There’s nothing hotter in restaurants right now than the sandwich. It’s a classic American staple that has been reconstructed to fit the demands of modern consumers. Sandwiches are ingrained in American culture. Food historians say blue-collar workers decades ago needed easy, quick, and affordable meal options — the sandwich became the go-to.
Today, sandwiches still reign as one of the most popular meal options for Americans and beyond. The fast food and Quick Service Restaurant (QSR) industry will be worth an estimated $410.1 billion in 2030, growing at a CAGR of 5.8% between 2022 and 2030, data from Custom Market Insights shows.
Sandwiches have been — and will stay — a high-demand product, making it the perfect opportunity for savvy franchisees. With more creative and filling sandwich options, consumers can still get their comfort fix in a new and exciting way. There are new ways to serve the staple to which consumers are drawn. Here are a couple of restaurant investment opportunities worthy of investigation.
1. Fast-Casual and Quick-Service Restaurant (QSR) Franchises
It can be argued fast-casual restaurants are one of the most popular restaurant segments in recent years. While these restaurants do serve food quickly, guests usually take a seat and get their meal a few minutes later from an employee. Fast-casual offers consumers a middle ground of quick service paired with a small experience. In a busy world, this can be a good option for guests, and it’s one of the hottest restaurant investment opportunities. McAlister’s Deli is an example of a fast-casual restaurant that serves classic sandwiches. Much in the same vein, the QSR industry gives time-crunched, value-conscious customers delicious bites in dash. The grab-and-go style of a QSR allows for lower overhead costs, a quicker turn-over with customers, and can mean higher profits. Subway and McDonald’s are examples of a QSR.
Fast-casual and QSRs are the best types of restaurants to open in today’s market because they meet the needs of the modern eater, combining convenience with great taste. Penn Station East Coast Subs marries the best of both worlds as a fast-casual restaurant and upscale QSR. Customers get the fast-casual experience and quality food they want without waiting. Subs are made on display with USDA Choice Steak and premium meats, cheeses, and vegetables.
A cost-effective option: For either owners or diners, fast-casual and QSRs can be easier on the wallets. This can include a smaller overhead than traditional, upscale restaurants and cheaper menu items for the consumer.
Pandemic-resistant model: The onset of the pandemic shifted dining habits. Within two short weeks, traditional restaurants had to close their doors, but many fast-food options were able to adjust easily. QSRs allow customers to come and go quickly. Fast-food chain restaurants have bounced back quicker than other restaurant segments during the pandemic. Regardless of pandemics or busy workdays, convenience is a trend people don’t want to get rid of.
Great economic outlook: Research backs up the QSR industry as great restaurant investment opportunities. Grand View Research projects the QSR industry will have a Compound Annual Growth Rate (CAGR) of more than 5% between 2020 and 2027. The same research reports the QSR market was worth $257 billion globally in 2019. Don’t pass up a QSR when you’re looking for a restaurant franchise for sale.
People crave convenience: Fast food might be the greatest thing since sliced bread, and there’s a reason. Sliced bread made making a sandwich that much more convenient. Now, your customers don’t even have to make their own sandwich when they order from your QSR. Fast-casual dining options are perfect for busy folks who want good food for less money (and time) than they’d spend at a more traditional restaurant.
Big names come with big price tags: Restaurant franchises for sale like McDonald’s, Wendy’s or Subway come with global brand recognition but can also come at a steep cost. It can cost $1 million to open a well-known fast-food chain franchise. Take McAlister’s Deli as an example. According to their website, the initial investment to purchase a franchise for sale could be more than $1.3 million. Smaller, more unique fast-food options such as Penn Station East Coast Subs can allow you to reap the benefits of the QSR industry while having lower overhead costs.
Some fast-casual franchises can be more restrictive: Occasionally, franchisees may run into issues trying to expand their portfolio with fast-casual franchises. Chick-fil-A typically does not allow franchisees to conduct other business. Other franchises may require franchisees to buy several locations at once, making room only for big players.
Big names, little growth opportunities: Bigger names have locations across the globe. However, with so many locations, there’s not only competition from other restaurants, there’s also competition between the franchisees within a city or area. Opportunities for growth with big names aren’t always as big as you think.
2. Food Trucks
Food trucks are one of the newer restaurant segments. They are simply restaurants on wheels. They have no tables and no wait staff. You see these in downtowns of big cities or lined up on curbs at events. Typically, they’re owned and operated by individuals or companies, but they have been creeping into the franchise space with a few food truck restaurant franchises for sale. Kona Ice is an example of a food truck franchise. Food trucks are trendy, but the jury is out on their longevity.
Cheap startup cost: Compared to building a brick-and-mortar location, food trucks are a much cheaper option. The average truck can cost up to $114,000 to outfit and get up and running, according to FoodTruckEmpire.com. That estimate does not include recurring monthly costs or maintenance.
Smaller overhead: The food truck concept is to take the back-of-house operations of a restaurant and make it mobile. Usually there are no more than three employees working at a time due to space constraints. This drastically cuts labor costs but can nibble away at employee-customer interactions.
Maintenance can be mighty: A physical location has general upkeep, but a restaurant on wheels requires much more work. From propane and gas to tires and windshield repairs, and so much more, monthly maintenance costs can eat at your bottom line. Repairs can also take away valuable time that could be spent marketing the business or selling product.
Moving cuts into a consistent customer base: Think about how often you eat at the restaurant a couple blocks from your house. You know where it is, you know the times they operate, and you know how to get there. Food trucks are constantly moving, making it challenging to build up a consistent customer base.
Penn Station East Coast Subs: A Great Restaurant Franchise for Sale
Some restaurant trends come and go, but data and numbers don’t lie. The fast-casual restaurants and QSR industry are predicted to remain a stronghold. Now is the perfect time to get started with Penn Station East Coast Subs. Our award-winning sandwich franchise, founded in 1985, offers a wide range of both hot and cold sandwiches, fresh-cut fries, salads, wraps, lemonade, and cookies. Our restaurant investment opportunities come with great growth potential for franchisees, IT and online ordering, operations and training, marketing, and financial reporting. Request information today to get started with Penn Station.
The offer of a franchise can only be made through the delivery of a Franchise Disclosure Document. Certain jurisdictions require registration prior to the offer or sale of a franchise. We only offer franchises in jurisdictions where we are registered or are exempt from registration.