Restaurant Franchises are Still Trendy
Francorp Chairman, Don Boroian, spoke at the QSR Dine America 2011 and sheds light on recent trends in restaurant franchising.
As franchising continues to grow and drive economic growth, franchisors are now preparing for the new generation of franchisees. Consumer tastes are shifting as the wave of next generation franchisees don’t want to get into business with the traditional franchise concepts. Young entrepreneurs are looking into new franchise concepts where they have the consumer mentality. Trendier, newer concepts are experiencing a spike in franchise sales that can be attributed to the franchisee’s desire to be cutting edge and align with a concept that they would shop at themselves. The younger entrepreneur is looking to be a part of the funky, up-and-coming trend that can be sustainable for franchise growth.
More fast-casual burger concepts are stepping up to the plate focusing more on their specialty rather than broadening their menu like McDonald’s or Burger King. According to a recent Technomic study, fast-casual burger joints that focus entirely on burgers are a driver of growth in the mature burger category, growing sales by 16.4% in 2010, while the typical hamburger segment grew 1.6% overall.
Food trucks allow a business to get into areas where a traditional restaurant location would never be able to go. In a recent study conducted by the NRA, more than one-quarter (28%) of those who saw a food truck this summer made a mobile foodservice purchase. Consumers are looking for a quick, healthy, quality on the go product. Many restaurants are using the food truck as a vehicle of validation before opening up a full brick and mortar unit.
With the industry experiencing a growth, now is the time to see if franchising makes sense for you.
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