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.
It might just be that you had the right personality profile, but were lacking the requisite experience for that particular franchise. Either way, don’t be disheartened: the franchisor, which knows what it takes to succeed at running one of their franchises, has just saved you thousands of pounds.
Long hours
Even with the support of an experienced, helpful franchisor behind you, fast food can be quite a stressful area of business. Hours can be long and some outlets will be open from breakfast right through to post-pub, or even post-club, hours.
Preparing the food is formulaic and places no demands on your culinary imagination, although food hygiene certifications and catering experience are advantageous.
Subway offers the greatest number of opportunities to prospective franchisees. Already poised to overtake McDonald’s as the UK’s largest fast-food operation, it opened its 1,000th store in July 2007 and is opening around six stores every week.
With stores generally much smaller than McDonald’s outlets, it is also a comparatively affordable franchise, one of the factors that saw it named the number one franchise opportunity in Entrepreneur Magazine’s ‘Franchise 500’ rankings for 2007, the 15th time the company has won the award.
Subway appears on FranchiseSales.com along with two other sub-sandwich franchises, Cousins Subs and Quiznos Subs. Fast-food veterans such as Burger King, McDonald’s and Wimpy also offer franchise opportunities on the site.
If you fancy selling pizzas, then Perfect Pizza, Domino’s Pizza and Figaro’s Pizza are on there, too. Favorite Chicken & Rib’s is the British equivalent of KFC, while Wings Pizza N Things is a mid-market restaurant with takeaway and delivery.
McDonald’s, for now, remains the UK’s leading fast-food outlet, although less than 30% of its 1,200 stores are franchised in the UK. Requirements for franchisees are quite stringent.
“To operate a McDonald’s franchise you need the managerial and personal skills necessary to run a business employing 50 or more people and serving half a million customers a year,” the company says on its website. “You’ll also have to make a commitment to run the business, day in, day out, for at least 20 years.”
McDonald’s operates a rigorous selection process, seeking individuals with leadership, business and management skills, and a track record of success in any field. Catering experience isn’t a requirement, however.
If you can meet the stringent criteria then there’s little doubt you’ll be working for a safe pair of hands. “You will get the benefit of over 40 years’ food service expertise,” says the company. “We will match your commitment by providing national advertising and promotional support as well as individual advice.”
If you want your business to have a high chance of success then you could do worse than consider a fast-food franchise. There are plenty of well-established, reliable operators to choose from, and if you can convince them that you’re up to the job – although this won’t be easy – then you can be as confident of success as it’s possible to be in business, even if you have no interest or experience in the food industry.
That’s something you certainly couldn’t say about running an independent restaurant.
