• Home
  • News
  • Personal Finance
    • Savings
    • Banking
    • Mortgage
    • Retirement
    • Taxes
    • Wealth
  • Make Money
  • Budgeting
  • Burrow
  • Investing
  • Credit Cards
  • Loans

Subscribe to Updates

Get the latest finance news and updates directly to your inbox.

Top News

Amazon, Starbucks, Home Depot in the Hot Seat As Boycotts Heat Up

July 2, 2025

Check Your Budget: 15 Cities and States Are Hiking Minimum Wage in July

July 2, 2025

10 Budgeting Rules That Are Quietly Hurting Middle-Class Families

July 2, 2025
Facebook Twitter Instagram
Trending
  • Amazon, Starbucks, Home Depot in the Hot Seat As Boycotts Heat Up
  • Check Your Budget: 15 Cities and States Are Hiking Minimum Wage in July
  • 10 Budgeting Rules That Are Quietly Hurting Middle-Class Families
  • How One Founder Is Rethinking Supplements With David Beckham
  • Why Your Finance Team Needs an AI Strategy, Now
  • AI Startup TML From Ex-OpenAI Exec Mira Murati Pays $500,000
  • He Went From $471K in Debt to Teaching Others How to Succeed
  • Summer Financial Checklist
Wednesday, July 2
Facebook Twitter Instagram
FintechoPro
Subscribe For Alerts
  • Home
  • News
  • Personal Finance
    • Savings
    • Banking
    • Mortgage
    • Retirement
    • Taxes
    • Wealth
  • Make Money
  • Budgeting
  • Burrow
  • Investing
  • Credit Cards
  • Loans
FintechoPro
Home » Don’t Call It Fast Food: The Pros And Cons Of Investing In Quick Service Restaurants
Wealth

Don’t Call It Fast Food: The Pros And Cons Of Investing In Quick Service Restaurants

News RoomBy News RoomAugust 6, 20231 Views0
Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Email Tumblr Telegram

Quick Service Restaurants (QSRs) are all around us. Toasttab reports that 37% of US Adults consume fast food everyday. In 2022 the market size grew to over 362 billion according to IBIS world. QSRs, like Chipotle, are seeing digital sales increase by over 216% fueled in part by the pandemic. As the industry changes, so too must the busines model and that makes an interesting opportunity for investors.

Let’s Look at the Numbers

As reported by CNN, each day approximately 84.8 million American consume fast food. From 2017 – 2022 the market share for QSRs has grown 3%. Further, Quick Service Restaurants represent 50% sales in the restaurant sector.

While most of us know them as fast food restaurants, the industry refers to them as Quick Service Restaurants or QSRs. While there are many QSRs, they have several things in common. They are known for their fast services and limited menus. They typically offer a drive thru and takeout options with no wait staff. The options on their menu are typically between $1 and $10. We know them as brands like McDonald’s, Wendy’s, and KFC.

QSRs Investment Opportunity

Most of us will never have the desire, time, or funds to operate a fast food restaurant, but they can still be a part of your investment portfolio. Most people are familiar with mutual funds, but there are also funds for Quick Service Restaurants. There are accredited/alternative investment firms that specialize in the QSR space. They tend to build up a portfolio of similar QSRs in an areas. These funds aim to buy and improve individual franchise locations. By replicating what was successful in another location, they become more successful. The more locations that are owned, the less risk of competition, which is another way that these funds often earn more of a profit. For reference, most small “mom and pop” owners don’t have the capital funds to revamp and modernize restaurants, especially as many are increasing digital. Each of us has been to an “older” looking QSR and noticed. QSR funds are able to pool resources from their investors and enhance individual locations.

Quick Service Restaurant funds are also beneficial to current franchise owners who are looking to retire. Most franchisors have rules about selling. Often the franchisor will approve owners who already own their brand of franchise, the more the better, because it shows success within the brand. Selling a franchise to a QSR fund who already owns your brand increases the chance of a sale being approved. This allows QSR funds to buy more at better prices, which is a win for investors.

QSR Funds Might Not Be Right For You

The biggest con to Quick Service Restaurant funds is that they are not liquid. Each fund will have its own rules and terms, but in general they illiquid and there is a risk of losing an entire investment. These funds offer no guarantee of investment or rate of return. For these reasons, if you are considering QSR funds to be part of your alternative investment portfolio they should be a small part of your investable asets.

Owning QSRs is not for everyone. But, they are an alternative investment, away from your traditional stocks and bonds that may be more recession proof.

Frederick Hubler is the founder and CEO of Creative Capital Wealth Management Group, a retainer-based wealth strategy firm specializing in alternative strategies located in Chester County, PA.

Securities offered through Arkadios Capital, LLC (Member FINRA and SIPC).

Past performance does not guarantee or is indicative of future results. This summary of statistics, price, and quotes has been obtained from sources believed to be reliable but is not necessarily complete and cannot be guaranteed. All securities may lose value, may not be insured by any federal agency and are subject to availability and price changes. Market risk is a consideration if sold prior to maturity. Information and opinions herein are for general informational use only and subject to change without notice.

Read the full article here

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Articles

Expecting Expenses To Decline In Retirement? They May Rise

Wealth November 30, 2023

Comparing Job Offers: Going Beyond Base Salary

Wealth November 28, 2023

Where Do You Stand? Compare Your Net Worth To The National Average

Wealth November 23, 2023

Investment Lessons From Your Thanksgiving Turkey

Wealth November 22, 2023

FinCEN’s New FAQ On Reporting Beneficial Owner Information

Wealth November 20, 2023

Meta, Alphabet, Disney: 3 Top Holdings Of This ETF Hitting New Highs

Wealth November 20, 2023
Add A Comment

Leave A Reply Cancel Reply

Demo
Top News

Check Your Budget: 15 Cities and States Are Hiking Minimum Wage in July

July 2, 20250 Views

10 Budgeting Rules That Are Quietly Hurting Middle-Class Families

July 2, 20250 Views

How One Founder Is Rethinking Supplements With David Beckham

July 1, 20250 Views

Why Your Finance Team Needs an AI Strategy, Now

July 1, 20250 Views
Don't Miss

AI Startup TML From Ex-OpenAI Exec Mira Murati Pays $500,000

By News RoomJuly 1, 2025

The $10 billion AI startup Thinking Machines Lab (TML), which was founded by former OpenAI…

He Went From $471K in Debt to Teaching Others How to Succeed

July 1, 2025

Summer Financial Checklist

July 1, 2025

3 Gently Used Cars You Can Still Buy for Under $20,000

July 1, 2025
Facebook Twitter Instagram Pinterest Dribbble
  • Privacy Policy
  • Terms of use
  • Press Release
  • Advertise
  • Contact
© 2025 FintechoPro. All Rights Reserved.

Type above and press Enter to search. Press Esc to cancel.