to customers who prefer a classic fast food option. This flexibility, of course, allows franchises to reach out to a wider market.
There was once a time when hamburger franchises were region specific, with chains such as ‘In ‘n Out Burger’ dominating the west coast and ‘Five Guys’ the east. Now, as this Buzzfeed article (viewed over 1.2 million times) shows, there has never been such potential for smaller franchises to grow.
$570 billion revenue
Your choice to invest in the fast food industry is a wise one. Every year the revenue of fast food is $570 billion, and around a third of this revenue comes from the United States. With rapid expansion of many family-run fast food franchises that require smaller investment, the market is bursting with opportunity.
The industry is always fluctuating and growing and there are more investment options than ever. Sure, the rise of speciality franchises have given customers more choice than ever, but my money is still on the classic American hamburger.
Zac's Burgers is presently not selling franchises and does not have a certified franchise disclosure document. Zac's is offering licensing opportunities, however, potential licensees must meet all federal and state requirements.