Mankato Fast Casual Franchise- Growth Potential

Business Overview:

For sale is a niche, fast casual restaurant in Blue Earth County, MN.  Featuring fully staffed operations, minimal owner involvement, and the support of a large franchise, this business is turn-key and ready for the next owner to launch the next level of success.

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Property Features and Assets:

The business operates out of an approximately 1,200 gross sq ft facility.  Located next to residential neighborhoods, patrons of this establishment seek out the healthy food served in this convenient location.  The facility was built out in the recent past and exudes both modern and clean vibes.

Assets = $167,000

Market Competition and Expansion:

This business is in a competitive market but stands out as a fast casual eatery that focuses on healthy options.

While shifting consumer preferences and a crowded food service landscape, fast food restaurants have maintained a steady pace of growth. Over the five years to 2025, industry revenue has expanded at a CAGR of3.9%, reaching $417.5 billion. Notably, 2025 alone will experience a 1.1%increase in revenue. The trend towards fast casual dining has bolstered the industry, helping fast food chains hold their ground amid fierce competition. As health awareness continues to rise, consumers demand healthier and alternative options to conventional fast food. To an extent, major chains have met this demand by introducing healthier menu selections. Other innovative measures included investments in meat substitutes and introducing various dietary preferences to attract a broader consumer base. However, the shift towards a healthier lifestyle has somewhat dampened demand for traditional fast food staples,leading to a decline in industry profit. –IBIS World

Between 2022 and 2025, fast food restaurants have grappled with surging operational costs, including purchase, utility, rent and labor.The collective force of these cost increases has depressed industry profit,reaching 4.6% of revenue in 2025. Higher minimum wages, especially in California, have been detrimental to fast food restaurant's bottom lines, which subsequently boost technology adoption such as AI drive-thus. Over the next five years, the fast food industry is expected to maintain its growth trajectory, albeit slower. With fast casual restaurants on the rise and consumer spending expected to climb, further revenue growth for the fast food industry is expected. However, the environment is forecast to grow slowly for fast food chains, as many segments within the industry approach saturation. Despite these challenges, successful operations in the industry will likely pivot in response to changing consumer preferences. In this evolving scenario, the concept of fast food is likely to expand beyond its traditional confines to include a broader range of choices. However, intense competition within the industry will continue to put downward pressure on prices, and hence, revenue growth is expected to slow over the next five years. Projections indicate a CAGR of1.3% over the next five years, bringing the industry revenue to $445.2 billion by 2030.  –IBIS World

Growing community partnerships and developing, maintaining and executing a robust customer acquisition strategy could deliver both short term and long term growth.

Reason for Selling:

Seller believes a local owner will be a better steward of the brand and business.

Additional Details:

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