LS Retail, an Aptos Company’s Post

9 fast food trends that are shaping franchises in 2024 #restaurants #restaurant #fastfood #thegoldsteingroup #njrealestate #newjerseyrealestate https://lnkd.in/eKPzyP-c

The Future of Food Franchises in India: A Spicy Brew of Trends and Predictions (2024 & Beyond) The Future of Food Franchises in India: A Spicy Brew of Trends and Predictions (2024 & Beyond) offers a deep dive into the evolving landscape of India's food franchise sector. As the industry navigates a mix of challenges and opportunities, this report examines key trends shaping the future, such as the rise of digital innovation, the growing demand for sustainable practices, and the impact of changing consumer preferences. The analysis also provides strategic predictions to help businesses stay ahead in the competitive market, making it an essential read for stakeholders looking to thrive in the years to come. https://lnkd.in/gqKkFyzF

What makes a food franchise tick? Dive into The Economics of Food Franchises in South Africa: A Recipe for Success https://lnkd.in/dygB8hg4  #SouthAfrica #FoodFranchises #EconomicGrowth #Innovation #Sustainability

𝗨𝗽𝘀𝗶𝗱𝗲 𝗣𝗮𝗿𝘁𝗻𝗲𝗿𝘀 𝘄𝗶𝘁𝗵 𝗢𝗻𝗲𝗗𝗮𝘁𝗮𝗦𝗼𝘂𝗿𝗰𝗲 𝘁𝗼 𝗣𝗿𝗼𝗽𝗲𝗹 𝗤𝘂𝗶𝗰𝗸-𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗥𝗲𝘀𝘁𝗮𝘂𝗿𝗮𝗻𝘁 𝗣𝗿𝗼𝗳𝗶𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆 At OneDataSource, we work diligently to build strategic partnerships with a small group of top-tier companies that serve the QSR vertical, and Upside emerged as a standout partner. Upside is successful at driving new customers and sales to restaurant franchises.   What sets Upside apart is the reach of its marketplace and the effectiveness of its personalized promotions in motivating customers to change their behavior. Upside has developed a best-in-class measurement methodology that proves the impact of the program for franchisees and ensures merchants only pay for proven incremental profit.   Upside already works with many franchises for the largest QSR brands, including Pizza Hut, Domino’s, Marco’s Pizza, Taco Bell, and Popeye’s.   𝙒𝙞𝙩𝙝 𝙤𝙪𝙧 𝙣𝙚𝙬 𝙥𝙖𝙧𝙩𝙣𝙚𝙧𝙨𝙝𝙞𝙥, 𝙐𝙥𝙨𝙞𝙙𝙚 𝙘𝙖𝙣 𝙡𝙚𝙫𝙚𝙧𝙖𝙜𝙚 𝙊𝙣𝙚𝘿𝙖𝙩𝙖𝙎𝙤𝙪𝙧𝙘𝙚’𝙨 𝙙𝙖𝙩𝙖 𝙩𝙤 𝙥𝙤𝙬𝙚𝙧 𝙞𝙩𝙨 𝙞𝙣𝙩𝙚𝙡𝙡𝙞𝙜𝙚𝙣𝙩 𝙤𝙛𝙛𝙚𝙧 𝙜𝙚𝙣𝙚𝙧𝙖𝙩𝙞𝙤𝙣, 𝙢𝙖𝙠𝙞𝙣𝙜 𝙚𝙖𝙘𝙝 𝙥𝙧𝙤𝙢𝙤𝙩𝙞𝙤𝙣 𝙚𝙫𝙚𝙣 𝙢𝙤𝙧𝙚 𝙞𝙢𝙥𝙖𝙘𝙩𝙛𝙪𝙡 𝙖𝙣𝙙 𝙚𝙣𝙨𝙪𝙧𝙞𝙣𝙜 𝙜𝙧𝙚𝙖𝙩𝙚𝙧 𝙥𝙧𝙤𝙛𝙞𝙩𝙖𝙗𝙞𝙡𝙞𝙩𝙮. Interested in learning more about our integration with Upside, you can email [email protected]. 𝗥𝗲𝗮𝗱 𝘁𝗵𝗲 𝗿𝗲𝗹𝗲𝗮𝘀𝗲: https://lnkd.in/gxHhV8Kr

Anne-Marie Peterson started her investing career covering restaurants. She explained why franchises dominate the industry. Restaurants are very hard to scale. Why? Because the customer experience happens at the unit level. At each restaurant, you have to get the food and experience right. To do that, you need great people in each unit but that gets harder as you open more units. Compare that to other businesses where a handful of people (management) directly influence all the components that make up a customer's experience. That's why the big restaurant groups tend to be franchises like McDonalds, Burger King, and Yum! Brands. The model gives people skin in the game. Managers are incentivized to care. Speak to any franchisee; they're always mad at the franchisor. That tension between owners is great. Your odds of getting to the right answer are dramatically higher with so many owners looking at the same problems. Chipotle is an example of a business that has successfully scaled without franchising. They've built a winning model through simplicity. Small footprint, few ingredients, and an assembly-line process that moves customers through the store. They've also addressed the turnover issue by paying their people well and giving store managers equity. But it's one of the exceptions that proves the rule.

“Chinese food and beverage brands are increasingly betting that opening franchises in smaller cities will revive their lagging growth. In March, Hong Kong-listed Chinese hotpot restaurant chain Haidilao International Holding Ltd. announced it would launch a franchise model. It joins a number of popular F&B chains that have started franchising since late 2022, including tea brands Hey Tea and Nayuki as well as spicy sauerkraut fish specialist Tai Er. In May 2023, Luckin Coffee devised a new franchise model as it was competing head-to-head with upstart Cotti Coffee. The capital-light franchise model typically allows brands to invest less than they would in a directly operated store, but to quickly grow the number of outlets with the help of people who are familiar with the local market. Franchising is a contractual relationship in which a business owner authorizes a franchisee to use its brand, equipment and expertise to sell its products, with both parties sharing profits and risks.” “The number of franchisees partnering with brands specializing in Chinese cuisine as well as beverage and dessert chains grew 178% and 85% year-on-year, respectively, in the first 10 months of 2023. Smaller cities have increasingly become the target of chains due to stiff competition and higher operating costs in big cities. More than half of the chain brand franchisees were located in larger cities last year through October. The remaining of them were in third- to fifth-tier cities. Several franchisees told Caixin that stores located in lower-tier markets tend to outperform those in big cities. ‘There are so many options in first- and second-tier cities, but choices are comparatively limited in lower-tier markets,’ said one franchisee of snack chain Haoxianglai. The spending power of residents living in smaller locations is also considerable. The Haoxianglai franchisee said the average spending per customer at the brand’s stores in county-level cities is about 50 yuan ($7), higher than at its stores in bigger cities.” “While households in the smaller cities have a lower annual income on average, a report by consumer-focused fund Ba Capital said they don’t suffer from the high housing costs that cut into urbanites’ disposable income. However, this is no silver bullet for an industry still struggling to recover amid weakened consumer spending and an uneven economic recovery. Li Xiangpu, director and vice president of grilled fish specialist Bantianyao, said that the company’s profitability had yet to rebound to pre-pandemic levels. Now, there are more loss-making catering companies than profit-making ones, Wang Mingzheng, a franchisee who partners with several chains in Central China’s Henan province, told Caixin. State-backed securities firm Bocom International Holdings Co. Ltd. lowered its mid-2024 sales forecast for sauerkraut fish chain Tai Er, saying that revenues from its franchises are typically lower than those from directly operated stores.”

In an interview for Delish's analysis of "The 10 Most Lucrative Fast Food Franchises Of 2024," I highlighted the importance of financial transparency and innovation in franchise selection. While strong brand recognition is undeniably powerful, as seen with giants like McDonald's, Subway, and Dunkin', I believe the fast food industry stands at a crossroads where evolving consumer demands and technology integration will redefine success. #FastFood #IndustryInnovation #BrandLoyalty

😱 The Juice Is Loose! A wild M&A week after a long waiting game in the restaurant world. Clean Juice has announced a sale to Sherif Mityas and the BRIX Holdings team today. I remember the first time I met Landon Eckles and Kat Eckles at Franchise Springboard, we recorded one of my first "Millennial Monthly" episodes of Modrn Business right after their panel. I wonder what our 2017 selves would say about them being able to exit from a brand that was a couple locations at the time? Going back to my M&A bible (aka Alicia Miller, NACD.DC, CMAA, CFE's book), this deal looks to me like a win-win for everyone. freecoat nails is a brand that Landon & Kat can now focus on and BRIX Holdings can use that "multiple arbitrage" model to their advantage with a new focal point for their brand portfolio. Clean Juice doesn't adhere to day-parts in the same way their other brands do (which means something). The brand also has a younger consumer than most of their other brands, which likely means even more. As the "healthy-for-you" space continues to mature into its teenage years, I believe the Tropical Smoothie Cafe and Clean Juice deals are the beginning of a long line of M&A consolidation we'll see in the next several years. Platforms like Kelly Roddy's WOWorks had started this trend, I believe they and others will be VERY active in the next 12-18 months to make the picture in this sector of F&B a bit clearer. There's an argument to be made that the operational costs associated with running brands like these don't have the free cash flow one would want (expensive real estate, high COGs, difficult supply chain), but I think there are diamonds in the rough here. What do you all think? Which brands in the "healthy for you" industry will be next? Sound off below on what you think! Lane Fisher Brad Fishman Ryan Hicks, CFE Jake Fishman Danny Klein Matthew Haller Barry A. Herbst The Wolf of Franchises Jesse Keyser Peter Ginsberg Courtney Stillings, CFE Jaimeen Dalia