Julian Riley
According
to the most recent franchise survey conducted by the BFA (British Franchise
Association) and sponsored by NIC Services Group, the UK’s hotel and catering
franchise sector, which includes hotels, coffee houses and fast-food chains,
saw an impressive 34% growth since 2018.
Challenges
As ever, franchising, with its experienced franchisors,
robust support systems and established brands, has shown itself able to weather
the roughest of economic seas; the pandemic, supply chain issues, new
governments with tightening economic policies or employment issues.
Franchising, with its repeat business model, continues to offer stable
self-employment in unstable times and with impressive results.
The role of the BFA
With its tagline of ‘Discover Your Tomorrow’ the BFA has
been setting the standards for franchising in the UK since 1977. The
association has over 350 franchisor members, all of whom have had their
business models inspected and have pledged to abide by the association’s code
of ethics.
Creams Café and YouMeSushi are two food franchises that,
despite being at different ends of the consumer market, are experiencing
success with their franchise business models.
The rise of food franchising in the UK
The recent BFA survey noted that: “Despite significant
challenges, the sector has not only recovered but has grown.”
Key market drivers for this expansion have come from a
number of factors; a demand for new and diverse dining experiences, a rise in
delivery and takeaway options and, during the pandemic, increased domestic
tourism which fuelled a heightened interest in dining out. These changes have
made the sector more attractive to franchise investors, looking to capitalise
on a robust market.
BFA members Creams Café and YouMeSushi have both
demonstrated adaptability and resilience, allowing them to succeed where other
start-up brands may fail.
Creams Café – Satisfying the nation’s sweet
tooth
Julian Reilly, property and franchise development director
for Creams Café reveals why the brand is doing so well: “We have 17 years of
operational success and experience under our belt, pioneers in the world of
desserts and we are proud to be one of the leaders in our category. We’ve
tapped into a niche that resonates with today’s consumer, offering moments of
pure happiness and almost escapism from the outside world.”
Independence and guidance
Julian and his team have worked hard to ensure economic
stability for their franchisees: “Investing in a Creams Café franchise offers
individuals an opportunity to step into business ownership with our support
from day one. We hand them a blueprint for success which includes training,
marketing support and access to our established supply chains. We see it as a
balance between independence and guidance.”
No price increases since 2022
Impressively, the brand has taken steps to protect their
franchisees from some of the most recent economic hurdles. Julian said: “We have not implemented any
price increases on gelato since the first half of 2022, bearing all the risk
for the last two years in order to try to protect stores and their margins.”
Above expected returns
As such, Julian reports that returns for his franchisees
are ‘strong and competitive’. He adds: “While profits vary depending on
location, market conditions and operational efficiency, we see franchisees
achieving returns that exceed expectations within the first few years.”
Franchisee on track for success
Franchisee Akmengli
Geldymamedova, owner of a resale café in Kingston
agrees saying: “My business plan projects an increased turnover of 100% in my
first two years and with over 10% increase already, I’m confident we’re on
track to do that.”
YouMeSushi – bringing fresh, fast-casual
Japanese cuisine to the UK
Tim Circus, head of franchise at YouMeSushi, says for them
it is about bringing a new look for Japanese food: “Food is a stable sector,
and reasonably recession proof. The ease of travel means new ideas and concepts
are being brought to the UK market constantly. Sushi offers something
different. Set up in 2008, we have 26 restaurants and aim to double in size
within the next three years. Our success is down to how we have redefined the
‘fast-casual’ dining experience. We
combined fresh sushi with hot Japanese food, all under one roof, a first in the
industry.
Like all businesses, they face staffing issues, overheads
and the increase in NI contributions, but use multiple approaches to counteract
them, including working closely with suppliers to gain economies of scale,
which a business of their size can do.
Loans repaid within 12 months
Tim reports that returns for YouMeSushi operators who are
involved and committed to their businesses are excellent: “Several of our
franchisees have taken finance to fund the purchase of their first franchised
outlet and have been able to repay that loan within one year. They have then
used the profits generated to invest again, becoming multi-unit operators.”
Why food franchising works
At its simplest form, people will always need to eat,
meaning demand is fairly stable and with the rise in online ordering and
delivery, franchises are now able to reach a wide audience. When franchisees
buy into an established brand, they are instantly able to harness that brand
power to establish themselves in their local areas and with the support of an
experienced franchisor, using a tried and tested business model, they have all
the tools to hand to make their business a success.
Ethical franchising
Pip Wilkins QFP, CEO of the BFA, concluded: “We are
delighted to see food franchises in the UK doing so well. Choosing to become a member of the BFA
underlines their commitment to ethical, professional franchising and being the
foodie nation we are, we fully expect to see these results increase in our next
survey, as brands continue to offer more opportunities for supported
self-employment through franchising.”
To see a full list of BFA member food and
beverage franchises please visit www.thebfa.org
