Benefits of Franchising in 2009

Are you wondering if NOW is the right time to open your own tumble & tea cafe?
Below are highlights from a recent article from QSR Magazine.
The article highlights the reasons why quick serve restaurants (yes, like tumble & tea cafe)are preforming better than many investments today. It also describes why now is the time to negotiate lease agreements and take advantage of better locations and lower rates.
Check out our website to find out more about the tumble & tea cafe franchise opportunity.

"Growth in quick-serve—whether it’s in franchise sales or consumer purchasing—is being seen by some as a bellwether for how long the overall economy will take to recover. Restaurants in the quick-serve segment performed better than most sectors of the stock market, despite growing consumer fears and tightened household spending. Looking at the 2008 calendar year, and the year-end stock prices for twenty-six large cap restaurant stocks, every one finished well above its fifty-two week low. The whole group of stocks, when the weekly stock price was averaged, finished the year up 78 percent over their lowest points in all of 2008.

The 2009 Restaurant Industry Forecast from the National Restaurant Association predicts that restaurant and foodservice industry sales will top $377 billion this year, following a year that showed stable sales compared to other retail sectors. While all of those aren’t franchised restaurants, the franchised, quick-serve segment is the one expected to increase sales in 2009 or at least hold its own.

That’s something casual dining and fast-casual brands can’t generally expect. The industry forecast predicts full-service restaurants will see a 2.5 percent decline in growth between 2008 and 2009; quick-serve is expected to hold steady with a 0.4 percent increase.
One thing to consider in finding a restaurant brand to acquire is whether it’s necessary or discretionary."

“Comparable sales haven’t fallen through the floor,” Mangieri says of quick-serve in 2008. “Most Americans don’t have the knowledge to cook for themselves. They must have the convenience. I think that trend is here to stay.”