July 12, 2016 – Portsmouth, NH – In addition to featuring the 40 food and beverage brands with the most satisfied franchisees including Church’s Chicken, Denny’s, TGI Fridays, Jason’s Deli, Zaxby’s, Culver’s, and Checkers & Rally’s, Franchise Business Review’s 2016 Top Food Franchises report assesses the investment opportunity the food and beverage franchise sectors offer, addresses factors that impact success, covers the latest industry trends, discusses what potential franchisees should look for in a franchise, and features advice from franchisors and franchisees.
“The food franchise sector is historically one of the toughest, but delivers a tremendous return on investment for many,” says Michelle Rowan, President of Franchise Business Review. “The food and beverage franchises in our 2016 Top Food Franchises report are performing well in many areas that are crucial to their franchisees’ success including leadership, training, and marketing.”
The importance of understanding how well a franchise brand is doing in key areas including those above is highlighted by the top five brands featured in the report scoring higher than all other brands that were surveyed in a variety of areas including 34% higher in Training and Support and 29% higher in leadership. Many of the brands featured within the Top Food Franchises report share how their franchisees rank their performance in detail within the Franchise Reviews section of FranchiseBusinessReview.com.
When it comes to return on investment, the average pre-tax income per food sector based on data collected from 3,396 franchisees who opted to share this information with Franchise Business Review is as follows: Quick Service Restaurant (QSR): $87,000; Fast Casual: $102,000; and Full Service: $151,000. Multi-unit franchisees’ financials tend to greatly surpass that of single unit operators. The average pre-tax income for a franchisee with one unit is $63,000 and $238,000 for those who own 5+ units. It’s important to note that there are franchisees who far exceed the average income that others in their system generate, while others do not achieve it.
Franchise Business Review’s report, which unless otherwise indicated features data collected from 5,800 franchisees representing 89 brands, found the following regarding how food and beverage franchisees feel about their businesses:
- 87% say they enjoy operating their business
- 74% say they would “do it all over again” knowing what they know today
- 77% would recommend their franchise brand to others
- 77% say they are satisfied with their franchise
- 75% say they believe their franchisor acts with a high level of integrity
- 79% say they respect their franchisor
It’s clear that entrepreneurs who invest in the right food franchise are happy they did. In addition, food franchises will always be in demand since eating is a necessity and Americans are increasingly not cooking at home. In March 2015, sales at restaurants and bars surpassed those at grocery stories for the first time since the Commerce Department started collecting data in 1992. The likelihood of this trend continuing is highlighted by the 261,923 food-related franchises (QSR, full service restaurants, and retail food) that account for an estimated $336 billion of economic output in the United States according to the International Franchise Association.
About Franchise Business Review:
Franchise Business Review, a national franchise market research firm that performs independent surveys of franchisee satisfaction and franchise buyer experiences, examines the critical areas of a franchise system including training & support, operations, franchisor/franchisee relations, financial opportunity, and more. Its survey results deliver the unbiased facts about the overall health of a franchise system directly from today’s franchise owners. The firm’s services include commissioned franchise research projects, as well as industry-wide studies of franchisee satisfaction. Franchise Business Review is headquartered in Portsmouth, NH, and can be reached at (603) 433-2270. Visit FranchiseBusinessReview.com or https://vimeo.com/58560862 for information about our franchisee satisfaction ranking methodology.