The food and drink franchise sector is proving to be one of the brightest spots in franchising this year, with 2025 shaping up to be another strong chapter for this ever-evolving industry. While economic headlines may shift daily, the reality on the ground or more appropriately, in the kitchen, is one of resilience, creativity, and steady expansion. By Rose Mango
COVER STORY
The food and drink franchise sector is proving to be one of the brightest spots in franchising this year, with 2025 shaping up to be another strong chapter for this ever-evolving industry. While economic headlines may shift daily, the reality on the ground or more appropriately, in the kitchen, is one of resilience, creativity, and steady expansion.
According to the International Franchise Association’s 2025 Economic Outlook, the broader franchise economy is projected to top $936 billion in output this year. That’s a healthy 4.4% increase from 2024 and a clear sign that franchising continues to outperform the U.S. economy, which is growing at a more modest pace. Within that big picture, food and drink brands still hold a lion’s share of the spotlight.
The IFA notes that food retail, services, and products are the second-fastest growing category in franchising, just behind personal services. The segment is expected to grow by 3.5% this year, driven by a perfect mix of consumer demand, innovation, and shifting dining habits.
One of the strongest forces shaping this growth is the continuing rise of plant-based dining. No longer niche, plant-based options are moving into the mainstream with force. Statista projects the global plant-based market will hit nearly $78 billion in 2025. Big names like McDonald’s and KFC have made headlines by integrating meat-alternatives into their menus, and many emerging food brands are building their identity around clean, alternative ingredients from the start.
Sustainability is another factor consumers are no longer just asking for – they’re expecting it. A recent study found that over 40% of consumers are willing to spend more at restaurants that visibly operate with sustainability in mind. In that Deliverect Study, franchises are responding, with initiatives ranging from compostable packaging to sourcing ingredients locally and ethically.
Growth is especially strong in the Southeast and Southwest regions of the U.S., where franchise-friendly policies and booming populations are creating ripe conditions for expansion. States like Florida, North Carolina, and Georgia are seeing some of the highest output growth, according to the IFA’s regional data.
All signs suggest that the food and drink franchise space isn’t just holding its ground in 2025 – it’s actively pushing forward. With a blend of innovation, sustainability, and consumer-driven trends, it’s a segment that continues to prove just how much opportunity lies in a well-prepared plate.
Rose Mango