About Paperchase   

Paperchase is the leading global hospitality accounting firm. For over 35 years, Paperchase has provided bookkeeping and financial advising that drives restaurant profitability. Founded in London, the firm now has a global footprint, serving over 3000 restaurants globally. Paperchase’s teams ensure smooth day-to-day financial operations for franchisees of all sizes. Paperchase’s hospitality finance team are experts in franchising, assisting through every facet of operating a franchise – whether expansion or navigating local regulations. To learn about how we can support your business, click here.  

  

International Franchise Growth   

International expansion is a leading factor for the franchise industry in 2025, with brands looking to capitalize on emerging markets, specifically through QSR and fast casual businesses. The international franchise market, especially in the UK and Middle East, plays a large role in the global market. In Europe, QSR businesses like Five Guys, have seen growth at rates rivaling US counterparts. The burger joint has grown to over 250 locations across the UK, Germany, France, and Spain, a 14-unit increase from 2023. Despite inflation trends in the US, the GDP of Five Guys Europe rose 90 million euros between 2022-2023, proving the franchise’s global resilience.   

In the UK specifically, the franchise and QSR industry has shown signs of steady growth. According to the Barclaycard Consumer Spending Report, fast food spending was up 62% in 2021 as businesses began to recover from the pandemic. The UK QSR industry was reported to have one of the most efficient financial recoveries post-pandemic, with promising numbers going into 2025. McDonald’s and KFC are the largest segments in the UK, boasting over $5.3 billion in GDP.   

Companies like McDonald’s and Starbucks hold strong internationally, but the US appetite has shifted to newer establishments like Cava and Dave’s Hot Chicken, both of which had an extremely successful 2023, with signs pointing towards continued growth going into 2025. Franchisees seek to scale their portfolios by owning multiple units, especially in sectors like QSR. Companies like Burger King and Pizza Hut have successfully incentivized multi-unit franchisees, recognizing the financial resilience of large portfolios.   

 

United States Franchise Growth   

In 2024, the state of the franchise industry in the United States is undergoing a period of growth as it adapts to a fluctuating economy. In the past year, the franchising sector in the US soared past 800,000 recorded franchise establishments, contributing to $850 billion annually. According to the International Franchise Association, this led to a 5% rise in sales from 2023, proving the industry as a competitive asset in the wake of an uncertain economic future. Within the $850B, QSRs (Quick Service Restaurants) are the dominating segment with over $250B in annual revenue and over 300,000 units, the IFA claims. Leading the pack are Burger King and Jersey Mikes, with BK boasting 4.6% sales growth in Q1 of 2024.   

  

Trends Influencing Growth   

A leading factor for franchise expansion is the role of technology in the industry. One of the most impactful ways technologies are reshaping operations is through AI-powered systems that optimize everything from inventory management to staff scheduling. Automation has become a game-changer, with advanced point-of-sale systems, kiosks, and online ordering platforms minimizing human error and increasing efficiency during peak hours. Franchisors are prioritizing automation to save money on labor costs.  

  

For customers, these technological advancements translate into a more seamless and engaging experience. According to the National Restaurant Association, adult consumers are 30% more likely to use restaurant technology in 2024. Overall, franchises are an adaptable facet of the hospitality industry. Despite economic uncertainty going into 2025, QSR segments have shown resilience as they incorporate technological and social trends to keep up with a fluctuating market.