QSR Magazine: Ten Reasons Quick-Service Brands Are Selling

Running your own business, especially a restaurant, is no easy task. Working long hours, hiring good employees that will stick around, picking the right real estate, and constantly pleasing customers are all challenges an owner can struggle with. According to a recent QSR Magazine article , none of these reasons are stopping major equity firms from adding restaurant brands to their portfolios. In the last few months, Wetzel’s Pretzels, Cicis, Jimmy John’s and Baja Fresh all announced that they are changing ownership.

According to a handful of quick-service industry consultants, there are ten reasons why firms are still buying restaurant chains. Here are a few of the top reasons:

Money is cheap and available. Private equity firms have cash to spend and buying into the right small-to-medium-sized restaurant chain can be worth the low risk for them. “The cost of money is so cheap, it’s almost free,” says Christopher Muller, professor of hospitality at Boston University.

The restaurant industry is growing. “People are not going to stop eating at restaurants,” says Muller. Along with health care, the restaurant industry will only continue to grow.

Local can go big. Consultants are seeing more interest in local brands than ever before. Firms see a much bigger pay off and opportunity when they can get in on the action in the beginning of a small brand’s growth.