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Focus on Food Franchising in the UK

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 McDonalds, Subway and Pizza Hut, and younger opportunities with a focus on health and corporate responsibility including Just Falafel, Lavazza Espression and Crepe Affaire.

Focus on Food Franchising

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 agrifood 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"

Alfresgo Franchise Opportunity
  • 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


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:
  1. Priority for customer service
  2. Customers still love brands, and brand image is vital for manufacturers and retailers alike.
  3. 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! Want to read more about the Food Franchise industry? Read our Tips for Starting a Food Franchise
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