![]() ![]() However, it will also be buttressed by changing consumer preferences, and in many cases, the health-forward predisposition of younger generations. The ability of QSRs to extend into multiple locations around the country has always hinged on franchising. Related: Why Chains Need to Pay Attention to Kids' Changing Fast-Food Habits Distinct preferences and creating brand access More retail locations mean a broader delivery audience, and the diminished need to rely on DoorDash or Postmates for sales outside of in-store transactions. Why not excise middlemen like UberEats and Postmates, and instead, deliver directly like any other ecommerce retailer? Delivery costs are cheaper and faster than ever, and ecommerce tech like PWAs or social commerce only serve to make the experience more seamless for the end user. Eventually, middlemen delivery services like Postmates that rely on unconventional pickup models from brick-and-mortar stores may be crowded out of the market as larger brands turn to their own production and ecommerce delivery methods. The more franchisees, the broader the brand's network. Franchisees have significantly reduced startup costs and better margins, making the option enticing. One of the most salient developments is also the onset of broad-based wholesale divisions for franchises. For example, the sub-franchise method requires less corporate overhead and enables retail locations to spread faster. However, the sub-franchiser model is gaining traction as a more cost-effective avenue for franchisees. And in many instances, they operate at a loss, which is why some of the market leaders are weighing a merger.Įnter the opportunity for boutique QSR brands at the edge of e-commerce, production, and retail.įranchising is alive and well, but the operational and capital burden for people launching a franchise is heavy. Although companies like Postmates and UberEats are valued in the billions, they operate on razor-thin margins. For example, startups like DoorDash and Postmates serve as the pseudo-ecommerce delivery partners of many health-forward brands that begin as brick-and-mortar retail locations. Interestingly, some tech unicorns play a pivotal role here. Specifically, many of the companies pushing the boundaries of QSR are promoting a distinct healthy flavor, and they're using technology to rise above the crowded field of competition.Įcommerce is the new QSR sword, and if companies can't appeal to the consumer preferences of the ballooning Gen Z and millennials, then they will have an uphill battle for market share. ![]() Now the competition between QSRs is less on outdoing other burger joints and more on innovating the market entirely. The popularity of Chipotle's assembly-line style serving quickly solidified those changes. Burger joints still dominate, but more healthy options like Subway, which now has more locations than McDonald's, started the trend for a different kind of QSR experience. The quick-serve restaurant (QSR) boom, colloquially called fast food, technically started with the Golden Arches in 1940, but the market today is much more nuanced. Related: These Chefs Just Raised $100,000 to Make Cheap, Healthy Fast Food An evolving market Now consumer preferences just need to follow suit. Modern ecommerce and branding are providing plenty of opportunities for our food culture to turn a new leaf. ![]() The products these healthy-food chains sell are relatively cheap and healthy, and many of the companies behind them are socially conscious, supporting charities and global movements. ![]()
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