5 Benefits of a Franchise Supply Chain

A streamlined supply chain keeps ingredients fresh, deliveries on time, and restaurant operations running seamlessly. Learn the benefits of a franchise supply chain and how it impacts your bottom line. 

The foodservice industry is competitive. One out of every 10 Americans works in the restaurant sector and it contributes $1.4 trillion to the U.S. economy, according to the National Restaurant Association. Yet at least 30% of restaurants fail. Tapping the resources of a franchise offers security and may improve your chances of success. 

When you join a franchise, you reap the benefits of an established brand, proven business model, training, and ongoing support. You’ll also use the franchisor’s approved vendors and suppliers to take advantage of economies of scale. A franchise system’s supply chain is an important factor in determining whether the business functions effectively and has strong growth potential. It also ensures customers have a consistent experience, reinforcing the brand’s strength. 

Let’s take a closer look at how foodservice franchises benefit from an established supply chain: 

1. Cut Costs and Improve Profit Margins

Competition is also fierce among franchise restaurants. According to the International Franchise Association, there are more than 180,000 fast-food franchise locations and 31,000 table-service franchises in the U.S. A competitive market makes restaurant franchisees particularly sensitive to their profit margins. Every dollar spent directly impacts the bottom line. Last year, 58% of restaurant operators said rising inventory costs were their biggest cause of financial strain.  

Centralizing purchasing enables franchisors to negotiate bulk rates with suppliers, reducing costs for franchisees and improving profit margins.  

2. Improve Consistency and Quality

A franchise is built on a proven concept and the ability of multiple units to operate under a common system that offers high-quality, uniform products and services. Customers need to receive consistent experiences at all locations. A franchise supply chain enables each location to receive the same quality ingredients, materials, and products to protect the brand’s reputation. It takes the guesswork out of ordering to save franchisees time.

3. Streamline Inventory Management

As part of a franchise, you’ll gain access to the latest technology to help manage your supply chain. Franchisors provide ordering systems that simplify inventory tracking, reduce overstock, and limit supply shortages.  

Large franchise operators, like Hungry Howie’s, employ dedicated distribution systems and technology to ensure ease of use for their franchisees, allowing them to spend more time on the most important part of their franchise operations – the satisfaction of their customers. 

4. Enhance Franchisee Support and Retention

Franchisors know a reliable distribution network is an important part of building a strong franchise system. This, combined with recruiting top franchise candidates, enables them to grow. At Hungry Howie’s, we understand that providing our franchisees with a best-in-class supply chain operation allows them to focus their energy and efforts where needed, which only strengthens our brand. 

5. Improves Adaptability

Having multiple partners in the supply chain gives our franchisees the luxury of staying abreast of the latest innovations, such as eco-friendly packaging or new dietary trends, enabling them to stay ahead of the competition. A battle-tested supply chain reduces risk for Hungry Howie’s franchisees with an increased ability to pivot in response to a natural disaster or unexpected supply disruptions.

Hungry Howie’s Supply Chain Fuels Franchise Growth

Hungry Howie’s franchises more than 520 restaurants in 21 states and we’re still growing. We opened multiple new locations in 2023, ending the year with 11 new franchisees in the system.  

Over the past 51 years, we’ve established and refined a robust supply chain for our local owners. Our distribution network supports franchisees with reliable service and provides all the products they need to operate their business. Whether you want to open a single unit or become an area developer with multiple locations, the strength of our supply chain will help you reach your financial goals. 

Our three-week in-store operations training program at our training locations in Michigan and our one week of online business training, are designed to teach you everything you need to know to be successful in the foodservice industry, including the systems and technology to manage your supply chain needs. 

Get started to learn more about partnering with Hungry Howie’s to open a pizza franchise with a history of success.