The foodservice industry is always evolving and expanding. As a franchisor looking to grow and expand, it is important to stay ahead of the trends in order to identify prime opportunities for success. That is why it is essential to have data-led insights into the fastest-growing restaurants in order to gain an understanding of the local food trends and identify potential investments. With the right analysis and market research, franchisors can make confident decisions to equip their sales teams, optimize marketing and prospecting strategies, and maximize production facilities to gain a competitive edge in the market.
At Brizo, we provide comprehensive market insights and analysis for franchisors looking to grow and expand in the foodservice industry. Our data allows for highly targeted research and prospecting of the foodservice market with unique data fields specific to each franchise industry, ranging from in-depth menu data to restaurant tech coverage. With our insights, franchisors can streamline production innovation, optimize their sales operation, and leverage contextual data to refine their customer journey.
In this article, let’s look at the top 10 things to consider when analyzing the fastest-growing restaurants for franchise expansion.
1. Analyzing Restaurant Growth Rate
The restaurant growth rate is a great starting point to assess the growth and potential of a restaurant. The growth rate is calculated by comparing the current year of operation against the previous year’s figures. By analyzing the restaurant’s rate of expansion, franchisors can make better decisions on whether to invest in the restaurant or not. Factors to consider when analyzing the growth rate include location, menu offerings, feedback from customers and ratings from various platforms.
2. Examining the Menu
When evaluating the menu of a prospective restaurant, look for variety and consistency when it comes to offerings. Is the menu interesting, unique, and relevant? Are there healthier options provided? Is the restaurant diversifying its menu to attract more customers and keep them coming back? Also, check if the restaurant has limited time offerings or special menus that promote customer loyalty and incentivize returning customers.
3. Looking into the Staff
The staff of a restaurant is a crucial component for its success. Look for employee retention rates, reviews from customers on the staff’s performance, and customer service ratings. Does the restaurant have a positive work culture, and are the staff members professional, experienced, and motivated? Do they offer additional training to its staff to make sure they are always up to date on the latest trends? These are all key factors to consider when assessing the growth of a restaurant.
4. Evaluating Online Presence
In the digital age, it is essential for restaurants to establish an online presence to gain visibility and attract customers. Look for the restaurant’s social media pages, website, and if they are listed on any food delivery services. Check the reviews on the platforms and examine their following to gain an understanding of the restaurant’s online presence.
5. Checking for Awards and Accolades
Look for awards and accolades that the restaurant has earned. Is it being recognized for its menu, ambience, customer service, quality, or any other factors? Does the restaurant have any prominent features or testimonials from local newspapers, magazines, and other publications? Are its staff members getting nominated for awards or are they celebrating any anniversaries or major milestones? These are all great indicators of a successful restaurant.
6. Assessing Expansion Strategies
Another key factor to consider is the restaurant’s expansion strategies. Is the restaurant looking to expand to other locations or venture into new markets? Are they expanding their production facilities or working on developing new menus? Are they taking part in any food festivals or culinary events? Taking these factors into account is essential for franchisors looking to invest in a restaurant.
7. Analyzing the Competitors
It is important to analyze the competitors of the restaurant in order to have an idea of the competitive environment. Look at other restaurants of the same type in the area and see what they have to offer compared to your prospective restaurant. Check the menus, customer ratings, and any other benefits the restaurant may be able to provide that its competitors are not. This data will help you identify areas for improvement and areas that may need to be emphasized in order to gain a competitive edge in the market.
8. Examining Data Sources
Data sources are essential when analyzing the fastest-growing restaurants for franchise expansion. Take the time to investigate the various sources of data that are available in order to get a comprehensive understanding of the foodservice market. This includes sales reports, customer feedback, surveys, industry articles, and more. Utilize these resources to gain more insights into the markets and get an understanding of what may help the restaurant succeed.
9. Assessing Operational Costs
Any restaurant’s success depends on its ability to control its operational costs. Check if the restaurant is making efficient use of its resources and if there are any areas where it can reduce costs. Are reliable suppliers and vendors being used? Are the staff members paid competitive wages? Are the taxes and labor costs being managed effectively? These are all essential questions to answer in order to have an understanding of the restaurant’s cost structure.
10. Examining Long-Term Growth Prospects
In the foodservice industry, it is important to consider the long-term prospects of a restaurant when analyzing its growth. Look at the restaurant’s progress over the past few years and check if there is any potential for longer-term success. Are there any plans for renovations or new menus in the future? Are there any initiatives being taken to expand outside of its current markets? Assessing these factors is essential for franchisors looking to invest in a restaurant.
Conclusion
The foodservice industry is a constantly changing landscape, and it is essential for franchisors to stay informed on the trends in order to effectively grow and expand their brand. By looking into the growth rate, menu offerings, staff performance, online presence, awards, and long-term growth prospects, franchisors can make more informed decisions when evaluating prospective restaurants for franchise expansion.
At Brizo, our data-led insights allow franchisors to analyze the fastest-growing restaurants in order to gain an understanding of local food trends and optimize operations. With our insights, franchisors can equip their sales teams, refine their customer journey, and maximize production facilities to gain a competitive edge in the market.
