Should you invest in a fast-food franchise? Explore some pros and cons, as well as the top factors to consider when comparing franchise industries.
Creative Colors International has more than 32 years of experience in franchising. As a mobile leather and vinyl repair leader, we understand the factors to consider when choosing the right industry for you. Before you sign a franchise agreement, make sure you familiarize yourself with your industry of choice. It’s important to ask the right questions and consider four key factors.
- Income prospects. What is your profit potential? Does it meet my financial goals?
- Demand. Does this industry have wide appeal? Is demand for the products and services growing?
- Flexibility. Will this industry allow me to balance work and family? Does it meet my lifestyle goals?
- Barriers to entry. Is this industry within reach? Do I have the budget to pursue a future in this market?
Fast Food’s Wide Appeal
Now that you understand the factors to consider when choosing an industry, let’s take a closer look at the pros and cons of a fast-food franchise.
Fast food is the answer if you need to fuel up on the go. It’s a quick, convenient solution to appease your hunger pangs. We take comfort in its consistency and appreciate the familiarity of a fast-food meal. Whether you’re craving burgers, burritos, or grinders, you can satisfy your craving by hitting a nearby drive-thru.
Heavy workloads, busy schedules, and convenience make fast food a staple. There were more than 188,402 fast-food franchises in the United States at the end of 2021, and experts forecast the number to rise by 2.1% to 196,426 by the close of 2022. Convenience continues to be a top priority for younger generations, and they are willing to pay for the fast, convenient fare. Fifty-four percent of adults said purchasing takeout or delivery food is essential to the way they live, including 72% of millennials and 66% of Gen Z adults, according to the National Restaurant Association.
Investing in a food franchise offers an opportunity to achieve the American dream. You gain access to a thriving brand that appears to be impervious to current events and the economy. Following the pandemic outbreak, full-service restaurants floundered as they had to pivot their services and launch curbside pickup and delivery to stay open. But fast-food restaurants stayed steady on their course as drive-thru lanes bolstered business. The fast-food business model was prepared to easily add delivery and adapt to new safety protocols. Many locations are already testing automation technology and launching smaller footprints requiring fewer employees.
Fast Food Franchise Drawbacks
Before delving into the world of French fries and soft serve, it’s important to evaluate whether it will meet your financial and lifestyle goals. The restaurant business has tight margins, high stress, and long hours.
Here are a few major drawbacks of pursuing a fast-food franchise.
- No flexibility. People turn to business ownership to take charge of their financial future and achieve self-sufficiency. Fast-food restaurant owners work long hours in a high-stakes atmosphere. Coping with harried customers and managing a team of workers may be more than you’re ready to tackle.
- High initial investment. A fast-food restaurant needs a prime location with a large footprint to attract customers. People make fast-food decisions on the fly and proximity plays a big role in where they stop. As a result, opening a fast-food restaurant is costly and requires extensive financing to get started.
- Hiring shortages. The fast-food industry is plagued by high turnover and staffing shortages. Building a solid team is an ongoing struggle for many operators. The fast-food industry is turning to contactless ordering and automation to help limit employee counts, but retaining reliable staff is still a headache.
- Extensive red tape. Any business in foodservice requires navigating a sea of red tape. Obtaining licenses, meeting food safety requirements, and ensuring employees have proper training is a heavy load.
CCI: A Flexible Choice
If the drawbacks outweigh the advantages of a fast-food venture, CCI has a low-investment and high-reward service franchise in a thriving industry to consider. We are the leader in mobile leather and vinyl restoration. Our technicians use sustainable solutions to make repairs and prevent the need to buy costly replacements. Our franchisees can start out as owner-operators and conduct most of their administrative tasks from a home office. As they gain a foothold in their market, they can scale the business and take advantage of multiple revenue streams to meet their financial objectives.
If you are ready to learn more about a fast-food alternative offering work-life balance and high growth potential, download our franchise kit to learn more about partnering with CCI.