Food and drink franchise sector overview
The food and drinks sector is the one most people immediately associate with franchising, mainly due to one of the world’s most famous and successful franchises – McDonald’s . Figures released in 2007 by McDonald’s show that the brand has 31,000 restaurants operating in more than 119 countries on six continents. It is estimated that 70 per cent of these restaurants are franchised.
Although McDonald’s is one of the most famous brands within franchising, there are many others that have global name recognition. Some of the big brand names that have achieved substantial international growth through franchising include Subway, a USA-based sandwich chain that was founded in 1965 and now has 33,907 restaurants in 95 countries, and Domino’s Pizza, a takeaway pizza company that started franchising in 1967 and currently has over 9,000 stores worldwide. Although these brands have established international franchise networks they are still seeking Master Franchise Owners and single-unit franchise owners to continue their expansion.
One of the main benefits of franchising from a well-known brand in the food and drink sector is that people like to eat in places that they are familiar with. If someone from the USA, for example, is visiting Egypt and unsure of where to eat more often than not they will naturally head for McDonald’s over an unfamiliar restaurant chain because they know and trust the brand. As well as this, these global brands have experience in entering new markets and how to adapt their menus to ensure that they respect local customs and cultures. They also tend to have efficient support teams in place to help franchise owners with their business.
The downside for many entrepreneurs looking to franchise a well known brand in this sector is the investment fee is usually very expensive, especially if they are looking to purchase the Master Franchise rights. As well as this, particularly in relation to Master Franchises, these brands want to ensure that their franchise owners have the capital and systems in place to successfully expand their concept. For this reason many of the well-known brands are franchised by companies and experienced business partnerships, however individuals are known to purchase single unit franchises. As well as this, just because you are franchising a global brand does not automatically mean that your business will be a success and make a large profit. These businesses still require the same amount of hard work and dedication to be a success as smaller brands.
In addition to global chains, there are numerous up and coming brands in the food and drink sector that offer franchise owners the chance to help build the brand’s international profile. One of these is C House, an Italy-based coffee house and lounge , which has established a successful franchise network across Italy, as well as expanding into Greece and Lebanon, and is actively looking for franchise partners to continue its growth.
The Australia-based brand, Gloria Jean’s Coffee , has also achieved great success in franchising its concepts across Australia and internationally. The brand has signed 38 Master Franchise agreements across 37 countries, and welcomes interest from those wanting to help continue its expansion further.
If owning a franchise in the food and drinks sector is what you are looking for then the food and drink and showcase section on this website features many different types of opportunities in this sector.
Written by Derin Clark