{"id":3642,"date":"2019-09-12T09:32:08","date_gmt":"2019-09-12T13:32:08","guid":{"rendered":"https:\/\/www.mbbmanagement.com\/?p=3642"},"modified":"2019-09-29T21:40:51","modified_gmt":"2019-09-30T01:40:51","slug":"restaurant-franchising-on-the-rise-2019","status":"publish","type":"post","link":"https:\/\/www.mbbmanagement.com\/restaurant-franchising\/restaurant-franchising-on-the-rise-2019\/","title":{"rendered":"Is Restaurant Franchising On the Rise In 2019?"},"content":{"rendered":"

Have you been considering getting into the restaurant franchise business<\/a>, but not sure if this is the right time to do it? Is restaurant franchising on the rise in 2019? Are you primed for success?<\/p>\n

According to the International Franchise Association\u2019s latest report<\/a> which was in 2018, the overall franchise industry is expected to continue to do well all throughout 2019. They projected that the number of franchise establishment would increase by 2.6 percent this year. And all signs so far point to a successful year not only for all franchises, but restaurant franchises in particular.<\/p>\n

There are several reasons for this continuing trend upward and we will touch upon some of them.<\/p>\n

Tax Cuts and Jobs Act<\/h2>\n

The Tax Cuts and Jobs Act<\/a> which was passed in 2017 and reduced corporate tax by more than 10 percent as well as helped reduce costs for franchises is one reason.<\/p>\n

High Consumer Confidence<\/h2>\n

A high level of consumer confidence has also helped. In March of this year, almost two hundred thousand new jobs were created and unemployment was low. This means your customers have a lot more discretionary money to spend.<\/p>\n

Reduced Real Estate<\/h2>\n

An emphasis on reduced real estate has also been instrumental in the rise of restaurant franchising. Rent or mortgage for location is never cheap and the more square feet you need, of course the larger your bill.<\/p>\n

To reduce their overall overhead, many restaurant franchises are choosing smaller locations and putting more of an emphasis on off-site options like delivery and catering. Food delivery apps for these restaurant franchises are on the rise to facilitate the whole process. Satellite and kiosk locations have also become popular methods to reduce overhead costs.<\/p>\n

Focus on Building Customer Base<\/h2>\n

Concerted campaigns to build customer frequency and overall base are also important ingredients to a restaurant franchise\u2019s success. By creating incentives like customer awards programs to keep loyal customers and new products and services to attract new customers, restaurant franchises are ensuring their viability.<\/p>\n

Going Global<\/h2>\n

When a restaurant franchise is able to successful expand its territory that is a clear sign of its profitability. The more global, the better. A large majority of U.S. franchisors are looking overseas for new territory. Markets to look out for include India, Australia, The Middle East and China.<\/p>\n

The Team Approach<\/h2>\n

Some investors are using the team approach to make investing in a restaurant franchise more doable. If you are not sure about running a franchise on your own, collecting a team of investors might be the better approach.<\/p>\n

Multi-Unit Ownership<\/h2>\n

Multi-unit ownership of restaurant franchises<\/a> has also led to overall financial growth in the sector. Once a franchisee has a proven business model that works it is easy to expand those principles to new locations as well.<\/p>\n

Focus on Restaurant Technology<\/h2>\n

Technology is everywhere these days and the smart approach to it for any business is to find better ways to enhance how you do business using different types of technology. For example, using tablets to take orders.<\/p>\n

Adopting a Business within a Business Approach<\/h2>\n

Finally, there has been a rise in restaurant franchises<\/a> using a business within a business approach. What this means is that a restaurant franchise sets up inside another business. With this approach, rent is cheaper and you have access to a whole new set of customers.<\/p>\n

If you are sold on the idea of joining the restaurant franchise business<\/a>, consider also hiring a franchise consulting company to help guide you to success. They can offer you more tips like:<\/p>\n