Food & Beverage Industry 2023

General Industry

The Food & Beverage industry is a significant contributor to regional economies and to the U.S. economy. It is a stable industry in terms of employment and labor income due to the consistent demand for food. In addition, it employs 14.6 million workers and accounts for about 13% of all U.S. manufacturing employment. It is an industry that has developed important innovations over time, quickly responding to the changes in consumer demand and meeting the needs of 330 million American consumers.

The Food sector accounts for about 5% of gross domestic product (GDP), 10% of total U.S. employment, and 10% of U.S. consumers’ disposable personal income (DPI). It has total sales of $1.4 trillion.

Food & Beverage Industry Trends

Entering a new decade, the Food & Beverage industry continues to change. From flexible menu types to delivery and takeout playing a huge part in the industry, customers are becoming more demanding. With that said, the public is requesting several new types of dining experiences, including customization, more dietary options, global foods, sustainability, ethical sourcing, value, and convenience. The solution is for businesses in the industry to adapt and always innovate together with the trends positioned by the consumers.

SBA Business Loan Data

0
%
Paid-in-Full Rate

The Paid-in-Full Rate is when the SBA loan is fully paid off by the small business owner including interest, indicating financial strength.

0
%
Charged Off Rate

The Charged Off Rate is the SBA loan default rate where loans have no confidence in being paid off by the small business owner.

0
:1
SBA Loan Success Ratio

For every 8 SBA franchise loans fully paid including interest, 1 SBA loan was unable to be paid back, or defaulted.

*SBA Franchise Loan Data from 2010-2019
*Non-Franchise Businesses taken into account: 44,851

Franchises in the Food & Beverage Industry

The first thing that comes to mind when people hear of “franchising” is notable food concepts like McDonald’s, Steak ’n Shake, and Burger King. In fact, many people are not very familiar with franchise concepts outside the Food & Beverage industry. Food is known for bringing people together, fulfilling the needs of hunger and desire for experiences. Food franchises (aka restaurant franchises) are often the first thing people correlate with the franchise industry. This industry is certainly one of the most popular areas of franchising. Although food franchising is often associated with fast food (aka quick-service restaurants), the industry also includes fast casual, coffee, pizza, burger, smoothie, frozen dessert, snacks, and full-services restaurants.

Food franchises make up approximately 36% of the total franchise establishments in the United States and 48% of the annual financial output of the U.S. franchise industry. Food & Beverage franchises also make up about 65% of direct franchise employment jobs. The National Restaurant Association expects 1.6 million new restaurant jobs to be created by the year 2027.

Food & Beverage Franchising Trends

Convenience stores are becoming a force in the food service footprint. Convenience store franchises have been increasing their food offerings in recent years. Featured convenience stores such as 7-Eleven have over 8,600 stores in the United States.

Another major trend in fast food franchises is slimming down the menu. For instance, McDonald’s menu has ballooned by 70% over the years, leading to a slowdown in service that has affected customer satisfaction. The solution has been to cut down the menu to re-energize sales.

How Much Can a Food & Beverage Franchise Cost?

Through our online platform, Vetted Biz, we have reviewed over 7,000 businesses and franchises. Currently, almost 25% of the businesses on our platform are Food & Beverage franchises. Of the Food & Beverage concepts we have reviewed, total investment amounts can start as low as $3,000 for smaller kiosk concepts all the way up to $6,732,615 for a full-service restaurant. Many factors will affect the investment amount, including but not limited to heavy-duty equipment like grills, or where the Food & Beverage concept needs to be located. In our research, the average royalty fee takes up 5.3% of gross revenue, and the average marketing fee is 2.3% of the gross revenue. From 2016 to 2018, an average of 2.78% of franchise units ceased operations for reasons other than terminations or non-renewals. Moreover, of the 100 franchises we reviewed, there are approximately 3,100 franchise units projected to open next year.

Average Food & Beverage Services Franchise Industry Percentage Fees

0
%
Royalty Fee
0
%
Marketing Fee
$
0
K
Standard Food & Beverage Services Franchise Industry Investment

This metric is the standard industry investment amount for a single unit franchise investment in this industry. Our research and analytics team analyzed over 160 franchise concept investment breakdowns in order to calculate this figure.

SBA Franchise Loan Data

0
%
Paid-in-Full Rate

The Paid-in-Full Rate is when the SBA loan is fully paid off by the small business owner including interest, indicating financial strength.

0
%
Charged-Off Rate

The Charged Off Rate is the SBA loan default rate where loans have no confidence in being paid off by the small business owner.

0
:1
SBA Loan Success Ratio

For every 9 SBA franchise loans fully paid including interest, 1 SBA loan was unable to be paid back, or defaulted.

*SBA Franchise Loan Data from 2010-2019
*Franchise Businesses taken into account: 15,203

Franchise Industries: Free Guides Available

Learn more about the Food & Beverage Industry

Are you interested in owning a franchise in Food & Beverage to move to the U.S.?

Download our free brochure to see if it is a strong option for your U.S. investment immigration goals!

food-beverage

Download Our Free Exclusive Industry Guide

Learn about low cost, profitable franchises today!

[icons icon_pack=”font_awesome_5″ font_awesome_5=”fa fa-store” size=”fa-4x” type=”normal” target=”_self” icon_color=”#2a55a3″]

7,000 Businesses Reviewed

[icons icon_pack=”font_awesome_5″ font_awesome_5=”fa fa-check-square” size=”fa-4x” type=”normal” target=”_self” icon_color=”#2a55a3″]

3% Businesses Passing Our Due Diligence

[icons icon_pack=”font_awesome_5″ font_awesome_5=”fa fa-globe” size=”fa-4x” type=”normal” target=”_self” icon_color=”#2a55a3″]

Over 500 Clients from 65 Countries