Quick Service Restaurant Industry Growth and Deciding When to Invest
The quick service restaurant (QSR) industry is thriving, particularly in major urban markets. According to IBISWorld, there are nearly 200,000 fast food and casual dining restaurants in the U.S. alone, a figure which has continued to grow at an accelerated rate over recent years.
As a result, it is safe to say that this industry presents attractive opportunities for new investors and existing players looking for new growth opportunities. And while the quick service restaurant industry remains an attractive opportunity, there are some points to consider before investing.
What is Driving the Growth of QSRs?
QSRs are typically efficiently scaled operations specializing in fast food services, including selling, and preparing some of your favorite foods. Over the past decade, the quick service restaurant industry has shown an impressive growth rate, driven by factors including an increase in the use of ordering and delivery apps, desire for both convenience and social distancing (making drive thru options come in handy), and varying consumer preferences.
The QSR market is expected to increase by nearly 3% in 2022, making it worth over $331bn. The quick service industry is attractive for various reasons, including comparatively lower overhead costs and regenerative profits, compared to other segments like the full-service restaurant (FSR) sector.
Costs to Consider
Although the quick service restaurant industry is expected to increase and become more profitable in the coming years, there are some costs to take into consideration. The first is the cost of entry. According to Rewards Network, startup costs for a fast-food franchise can range between $250,000 to $1,000,000 and up. Not to worry, though; financial assistance may be available for those who qualify, particularly if you partner with an established franchise.
For those looking to take advantage of this emerging market, Tom and Chee offers a detailed FDD Item 7 outlining startup costs and terms. The franchise also takes new business owners on a deep dive into the Tom and Chee training platform, business model, and executive team. This helps clarify the specifics of where your money is being spent and how.
Should You Invest in a QSR?
The QSR market may be the right industry if you want a long-term investment opportunity. Although the short-term profitability of a QSR franchise remains uncertain due to factors such as the cost of entry, dramatic competition, and rising food costs, the long-term outlook for this industry is positive. This means that investing in a QSR franchise today could net you a significant return in the coming years, particularly if you partner with a brand that provides the optimum level of support. A sure sign you’re ready to jump aboard is if you’re passionate for innovating in this market and staying ahead of the competition.
Tom and Chee has an innovative menu that consists of handcrafted sandwiches like cheese steaks, grilled cheese, and other warm family favorites with their special touch and unique flavors. But the hearty menu isn’t the only thing enhancing its customer experience; speed, order accuracy, technology, quality of service, ambiance, and atmosphere all add to the high rate of returning customers and love for the brand.
Overall, the fast-food market remains an attractive investment for business owners looking to make an impact on the food industry. It’s essential to choose a franchise with a mission and purpose you align with, along with a proven blueprint for success and growth.