Franchise Talk

Organic Food Franchising Opportunities

July 20th, 2006 | Author: Jack

The organic food industry is booming and people wanting to enter this field can do so through a number of franchises.

Organic food products are items that have been created naturally, with no pesticides or chemicals being added.

Figures released by the UK’s Soil Association show that sales growth increased by 30 per cent in 2005 to a total of 1.6 billion, which was a rise of 7 million a week on average.

In contrast, the current annual growth for all UK food and drink sales is around three per cent.

The Soil Association said that two out of three consumers (65.4 per cent) are now knowingly buying organic food.

Organic food is also becoming more popular in the US. The Organic Trade Association recently revealed that sales totalled nearly $14 billion in 2005, almost double the $7.1 billion recorded in 2001.

When it comes to choosing a franchise, people can own a store or deliver products in vans.

If franchisees run an organic food shop, they need to ensure the location is best suited for the type of business.

It should be in an area of a town or city that people can easily access and where a large number of people go. However, while having a few other food stores in the area could help the business to attract hungry customers, too many would dent profitability – particularly if they sell organic food – and so franchisees must look into their competition in detail.

If delivering organic food, franchisees can work from home or an office, but they should carry out extensive market research to find out which areas of a town and city and what types of people buy the most organic food so they can be prioritised.

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