3 resilient QSR franchises to consider during a tough economy

In a turbulent financial period for all, quick service restaurants (QSRs) present profitable and scalable opportunities.

In August 2023, private equity firm Roark Capital bought Subway for a sum rumoured around $8.95 billion, outbidding several other private equity groups vying for a bite of the 60-year-old, family-owned firm.

According to a Subway spokesperson, Roark Capital, which also owns Dunkin’, Arby’s and Baskin-Robbins, will continue to execute its strategy with a focus on “sales growth, menu innovation, restaurant modernisation, overall guest experience improvements and international expansion,” giving credence to the long-held opinion that fast food can be a solid business investment in a recession by those in the know.

In fact, data from the 2008 recession showed demand for fast food remained relatively stable even while other industries suffered. Enough so that Jim Taylor, president of Arby’s, described the burger business as “recession-proof” in a Yahoo Live conference last year, adding that “fast food is a simple pleasure that people can access every day that makes them feel just a little bit better about whatever they’re dealing with.”

Prime opportunities “In the UK, the QSR industry stands as a prime and exciting opportunity for franchisees,” says Fahim Khan VFP, head of franchise recruitment at Oodles.

“Its resilience, demonstrated during the COVID pandemic, paired with consistent demand makes it a reliable investment – and the industry’s ability to cater to the diverse tastes of a multicultural nation and its embrace of tech-driven innovations ensures it remains adaptable and versatile. For aspiring entrepreneurs seeking a flourishing business venture, the QSR sector in the UK is a hot prospect ready to be seized.”

Rak-Kyu Park, CEO and founder of sushi QSR Kokoro, is similarly optimistic: “QSR holds a unique position of strength in the global food market and presents an exciting opportunity for franchises in the UK right now. As we have faced the most uncertain times within our domestic economy, QSR outlets of all types are still opening across the UK and growing in number, while other businesses are declining. The strength of the QSR industry is not to be taken lightly.”

With established brand recognition, comprehensive support networks, scalability, and a growing focus on sustainability, QSR franchises can offer a recipe for entrepreneurial success.

Take a look at these three QSR brands on the path of expansion in the UK – each offering a lucrative opportunity for go-getting investors. With full franchisor support behind you, now might be the perfect time to take the plunge and profit from the UK consumer’s enduring love for high-quality fast food.

Oodles

“An exciting prospect for multi-unit investors”

Oodles is an Eastern-inspired quick service store, revolutionising boxed food with theatrical live cooking using high quality, fresh ingredients. The first store opened in Evington Road, Leicester in 2010, expanding to a second store locally, and then focused on perfecting menus, recipes, operating procedures, and support systems before venturing into franchising in late 2018.

Currently, Oodles has more than 40 operational stores across the UK, with 20 more in the pipeline and plans to expand internationally, with the brand’s first store opening in Dubai scheduled for early 2024.

“80 per cent of our franchise partners are multiple store operators, and 60 per cent are already successful owners of other franchise brands,” says Fahim Kahn VFP, head of franchise recruitment. “Our ambition is to expand our international presence in 2024 and have a total of over 100 branches within the UK by 2025.”

With its well-established branding and successful business model, Oodles presents an attractive opportunity for entrepreneurs interested in the food and beverage industry.

“While prior experience in F&B is not mandatory, possessing a business background or F&B expertise is advantageous,” he explains. “If you are already a franchise owner, our robust support system sets us apart and provides a competitive edge.”

“At Oodles, we welcome both individual operator franchisees and those interested in a multi-unit management franchise,” he continues. “In fact, we embrace various models as long as they align well.”

In return, Oodles offers an exceptional return on investment (ROI) as well as unparalleled support from the team at head office, which boasts over 100 years of combined experience in the food and beverage industry and franchise management.

“Our typical payback period is a mere 24 months,” adds Fahim, and all current multiple store operators are initiated through individual agreements without any obligatory commitments, giving reassurance to investors.

Interested? Oodles is an exciting, simple-to run QSR opportunity for individuals or groups who can show exceptional business acumen and a steadfast dedication towards long-term business expansion.

In return, they benefit from ongoing brand support and experience. Investors can choose from kiosk and food court formats that start from £120,000, to flagship stores, where a minimum of £200,000 investment is required.

All include the on-boarding journey, which includes in-depth orientation, comprehensive training, guidance with site selection and setup, as well as ongoing mentorship and resources.

“Your success is our priority, and we’re committed to being with you on this exciting journey of growth and achievement,” Fahim emphasises, adding that ideal candidates value transparency, adhere to established protocols, and take immense satisfaction in contributing to Oodles’ development, while fostering a sense of kinship with the wider franchise family.

Kokoro

“Serving authentic food with heart and soul”

Nestled in a nook in Kingston-upon-Thames, Kokoro began as a small Korean-Japanese restaurant just over a decade ago.

Starting out with only three tables, Kokoro has since expanded into a booming franchise, with more than 73 locations across the UK serving hand-made sushi and hot food quickly to customers during busy times of their day.

Franchise partners’ success can be attributed to their customers’ appreciation for authentic and delicious meals, supported by reliable quality management in sourcing and packaging. The brand is now looking to expand across the UK to wherever there’s a need for tasty, fresh and healthy fast food.

“In Japanese, Kokoro translates to heart, mind, or soul – these are our most important ingredients and the key to our success. The hard part is how you do it and maintain it,” says Rak-Kyu Park, CEO and founder.

Interested? If you have a passion for food business and you’re hard-working and ambitious, Koroko could be the perfect opportunity for you.

In return for an investment ranging from £270-300K, according to the size of the shop, the franchisor will provide help in finding the right location, set up, training and bank funding, as well as ongoing business development and promotional support.

Papa John’s

“Seeking ambitious UK entrepreneurs”

Papa John’s, which originated in 1984 in Indiana, has experienced phenomenal global expansion through franchising, boasting well over 5,300 stores across more than 40 international markets.

A Papa Johns franchise presents the perfect opportunity for entrepreneurs to offer high-quality, innovative, and delicious products from a brand with global recognition.

“Everyone loves pizza and that is never going to change! Our quality, fresh ingredients delight customers and keep them coming back for more,” says Amit Pancholi, business development director, Papa Johns UK.

“We now have well over 500 stores in the UK, with a Papa Johns in every major city. Our plan is to continue to open more high street stores, while helping existing franchisees develop their trade zones. We’re also recruiting new franchisees from a QSR background who have the appetite to grow multi-unit operations of between five and 10 stores over the next few years.

“As a proven brand, we can offer franchisees access to multi-store, flexible format operations in the QSR marketplace,” he continues.

“Our goal is to extend the reach of the Papa Johns brand beyond the high street, ensuring our customers can enjoy their favourite pizza wherever and whenever they choose, proactively partnering with venues and leisure operators and installing Papa Johns in sports stadiums, holiday resorts and leisure venues.

“By being flexible, we create win-win opportunities for established players to create new revenue streams and satisfy customers with an enhanced offering at the same time. Our robust franchise model offers excellent potential for multi-unit franchisees or those in the non-traditional space.”

Interested? The obvious attraction in buying a Papa Johns franchise is joining a globally recognised brand, knowing that one of the world’s largest pizza businesses is supporting you every step of the way.

Total investment in a high-street store varies between £170k-£350k, depending on its location and whether it’s a new store or a re-sale. This includes full turnkey opening and all the training and assistance needed to get up and running.

“Before joining we offer support through introductory meetings, virtual discovery days, guest visits to the QCC, and in-store visits to make pizza and see how it all runs,” explains Amit. “Once on board, our franchisees benefit from continuous support from our marketing team, from national brand awareness to leafletting, digital marketing and app and website development.

“All staff have use of our Pizza Academy training system, which contains a suite of modules on subjects as diverse as making specific pizzas to finance and customer service,” he continues, adding that this inclusive system means employees can map out a career pathway at Papa Johns by acquiring relevant skills.

“The franchise business model provides the framework to work in partnership with like-minded, entrepreneurial franchisees to build something special for the future,” says Amrit.

“We’re looking to partner with ambitious natural leaders with a background in business, who are keen to take advantage of multi-unit opportunities, deliver the best customer service and serve their communities with better pizza. Our ‘non-traditional’ flexible franchise options, such as stadiums, holiday parks and leisure venues, are available to existing operators to expand too.”

What Franchise host a range of QSR opportunities. You can access the full list here.