Fast food is everywhere. We are a nation of fast food eaters. McDonalds, Taco Bell, and many hundreds of other fast food chains are a common sight, which makes anyone who wants to start a franchise wonder just how stable the fast food industry is. Are fast food franchises profitable? This is a good question, but there isn't a single, simple answer. Let's take a look at the profitability of fast food franchises and whether or not owning a fast food franchise is a good investment.
If you're like many Americans, the thought of owning your own business and being your own boss is appealing. Typically, a fast food franchise is often the first thing that pops into someone's mind when they think of buying a franchise. This is because so many of us have frequented one fast food franchise or another at some point in our lives. It follows logic that people spend money on fast food. In fact, regardless of the economy, fast food establishments still do business. This means you can still sell people food when there is a recession. Maybe not as much, but overall, people still eat in tough economic times.
How Much Profit Can Be Made with a Fast Food Franchise?
According to the
Investigative Report on Franchise Profits in the Entrepreneur, "restaurants have some of the highest startup costs in franchising. At the same time, they offer the biggest returns." Profits will vary from one fast food brand to another, of course, but overall there is a good profit margin in fast food and other types of restaurants. The real issue with fast food profitably comes from owner error. In the food industry, it's important to understand the cost of everything and the margin for profit. One major factor that can affect your profit margin in the food industry is waste. That's why anyone who wants to get into the fast food business should have some working knowledge of how the food business operates. Managing waste and food costs is crucial to making your fast food business a profitable venture.
Another challenge of running a fast food restaurant is that it consumes a great deal of time and it can be extremely stressful. It is absolutely essential to have the right management in place, whether you are going to do it yourself or hire someone. In fact, many fast food franchise owners will often operate several of the same franchises and oversee them all while hiring a dedicated management team to do the day to day operations. This is a great way to maximize the revenue potential of your franchise. While it's true that owning several fast food franchises can mean more income, it can also compound the challenges we've already talked about. For this reason, it's a good idea to get one franchise operating smoothly before jumping into adding more.
Some of the sales figures for fast food franchises can be astounding. According to Entrepreneur magazine, Subway franchises in 2016 brought in a combined 10.8 billion dollars in revenue, and that's on the low end of the spectrum. Starbucks brought in 13 billion and McDonalds topped the list with a whopping 37 billion in the U.S. alone. The lowest of the top 7 fast food franchises, Dunkin' Doughnuts, brought in 9.2 billion. Keep in mind, these figures represent the combined revenue of all the franchises, but as you can see, that leaves plenty of room for profit by individual franchise owners. When you start building your own chain of franchises, you can truly start building a great future in the fast food industry.
All USA Franchises is here to help you in your search when you're ready to find a fast food franchise to buy. We are on a mission to bring you all of the 3000+ franchises in the United States, making us the largest and most complete directory for franchises of all types. What make us even more special is that we never charge a fee to franchisors for listing their franchises. This is important because it means potential investors, entrepreneurs, and potential franchise owners can view all of the available franchise opportunities, not just those who have paid for premium views.
At All USA Franchises, we make it convenient for you to find the perfect franchise opportunity, whether you are looking for a fast food franchise to buy or any other type of franchise. That's because at All USA Franchises you can search for
franchises for sale by industry, search for
franchises for sale by investment, or you can search by specific keywords. This lets you narrow down franchise opportunities to only those that fit the specific criteria you may have.
All USA Franchises also maintains an extensive
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