The QSR franchise has been amid a stormy sea, braving persistent challenges like labor shortages and supply chain disruptions. But amidst all the chaos, a beacon of hope shines bright, and the resilient QSR franchising model shines a beacon of hope.
Franchising has been a lighthouse for the industry, providing a safe harbor for QSRs to navigate through turbulent waters. It has been the anchor that has kept QSRs grounded, allowing them to weather the storm and emerge stronger than before.
In this blog, we set sail on a journey to explore the unique challenges facing the QSR industry and how franchising has helped QSRs navigate through them. We will delve into the future outlook for franchising in QSR and how it is expected to chart a course for the industry to reach new horizons. So hoist the sails and join us on this adventure as we discover the resilience of QSR franchising and how it is expected to thrive despite the persistent challenges in 2023.
QSR Franchising Expected to Have a Robust Year
The International Franchise Association has released its annual Economic Outlook Report, predicting a moderate increase in franchising activity this year compared to the busy year that was 2021.
Despite the challenging economic headwinds of inflation and labor shortages, the franchise economy is expected to exceed pre-pandemic levels, with the quick-service segment leading the charge. According to the IFA’s report, QSR franchising is projected to grow by 2.5% this year, compared to 1.9% for the franchising industry.
The report further reveals that QSRs are expected to increase to nearly 197,000 franchise units this year, up from just over 192,000 in 2021. This growth can be attributed to the attractiveness of franchising options during the pandemic, where consumers prefer economical options such as QSRs. In addition, the report notes that during economic uncertainty, consumers tend to cut down on ancillary spending and opt for more affordable menu options and value meals.
As such, several brands have signed aggressive deals to expand their franchises this year and beyond, including Capriotti’s, Wing Zone, Slim Chickens, Tropical Smoothie, Smoothie King, Fazoli’s, WaBa Grill, Pizza Forno, Hawaiian Bros, Pizza Guys, and more. This growth in franchise employment is expected to increase by 3.5%, totaling about 3.9 million employees in the QSR sector.
The Resilience of The QSR Franchise Amidst Unprecedented Challenges
The Quick Service Restaurant industry has always been known for its fast-paced and dynamic environment. However, recent years have brought unprecedented challenges due to the COVID-19 pandemic, shifting consumer preferences, and supply chain disruptions. Despite these hurdles, QSR franchising has remained resilient and is poised for continued growth in 2023.
QSR franchises have quickly implemented new technologies and processes, such as mobile ordering and contactless payments, to serve customers better. They have also expanded delivery and takeout options to meet the demand for convenient ways to access QSR brands. In addition, franchises have revamped their menus to include healthier and more sustainable choices.
The Quick Service Restaurant industry’s ability to withstand economic downturns has also contributed to its resilience. It has been deemed a recession-proof business due to consumers’ continued willingness to spend on affordable and convenient food options even during tough economic times. This trend has held during the pandemic, as QSR franchises have experienced steady growth despite the overall economic downturn.
Partner with SupplyCaddy for a Resilient QSR Franchise in 2023
Don’t let persistent challenges hold your QSR franchise back in 2023! Instead, join the ranks of resilient and thriving franchises by partnering with SupplyCaddy, the trusted supplier that has delivered over 200,000,000 products since its inception. Whether you are a small single-unit restaurant or a large chain, SupplyCaddy takes pride in treating every client with the same level of attention and care.
Contact us today at [email protected] to learn how we can help your franchise achieve success and resilience in the face of challenges. So don’t wait; take action now and give your franchise the support it needs to thrive in 2023!
