Franchising News
Fast Food Franchises With "indulgent" Menus Can Benefit From Rough Economy
Written by Jenna Weiner
Published: 8/17/2011
Fast food franchises are doing just fine in the down economy, particularly those who cater to customers who are interested in indulging themselves.
In franchising news sure to please taste buds and inflate waste lines, fast food franchises with "indulgent" menus are more likely to resonate with customers in the current economy, an industry expert told StartUp Smart's website.
Jason Gehrke, director of the Franchise Advisory Centre, said in the news source that fast food franchises, a part of the entertainment category in the franchise game, typically perform well because they provide a sense of escapism. He said "a bucket load of KFC is a pretty good form of escapism."
An Australian food franchisor, Retail Food Group, posted a net profit of $27.9 million in 2011, up 4.6 percent from 2010. The company said the result would have been higher if not for weather disasters that hit 193 of the outlets.
Fast food is the top franchise industry, according to AZ Franchises' website. Franchising is an industry that brings in more than $2.1 million to the United States' economy, accounting for 40 percent of all retail sales. One out of every 12 businesses in the United States is a franchise, according to the website.
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