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Fast Food Franchises: Consumers Are Starving For Convenience

Guest post by: Cory Barber

Article Overview: Most fast food franchises are reporting growth and continue to be extremely successful, despite the economy. Drive around your local business district on a Friday or Saturday evening and you’ll notice that parking lots are always nearly full. The fast food industry continues to move full-steam ahead. The industry's annual sales have nearly tripled over the last 15 years, easily surpassing the $200 billion mark in 2006.

Fast Food Franchises: Consumers Are Starving For Convenience

Most fast food franchises are reporting growth and continue to be extremely successful, despite the economy. Drive around your local business district on a Friday or Saturday evening and you'll notice that parking lots are always nearly full. The fast food industry continues to move full-steam ahead. The industry's annual sales have nearly tripled over the last 15 years, easily surpassing the $200 billion mark in 2006. Although they may need to postpone that trip to Disneyworld or buying that new inground pool during tough times, consumers actually are more inclined to splurge on convenience, especially meals, particularly when both mom and dad are working full time jobs. Time starved families have little time to prepare food at home, nor do they feel like it, after working all day and fighting rush hour traffic.

Fast casual restaurants continue to be fueled by the consumer's ever increasing need for convenience. More than half of the adult population claim they are simply too busy, and convenience is a critical part of their lives that they are more than willing to pay for.

Why a franchise rather than an independent restaurant, you may ask? Respected, well-known brand names instantly draw customers into your business. They know and expect the same outstanding quality food when they visit a Burger King, whether their dining in Portland, Maine or Portland, Oregon.

Franchises offering "comfort foods" are thriving particularly well and their ability to be resilient despite the current economic downturn is very encouraging to potential franchisees. After all, however bad the economic news, consumers still want their favorite fries or take-out pizza. Although they are more likely to be trimming on the prime rib dinners, those small luxuries of life are that much more significant. The criteria for selecting a restaurant continue to be quality cuisine, a well known established brand or name, and, of course, price.

Co-branded franchises are increasingly popular these days. Taco Bell and Pizza Hut have been known to share the same building, giving the franchisee a wider, more diverse customer base, while increasing profitability simultaneously.

With the trend toward healthier lifestyles, the fast casual healthy concept has been able to thrive as well, despite the downturn. Consumers are becoming increasingly concerned about the food they are eating. More and more, you are seeing the greasy burger joints now venturing into fresh salads, fruit, and vegetarian plates to accommodate those health conscious consumers. Again, this provides for a larger share of the market that may otherwise have been missed.

Of course, there are some drawbacks that go along with owning a restaurant, or fast food franchise. Labor can be a challenge and turnover rates are higher than in other industries. Although the initial investment is higher than other business models, banks and lending institutions tend to be more apt to approve business loans, particularly because of the higher revenue that is generated compared to other business models.

While you may initially question the decision to become a fast food franchisee, keep in mind that consumers, and their love affair with fast food, is here to stay. In fact, in strained economic times, people are inclined to buy that egg muffin or hot dog as a "comfort food" even more. You'll receive solid support and training from the franchisor, not to mention the prestige of owning a popular fast food restaurant franchise.

So, which one should I look at? An experienced franchise consultant can assist you in finding the ones that meet your financial ability, as well as provide specific details about the key advantages of each.

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Article Tags: fast food franchise, fast food franchises, franchise consultant, franchise consultation



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