Making Money from Chow
Fast Food Franchises
Everyone wants to own the golden arches. And historically the brand has been the one to beat.
But the times they are a changin’ and unless a savvy food franchise investor examines both social and industry trends they may bite of more than they can chew.
Threats facing fast food franchises:
Gluten is the Devil. The past few years have seen a massive rise in “experts” espousing the dangers of gluten. Supermarkets now have whole sections dedicated to GF products. The majority of fast food restaurants utilize heavy usage of the stuff. This will definitely have an impact, how large and for how long of a period is anyone`s guess.
Health consciousness. Obesity is at the highest point it ever has been and fast food takes a lot of the blame. Yes, people still eat lots of it but at some point those numbers will have to reverse. In fact recently the big M posted its first quarter of non growth.
Economy. For now fast food is cheap food. But as inflation runs rampant across the country prices have to rise. Admittedly so will grocery store foods however when people are pressed into realizing the economic advantages to eating at home they will likely begin to do so.
Bad Press. Employees licking tacos, fingers found in Chili, “pink stuff” meat. The media loves to stir up emotion and fast food offers lots of it. This barrage of press has caused a slow yet perceptible change towards the negative.
Many fast food franchise buyers will justify their investment with the blanket statement “everybody has to eat” – and while this is true, they ultimately may be eating something else other than what your fast food franchise delivers.