Food & Beverage (F&B) is one of the largest and most popular franchising sectors in the UK, and also the most well-known. In fact, even if you ask someone who is not familiar with franchising to name one, chances are it will be one of the big F&B brands.
It’s certainly a very lucrative sector – worth more than £100billion per year –so it is no wonder, then, that F&B franchises are among the most attractive investment opportunities for anyone looking to start their own business, or even expand their existing business portfolio.
But is it right for you?
Like any business opportunity, there are pros and cons, of course, so let’s take a closer look:
Pros of investing in an F&B franchise
A Strong Market – everyone’s got to eat! From daily staples to family celebrations and special nights out, or even just a takeaway on the couch, F&B is something Brits consistently spend their money on.
Location-Driven Footfall – you can attract customers already present in high footfall locations, meaning marketing your products and service can be a lot easier than other, less visible sectors.
Scalable Growth Opportunities – from running a single restaurant to opening a chain across a whole area, most F&B franchises offer you to chance to choose the route that suits you, or move from one to the other over time.
Excellent Returns – every concept will be different, of course, but most F&B franchises offer great ROI and a brand which can immediately attract customers.
Easier Marketing – consumers already understand what’s on offer (e.g., burgers, coffee, pizza), while franchises in other sectors often need to spend more time educating or appeal to the right customers. service franchises sometimes need more education.
Cons of investing in an F&B franchise
High Investment Costs – as you will need to lease premises, make them fit for purpose, outfit kitchens, and hire staff before you can even launch, F&B franchise unsurprisingly require a lot more money up front than business in many other sectors.
Location Dependent – having the right, high footfall location can be absolutely essential for your success, and competition is fierce for prime spots. It can take quite a bit of time to find and secure the right location.
Regulatory Burden – F&B operators must comply with strict food safety, hygiene, allergen, and licensing regulations. Inspections and compliance issues add complexity and risk.
Operational intensity – Running an F&B business is hard work, often with long, unsociable hours and shift management, so work-life balance might be much harder to achieve compared to other industries.
All well worth having a think about! However, let’s say you do decide this is the right industry for you:
How do you go about choosing the right F&B franchise?
There are close to 150 different F&B franchises available in the UK, from classic, sit down restaurant concepts such as the Just Pizza & Pasta franchise, or something that crosses over into the retail space, such as the Eggless Cake Shop franchise.
Each and every one will appeal to people in different ways, and a lot comes down to exactly what fits with you as a person, and with your goals for the future. It’s something you will want to give a lot of thought to. However, here are some of the most important things you should be thinking about when looking at any particular F&B franchise:
What are your goals?
Before diving in, get clear on what you want from a franchise. Do you see yourself running a single restaurant, building a multi-unit operation, or adding a brand to an existing portfolio? Think about where you want to be in one, five, or ten years, as this will influence which opportunities fit best. If you’re unsure, speak with the franchise team – good brands won’t pressure you, but will guide you on availability, expectations, and fit.
How do they stand out from the crowd?
The UK F&B market is a very crowded place, so think about how much work the franchise puts into their branding and catching their customers’ attention. For example, the 92 Degrees Coffee franchise operates in a very saturated space – there’s no shortage of coffee shops in the UK, after all! However, they go all out on their social media, have created a distinctive brand, and have positioned themselves as having both great coffee and being a destination customers can enjoy. Another great example is the Udderlicious franchise, an ice cream brand which uses great marketing to come across as both a chic boutique, and somewhere casual for friends and family to enjoy.
Are they a strong franchise?
A great restaurant doesn’t always mean a great franchise partner. Look for brands that have invested in their franchise model with clear, detailed information on costs, support, and expectations. A dedicated franchise website or prospectus is a strong signal of professionalism. Just as importantly, check their training and support systems – it’s all part of seeing how committed they are to helping you succeed. For example, the team at Udderlicious are well known for taking a very hands-on approach in helping each and every branch – is that the kind of support you want and need?
Can you get behind the key product?
There’s no point investing in a coffee franchise like 92 Degrees if you can’t stand coffee. Even if you plan to hire someone else to run and manage your outlet or store, you still need to really believe in what you are selling and putting your hard work and money into. For example, the Just Pizza & Pasta franchise specialises in creating a warm, family-friendly space which attracts loyal customers, but if that’s not what you’re into, it’s not going to be a good fit and you won’t be able to give it the attention it deserves. Have a good think about whether or not the franchise you’re looking at is one you can really give 100% to.
It’s a lot to think about, but you don’t have to go it alone.
Any franchise worth its salt will be more than happy to give you their time to answer any questions you have, and won’t put you under any pressure or give you the hard sell. A mark of a good franchise is that they are just as interested in whether you’re the right fit for them as you are in whether they’re right for you, allowing you to make the decision yourself and build a genuine partnership with the brand.
If you’re still not sure about how to take the next step, why don’t you reach out for a chat? You might even benefit from our free Matchmaking service which is all about assessing your strengths and goals and suggesting franchises which are a good fit for you.
Click here to get started: Free Franchise Matchmaking Service
If you’d like to learn more about what’s involved, you can also schedule an informal call with me anytime using the button below.
I look forward to helping you on your journey!
John Overdijking
Franchisee Recruitment Specialist & Partner
