Considering Investing in a Food or Beverage Franchise? Read This!


For the right person, a food or beverage franchise offers an exciting, customer-facing, rewarding business opportunity. There is, however, a lot to consider prior to investing in one. You must be sure you are equipped to work in the industry. Can you successfully handle pressure, immense competition, managing a team of employees, working long hours, and interfacing with customers as you get your business off the ground? Is the investment likely to provide you with the financial return you desire? It’s crucial to do self-analysis as well as extensive research into franchises you are interested in prior to committing to a brand.

Franchise Business Review’s 2016 Top Food Franchises report features the opportunities in the food and beverage sectors that are ranked highest by the franchisees who own them as well as astute advice from current franchisors and franchisees. A few of the report’s highlights include:

The top brands: Forty brands make up our list of top food franchise opportunities for 2016. These are the brands that received above-average ratings from their franchisees in Franchise Business Review’s independent franchisee satisfaction survey. Overall, the food franchise sector has seen a marked improvement in franchisee satisfaction over the past couple of years with more than 87% of the food franchisees surveyed saying they enjoy operating their business. Many of the brands featured in the report make what their franchisees said about them when surveyed available for free within the Franchise Reviews section of

The typical franchisee (and what it takes to be successful): You don’t need past experience in the food or beverage sector to be successful, although it certainly is helpful and some franchisors require it. Franchisees with knowledge of sales, marketing, and management tend to do better than those without. For insight into what it takes to be a successful franchisee from both franchisees and franchisors, see page 9 of the 2016 Top Food Franchises report.

Factors driving demand for food and beverage franchises: Since eating is a necessity and Americans are increasingly not cooking at home, demand is growing for food and beverage franchises. In March 2015, sales at restaurants and bars surpassed those at grocery stories for the first time since the Commerce Department started collecting data in 1992. Between the mid-1960s and late 2000s, low-income households went from eating at home 95 percent of the time to only 72 percent of the time, middle-income households went from eating at home 92 percent of the time to 69 percent of the time, and high-income households went from eating at home 88 percent of the time to only 65 percent of the time according to Trends in US home food preparation and consumption by Smith, Wen Ng, and Popkin.

To learn more about investing in the food and beverage franchise sectors, read the full 2016 Top Food Franchises report.

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