When you start looking into the big franchises to invest in, McDonald’s, Dunkin’ Donuts, and 7-Eleven are significant franchises on the list that may come to your mind. However, many franchise industry professionals believe new franchisees should avoid mature brands, due to high startup costs, oversaturation and low profitability.
Instead, emerging brands are the way for smart investors to go in 2022 to enjoy lower initial costs and the chance for much higher returns.
Fransmart, the top franchise development company for emerging brands has reviewed some of the best franchise opportunities for this year. The uniqueness of each of these business ideas points to the huge benefits you stand to gain by investing in them.
Contactless Restaurant Concepts
Automats have always been an advanced feature in the food industry. Contactless kitchen is timely technology brought back into the food industry during the pandemic by Brooklyn Dumpling Shop, and it is here to stay. The disruptive dumpling shop serves 32 delicious flavours of handcrafted dumplings prepared by robots with limited human contact.
The Brooklyn Dumpling Shop’s robot-equipped kitchen can produce over 3,000 dumplings per day, according to Yahoo Finance. Diners order on the Brooklyn Dumpling Shop website either on their phones or at kiosks. The food is prepared and delivered through the Automated kiosk.
Founder Stratis Morfogen refers to the Brooklyn Dumpling Shop as the Tesla of Automats and says his goal is “to reduce payroll costs from 25 to 30% down to around 12 to 15% using technology.”
Contactless restaurant concepts are here to stay, as consumers lean towards safer and faster food delivery systems post-pandemic. This is a great investment opportunity for franchisees to consider.
Hoodless And Ventless Kitchen Outfitting
Ventilation is a crucial aspect of restaurants that requires owners to install expensive vents and hoods to channel air out of a restaurant. According to Bar Business Magazine, hood installations cost around $10,000 to $30,000 depending on building complexities and ventilation specifications.
Ventless and hoodless kitchen units cook food without oil, or hot air bypasses, ensuring restaurants can cut back on vent and hood installations. These units can be installed in spaces that were never designed to have a vent. They are also easy to operate, eliminating the need to have a professional chef on site.
Restaurants using hoodless and ventless kitchens like JARS and Taffer’s Tavern cut kitchen labour considerably and improve the profit margins of their business. If you are looking to cash in on the unique technology used in hoodless and ventless restaurants, you may consider buying a hoodless franchise concept.
Franchises With Low Startup Costs
Operational costs pose a considerable concern to potential franchisees looking for franchise opportunities. Emerging franchise brands like JARS, Rise Southern Biscuits And Chicken, and Ike’s Love and Sandwiches offer low startup costs for potential franchisees.
Different factors drive lower startup costs with restaurants. They include minimum real estate requirements, no full kitchen buildout, reduced labour requirements, and lower maintenance costs. Franchise brands offering multiple cost-saving avenues offer an excellent investment for franchisees allowing them to be profitable in a shorter time.
Conversion Ready Restaurant Concepts
Conversion-ready restaurants help franchisees save on real estate costs and construction time, meaning franchisees can get open faster.
Conversion-ready restaurants also maintain a smaller footprint. The Halal Guys offer flexible conversion options with a space requirements range of 1,400 – 1,800 sq. ft, while Curry Up Now has 1,300 – 3,300 sq. ft. Other conversion-ready concepts include Ikes Love and Sandwiches, JARS, Rise and Duff’s CakeMix. These brands offer excellent unit economics that allows owners to reach profitability quicker.
Sustainability is a huge talking point for many businesses today. Regardless of industry, there are ways to uphold sustainable business practices which ultimately drive business growth. Consumers have a better perception of such brands, and they can generate multiple income streams from their sustainable practices.
PayMore is one of the most environmentally-friendly franchise concepts for 2022. It buys used electronics at a cost, repurposes them, and recirculates them into the marketplace. Their business model works so well that they have achieved lower than eCommerce prices, multiple income streams, and e-waste reduction.
Buying into big and mature brands is no longer as rewarding as before. While more franchise units mean more money for big brands, profits are slimmer for individual franchisees due to over-saturation. The chances of success with a unique franchise concept are much higher than those of mature brands. If you’re ready to start your franchising career with some of the best-emerging brands for 2022, contact Fransmart today.