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Explore Healthy Food Franchises & Businesses
Healthy Food Industry
General Industry
This industry covers a wide range of businesses, from restaurants to food brands, but overall it encompasses food products that promote healthy ways of living. This industry is fairly recent, and mainly emerged as an alternative to the domination of the fast food industry. The heightened prevalence of preventable diseases such as heart disease and diabetes has increased the health consciousness of many Americans, paving the way for the healthy food industry to thrive.Food & Beverage Industry Trends
Like most other industries, the food service industry took a considerable hit with the pandemic. However, some food service businesses that relied primarily on technology to serve clients encountered a boost in revenue, especially food delivery apps like DoorDash. Nevertheless, food services is expected to make a comeback as COVID-19 cases subside and more people become comfortable with eating out in restaurants again. Fast food chains prevailed surprisingly well despite the shutdown, reflecting their continued dominance in the food services industry.Key Industry Numbers
Paid-in-Full Rate
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The Paid-in-Full Rate is when the SBA loan is fully paid off by the small business owner including interest, indicating financial strength.
Charged Off Rate
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The Charged Off Rate is the SBA loan default rate where loans have no confidence in being paid off by the small business owner.
SBA Loan Success Ratio
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:1
For every 8 SBA loans fully paid including interest, 1 SBA loan was unable to be paid back, or defaulted.
-SBA Loan Data from 2010-2019
-Non-Franchise Businesses taken into account: 44,851
Healthy Food Industry Trends
This industry is segmented in a way that covers various areas of health, from plant-based diets to gluten-free diets. There are multiple emerging forces that drive growth in the healthy food industry, from consumer demand for transparency in food products and the increasing health consciousness of Americans. Although there is a lot of potential within this industry, high costs of healthy food products limit the pool of clientele. Companies that tend to thrive in this industry are already well-established brands that offer “healthy” alternatives to their most popular products. However, there are some businesses that have succeeded by selling trending healthy food products, some examples including acai bowls and avocado toast. Other businesses have also adopted the business model of fast food restaurants in selling their healthy food, combining convenience and expediency with quality products.Food & Beverage Franchising Trends
Convenience stores are becoming a force in food service footprint. Convenience store franchises have been increasing their food offerings in recent years. Featured convenient stores such as 7-Eleven has over 8600 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 is affecting 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 2,900 businesses and franchises. Currently, almost 25% of the businesses on our platform are food and beverage franchises. Of the food and 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 and 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 3100 franchise units projected to open next year.
Average Food & Beverage Franchise Industry Percentage Fees
Royalty Fee
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Marketing Fee
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Standard Food & Beverage Franchise Industry Investment
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0
K
This metric is the standard industry investment amount for a single unit franchise investment in this industry. Our research and analytics team analyzed over 523 franchise concept investment breakdowns in order to calculate this figure.
Paid-in-Full Rate
0
%
The Paid-in-Full Rate is when the SBA loan is fully paid off by the franchisee including interest, indicating financial strength.
Charged Off Rate
0
%
The Charged Off Rate is the SBA loan default rate where loans have no confidence in being paid off by the franchisee.
SBA Loan Success Ratio
0
:1
For every 9 SBA franchise loans fully paid including interest, 1 SBA franchise loan was unable to be paid back, or defaulted.
-SBA Franchise Loan Data from 2010-2019
-Franchise Businesses taken into account: 15,203
