TRENDS |

Sweet Success: 7 Reasons Why A Dessert Franchise Is An Excellent Investment in 2023

Written by Amit Sharma, Community Development Manager

Have your cake and eat it too!

No other business venture fits the idiom as much as a popular dessert franchise in Singapore.

Keep reading to discover why launching a dessert franchise is a low-cost, high-reward opportunity of a lifetime.


It is scientifically proven that humans are evolutionarily hardwired to prefer sweet and fatty tastes because they are a very efficient source of energy. So, when you combine this knowledge with a bit of innovative thinking, you might get the perfect recipe for your F&B business success.


Since desserts enjoy a target market across all genders and age groups, it helps a dessert franchise owner easily extend the reach. Moreover, as people embrace a healthier lifestyle, the sales of desserts that boast all-natural and organic ingredients will rise. Thus, making this niche a lucrative franchise investment opportunity.


So, Suppose you have a sweet tooth, possess an entrepreneurial spirit and are looking to invest in a food franchise; a dessert franchise may be right for you! You'll be amazed how quickly the dessert franchises make for a profitable investment.



7 Reasons Why Dessert Franchises Deliver High ROI


#1 The F&B industry and Food Industry Is Worth More Than $6.3 bn!

The money is huge! The global frozen dessert market is expected to reach US$ 100 Bn by the end of 2022, and Asia Pacific promises to be the largest region in the food and beverages market. But that's not all; the Asia Pacific Frozen Desserts Market is poised to grow at a CAGR of 4.5% by 2027.


Therefore, since the market size and the expected growth rate going ahead are very positive, it makes investing in a dessert franchise a sweet deal.


#2 There Are Plenty of Opportunities to Find Your Niche

Though the dessert industry is a sub-segment of the broader food service industry, the variety of desserts worldwide is enormous, including sweet pastries and chilled and frozen desserts of all types. You'll be amazed at the plethora of options available once you start researching for the perfect dessert franchise to invest in. Moreover, the franchise model is best suited to the dessert market since it can be easily replicated and broadly appeals to demographic segments and consumer groups.


The dessert niche offers plenty of segments and opportunities, from local traditional desserts like Chendol to sweet pastries and chilled and frozen desserts of all types. Artisanal desserts further have an irresistible appeal because of the unique concepts offered by producers that may become viral and pique the consumer's curiosity.


#3 There's Always Room for Dessert

There's always room for dessert! You can't buy happiness, but you can buy dessert, which is the same thing. The familiarity, nostalgia, and sensory and cultural associations ensure that desserts have an evergreen market. According to Mintel research, 56% of Asian consumers eat desserts to treat or indulge themselves.


It turns out there's even a scientific reason why there's always room for dessert, and it's called Dessert Stomach or sensory-specific satiety, as it is known more scientifically. It is the phenomenon where the more food you eat of the same kind, the less appealing that food becomes. Because a dessert introduces a new experience in terms of flavour, smell, and sight, it breaks the monotony of the meal.


#4 Dessert Franchises Require Minimal Inventory

What also makes dessert franchises a profitable venture is the fact that one needs to carry low inventory. So, there's very little to waste, and the list is straightforward to manage. Thus, eliminating the hassles of inventory costs and other related issues usually have managers and workers to complain, often impacting restaurant food costs and cash.


#5 Less Investment and Low Associated Costs Than Other F&B Franchises

Dessert franchises require less investment and less overhead, unlike a restaurant franchise, where the start-up costs can be overwhelming, especially for those venturing into the F&B industry through the franchise route for the first time. So, it is because, in addition to the initial investment, there are high overhead costs, labour costs and rent, not to mention the technology costs as well as expenses on décor, licensing and other associated costs.


A dessert franchise eliminates all the hassles, so if the idea of running your F&B outlet appeals to you but you would like it without the hassles and additional costs, a dessert franchise is a great choice.


#6 Low Investment and Streamlined Operations

The low investment means you can recover the investment in under 18 months to less than three years. Since premise requirements are not too large and are somewhat flexible and diverse – it can range from a kiosk to a store. Therefore, these can be integrated into commercial shopping centres or locations with high traffic volume, thereby minimising rental costs and increasing revenue.


Unlike restaurant franchises, where the owner has to invest and deal with the hassles of costly kitchen supplies and equipment like fryers, ovens, dishwashers, and others, a dessert franchise does not require a complex kitchen setup which saves you money on the initial start-up investment cost.


Most Dessert franchises are usually about SOPs (Standard Operating Procedures) and do not require highly skilled workers or trained chefs, making them easy to manage. Thus, many dessert franchise concepts feature simple operations, minimal equipment and staffing requirements, and low start-up costs.


#7 No Major Kitchen Hassles

Unlike most cuisine-based restaurants that serve an expansive menu, a dessert franchise usually needs fewer ingredients because you are selling one type of meal – dessert. So, be it ordering ingredients, the inventory, cooking and preparing dishes, this hugely helps you cut the costs down and the kitchen hassles. Additionally, it has a more diversified business model that allows you to offer three standard business models – take away, delivery or dine-in.


5 Best Dessert Franchises To Invest in 2023


You can't buy happiness, but you can buy dessert, which is the same thing. But given the rising number of top dessert franchises in Singapore, it can be tricky for a budding franchisee to find the perfect fit. We've cherry-picked a few that consistently score high on popularity and deliver high ROI.


Old Amoy Chendol

Singapore's favourite artisanal chendol brand since the 1950s, crafted using a three-generation-old recipe to relive the authentic traditional taste of southeast Asia's iconic dessert. Old Amoy Chendol is famous for its traditional chendol, made fresh daily and available at just $2.


Learn more about the Old Amoy Chendol franchise opportunity at Franchise Feature – Old Amoy Chendol


Sugar Kid (糖仔)

From the house of Lao Ban Soya Bean curd, popularly considered the best dessert in Singapore since 2000, Sugar Kid (糖仔) offers a variety of soya bean and grass jelly products.

Learn more about the Sugar Kid (糖仔) franchise opportunity at Franchise Feature – Sugar Kid


Kopi & Tarts

A popular halal cafe that serves local kopi along with freshly baked tarts and pastries making it a refreshing take on the local kopi concept


Learn more about the Kopi & Tarts franchise opportunity at Franchise Feature – Kopi & Tarts


Ah Mah Homemade Cakes

Famous for its freshly baked castella cakes, the Ah Mah Homemade Cake franchise is inspired by the renowned egg sponge cakes from Tamsui (Danshui), Taiwan. It is famous for being the healthier choice as they use Grade AA high-quality, locally produced eggs procured from Singapore's N&N farm.


Learn more about the Ah Mah Homemade Cake franchise opportunity at Franchise Feature – Ah Mah Homemade Cake


Gelare

The Australian dessert chain, Geláre specialises in a natural range of gourmet ice cream that is creamier, thicker and more intensely flavoured. It is famous for its cooked-to-order waffles and pancakes that are much-loved by many.


Start Your Own Business: Invest in A Top Dessert Franchise Today


As a budding franchisee, it is vital to research the franchise opportunities and ensure the cultural fit with your own business goals. As you explore more sweet franchise opportunities in Singapore and Southeast Asia, you can trust Top Franchise Asia to be your best source of unbiased market research. You can see the complete list of Top-Rated Food Franchises here.


To find your dream franchise business model, reach us at enquiries@topfranchiseasia.com.

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