Food is the fuel of life.
Throughout economic highs and lows, people still need to sleep, wake, make love and eat.
The agri-food industry is worth £182bn, with 14% of Britons employed in the sector*.
Franchise Direct lists over forty of the world's biggest and best known food franchises, including the traditional fast food chains McDonald's, Subway and Pizza Hut, and younger opportunities with a focus on health and corporate responsibility.
The food industry is facing challenges, including the consumer demand for "health, nutrition, provenance, localness and authenticity"*, but is set to grow throughout the remainder of 2012.
This week throughout Franchise Direct UK we've been taking a special look at the food sector, and how the future is shaping up for possible franchisees of food businesses.
We've rustled up the finding of leading industry publications.
*Food Statistics Pocketbook 2011 Department for Environment, Food and Rural Affairs and the Office of National Statistics
- The agri-food sector 7.1% national market sector GVA in 2011.
- 14% of the working population employed in food sector.
- Productivity rising since 2002.
- Total expenditure of food, drink and catering £182bn in 2010.
- Food sector grew by 35% between 2000-2010.
Quality improvements will continue to be an issue - despite rising food prices, consumers are accepting higher prices.
The average British person spent £33.04 per week on eating out, 26% of their total food spend.
Food and Beverage 2012 Industry Overview by Deloitte "An appetite for change"
- All brands need to "go green", with consideration for environmental concerns.
- The efficiency of management practises will become a focus for cost saving as food prices continue to rise.
Market Opportunities
There's room in the market to attract more affluent consumers away from homogenous supermarkets
- Need to promote good nutrition and a healthy lifestyle.
- Consumers have become deal seekers, cherry pickers and foodies.
- More working parents, healthy ready meals and casual dining will become in demand.
Consumer Spending
- Consumers eat out in restaurants (80% of the time) and pubs (50% of the time).
- After this coffee shops 35%, sandwich bars 26%, fast food outlets 25% are the most popular.
- Only 17% of people will use work canteens.
Conclusion
Both reports found that the food industry will continue to grow, and there are growing opportunities for businesses and business owners with a focus on the following key areas:
- Priority for customer service.
- Customers still love brands, and brand image is vital for manufacturers and retailers alike.
- Very important to get the basics right.
With a food franchise, the brand is a well known one, with set images and procedures in place. The investment level for food franchises vary more than investment levels for most other sectors, due to the variables involved. A restaurant with premises will inevitabley involve a larger investment than a sand which delivery business. If you're interested in starting a food franchise, this is the week to take a look around and investigate!