FBR Issue 4 - 2018

FBR SPECIAL REPORT
to a full-service restaurant—with dozens of
other business types in between.
1. Quick Service
Most people associate quick service restaurants
(QSR) with concepts like Wendy’s, Checkers
& Rally’s and Church’s Chicken. Commonly
referred to as “fast food,” speed of service and
low price-points are the focus of QSRs. Meals
are more often than not taken out, although
people can dine on-site, and delivery service
may be provided.
2. Fast Casual
The concept unites the quality of casual dining
with the speed of fast food. Culvers, Captain D’s,
and Fazoli’s are fast casual concepts you’ve
likely seen. Typically, the food is more
customized, freshly prepared, and higher
quality and the environment more upscale
and inviting than QSRs. Just like QSRs,
customers typically order and pay at a counter,
and then take food out or grab a tray to sit and
eat, although sometimes minimal table service
is provided.
3. Full Service
Full service restaurants serve food and drinks
directly to the customers at their tables. They
may sell alcoholic beverages; provide takeout,
delivery or live entertainment. The term full
service entails a wide array of concepts from
Is a Food Franchise Right for You? Advice from the Front Lines.
“Win on Hospitality”
“The restaurant business is a demanding one and real success hinges on a restaurant team’s
ability to consistently deliver polite and welcoming hospitality. We have tools that help
franchisees deliver genuine hospitality, but it also takes commitment by our franchisees to
deliver genuine hospitality to every customer. Winning on hospitality will help franchisees
grow their guest count.”
— Kevin Martin, CEO,
Lenny’s Franchise System
“Select a Franchise that Aligns with Your Morals and Values”
“I would highly suggest anyone considering a food franchisee to make sure the
company they select aligns with their morals, standards, and values. Make sure you feel
a connection with the franchise, so relationships can be built because those are what help
make you successful.”
— Mary Rolf, Franchise Owner,
Scooter’s Coffee, Springfield, MO
“Gain Experience First”
“Make sure you know what you are getting yourself into. Running a food business is not
the same as running a retail store. I would suggest spending at least a year working in a
restaurant to make sure this career is the right move for you.”
— Brian Allen, Franchise Owner,
Lenny’s Grill and Subs, Cape Coral, FL
“Every successful owner needs to have worked or labored in a restaurant position at some
point in their life. The industry is a rare breed of people that come together for the same
reason: good food, offered at a reasonable price with excellent service. Laur and I firmly
believe in never asking staff members to complete tasks that we aren’t willing or able to
complete ourselves.”
— Laurentiu & Casie Cernat, Franchise Owners,
Fuzzy’s Taco Shop, Waco TX & Hewitt TX
“Look at the Longevity of the Brand”
“There are always new brands and concepts popping up every day, but I believe one of
the most important aspects to look at is the history and longevity of the brand. Buying into
a franchise is a commitment so it’s important to make sure that what is being sold to you
today will still hold true for years to come.”
— Mike O’Toole, Chief Growth & Support Officer
Goodcents Deli Fresh Subs Franchise System
family-style to upscale dining such as East
Coast Wings & Grill, Eggs Up Grill, and
Fuzzy’s Taco Shop.
4. Retail
Retail food concepts include everything from
ice cream and treat shops, to coffee shops, bakeries,
convenience stores, and even vending
machine businesses. Examples include brands
like The Haagen-Dazs Shoppe, Nothing
Bundt Cakes, Brioche Doree, Kona Ice, and
Happy and Healthy Products.
THE FUTURE OF FOOD
If you’re considering a food franchise, it is
important to understand the long-term viability
of the brands you’re interested in. What
concepts are best for today’s consumer and
what brands will be able to match consumer
demands into the future?
According to the franchisees and franchisors
named to FBR’s top brands list, convenience
and health are two trends that are taking shape
with growing momentum.
“Consumers continue to spend more on
food away from home or prepared food they
carry into their home,” remarked Kevin Martin,
CEO of Lenny’s Franchise System. “For
Lenny’s, this trend has fueled the growth of
our family meal offers. This trend is also an
example of the growing interest in convenience.
Consumers are looking for ways
to simplify their lives. That movement is
propelling the demand for delivery and online
or mobile ordering, which I foresee only
increasing in demand.”
While the 1950s witnessed the rise of the
convenient TV dinner and frozen food, today’s
consumers are seeking convenience but with a
twist—they don’t want sodium laden freezer
food; they want healthy options. And they’re
willing to pay. A 2015 study, conducted by
Nielsen, found that 88 percent of respondents
were willing to pay more for healthier foods. 4
“We see consumers demanding healthy,
functional menu options delivered in a convenient
manner,” said Mike Rogers, chief operations
officer at Scooters Coffee. “Our drive-thru
kiosk is focused on meeting the need for
amazing drinks amazingly fast, and we only
expect that trend to continue growing.”
As Lamb joked, “You don’t have to be clairvoyant
to see the healthy trend keeps gaining
ground and probably will for a long time.”
12 | For more information on this report, visit: www.FranchiseBusinessReview.com