Why Restaurant Franchisees Are Adding Retail Franchises to Their Portfolio in 2026

For decades, restaurant franchising has been one of the most reliable paths to building wealth through business ownership. Brands across fast casual, QSR, and emerging concepts continue to attract thousands of operators every year — and for good reason.

But in 2026, something is shifting.

Experienced restaurant franchisees — including multi-unit operators from brands like Crumbl, Dave’s Hot Chicken, and Jersey Mike’s — are actively diversifying into retail franchises. Not to replace their restaurant investments, but to balance them.

If you’re a restaurant franchisee exploring your next move, here’s why retail — and specifically electronics resale — deserves a serious look.

The Challenges Pushing Restaurant Franchisees Toward Retail

Restaurant ownership has always demanded strong operational discipline. But over the past few years, several mounting pressures have accelerated franchisees’ interest in diversifying their portfolios.

High Labor Demands

A single restaurant location can require 20 to 40 employees to operate effectively. And the cost of those employees keeps climbing. According to the National Restaurant Association’s 2025 Restaurant Operations Data Abstract — based on data from more than 900 operators nationwide — salaries and wages including benefits represented a median of 36.5% of sales among full-service respondents in 2024. National Restaurant Association That’s well above historical averages. Restaurant wages have risen 31% since 2019, compelling many operators to raise menu prices just to maintain margins. Restroworks

Volatile Food Costs

Food inflation now dominates restaurant concerns, with 52% of operators ranking it as their primary challenge and 86% including it in their top three. 7shifts Supply chain unpredictability has made it nearly impossible to forecast costs with any confidence quarter to quarter.

Shrinking Profit Margins

For independent operators and small chains, typical net margins at the store level remain at just 3–5%, with prime costs — labor plus food — needing to stay near 60–65% of sales just to stay profitable. Restaurant-accounting That’s a razor-thin margin for operators managing multiple locations.

Operational Complexity

Between food safety compliance, kitchen systems, waste management, staffing schedules, and tight service windows, running a restaurant is genuinely hard. For operators already managing multiple locations, adding another restaurant can mean compounding complexity rather than building leverage.

These aren’t reasons to exit restaurants. They’re reasons to diversify.

Why Retail Franchises Are the Natural Next Step

Retail concepts offer a fundamentally different operating model — one that complements restaurant ownership in several important ways.

Lower labor requirements. Most retail franchises run efficiently with small, manageable teams — a fraction of the headcount required by even a modest restaurant operation.

Predictable day-to-day operations. Without kitchens, food prep, or safety compliance systems, retail environments are significantly easier to manage, systemize, and delegate.

Transferable skills. If you already understand site selection, local marketing, lease negotiation, and multi-unit management, you’re already ahead of most first-time retail franchise buyers.

Recession-resilient consumer demand. According to OfferUp’s 2025 Recommerce Report, 69% of shoppers say they are more likely to buy or sell pre-owned items when financial news is negative or the economy feels uncertain Recommerce Report — making resale-based retail a natural hedge against economic downturns.

For experienced operators, retail franchises aren’t a step down — they’re a smart portfolio move.

The Electronics Resale Market: A Major Opportunity

One retail sector drawing serious attention from franchise investors right now is electronics resale — and the numbers back up the excitement.

The secondhand electronics market is estimated at $245 billion in 2026 and is projected to grow to $351 billion by 2035. Fundamentalbusinessinsights That’s not a niche trend — it’s a structural shift in how consumers acquire technology.

According to IDC, global shipments of used smartphones alone are forecast to grow 3.2% year-over-year in 2025, while the worldwide market for new smartphones is projected to grow just 1% over the same period. Resource Recycling The used market is outpacing the new market — and that gap is widening.

Electronics, furniture, home goods, sports gear, and other categories now make up 75% of secondhand purchases in the U.S., with clothing accounting for just 25% of the market. Recommerce Report The recommerce economy is far broader than most people realize — and electronics are at the center of it.

The consumer appetite is clearly there. In 2024, 12% of Americans purchased secondhand electronics Statista — and that number is growing as more consumers become comfortable buying pre-owned devices and motivated to get value out of their old ones. Overall, 44% of consumers reported buying pre-owned goods more often than before. Tgndata

Why Experienced Franchisees Are Choosing PayMore

PayMore Stores is one of the fastest-growing electronics resale franchises in the country, and it’s increasingly on the radar of sophisticated multi-unit operators.

The model is built around buying, selling, and trading pre-owned electronics — smartphones, tablets, gaming consoles, laptops, and more. For franchisees coming from restaurant backgrounds, the contrast is immediate.

Simple Operations

No kitchen. No food prep. No food safety audits. PayMore locations are clean, straightforward retail environments that are easy to systemize and scale.

Lean Staffing Model

PayMore stores operate with a fraction of the employees required by most restaurant concepts. Given that restaurant payroll has increased an annual average of 10.9% from $95,201 in 2021 to a projected $129,583 in 2024 Toast POS, the appeal of a low-labor retail model has never been stronger.

Recession-Resilient Demand

When budgets tighten, consumers look for value. The U.S. recommerce industry is on track to grow 34% by 2030, reaching $306.5 billion and nearly 8% of total retail spending Recommerce Report — a market that performs across economic cycles, not just in good times.

Multiple Revenue Streams

Revenue comes from in-store retail sales, trade-ins, and national e-commerce channels — giving owners more ways to drive volume beyond walk-in traffic alone.

A Market With Real Momentum

The used and refurbished smartphone market alone is worth $69.66 billion in 2026 and is projected to reach nearly $97 billion by 2031 Mordor Intelligence — and that’s just one device category within PayMore’s broader product mix.

Building a Balanced Franchise Portfolio

The most strategic franchise investors in 2026 aren’t going all-in on a single concept. They’re building diversified portfolios — combining food, retail, and service businesses that balance each other’s strengths and weaknesses.

Restaurants offer strong brand recognition, high transaction volume, and loyal customer bases. Retail concepts like PayMore offer simpler operations, lower labor overhead, and exposure to one of the fastest-growing consumer categories in the world.

The global secondhand products industry, valued at $186 billion in 2024, is projected to reach over $1 trillion by 2035 — a compound annual growth rate of 17.2% driven by increasing consumer demand for sustainable and cost-effective shopping alternatives. GlobeNewswire

That’s the market PayMore is positioned to capture. And franchisees who move early stand to benefit the most.

Is a PayMore Franchise the Right Next Step for You?

If you’re an experienced franchisee looking to diversify into a growing retail category with lower operational complexity, PayMore is worth a serious look.

• Low labor model compared to restaurant franchises
• Simple, scalable operations with no food prep or kitchen management
• A $245 billion and growing market in electronics resale
• Multiple revenue streams across in-store and e-commerce
• Proven franchise system built for experienced operators

The franchisees who build lasting wealth aren’t the ones who found one great brand. They’re the ones who built smart portfolios.

Interested in learning more about the PayMore franchise opportunity? Fill out our franchise inquiry form and a member of our development team will be in touch.

Sources: National Restaurant Association (2025 Restaurant Operations Data Abstract) · Fundamental Business Insights · Mordor Intelligence · OfferUp 2025 Recommerce Report · Transparency Market Research · IDC · Statista · Resource Recycling / IDC · Toast / 7shifts Restaurant Labor Reports

 Learn More at Paymorefranchising.com