Restaurant Franchising Growing as Fast as Ever

An article published on RestaurantDive.com talks about trends and franchise growth in the restaurant industry, and features quotes from iFranchise Group CEO and experienced franchise consultant, Mark Siebert.

According to the article, despite ongoing industry challenges with rising costs squeezing margins, pressures to implement modern technology tools, competition in the commercial real estate market, and more, the prospect of operating a restaurant still holds plenty of appeal for potential franchise owners. 

It goes on to state that while larger chains seek out multi-unit franchisees, smaller operators will also have growth potential. Major restaurant brands have grown by franchising and signing multi-unit deals, while many midsize chains have signed deals with operators both big and small. 

“Franchising is growing as fast as it’s ever grown right now,” said Siebert in the article. “We’re just seeing a lot of people getting into business for themselves.”

Even with the potential for an upcoming recessionary period, experts including Siebert predict an economic downturn may slow inflation and wage growth, but this will likely continue to drive people to sign franchise agreements.

Siebert also said in the article that franchising remains a good business model, especially those restaurant concepts with a simple, assembly-focused business model that doesn’t require extensive foodservice experience.  Some new entrants will view these businesses as an appealing way to build a business.

On the flip side, experienced owners and operators understand how difficult it is to run a restaurant, and foodservice chains with more complex operations will prefer the experience of multi-unit foodservice operators.

Siebert also noted the industry-wide importance of technology for continued improvements in restaurant service, including integrated software solutions that manage orders, loyalty programs, delivery and third-party apps, to create more efficiencies.  

For more details and information about what experts are seeing in the restaurant franchising industry, the full article can be found here.

For more information about franchising a restaurant, contact iFranchise Group at [email protected] or (708) 957-2300.