Take-away, a quick bite, and a cheap feed – fast food is a continually developing industry and a popular choice for the franchise buyer.

According to an IBIS World report, the fast food industry is forecast to rise by 2.4 percent annualised over the five years through 2015-16. Industry revenue is forecast to grow over 2015-16, rising by 0.8 percent to total $14.8 billion. Furthermore, revenue is forecast to grow by 0.6 percent annualised over the next five years, to reach $15.3 billion in 2020-21.

Industry demand has now fluctuated as a result of consumer awareness about the nutritional content of fast food and demand for healthier options. Industry operators have had to accommodate for these demands by introducing a range of healthier, premium choices with less fat, sugar and salt. This change in consumer preferences has also led to an influx of new operators offering higher quality fast-food options.

As a result, traditional fast food has dropped as a share of revenue, while revenue from premium and healthy categories has increased. Competition among industry players remains fierce, as operators compete for market share.

Players in the industry optimise market share by continually evolving and adapting their menu offerings to cater for the healthy consumer, as well as the demand for premium, quality ingredients. The industry is also forecast to offer new online and mobile app ordering systems. These changes are expected to make ordering and delivery more appealing to younger demographics.

Red Rock Noodle Bar: The one-stop shop

Boasting itself as the “one-stop-shop for tasty, quick and fresh Asian style dishes”, Red Rock Noodle Bar thrives in regional areas (particularly in Queensland) where local franchisees can leverage local foodies. 

Phil Colburn, managing director, said that the advantages of franchising in the noodle business are that it is healthy, fresh, new, and different.

In an industry where casual dining brands appeal to increasing consumer demands for food quality, Colburn said that franchisees need to be customer focused, understand business basics, and be hands on.

“There are different challenges depending on who (the franchisee is),” explained Colburn. For some franchisees, the local marketing or managing the books can be challenging.

His advice for potential franchisees interested in the fast food industry is to do their homework and due diligence and keep lines of communication open with the franchisor.

“Have a passion for it and know the food,” he added. “Customers can tell.”

Find out more about the Red Rock Noodle Bar franchise.