Franchising in the Specialty Food Business

Specialty Food Franchises



Franchising has been known for decades to be the expansion vehicle of choice for restaurants, food businesses and other retail concepts.  The ones that have outpaced the growth curve for franchise industry averages are the specialty food franchises.  With such a saturated market in most major industries, Burger and Fry franchises struggle to get any attention when they enter the franchise marketplace.  The truly unique and dynamic food franchises are the concepts that can excel in franchise growth and have continuously set the standards for growth.

What specialty food concepts fit the bill for franchising?

1.  Concepts that create a market have a wonderful track record for franchise lead generation and overall system growth. Everyone wants the new "shiny" franchise that brings a fun, energizing idea to the market.  Oversized pretzels, frozen yogurts and cupcake franchises have all had their moment in the spotlight at different times.  Each experienced phenomenal growth and outpaced the industry averages for food businesses.

2.  Specialty food concepts that have the numbers to back them up always perform better in the franchise marketplace.  Glitz and glamour will take a franchise only so far, eventually, the people who invest in the franchise system should see profits and ROI from their time and money they put into the business.  Good specialty food franchises have at least a 20% ROI by the second year in business from a cash standpoint.

3.  Specialty food franchises do better when the investment is reasonable.  Franchising is all about volume and replication, if you are priced out of the market there will be less of an opportunity to find qualified franchisees to open locations in their market.  Specialty food franchises that keep the investment down tend to grow much more effectively in the franchise marketplace.

4.  The bottom line is always whether the customer wants what the specialty food franchise has to offer.  No matter how great the "idea", if people aren't willing to pay for it, the franchise system won't grow!

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