Fast-food companies may have taken a battering in the press as a result of the nation’s increased obsession with its health, but this market still remains strong.
The figures speak for themselves. While the overall food market grew by 32% between 1993 and 2004, the fast-food sector jumped by 80%.
As for the negative press fast food has received in recent years, chains have begun to improve public relations and resolve problematic issues
More people are living alone and working longer hours, and are unable or unwilling to cook for themselves, providing fast-food purveyors with a constantly growing market.
As for the negative press fast food has received in recent years, chains have begun to improve public relations and resolve problematic issues. McDonald’s, for example, has given some of its stores an understated makeover, addressed health concerns by introducing salads and wraps, and associated itself with a number of environmental projects.
The popularity of Subway — the ‘sub’-sandwich franchise which now has more outlets than McDonald’s in the US — in part reflects a greater interest in the nutritional value of food.
Know-how and resources
So the fast-food sector is robust, and franchising is still a viable and popular way of setting up your own business. Brands such as Perfect Pizza, Burger King and Subway offer you a chance to enter the market as an entrepreneur, but with the know-how and resources of a major multinational behind you.
As well as the provision of training and an established brand name, you can access cheaper supplies through your franchisor. More often than not, the company will help you choose a location far superior to any you could afford independently.
You will also benefit from the marketing activities of a huge brand that will have nationwide reach and the use a broader spectrum of media than you could ever afford.
On the other hand, you won’t have the same degree of control over the business that you would as an independent operator. You won’t be able to replace the McChicken sandwich with your own creation or cut the price if sales are poor.
Nevertheless, a company like McDonalds doesn’t get 1,000 stores nationwide by being incompetent. Rest assured, they, or any other well established, successful franchisor, will constantly review menus and prices, and change them accordingly.
Franchising can be expensive (a McDonald’s outlet in a busy city centre location can cost as much as half a million) and franchisors will usually be quite selective over who they choose. Then again, would you expect a franchise that wasn’t fussy about its franchisees to survive?
And applying to become a franchisee gets you a free, objective test of your credentials as an entrepreneur. If they turn you down, then you need to consider the reasons for the rejection, and whether they render you unsuitable for running businesses altogether, franchises or otherwise.
