_{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 [1]