When the American economy does well, businesses do well. You’ll see an uptick in spending on products and services not deemed “necessity.” Car sales go up. Travel increases. Hotels book more rooms. Closer to home, restaurant sales increase. In fact, for the first time since the United States started monitoring this, individuals in the U.S. are now spending more going out to eat than on groceries. This means restaurant goers have more disposable income, which is good news for you. As someone who is considering entering the world of franchise food, you want people to spend more money out of the house. Samurai Sam’s® is one such franchise that has benefited off of this trend, and why you should consider investing in a new franchise. We can help you not only get everything started but take advantage of this excellent news for the restaurant industry.
MONITORING SPENDING TRENDS
The United States Commerce Department started to record consumer spending in both the restaurant and grocery industries back in 1992. At this point in time, around 28 billion dollars a year was spent on groceries, while 17 billion was spent dining out. These numbers have not only continued to grow but eating out has slowly closed the gap between the two. Now, consumers are spending around 50 billion dollars annually in both groceries and restaurants, but restaurant spending is slightly higher. This is led by a younger crowd, mostly between the ages of 25 and 34. This means consumers who are young professionals are looking for fast lunch breaks or inexpensive dinners after a work day. This is perfect as Samurai Sam’s is exactly what these young professional consumers are looking for. Due to this, if there is any kind of restaurant to invest in, it is a restaurant style that is not fast food, but healthy, made to order food that is done quickly.
MORE SPENDING ON FOOD THAN MOST EXPENSES
This young professional demographic is spending more on food away from the house than really any other minor purchase. One-time expenses such as a vehicle purchase (monthly payment or lease) and the cost of rented apartments are the two highest expenses for young professionals. However, these same professionals spend more on dining out than their clothing, personal services and cell phone services, almost combined. All consumer units are spending more dining out, but it isn’t to the same level as these young professionals. This is a sign that, if you want to invest in a business that can do well in a growing industry with a budding demographic, it is in the quick, fresh food industry, such as Samurai Sam’s. With the combination of this healthy food option paired with brand recognition and the benefits of working with a franchise, we can set you up far better than creating a start-up restaurant or any other business that doesn’t have this kind of name exposure and resources.
HOW FAST HAS IT GROWN?
While the industry has grown on the purchase of groceries, it is still a massive boost in the last few years. In fact, as Michelle Jamrisko reports on Bloomberg, over the last eight years, the industry has improved by 30 percent. For an industry that has increased in revenue for nearly every single year since 1992, a boost of 30 percent over eight years is a massive change and one you should take advantage of. Few other industries are able to show these kinds of numbers. Most industries dropped off during the Great Recession. The restaurant industry did not. If you want to experience this growth, we can help you with a Samurai Sam’s franchise.