Perhaps shows such as the Great British Bake Off have contributed to the UK’s increased desire for fancy desserts, but one thing is for sure: The UK has long been head-over-heels for artisan bakeries and fancy desserts.
Dessert franchises such as Treatz Dessert Parlour, Heavenly Desserts, Creams, and Shakeaway are all living proof that the dessert industry is thriving – and franchises like them allow you the chance make your own mark in the sector and see what you're truly capable of.
If you're an aspiring baker with a passion for creating spectacular masterpieces, then running a dessert franchise could be ideal for you.
Main Dessert Franchise Industry Segments
The two biggest segments in dessert franchising are bakery franchises and frozen dessert franchises.
Bakery Franchises
Bakery franchises focus on certain product areas for their business, be it bread, muffins, bagels, croissants, pastries, donuts, or other sweet goods. Many of these franchises also choose to feature menus that incorporate other items like sandwiches, soups, and coffee to further their income potential.
It’s a consistently lucrative area. In the UK, an average of £82 per person per week is spent on baked goods such as bread, cakes, biscuits and pies, according to the most recent data from Statista.
In general, the bread and baked goods industry in the UK has an annual turnover of somewhere between £8 to £9 billion, depending upon the source. Per market research company IBISWorld’s 2022 report on the industry, “The reopening of food service establishments, including cafes, in the current year is expected to support industry revenue growth of 2.3%.”
Frozen Dessert Franchises
Frozen desserts are also popular treats among consumers. These treats include fare such as ice cream, gelato, sorbet, frozen yogurt, milkshakes, and others. Per the latest data from Statista (2019), the average weekly household purchase per person of ice cream products (including takeaways) in the United Kingdom was an average of 110 grams per person per week in UK households.
Over the years, frozen desserts such as ice cream franchises have evolved from being just a warm weather treat, or simply for dessert. Innovators in the industry have introduced coffee topped with ice cream for the morning sweet tooth. The panini gelato, which features gelato scooped onto a bun and warmed in a special panini press, to provide something warm and delicious in the winter months. And so much more.
Shared Dessert Franchise Trends with Coffee and Café Franchises
As briefly noted above, you’ll often see the sweet treats of this food franchise industry segment paired with coffee. Because desserts are so often paired with the beverage, you will see many trends that impact café franchises also impact dessert franchises in a similar manner.
When it comes to trends in this area, the demand for vegan, vegetarian and gluten-free products that is present in all of the food franchise industry at present moment comes to mind. As former Starbucks CEO Kevin Johnson said in February 2021, “probably the most dominant shift in consumer behaviour is this whole shift to plant-based. And that is a shift both in beverage and in food.”
In addition, over the past couple of years particularly, cafés and dessert shops have had to adapt and get used to different ways of doing business. Related to the changes the pandemic years have brought about or accelerated, here are some other trends to be aware of:
- Mobile and van-based franchises are more popular and numerous than ever.
- Consumers are more accustomed to flexible and digital services.
- There’s been a significant increase in subscription and delivery-based services.
- Businesses are being built with sustainability and lessening their carbon footprints more in mind.
What You Should Seek When Choosing a Dessert Franchise
People buy into franchises for many different reasons. Suppose you are enthusiastic about owning your own business, but can’t quite come up with a business idea of your own.
Or, maybe, you know exactly what you want to do, but the idea of doing all of the legwork in setting of a business – such as brand development, writing a business plan, learning the rules and regulations of the industry, finding how to supplement your existing skills in the area, figuring out marketing, etc. – makes your head spin.
In either case, franchising may be the best method for making your dreams come true.
When deciding which dessert franchise to invest in, you should compare how much and what types of support the franchisors offer on an initial and ongoing basis. The most common services offered by the franchisor include but are not limited to the following:
- A well-known brand name
- Management training
- Operating manuals
- Assistance in choosing and developing the franchise location
- Advertising and marketing strategy
- Field support
- Sourcing for quality food ingredients
- Aid in research and development of new menu items and services
With a recognisable brand name and logo, high-quality signage, and other support materials provided by the franchisor, you will be able to focus your efforts on the everyday aspects of running the business. This includes staffing and managing the company and ordering supplies, and selling and passing on the product.
However, it’s important to remember that even with the guidance and support, franchises are independently-owned businesses. Therefore, whether your dessert franchise is a success or failure is based entirely on you and your ability to run the company.
Finding the Money: Franchising vs Independent Businesses
Investing in a franchise is often considered a safer option than creating an independent business from the ground up. This is certainly the case for those needing some financial help from lending institutions. Traditionally, franchises have been more likely to appeal to banks and moneylenders and draw the necessary capital to start the business since franchises have a more demonstrated history of feasibility and market sustainability.
Independent companies often find it a challenge to obtain loans with sensible borrowing rates since they have no evidence that their business will reach potential. This lack of faith from lenders has the potential to jeopardise their company from the start.
Having enough money before you start is important. The first couple of years of any business can bring challenges, placing most independent businesses at imminent financial risk. Without the ability to generate enough revenue to cover initial and operating expenses, independent business owners will likely find the venture unviable. In fact, more than half of all independent start-up companies go out of business within the first two years in the UK.