Why Restaurants Make Better Franchise Investments

Savvy investors receive a blueprint for success when they work within the franchise framework to build a community-supporting establishment—especially one that delivers consistent quality food and service. With an ample supply of labor and some of the biggest potential profits, there’s a reason restaurant franchises are favorable for investors.

  1. Restaurants are essential. Takeout or food delivery is critical to the way 53% of Americans live, according to the National Restaurant Association. Though 60-90% of restaurant food was consumed off-premises, a desire for in-person dining persists– with 80% of Americans. Many state they haven’t gone out to eat as often as they’d like to since the pandemic started. However, people love the change of scenery, the socializing, and the break from routine. Owning a restaurant franchise is a way to positively impact people’s daily lives, whether they’re dining in or picking up.

  2. Restaurants build communities. The number of restaurants in a given area is one metric for a healthy local economy, as it supplies food and jobs while building community and attracting tourism dollars. In addition, investing in a restaurant franchise adds a quality establishment that is likely to succeed and contribute to the stability of the neighborhood.

  3. Franchise restaurants offer brand recognition. Customers appreciate good food and consistency above all else. Franchise restaurants will share the same design, menu, prices, operating hours, and policies, so customers who have been to one franchise can expect the same quality at another.

  4. Restaurant labor is easier to come by. Compared to service sector franchises, restaurant workers need fewer skills and less training to get started. Whereas a nail salon employee may require special certification, line cooks and servers can be trained in-house using a tested-tried-and-true franchise program. Teenagers can work as bussers and dishwashers. Unlike retail shops where nearly every employee is front-facing, restaurants have positions for front-facing and behind-the-scenes employees.

  5. Restaurants can be very profitable. Everyone has to eat. Some people go out to eat once a month, while others go out weekly. Referrals build a business like wildfire. Once a location is profitable, there is often room to scale to other parts of town and replicate the success. While restaurants have some of the highest startup costs in franchising, they also offer the biggest returns. On average, a fast-food restaurant’s profits are around $82,000 a year, but this figure can be much higher for businesses offering alcohol and a dine-in experience.

Contact Smokin Oak Pizza for information on restaurant franchise opportunities across the United States.