Is now a great time to open a breakfast franchise like Toastique? Actually, according to industry experts, 2021 may be an ideal year for entrepreneurs to explore the breakfast franchise space and capitalize on a growing trend within the foodservice industry.
Following the impacts of the COVID-19 pandemic on restaurants around the world, many future breakfast Franchise Owners have found themselves wondering what lies ahead for the industry. Despite the negative effects of the pandemic, the restaurant industry is poised to see significant growth and recovery throughout 2021.
When entering into the breakfast franchise restaurant industry in these trying times, it is important to take full note of current trends, as well as changes to the overall dining experience and dynamic. Entrepreneurship during this time must be carried out with precise attention to detail in order to overcome the new challenges brought about during the pandemic.
Additionally, it is crucially important to keep an eye on new and evolving predictions and forecasts surrounding the breakfast franchise restaurant industry, as well as the broader foodservice industry as a whole. While it may be disheartening to research current failures within the industry, this can actually provide tremendous insight into what is not working anymore and what changes are being made in restaurants that have persevered and come out the other side successful.
This article will explore current statistics and growth forecasts surrounding our industry in order to help those looking to enter into this field of business in 2021 to properly interpret and understand these numbers and predictions. We will also discuss what changes to business strategies and in-store operations will be highly important to embrace in the coming years, as well as new opportunities that have risen in recent times for breakfast franchise restaurants like Toastique.
Restaurant Industry Statistics Signal New Growth
In 2020, the COVID-19 pandemic resulted in a drastic decrease in overall sales within the restaurant industry, with sales having fallen more that 30 percent over the course of the year compared to 2019. Although experts predict that the first quarter of 2021 will not see too much improvement, it is predicted that the industry will rise back towards its original sales seen in 2019 over the course of the year – an estimated 20 to 25 percent growth in total.
Although these growth stats currently remain below where sales were at before the pandemic, it is important to note that the arrival of the COVID-19 vaccine stands to potentially provide even more significant improvements. Depending on the efficiency of distribution of the vaccine, the second half of 2021 especially may see exponential improvement beyond current predictions.
Technomic, a management and consulting company centered around foodservice research, announced in December 2020 that they expect to see “strong to moderate growth” over the coming 12 months. Moreover, Technomic states that aggressive strategies and streamlining of menus will be at the forefront of successful business models.
Part of this aggressive strategy mentioned by Technomic will be focusing on investing in contactless technology. Although the vaccine will eventually allow consumers to resume regular dining out experiences, 2021 is likely to see consumers remain wary of visiting restaurants to dine-in. As such, placing emphasis on sanitation, digital ordering, take-out, and social distancing will remain as crucial components of a business strategy for successful restaurants this year.
Examining Foodservice Industry Forecasts for 2021 and Beyond
Though 2021 is not currently expected to see overall restaurant industry sales reach the same numbers as seen in 2019, the overall predictions for the industry beyond 2021 are promising. According to the National Restaurant Association, total restaurant industry sales are expected to rise to $1.2 trillion by 2030 and provide more than 17 million employment opportunities.
Digital sales are expected to be a leading factor in sale increases over the coming years. Ordering food digitally, for instance, accounted for to 20 percent of all orders in 2020, rising from just 5 percent in 2018. Moreover, restaurants that offered limited in-person service in favor of more digitally oriented business models are expected to continue growing exponentially, potentially dominating the industry in years to come.
Breakfast franchise and brunch-oriented restaurants have the potential to have a leg up on other more formal fine-dining or dinner oriented businesses, due to the nature of breakfast and brunch food items being easier to optimize for take-out and digital ordering – two major components of quick service restaurants.
This focus on quick service is important for breakfast franchise models and other restaurants, as the industry will likely see a continued shift towards digitization and non-dine-in business models. In fact, a recently published industry outlook reports that quick-service restaurants have recovered at a faster rate and are expected to recover over half of what was lost in 2020.
Best Restaurant Practices and Changing Consumer Demands
Although the pandemic is expected to come under control in 2021, many of the measures seen utilized throughout the pandemic are likely to stick around.
For instance, new staff training and more thorough sanitation practices rose in response to COVID-19 with 51 percent of staff being retrained on food safety and cleaning procedures. This heavy focus on stricter sanitation protocols is likely to be a major component that drives consumer trust and spending at specific restaurants.
Having a strong marketing strategy and clear messaging will also contribute greatly to breakfast franchise restaurant success. This is especially true when it comes to attracting a more local consumer base, especially considering travelling restrictions are likely to stay in place for a good part of 2021.
According to USA Today:
“Building on existing social media marketing programs, operators will get more personal and localized, perhaps using geo-tracking and even facial recognition technology to anticipate customer needs and wants. Frequent-diner databases and loyalty programs will become more common.”
Additionally, consumers are likely to continue favoring contactless service, outdoor dining, and curbside delivery – thus, embracing these practices will be key to attracting a loyal consumer base that results in both returning customers and a strong local reputation. Thanks to our existing partnerships with third-party delivery services, not to mention our takeout-friendly, “grab-and-go” business model, Toastique is well-positioned to provide contactless service options to our customers with minimal effort and expense for our Franchise Owners.
The restaurant industry, especially in regard to breakfast franchise and brunch-oriented restaurants like Toastique, is shifting the ways in which it does business. Digital ordering, quick service, and strict sanitation protocols are all major factors that stand to redefine the ways in which restaurants operate.
For entrepreneurs looking to enter into the breakfast franchise restaurant industry in 2021, innovation and adaptability will be key. While existing restaurants have to restructure their entire business models, new Franchise Owners especially will have the privilege of being able to implement these new measures from the start, allowing them to budget and plan accordingly.
Any new business venture is not without risk, and that includes opening a new restaurant. However, with a strong team and source of support, new restaurant owners have the opportunity to take advantage of the changing landscapes of the foodservice industry in 2021.
As a breakfast franchise that serves delicious, healthy, on-the-go meals and snacks, Toastique ticks all the boxes for future growth and success in the restaurant industry. Our take-out and delivery-friendly menu and scalable footprint gives Franchise Owners the ability to nimbly pivot their business model when necessary, while our all-natural, locally sourced ingredients and focus on total-body wellness make us a fan favorite any day of the week! Visit our breakfast franchise website to learn how you can make 2021 the year you bring Toastique to your community!