Will The Sugar Tax Affect Sweet Treat Franchises?

17/04/2018 08:00 | Start a business

Top sweet franchises in the UK

On the 6th April 2018, the UK sugar tax on soft drinks came into force. Now manufacturers will have to pay tax on any sugary drinks that they sell. This has led to many soft drink firms, including famous brands such as Fanta and Ribena, cutting sugar content to avoid the tax, meaning that the change has already been heralded as a success by campaigners.

Other sugar-laden products such as cakes, biscuits and ice creams, are not covered by the tax, although a separate Public Health England (PHE) initiative is challenging businesses to cut sugar by 20% by 2020. The purpose of this challenge is to help make UK children healthier. Worryingly, children are consuming three times more sugar every day than they should, leading to weight gain and obesity. Currently, 25% of UK primary school children are overweight or obese, and by the time they start secondary school this figure increases to 33%.

The guidelines will apply to retailers and manufacturers as well as bakeries, coffee shops and fast food restaurants, so how will this affect popular franchises in the restaurant sector that specialise in offering sweet treats for their customers?

Well, PHE's sugar reduction programme is voluntary, and it has no way of forcing companies to comply, but dessert franchise and ice cream franchise brands may seek to reduce the sugar content in their product range anyway. As a franchisee, this shouldn't affect you as the franchisor will decide on any recipe changes.

But despite there being an increasing focus on healthy eating, UK consumers continue to enjoy their sweet treats. In fact, while they are decreasing their intake of sugary delights at home, they are saving their indulgences for when they eat out. Choosing quality over quantity is good news for franchises such as Crepeaffaire, Amorino and Baskin Robbins, which means that these popular franchises are still a good investment for budding entrepreneurs.

Our top sweet franchises in the UK

Here is a bit more information about these opportunities if youre considering opening a dessert franchise or ice cream franchise.

Crpeaffaire

Crpeaffaire is a fast food franchise with a difference. They serve freshly baked crpes using organic flour and entirely natural ingredients. Their philosophy is to encourage customers to view their savoury and sweet crpes as a luxury while being a healthier alternative to other desserts. And with limited competition, since Crpeaffaire was founded in 2005, it has become the UKs market leader.

And as no kitchen is required to run this dessert franchise, the location you choose for your new business can be very flexible. This means that franchise fees start from as little as £16,000 plus VAT for a smaller store; making this a more affordable opportunity for prospective franchisees.

When you become a franchisee, you'll receive training and support to help you grow a lucrative business. Youll get help with site selection and design; you'll be introduced to nominated suppliers and receive a full set of operations manuals. Youll also be supported to identify potential customers, and learn how to attract these using marketing tools, and collateral.

Amorino

The concept for Amorino was born in Paris in 2002, and by 2005 the founders were ready to share their gelato making know-how with others and the franchise was established. Not only do the gelato, sorbets and desserts taste amazing, but Amorino aims always to choose the highest quality ingredients. No artificial elements are included, and only the freshest fruit and milk are used achieve the most natural of flavours.

To be considered as an Amorino franchisee, youll need to demonstrate that youre prepared to dedicate time and effort into making your business a success. Youll also need to combine your commercial and organisational skills to manage your team of employees effectively. You should be prepared to get your hands dirty, listen to your customers and be willing to accept change as the brand is continually evolving and developing.

Depending on the size and location of the store, the franchise fee is likely to be between £30,000 and £150,000. Amorino also requires prospective franchisees to maintain financial liquidity of £200,000.

Training and support are available to help you prepare for the launch of your gelato boutique, with ongoing training programmes in place once your business is up and running. The purpose of the continual training is to develop your skills to get you ready to own and operate several Amorino stores.

So, if you are ambitious and keen to become a multi-unit franchisee, this innovative and prestigious business based on premium quality products could be the perfect opportunity for you.

Baskin Robbins

With its unmistakable dcor and branding, theres no missing the 150 Baskin Robbins stores that reside in high streets and retail parks up and down the country. This ice cream franchise is now the leader in the industry and is renowned for offering its customers with affordable luxury.

If youre interested in becoming a Baskin Robbins franchisee, youll need to have experience of working in the Quick Service Restaurant (QSR) industry and be committed the brand. From a finance perspective, youll need to have least £11,000 minimum investment for a 10-year franchise term and at least £100,000 liquid assets for single store investment. There are no royalty fees, but you will need to pay an advertising fee of 2% of gross sales.

As a franchisee, youll also get access to a comprehensive training and support package which includes technical training delivered in store, classroom-based business management training, online learning, and mentoring from an experienced field-based support team. Youll get all the advice and guidance you need to enable you to own and operate a profitable franchise with this exciting brand.

So, despite positive changes being made to the food industry to make sure that the future generation grow up happy and healthy, there are still plenty of opportunities to own a franchise in the sweet treat sector. It's all about balance, and there is still a place for these popular franchises to thrive alongside an increased focus on healthy eating.

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