1851

The decision to open a business is no small one, especially in the restaurant industry. As a franchisee, there are different fees and other costs associated with opening a food service business. There also are a variety of food service franchises available, so it’s important to understand what each of them are, as well as the potential benefits and drawbacks of each.While there are several benefits to running a fast food restaurant, including high revenue, there are also some drawbacks. We recommend exploring the different types of food service franchises out there and then look at the pros and cons of running a franchise in the restaurant world.<h4>The Four Types of Food Service Franchises</h4>According to The Houston Chronicle’s <a href="https://smallbusiness.chron.com/4-styles-service-restaurant-business-22923.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-are-the-different-types-of-food-service-franchises-2718285" target="_blank" rel="nofollow">Chron</a>, there are four different types of food service franchises: fast-food or quick-service restaurants, fast-casual restaurants, fine-dining restaurants and casual-dining restaurants.A fast-food or quick-service restaurant is a restaurant that provides food quickly and at lower prices. These are the typical fast-food restaurants you’re used to seeing, such as <a href="https://www.mcdonalds.com/us/en-us/us-franchising.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-are-the-different-types-of-food-service-franchises-2718285" target="_blank" rel="nofollow">McDonald’s</a>, <a href="https://company.bk.com/franchising?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-are-the-different-types-of-food-service-franchises-2718285" target="_blank" rel="nofollow">Burger King</a> and <a href="https://www.tacobellfranchise.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-are-the-different-types-of-food-service-franchises-2718285" target="_blank" rel="nofollow">Taco Bell</a>. The cost to start a franchise location for a quick-service restaurant varies depending on the brand you choose.&nbsp;Fast-casual restaurants are seen by customers as being “healthier,” which allows the brands in this sector to charge higher prices than quick-serve restaurants. The process for a fast-casual eatery involves customers ordering their food at a counter and waiting for it to arrive at their table, or through takeout orders. <a href="https://www.panerabread.com/en-us/company/franchise-information.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-are-the-different-types-of-food-service-franchises-2718285" target="_blank" rel="nofollow">Panera Bread</a> is a typical example.Casual-dining restaurants are similar to the two listed above, but with table service. Restaurants like <a href="https://www.applebees.com/en/opportunities/domestic/domestic-request?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-are-the-different-types-of-food-service-franchises-2718285" target="_blank" rel="nofollow">Applebee’s</a> and <a href="https://buffalowildwingsfranchising.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-are-the-different-types-of-food-service-franchises-2718285" target="_blank" rel="nofollow">Buffalo Wild Wings</a> offer a family-friendly atmosphere that allows families to go out and enjoy a meal together. Casual-dining menus are typically more detailed than what you find on a quick-service restaurant’s menu, and a dining trip to one involves a server bringing your drinks, meals and guest check straight to the table. When it comes to the pricing at a casual-dining establishment, expect to charge more for items than at a quick-service or fast-casual restaurant, but less than what would be charged at a fine-dining restaurant. These concepts usually offer a variety of dishes such as pasta, chicken and simple seafood.&nbsp;Aspiring entrepreneurs who want to provide guests with an experience while eating their food may want to consider a fine-dining restaurant, where there are elaborate menus and higher prices. Some of these <a href="https://1851franchise.com/fine-dining-franchises-set-to-boom-in-2021-2715536">fine-dining options</a> include <a href="https://www.ruthschris.com/franchising/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-are-the-different-types-of-food-service-franchises-2718285" target="_blank" rel="nofollow">Ruth’s Chris Steak House</a> and <a href="https://www.landrysinc.com/franchise/mastros-franchise?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-are-the-different-types-of-food-service-franchises-2718285" target="_blank" rel="nofollow">Mastro’s Steakhouse</a>, where the kitchen staff is composed of chefs who went to culinary school and have extensive experience in the industry.<h4>The Benefits and Drawbacks of Investing in a Food Service Franchise</h4>As with owning any business, there are pros and cons to it. According to franchise lawyer Charles Internicola of <a href="https://www.franchiselawsolutions.com/blog/advantages-and-disadvantages-of-a-restaurant-franchise/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-are-the-different-types-of-food-service-franchises-2718285" target="_blank" rel="nofollow">Internicola Law Firm</a>, some of the pros after signing an agreement to open a franchise location include that you’re opening a business with a well-established name and that you will receive training and support. Most franchise opportunities are with brands that are either well-known nationally or in the markets in which they operate. Additionally, franchises typically offer training and support to those who sign a franchisee agreement. So, even if you don’t have the most extensive experience in the restaurant industry, you’ll gain the knowledge necessary to get started and support to help the business grow.Another benefit of entering the restaurant franchising industry is buying power, especially in a market in which there are supply chain issues and rising inflation. <a href="https://restaurantengine.com/pros-cons-running-franchise-restaurant/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-are-the-different-types-of-food-service-franchises-2718285" target="_blank" rel="nofollow">Restaurant Engine</a> reported that the collective buying of a franchise group often allows franchisees to benefit from lower inventory prices. “Your bargaining power with vendors is also likely to be higher due to the name recognition,” the outlet stated.According to the <a href="https://www.sba.gov/blog/pros-cons-owning-food-franchise?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-are-the-different-types-of-food-service-franchises-2718285" target="_blank" rel="nofollow">Small Business Administration</a>, restaurants often have high turnover rates, hovering “around 70%.” This is a common issue in the restaurant industry, but certainly something that you want to consider as you go through hiring policies.&nbsp;Another con you may want to factor in when opening a restaurant franchise are the fees charged by the franchisor. Franchise royalties are paid depending on a variety of factors, but sometimes are an established rate or vary depending on the sales of the unit.&nbsp;Running a business is never easy, and there are pros and cons associated with every type of business – including the restaurant industry – but those who are committed to success will find that obstacles can be overcome along the way.

What Are the Different Types of Food Service Franchises?

1851 Franchise

Thinking of purchasing a restaurant franchise location? Check out the different types of food service franchises and the pros and cons to the industry.

what-are-the-different-types-of-food-service-franchises

Mosquito Squad Plus

How This Marine Corps Veteran Found Freedom and Purpose With Mosquito Squad

how-this-marine-corps-veteran-found-freedom-and-purpose-with-mosquito-squad

Spadea Lignana Franchise Attorneys

How The DeFelice Brothers Turned a $10,000 Loan Into an Award-Winning Franchise With Help From Spadea Lignana

how-the-defelice-brothers-turned-a-10000-loan-into-an-award-winning-franchise-with-help-from-spadea-lignana

Caring Transitions

How This Gilbert Entrepreneur Found Purpose Helping Families Through Life’s Transitions

how-this-gilbert-entrepreneur-found-purpose-helping-families-through-lifes-transitions

USA Ninja Challenge

Where Passion Meets Purpose: USA Ninja Challenge Gives Franchisees the Power to Change Lives

where-passion-meets-purpose-usa-ninja-challenge-gives-franchisees-the-power-to-change-lives

SweatHouz

From Finance to Wellness: Natalie Siewers’ Path to Leading SweatHouz in Northern Virginia

sweathouz-franchise-northern-virginia-natalie-siewers

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Thursday 1851 Franchise Agg - NASAA’s Noncompete Push

NASAA’s Noncompete Push Puts Franchise Growth on Uncertain Ground

franchise-noncompete-nasaa-advisory-reasonableness-standard

How a Steady Economy Could Help Franchisors Plan Their Next Move

how-a-steady-economy-could-help-franchisors-plan-their-next-move

Bed Bath & Beyond - Franchise Expansion - Retail Strategy - 1851 Franchise

Bed Bath & Beyond Launches Franchise Model as Part of Comeback Strategy

bed-bath-beyond-franchise-expansion-retail-strategy

Senior Entrepreneurship - Franchising - 1851 Franchise

Senior Entrepreneurship Is Rising — And Franchising Is a Key Outlet

senior-entrepreneurship-franchising-silver-startups

U.S. Government Shutdown - Impact on Franchises - 1851 Franchise

Government Shutdown Stalls SBA Loans: How the Shutdown Could Impact Franchises

government-shutdown-impacts-sba-loans-tourism-franchises

image of franchise deep dive from 1851 franchise on doody calls franchise authority brands

DoodyCalls Franchise Costs, Fees, Profit and Data for 2025

doodycalls-franchise-deep-dive

image of mellow mushroom deep dive into financials article from 1851 franchise

Mellow Mushroom Franchise Costs, Fees, Profit and Data for 2025

mellow-mushroom-franchise-deep-dive

How goGLOW Turned Clean Beauty Into a Scalable Franchise and Why It’s Accelerating Now

goglow-clean-beauty-tanning-franchise

Shoot 360 Aims for the Topgolf Model, Using Elite Basketball Tech to Appeal to Players '7 to 70'

shoot-360-franchise-growth-tech-basketball-brad-butterworth

A Practical Playbook: Who To Call First When Franchising Your Business

franchising-your-business-who-to-call-first

NJCAR v. Ford - New Jersey Supreme Court Limits Standing Under Franchise Practices Act

New Jersey Supreme Court Limits Standing Under Franchise Practices Act

new-jersey-franchise-practices-act-njcar-v-ford

image of jerome hanway from right at home Las Cruces, New Mexico 1851 franchise franchisee spotlight

Jerome Hanway Is Building His Right at Home Franchise Around His Mission To Serve

right-at-home-franchise-las-cruces-jerome-hanway

Power Eats: Smoothie King Rolls Out Food Nationwide To Fuel Franchise Growth

smoothie-king-food-menu-power-eats

1851 Keyword - The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

part-time-franchises-picking-the-right-model

What Are the Different Types of Food Service Franchises?

MORE STORIES LIKE THIS