Fresh Food Franchise Picks

Americans adore all things fresh: fresh beginnings, fresh outlooks and now, more than ever, fresh foods. According to a survey conducted by Datamonitor, the natural food and drinks market is expected to surpass $27.5 billion by 2007, and the number of natural-food consumers in the U.S. is expected to grow from 216 million in 2002 to 266 million in 2007.

The bottom line is that Americans are no longer willing to eat whatever is easiest or cheapest. Better-educated consumers are searching for fresh, unprocessed, healthy foods -- and this dietary change is fueling what we predict will be the next big trend in franchising: fresh-food franchises.

What's driving this trend? "The major thing affecting these fresh-food concepts is the fact that there's a [tremendous] amount of media convincing us we're getting fat," says Aaron Allen, CEO of Quantified Marketing Group, an Orlando, Florida-based full-service strategic marketing and PR firm that works with 2,000 restaurants.

Also fueling the fire is what Allen calls "the trading-up phenomenon." Consumers are increasingly willing to spend more for products that matter to them. "People would rather pay $12 for a martini than $6, because they expect a $12 martini to come in a different kind of glassware and be served in a different atmosphere," says Allen. "So the trading-up phenomenon plays perfectly into this shift toward fresher foods."

Meanwhile, consumers' hectic lifestyles are making it increasingly difficult to prepare fresh foods at home, says Harry Balzer, vice president of The NPD Group Inc., a provider of consumer retail information in Port Washington, N.Y. This is driving consumers to turn to restaurants for fresh foods.

Whatever is fueling this trend, we know that what consumers want, entrepreneurs are quick to deliver. We at Entrepreneur can already feel the momentum building and foresee tremendous growth in a new segment of franchises carving out their own healthy and fresh niche. We talked to some key players to find out more about this trend and determine what the future holds in this up-and-coming market. Bound by a common focus on fresh and healthy eating, these players unanimously agree that franchising is the way to their future.