Another Foodie Friday in the midst of the pandemic. For me, it’s impossible to think about food on Friday without thinking of some of my friends in the food business who have been adversely impacted over the last six months. Heck, for my friend Craig who runs our favorite watering hole, the loss of our weekly bar bill alone is significant!
Here in North Carolina, restaurants, foodservice, and lodging is a $23.5 billion industry. More than 482,300 people are employed in the foodservice industry in the state – about 11 percent of the state’s workforce. When the governor shut bars and restaurants down, the impact was felt by those of us who couldn’t drink or dine out but that was nothing like how it hit those who provided that food and drink. I’m sure the situation is comparable to where you live.
Restaurants are back open here, albeit with reduced capacity. Bars are too although many of them are only serving outside. It’s better for the proprietors and staff but some of the jobs haven’t come back and many restaurants have closed up for good.
You wouldn’t think this would be a great time to look at opening a food business, would you? Well, you’d be wrong. As reported by QSR:
Quick-service chains had recovered to just a 13 percent decline year-over-year. Certain counter-service franchises have recently even reported positive year-over-year sales during the pandemic. After experiencing an initial hit on sales, A&W Restaurants announced sales were up by double digits, Papa Johns has noted a 24 percent increase in North American sales and Popeyes has boasted that sales are up by the “very high 20s” percent.
In other words, even in one of the worst-hit industries in the midst of a horrible economic time, there are opportunities. Would I invest in a full-service sit-down restaurant? Of course not. But if the business was predicated on carryout and was part of a franchise system, I very much might. I say that because franchise organizations have the infrastructure in place to help the system survive. A good franchisor can develop and implement systems – online ordering, contactless delivery, etc. – that give franchisees the ability to cope with the challenges. As an individual restaurant or any business, that’s more difficult and often requires capital that the individual unit might not have.
It’s something to think about even if you have no interest in owning a food business. Many other business sectors such as hair and nail salons, gyms, travel businesses, after-school programs have been hit hard over the last six months and yet I’m aware of dozens of franchise brands in these sectors that have modified how they do business. Their franchisees are doing well despite the pandemic. Going it alone is hard even in good times. Working as part of a proven system is especially valuable in bad times.
The ability to adapt is key for any business and never more so than now, don’t you think? Even in a crisis, there is an opportunity! And if you’re interested in learning more about franchise opportunities, you can reach me here.
Consult Keith 