Why is the ‘business in a box’ model on the rise?

Did you know, there are now over 48,000 franchised businesses in the UK, an increase of 25% in 10 years, making it a sizeable sector equal with pubs.

Why is the ‘business in a box’ model on the rise?

Did you know, there are now over 48,000 franchised businesses in the UK, an increase of 25% in 10 years, making it a sizeable sector equal with pubs. In fact, 8 out of the 10 largest restaurant brands are operated under the franchise model, including the biggest Quick Service Restaurant brands.

There are new entrants to the sector every week, with many UK brands seeing it as a viable way to expand nationally. Similarly, established overseas operators view the franchise model as an effective way to enter the UK market.

So, why do all of these entrepreneurs want a franchise business?

The franchise model provides excellent opportunities for both the franchisor and franchisee. There is no doubt many people dream of opening their own business but what if your ambition is greater than one store. Additionally, if you are investing your life’s savings into opening a business how do you minimise the risk involved? Stats suggest that over 80% of franchise business remain open and trading over five years after launching, nearly double that of independents. At a time when businesses are being hit by many unforeseen pressures it can be gratifying to know that you have a multi-national on your side offering support and advice.

This reliability is also highly valued by lenders who are keen to support expansion of a franchise brand, safe in the knowledge that the business format is fixed, they can open quickly in new areas with proven trade expectations and staff training.

Franchising: what’s the appeal?

  • Tried-and-tested business model (key for lenders)
  • Lower failure rate
  • Built for delivery
  • Enables new brands to grow quickly within a market
  • Ability to operate independently with the support of a larger brand

Is franchising right for you?

The quick service restaurant (QSR) sector is flourishing, and this growth looks set to continue throughout 2023, in stark contrast to the wider restaurant sector. During lockdown closures, takeaway and delivery services were able to thrive, with many businesses reporting up to a 30% increase in sales, and although that may now be plateauing, some dine-in venues are reporting a doubling of orders, with delivery accounting for around 20% of their sales, which is the saviour of many.

This growth looks to be boosted by overseas chains which see the UK as an attractive market from which to launch a European expansion. The UK also remains popular with US based brands due to similarities in terms of cultural trends, language and popular cuisines.

The Rising Star in Europe

For the past ten years, Carl’s Jr. has been one of the most successful US based brands with double digit growth across Europe. Partnering with suitable franchisees across different markets such as Spain, France or Denmark, the brand has shown consistent growth and a great development potential. Their Premium position in the Quick Service Restaurant market has allowed them to add value to the market and take a space no other brand is delivering as well to costumers. Their Unique Selling Proposition they deliver; superior quality product, bold innovation and upgraded restaurant experience is well valued by costumers around Europe.

Since mid-March, Carl’s Jr. have partnered with Christies & Co., one of the most renown property agencies to search for suitable franchisees that have the capability to invest in high traffic locations in and around major cities in the UK. The brand has proven to be successful in different formats, from high street to malls or drive-thru models.

Simon Chaplin
Simon Chaplin