In a new article published by QSR Magazine, Roger Lee explores various ways that Quick Service Restaurants (QSRs) can raise the capital needed to expand their presence into consumer packaged goods (CPG). The piece, “Strategic Funding Pathways for QSRs Expanding into CPG,” examines the evolving QSR landscape and how brands are looking to CPG as a way to diversify revenue streams.
“With operating costs rising and consumers demanding good quality and value, restaurants turn to new revenue streams that leverage their brand equity.” Roger writes. “The expansion from QSR to CPG represents an opportunity for brand extension and revenue diversification.”
He continues on to describe different funding options for CPG development, such as crowdfunding platforms, revenue-sharing models, and traditional equity financing, as well as the benefits and drawbacks of each.
Noting the challenges and opportunities that come along with expansion into the CPG sector, Roger concludes by stating that the most optimal strategy for QSRs is to “combine multiple funding mechanisms tailored to different development stages.”
