What Restaurant & Food Franchising Will Look Like In 2021

  • Manish Khanna
  • Evaluation
  • January 12, 2021
What Restaurant & Food Franchising Will Look Like In 2021

Every dark cloud has a silver lining. However, it may be a bit tough to visualise the saying in terms of the COVID-19 pandemic. Believe it or not, but the challenges thrown up by the contagion have indeed given birth to innovations in the restaurant industry. Although it is one of the worst-affected sectors because of the lockdown and the social distancing norms, the restaurants and cafes have managed to stay afloat. The continuance of the takeaway and delivery service ensured that national-level chains, as well as local operators, survived. Also, the freedom to deliver alcoholic beverages helped in improving the number of orders for contactless deliveries.

As we are approaching 2021, the worst seems to be over since cases have decreased considerably and life is coming back to normalcy. The laid-off staff from the financially distressed restaurants and cheaper financing have opened the doors of a new opportunity for budding restaurant franchisees. The New Year will allow them to hire these well-trained but unemployed individuals and get cheaper leases for new outlets. Thus, passionate individuals planning to purchase a franchise for sale in Australia can make the most of this current economic situation to lay the foundation of a solid restaurant business. It is also the best time for the franchisors to expand as they can leverage the high rate of unemployment and low rent to begin viable new units. Here is what the experts are predicting restaurant franchising in 2021.

Franchise Businesses Will Be in Demand

Post the easing of restrictions most individuals are looking at owning a franchise business. The reason for this choice of career is the low-risk attribute of the business model, along with the advantages of training and ongoing support. It will allow them to have more control over their professional growth and finances. The franchisors too will be keen on expanding their portfolios as it would mean increased revenue streams without making any fresh investment.

Understanding this sentiment of the buyers, the franchising expo is coming back to Sydney, Perth, Brisbane, and Melbourne in 2021. It will help potential franchisees to acquire the best opportunities ranging from homegrown brands to international food chains. The rise in unemployment will further increase the number of qualified candidates which will help the franchisors to find the ideal food entrepreneurs. Naturally, the demand will be at an all-time high.

Brands Will Be Coming Up with New Outlets

There have been recent announcements from renowned food brands about the launch of new outlets in the country in 2021. It has got a variety of food entrepreneurs excited. The homegrown and highly popular pizza chain, Crust is in the process of opening ten new stores in the country in 2021. The brand has over 140 outlets operating in Australia currently and has big plans in the future. The company recorded a growth in its sales in 2020 and is optimistic about the new year.

Similarly, the international burger franchise, Five Guys, has decided to set its foot in the country in a few months. It will be partnering with Seagrass Boutique Hospitality to enter the prolific markets of Sydney, Melbourne, and Brisbane in the initial phase. Thus, the higher competition will bring back the lost sheen of the industry and the confidence of the customers to come back to the eateries.

Effective Due Diligence Opportunity

The pandemic has affected the bottom-line of several restaurant franchises because of the lockdown. Thus, many potential buyers may not be happy to look at the franchise disclosure document as the numbers will be disheartening. However, it will give them the best prospect of looking at the support provided to the franchisees during the crisis. It will give them a window to peek into their ability to handle financial trouble and the effectiveness of the assistance extended to their network. It will also help them to assess the liabilities, leadership qualities and businesses processes. It may make the franchisor put in a little more effort in convincing the buyers about their renewed strategy in the post-COVID world.

Also, they will have to provide the details on how they will manage if the restrictions come back due to a second wave before the vaccination. Speaking to existing franchisees will help the buyers to conduct precise due diligence and make an informed decision.

New Infrastructure Development

The shutdown of the most thriving cities in the country had affected all types of businesses. Therefore, most of them utilised the period to prepare for the unprecedented conditions. Many introduced takeaway and improved their online presence and created their own mobile apps to connect with the customers in the virus-hit world. Food delivery apps like Uber Eats, Menulog and Deliverooalso helped small restaurants to start delivering without hiring delivery boys for the service.

However, the commission was a problem, so many started to look at other third-party delivery systems. Thus, many franchisors have been rethinking about infrastructure development to cope with the changing scenario.

Emphasis on Financial Management and Cost Cutting

Since most of the franchisors have received a setback in the past few months. It will be a time to clean up the mess created by the novel coronavirus and start afresh. They will have to ensure to keep a close watch on the expenses and reduce the redundant costs that do not hold a place in the current situation. They will have to conduct audits to identify the cash consuming processes and restrict them to increase the flow of capital for all the units. The franchisor can strike deals with vendors and suppliers to sell at a discounted rate to the franchisees.

However, they will also have to make sure that the quality and the standardisation maintained by the brand is not sacrificed.

Reinstating the Faith of the Audience

Several restaurant franchises have enjoyed the loyalty of their customers without any hurdles in Australia. The country is known for its world-class cuisine, talented master chefs, baristas, scintillating food scene and gastronomic delights. The people love to dine-out and dig into their favourite dishes from specific restaurants. However, the pandemic has made all of them take a backseat.

Thus, it is the responsibility of the franchisors to restore the trust of the target audience is coming back to the restaurants. They will have to be aware of the health risks and take stringent measures to ensure maximum safety at the workplace for the employees as well as the clients. It will help in getting the customers back as quickly as they can.


The coming few months will witness a shift in the restaurant industry, which will make it ready for the future and more sustainable. Thus, there is little doubt that buying a restaurant franchise for sale in Australia is the most workable solution for aspiring food entrepreneurs in 2021.