Restaurant Franchise: 5 Reasons Why They’re a Great Investment

If you’re interested in opening a franchise to reap the potential benefits of business ownership, you may want to consider a restaurant franchise. The restaurant industry has seen growth and new opportunities over the last few years. In fact, the International Franchise Association’s (IFA) 2024 Economic Outlook Report released in February 2024, predicts personal services and quick-service restaurants (QSRs) will see more growth than any other industry. Here are five compelling reasons why restaurant franchises may make an excellent investment.

1. Proven Business Models

One of the biggest advantages of investing in a franchise for many business owners is the established business model of a franchise. Unlike starting a business from scratch, a franchise has a blueprint from which you immediately benefit. This may include, and is not limited to, operational guidelines, marketing strategies, and a recognized brand name.

For instance, a QSR franchise has a refined and tested business model for efficiency and quality. QSRs are designed to get customers quality food quickly. The business model QSRs use increases the scalability of these types of restaurants and can increase revenue. A quick way to gauge the financial health of a quick-service restaurant is to look at the brand’s franchise disclosure document (FDD), specifically Item 19, which highlights the financial results of the business model. While not required, it may be a good to ask why a franchisor business would not have Item 19 in their FDD, or not be fully transparent in the financial related disclosures of Item 19. Additionally, it’s important to do your own research into restaurant franchise opportunities you’re interested in.

2. Flexibility and Growth Opportunities

The restaurant industry, especially the QSR segment, can offer significant flexibility and growth opportunities. These franchises are flexible enough to fit into potentially any market, and, as the business has already been replicated across other areas, opening more in new markets can be a breeze.

Franchisees can potentially choose from various formats and locations that best fit their goals and lifestyle, from traditional storefronts to non-traditional venues like airports and colleges. The potential for multi-unit franchising allows franchisees to grow and expand their business.

3. Brand Recognition

Investing in a franchise can offer greater benefit of brand recognition that some of the top-performing food franchises harness. Typically, franchises are in several locations and, potentially, several markets. This means more people may be aware of the brand you’re considering opening a franchise with. Well-established franchises can have a loyal customer base and a strong brand image, which may take years for a new business to build.

This recognition extends to the most popular food franchises, which can leverage their brand to attract customers from day one. The more people know of your brand and have a positive connotation with it, the more customers you may attract to your business. Penn Station East Coast Subs brings the advantage of a known and emerging name in the fast-casual industry, allowing franchisees to capitalize on the brand’s reputation and consumers’ curiosity.

4. Comprehensive Support and Training

For many owners who have partnered with top-performing food franchises, the training and support that come with a franchise is one of the biggest selling points and potential advantages. Franchisees are typically not left to navigate their new business venture alone because of the operational tools provided. Support and training may cover:

• Daily operations
• Marketing
• Accounting
• Training and hiring

The idea behind ongoing training and support is to give franchisees the knowledge to be put on the path to growth and expansion. It’s what can make your investment the best franchise investment. However, not all training and support programs are created equally. Penn Station East Coast Subs, for example, offers extensive training and support that covers:

• General operations
• Bookkeeping, accounting and financial reporting
• Company policy and franchise requirements
• Employee orientation and training
• Use of equipment
• Product prep
• Site selection
• Restaurant design and construction support
• IT and online ordering
• Operations and training
• Marketing

5. Community Connection

Beyond the financial aspects, owning a franchise can be incredibly rewarding on a personal level. You can find a brand that gives back to your community or organizations that align with your values. Restaurant owners can also help their community by providing a place for people to gather, eat, celebrate, and create memories. In addition, a QSR franchise provides good jobs for many people. IBISWorld estimates in research published in October 2023, that more than 4.7 million people are employed in fast food/QSR restaurants in the U.S.

Restaurant Franchise Opportunities with Penn Station East Coast Subs

For entrepreneurs, investing in a franchise can offer a blend of potential profitability, support, and personal satisfaction that can be hard to beat. Choosing to invest in a Penn Station franchise means more than opening a sandwich shop; it’s about becoming part of a brand that values quality, customer satisfaction, and franchisees.

We’re looking for franchisees who are passionate about our brand and ready to grow a business. To join our Penn Station family, there are some minimum financial criteria you’ll need to meet: a net worth of $500,000 and liquid assets of at least $300,000. Territories are open for development to multi-unit and single-unit investors. Every franchise team needs a managing owner who lives in the area of the restaurant and is required to participate in the focused, four-week training program in Cincinnati.

Whether you’re drawn to the industry for its financial prospects or the opportunity to make a positive impact on your community, a Penn Station East Coast Subs franchise could be the right move for you. Request information about Penn Station today.