How Fast Casual Tops Franchise Growth with Better Bottom Lines

Nobody should be surprised that fast casual leads all other industry segments in overall sales growth and unit growth. Observers could plainly see that in Technomic’s Top 500 Chain Restaurant Report, or with their own eyes, as the newest restaurants in town are probably fast-casual concepts and are probably packed with a line to the […]

Rethinking Refranchising in the Restaurant Industry

Over the past few years, refranchising has been a big theme in the restaurant industry. Chain executives reason that they can generate cash from sales, spread risk and reduce capital expenditures while retaining most of the potential future profits. And without day-to-day operational responsibilities, they can focus on marketing the brand. So they have gone […]

Top 500 Brands Keep Franchisees Close — and Sales Growth Closer

If I had a dollar for every time over the past five years that I’ve heard, “Franchisees are just better at running stores than giant corporate brands,” I would probably have enough money to pay any chain’s franchisee fee and build a new restaurant. Such conventional wisdom seemed airtight recently, as franchise-unit openings have far […]

Burger King’s Profitable Franchise Model

Burger King reported another strong quarter with double digit growth in EBITDA and net income, which grew 12.1% and 19.4% respectively in Q2-14 on a year-over-year basis. Reducing its base of company-owned stores to 52 units, from 1,295 in 2011, the company’s 100% franchise model has proven successful and maximized shareholder value. Refranchising benefited the […]

Restaurant Franchising Encourages Brand Focus and Growth

Restaurant companies continue moving toward a franchise growth model by selling company-owned stores to raise money and reduce capital expenditures, thereby focusing more on the brand and less on operations. Another draw for restaurant companies is that franchising allows for rapid brand expansion while shifting much of the financial risk of unit development to the […]

Expanding U.S. Restaurant Franchising Systems

Franchisees are the driving force behind many of the top-selling restaurant brands in the U.S. and internationally. Many restaurant chains have consistently relied on franchising as their primary expansion strategy, while others that have traditionally preferred company operations are now revising their strategies in an effort to shift risk and investment expense. The table below […]