Over $50 billion has been invested by franchisees in the QSR or fast-food restaurant, category since 2010, according to Franchise Grade. That makes QSR franchises one of the most invested franchise categories in the industry. Although popular, many franchisees are turning their eyes to this type of franchise because it has picked up steam over recent years. Before we look at why, let’s look at the bumpy road it took to reach this point.
Challenges of QSRs
Without a doubt, food service franchises are notorious for being more difficult than some other types of franchises. Quality control (or lack thereof) has made headlines. Business regulations, such as minimum-wage hikes and menu-label policies, have made it more burdensome to own this type of franchise.
Still, there’s something to be said about being a historically large franchise category. Pair that with new emerging trends and this category gets more enticing to those wanting to buy a franchise.
QSRs come with some serious name recognition, including national franchise chains, such as McDonalds or Subway. However, the QSR franchise category also includes regional franchise chains, unit franchises and independent operators. As the industry becomes more popular, more businesses are planting their stakes in the ground and giving way to the QSR model as a means for growth. This means more opportunity for potential franchisees.
A Perfected Business Model
Yes, the food service industry has had its fair share of blunders and blocks, but those challenges have only proven to strengthen the industry into what it is today. Now, when you open a QSR franchise, you’re given a playbook for how to navigate the otherwise murky waters, and a mentor that can guide you through these challenges. Over time, the business model has been perfected, so those entering the QSR industry today have a much smoother path to success than their successors.
The Possibility of Multi-Unit Ownership
Recent years have shown an increase in the number of multi-unit franchisee owners across the board. The QSR category is no different.
Now, franchisors are owning and operating more franchise units than before because the growth opportunity is so high. Doing this provides more organizational stability, better financial resources, and sustainable growth for the long term. Knowing that scalability is such a viable possibility has made the QSR category even more attractive.
Without a doubt, the paradigm has shifted and today’s modern consumer expects different things from the businesses they patronize. This includes the technology used to place orders and receive their food.
In the QSR industry, there has been a distinct increase in the use of technology, such as kiosks to take orders and smartphone app ordering. These operational enhancements not only make it easier on the end consumer but also the business owner. Franchise owners today can operate multiple units easier because the technology has made it easier to automate certain activities and helped reduce overall costs.
Is a QSR Franchise for You?
Although food service franchises have a reputation of being difficult to manage in the past, times are shifting. If you’re interested in working in this fast-paced industry, now is the time to get in. With the advancements that are continuing to steamroll ahead at a record pace, people considering a QSR franchise should hop on board this train and ride it into success before the market gets more saturated.
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