Why a food franchise could be the best investment for 2022
At first thought, going into the food industry seems foolish. Restrictions from Covid-19 have given a body blow to the hospitality industry – but things are not as bleak as they seem. Whilst 2021 has been a year of disruption, rethinking and reassessing, this crisis has created an opportunity like no other – an opportunity to rethink how the food industry works and to create a revolution in working practice. These innovations and strong forward steps make taking on a food franchise an exciting prospect. You could be part of something truly exciting and potentially incredibly lucrative.
Although we’re only half way through 2021, start your due diligence now, start enquiring into food franchises, and you could be earning a six figure income by 2022.
Living through a pandemic has meant accelerated adaptation. The food industry has had to explore new technologies, such as robotics and drones, new premises, such as cloud kitchens, and new ways of getting food to the consumer – as seen in the enormous rise in rapid delivery services.
There is also a strong sense of future-proofing – of creating a business model that can adapt and change as necessary and respond to future high impact events. It is this combination of quick learning and savvy thinking that means the food industry is steps ahead of many other businesses. People will always want to eat, and by being forced into rapid change, restaurant franchises and other elements of the food industry have undertaken a great deal of groundwork making them one of the most exciting opportunities for franchisees in 2022.
Let’s have a look at some global food franchise statistics:
- Online food delivery providers are expected to attract revenue of US$151,526m in 2021.
- The annual growth rate is expected to be (CAGR 2021-2024) of 6.36%, resulting in a projected market volume of US$182,327m by 2024
- The most significant growth area is provider-to-consumer delivery with a projected market volume of US$79,608m in 2021.
Innovations and reinvigoration
As food technology startups increase and the role of the internet as a primary means of platform-to-consumer interaction reaches unprecedented levels, innovations such as dark, or cloud, kitchens have emerged as clear leaders for the essential changes to the industry. These changes are likely to stay too – consumers have discovered the convenience of familiar takeaway franchises can be adapted to any one of their favourite restaurant franchises, meaning choice is wider than ever before. It’s not that the tradition of “going out to dinner” is over (in fact, this is expected to surge as restrictions lift), more that the increased convenience of enjoying favourite dishes at home has essentially doubled the market. Adopting the dark kitchen model not only means the food industry is prepared for future restrictions, but it has bolstered its income for “normal” times too.
Lower overheads can mean lower risk
The dark kitchen model offers a way to grow your franchise with far fewer overheads. Reducing costs on things like high-value real estate or prime location rental rates, as well as apparent incidentals like interior design, means the dark, or cloud kitchen model offers a way for the food industry to operate efficiently and with less of the hazards involved in traditional restaurant operations. It’s likely the two types of set up will run side by side, rather than one or the other, but the presence of the cloud kitchen model is one that bolsters confidence in the industry.
What types of food franchise could I choose from?
The obvious choice is an internet-based delivery platform, such as Local Eats, a franchise that offers all the perks of a top-quality delivery platform, and the added USP of a distinctive local identity, which taps into consumer desire to support local businesses over big-box names.
If you like the idea of diving into a more traditional type of takeaway franchise, then there is a myriad of opportunity across all cuisines, as well as sector-specific franchises such as mobile bars and innovative cocktail delivery.
It’s also worth taking note of key food trends, and there’s no doubt that health-driven eating is coming through as a super-strong growth sector for 2022. Taking a franchise that celebrates naturally healthy food such as You Me Sushi is a sure-fire way to make your franchising dreams come true. As we all begin to take stock of the impact of a lockdown lifestyle, proven healthy options that offer more than a nod to known life-enhancing diets such as those from Japan or the Med are likely to be big news.
Other opportunities like The Dice Box franchise offer fun and excitement – not just to the public, but to you and you can enjoy what you do. The Dice Box is a board game cafe franchise with a shop and cafe, consisting of multiple revenue streams for a profitable franchise experience.
If a restaurant or takeaway franchise sounds like it could be your next business move, then take a look at our food franchises. Franchise UK offers a portal to thousands of innovative, creative, and forward-thinking franchise opportunities that will take you through 2022 and beyond.