The New Frontier: Expanding Restaurant Franchises in Unconventional Spaces
For many years, American diners have flocked to franchise restaurants, lured by their consistency and convenience. Historically, these franchises have spread their wings by inaugurating new outlets in shopping strips and separate edifices. But an intriguing avenue is emerging — non-traditional venues. This piece delves into how franchise eateries can venture into locations like airports, academic institutions, sporting arenas, business hubs, mobile dining zones, and virtual kitchens, presenting new ways to thrive.
1. Airports: A Jet-Setter’s Dining Spot
Airports are teeming with activity, hosting millions of on-the-go travelers annually. These passengers, often pressed for time, seek swift meal solutions. This bustling environment can be a goldmine for franchise restaurants, especially those with quick-serve menus. The 24/7 nature of some airport outlets also offers continuous revenue streams.
2. Academic Institutions: Catering to the Campus Crowd
Densely populated urban colleges and universities house students craving a slice of home through familiar eateries. For franchise brands, this translates into vast potential, especially if their offerings resonate with the student palate like pizzas or casual fast-food.
3. Sporting Arenas: Game Time Grub
With a sea of fans pouring into stadiums and event complexes, franchises have the chance to captivate an enthusiastic crowd. Quick-serve options can be a hit here, ensuring fans don’t miss a moment of the action.
4. Business Hubs: Serving the 9-to-5 Crowd
Often nestled in dining desert zones, corporate parks present a ripe opportunity. Setting up express outlets can lead to consistent patronage from employees and minimal competition, ensuring steady revenue.
5. Mobile Dining Zones: The Rise of the Urban Eateries
Urbanites are gravitating towards food truck parks and food halls. These dynamic spaces can be lucrative for franchise brands, with trucks acting as an affordable entry point and food halls promising consistent footfalls.
6. Temporary Eateries: Pop-Ups and Moving Kitchens
Franchises are increasingly capitalizing on pop-ups and mobile kitchens. Ideal for high-footfall locales like malls or festivals, these setups can boost brand visibility without the usual brick-and-mortar expenses.
7. The Digital Dine-In: Ghost and Virtual Kitchens
Ghost and virtual kitchens are reshaping the dining industry. Operating mainly online, they give franchises a chance to serve orders without managing a typical restaurant space — a cost-effective way to test and expand.
Benefits of Going Non-Traditional
Venturing into these unconventional spaces can open doors to fresh customer segments, reduce operational overheads, and enhance brand visibility. Especially for franchises operating multiple units or brands, such diversified portfolios can mitigate risks and yield revenues from varied sources.
Potential Pitfalls in Unconventional Terrains
However, these opportunities come with their set of challenges. Space constraints, potential competition, and the need for specific tools or trained staff can pose hurdles. For instance, an airport or stadium outlet might need distinct equipment, or a food truck might require specialized staffing.
When contemplating expansion into non-traditional venues for franchise restaurant brands, here are three pertinent questions to consider:
- How well does the chosen non-traditional venue align with the brand’s target demographic and cuisine offering? Is there adequate market research to suggest that the brand will be well-received in these unconventional spaces?
- How will the franchise need to adjust its operations, from staffing to menu offerings, to cater to the unique demands of these venues? Does the brand have the flexibility and resources to adapt effectively?
- Beyond the initial novelty factor, will these non-traditional venues offer sustainable revenue streams for the franchise in the long run? What strategies can be employed to ensure consistent customer engagement and brand loyalty in these settings?
In Conclusion
For franchise restaurant brands, non-traditional venues beckon as a promising avenue for expansion. While they offer cost-effective, high-visibility opportunities, they also come with their unique set of challenges. Yet, for franchises eager to expand their horizons, these venues can pave the way for a diversified and prosperous future.
From the Author, Paul Segreto, CEO & Founder, Acceler8Success Group
The Acceler8Success Group team focuses on helping current and aspiring entrepreneurs achieve their entrepreneurial goals through franchise ownership. For information and assistance in exploring restaurant franchise opportunities, including multi-unit and multi-brand development, please reach out to me today. You may do so via a LinkedIn message, by email to Paul@Acceler8Success.com, or by phone or text at (832) 797–9851.
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