From simple restaurant operations to lucrative ways to increase the restaurant profit margin, there are many benefits of fast food business ventures. Before we outline five valuable benefits of fast food eateries, let’s learn more about the industry as a whole.
Fast Food Restaurants: Definition, Qualities, and Brands
Fast food restaurants are eateries that serve standardized meals in a short amount of time. Such businesses can accomplish low-cost, quick meals using standardized ingredients or prepared food.
Another common element of fast food restaurants is that they’re often a part of chains or franchises. This means that all processes and recipes are the same across the enterprise. So, there are also standardized flavors, consistencies, and portions.
Qualities of Fast Food Restaurants
Fast food restaurants often share a lot of the same qualities and features. Several of them include:
- A drive-thru
- Digital menu boards
- A restaurant loyalty program
- Self ordering kiosks
- Prepared food to go
- High-speed service
- Standardized menu types
Popular Fast Food Restaurants
There are likely several fast food restaurants just in your town alone. However, several of the most popular fast food restaurants include:
- Burger King
- Taco Bell
5 Benefits of Fast Food Restaurants
There are numerous benefits of fast food restaurants. If you’re looking to open one in the near future, remember these five major benefits as a reference.
1. Standardized Ingredients Eliminate Food Waste
One of the most sustainable benefits of fast food restaurants is the standardized menus. A strict set of ingredients makes it much simpler to manage inventory needs.
Inventory control becomes much more difficult if a restaurant develops an extensive menu. Before even realizing it, managers can end up ordering more stock than they need. Sadly, this leads to food spoilage in many cases.
2. Fast Food Eateries Often Utilize Restaurant Tech
If you’re unsure of which tech solutions to add to your restaurant business plan, we recommend starting with these:
- Digital menu boards and drive-thru windows
- Delivery and curbside pick up via online ordering apps
- Voice ordering for restaurants
- Marketplace insertion
- QR codes inside and outdoors
- Self-ordering kiosks
3. Smaller Staff Sizes Help Cut Overhead Expenses
When restaurants hire hosts, waiters, and waitresses, training also has to be taken into account. Plus, eateries often have a high turnover rate. With this in mind, frequently hiring new team members can be expensive. One of the other benefits of fast food restaurants is that standardized menus don’t require various types of chefs.
Fast food restaurants usually hire a manager, kitchen staff, cashiers, and maintenance employees. The smaller the team, the smaller the labor budget.
4. Extended Hours of Operation Are Profitable
Unique selling points are essential for setting a business apart from the competition. Luckily, it’s standard for fast food eateries to remain open after hours. In fact, it’s one of the best benefits of fast food restaurants.
Just think of all the potential customers who might be driving through your town on a road trip or simply on their way home after work. Perhaps some residents often crave a late-night snack.
Offering food after-hours can be a profitable business move. Want to take it one step further? Try offering customers 24 7 food delivery to maximize late-night and early-morning orders.
5. It’s Not the Most Expensive Restaurant Style to Open
Not only is opening a fast food restaurant profitable, but it’s one of the least expensive restaurant styles to open. The startup cost to open a QSR can range anywhere from $20,000 and up.
Though it may seem like a hefty price tag to start this kind of restaurant, there are many expenses you won’t have to face. For instance, many people want to open a bar since liquor is so profitable. However, the cost of getting a liquor license, regardless of your state, is a fortune.
One of the many benefits of fast food eateries is that they’re very minimal across the board. They don’t consist of many decorative items, furniture, or other furnishings. These restaurants also have fewer staff members.
So even though the initial expense might seem like a lot of money, the fast food business model will make it back in no time. Plus, they’re much simpler to maintain.
Frequently Asked Questions About the Benefits of Fast Food Restaurants
There are many advantages to opening a fast food restaurant. If these are your plans for future endeavors, there’s much to learn. Read on to discover more about the profitability of fast food eateries, as well as other types of lucrative ventures.
Is Opening A Fast Food Restaurant Profitable?
Yes, opening a fast food restaurant can be a profitable business venture. On average, a single fast food restaurant can generate up to $100,000 or more per year.
What Are the Advantages of Fast Food Franchising?
One of the best perks about buying a franchise is that marketing assistance comes with the purchase. Great marketing efforts also mean you can have a successful grand opening weekend. And once an eatery has a successful opening weekend, consistent traffic will likely follow.
Which Type of Restaurant Is Most Profitable?
Bars are the most profitable kind of restaurant. Liquor has the highest markup compared to all other types of inventory. With this said, it’s pretty easy for bars to generate a high profit with minimal staff, menu items, and restaurant marketing budget.
If you don’t want to open a bar but would like to open a profitable business, consider these ideas instead:
- Food trucks (see: how to open a food truck)
- Fast food eateries
- Coffee shops (see: how to open a cafe)
- Ghost kitchen models
- Pasta restaurants
How Profitable Is the Fast Food Industry?
The fast food industry generates well over $500 billion worldwide each year. In 2015, the United States generated roughly $200 billion in revenue.
To put things in perspective, these figures are greater than the economic value of some countries. So, it’s safe to say that the fast food industry is a massive source of profits.
What Is the Best Food Business to Start?
There are many profitable food business ventures. Several of the most popular ideas include:
- Food trucks
- Bakeries (see: how to open a bakery)
- Specialty eateries
- Coffee shops
- Bars and restaurants
- Quick service eateries
- Ghost kitchens
- Subscription boxes, such as a monthly coffee subscription
More Benefits of Fast Food Eateries Are On the Horizon
There are many benefits of fast food restaurants. Whether you opt into this business model for simplicity or the growing use of technology, there are many ways to advance in the market. Be mindful of all the advantages and trends upon breaking into the fast food industry. It’s ever-changing, so there’s ample room for growth.