Food franchises account for nearly a third of all franchised outlets in the United States. As a result, the health of the food franchise industry is crucial to the health of the franchise industry as a whole, and trends in food franchising often make their way into other sectors.
5 Key Insights About the Food Franchise Industry
So, as we move forward in 2021, how is the food franchise industry doing? FranchiseDirect.com recently provided an overview. Here, franchisee attorney Jeffrey M. Goldstein covers some of the highlights.
1. The Food Franchise Industry has Been Hit Hard By the Pandemic, But is Still Poised for Long-Term Growth
Many food franchises have been hit hard by the pandemic. Mandatory closures, capacity restrictions and other economic impacts of the pandemic have been felt across virtually all segments of the food industry. However, many of the leading food franchise systems have shown both adaptability and resilience, and those with the capital to weather the storm remain poised for long-term growth.
2. Some Recent Trends are Starting to Take Hold
Some recent trends that seemed like they might fade are starting to take hold. Many of these trends are health and fitness-related. For example, juice franchises are still growing in popularity, and new vegan and vegetarian franchise concepts are emerging while many of the mainstay franchise concepts are adding vegan and vegetarian options to their permanent menus.
3. Established Models and Franchise Systems are Holding Strong
While new trends are emerging, established models and franchise systems are still holding strong as well. For example, McDonald’s, Taco Bell, Burger King, Dominos, Dunkin’, and other major food franchise brands are atop both the FranchiseDirect.com Top 100 Franchises and the Entrepreneur.com Franchise 500 for 2021.
4. Ghost Kitchens Might Be the Next Big Thing
Ghost kitchens – food concepts that offer delivery and takeaway options only – might be the next big thing in the food franchise industry. According to FranchiseDirect.com, some major brands are exploring the concept with plans to roll out new franchise offerings in 2021. There is a good chance that we will see many startup franchise systems in this segment in 2021 as well.
5. There is No Shortage of Options for Prospective Food Franchisees
From ghost kitchens to full-service restaurants, there is no shortage of options for prospective food franchisees. Wherever your interests lie, there are multiple options available, and choosing the best option for you will be a matter of gathering the information you need to make an informed buying decision.
Are You Thinking About Buying a Food Franchise?
If you are thinking about buying a food franchise, there is a lot you need to know. From a legal perspective, you must be prepared to conduct thorough due diligence, and you will need to carefully review the Franchise Disclosure Document (FDD) and franchise agreement before deciding to move forward. You will want to have these documents reviewed by an experienced franchisee attorney as well.
Contact Franchisee Attorney Jeffrey M. Goldstein about a Food Franchise Business Review
Our firm offers four fixed-fee franchise business review programs for prospective franchisees. If you are thinking about buying a food franchise, we encourage you to contact us for more information. To schedule an appointment with franchisee attorney Jeffrey M. Goldstein, please call 202-293-3947 or request a free consultation online today.
