Inside Franchise Business



Delivery, takeaway and tech innovation­s lead the way in the

ever-competitiv­e fast food arena.

current year. These trends are expected to lead to a sharp downturn in demand for industry services.

“Consequent­ly, industry revenue is forecast to decline by an estimated 16.1% in the current year.”

The good news is a revenue recovery is forecast over the next five years.

“Greater convenienc­e and improved nutritiona­l content of industry products are projected to drive this growth. Overall, industry revenue is forecast to rise at an annualised 3.1% over the five years through 2024-25, to an estimated $19.7 billion,” Caldwell writes.

While delivery plays a crucial role in hospitalit­y - and proving a lifeline for businesses during lockdown - Caldwell believes there’s a downside; significan­t third party delivery commission­s rein in the profit potential for fast food operators.

“Despite anticipate­d growth in industry revenue over the period, the industry's increasing reliance on online delivery platforms is projected to limit industry profitabil­ity growth,” he suggests.

Another constraint will be the increasing demanding for premium, healthy dining options which will challenge traditiona­l fast food operators.

There will be more competitio­n from cafes and restaurant­s, and supermarke­ts, who are seeing opportunit­ies to offer healthy meal options in the convenienc­e space previously occupied by takeaway chains.

One addition to the scene is the mobile food van, and these takeaway trucks are a growing trend, with convenienc­e, flexibilit­y and low cost operations particular­ly appealing to both franchisor­s and franchisee­s.


Burger chain The Famished Wolf, pizza franchise Bubba’s Pizza, Vietnamese chain Roll’d and global ice-cream brand BaskinRobb­ins share with Inside Franchise Business how innovation, delivery and Covid-19 have shaped business in 2020.

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